A private residence club with a membership offering over 100 places to stay could be the best way to travel in 2021.
Photo courtesy of Palazzo Ricci
There have been several stories and statistics around the boom in real estate and particularly the second home in 2020. Increased interest and purchases in asset acquisition have primarily been domestic, but as we slowly inch toward having more confidence in traveling abroad, there is a window to take advantage of the opportunities elsewhere. While the global pandemic and its effects are not gone, there have been advancements: Between vaccine distribution, multiple vaccine options available and increased testing programs at airports that postponed trip to Paris, Capri, Berlin may no longer have to be a far-off dream.
And so then comes research and weighing advantages of different investment models. A single-home investment property purchase — perhaps, an urban condo, or a timeshare. At this stage of the market and the world, the best option may not be the most popular one — or even one you’ve heard of before, but certainly should consider—that of a private residence club.
What is a private residence club, and why should it be on your radar? Private residence club experiences are the future of travel. The first equity residence club was introduced almost 30 years ago at top-rated Deer Valley Resort in Park City, Utah. Since that time, residence clubs have been enthusiastically embraced by affluent buyers at premier destinations as diverse as Manhattan, the Rocky Mountains, Napa Valley, Bermuda, the Tuscan countryside and many other coveted international locations. If you purchase a private residence club, you own real estate, period. You can sell it through a licensed agent, or keep it as a legacy purchase for your family forever.
Fractional real estate ownership is a formalized method of owning a property with other like-minded buyers. This structure has been enthusiastically embraced in many prestigious international destinations and is increasingly popular in Europe. The most upmarket, fractionally owned properties are called private residence clubs. Residence club owners have an interest/share in one or more vacation residences with ongoing operations and maintenance costs proportionate to their ownership interest.
We know from experience — with many years in hospitality and development, and being multiple homeowners ourselves—what an ideal purchase should look like, and the questions you should ask when considering a purchase.
We believe in it so much that we are developing one currently: Polazzo Ricci — a 220-year-old noble palace building being reimagined into a private residence club debuting in 2022 in Casoli, Abuzzo, Italy, with 14 luxury residences rivaling accommodation at the world’s finest resorts.