Second Homes 411

Now more than ever, owning an equity residence clubSM property is proving to be a wise alternative to whole ownership, as Florida’s rising property taxes and insurance costs stifle the real estate market. Residence Club owners purchase a fraction of a home for a fraction of the price and share the ongoing costs with other club owners, thus mitigating the hassles and overhead associated with a traditional second home.
“Now is the perfect time to purchase luxury residence club ownership in Florida,” says Steve Dering of DCP InternationalSM, an equity residence clubSM consulting firm. “Developers have adjusted their pricing to the current market conditions and equity residence clubs, by definition, cost less and have much lower carrying costs.”
In a state where insurance, taxes, and utilities have skyrocketed, many vacation homeowners are giving up on their relaxing getaways, and “FOR SALE” signs are peppering the streets in some resort towns.
“Buyers have become much more discerning in this market and most don’t want to buy a vacation home and inherit exorbitant costs, when it sits empty most of the year,” says Bill Thies, co-developer of The Residence Club at Fisherman’s Cove in Key Largo, “We knew fractional ownership would be a more attractive real estate option as insurance and taxes went up. Since those costs are split with other club owners, entry costs are minimal compared to whole ownership, as well as the continuing costs to maintain your property. Educated shoppers who are looking at whole ownership will be pleasantly shocked when they see our product and compare. Our owners pay a price that’s proportionate with the amount of time they spend relaxing in the Keys.” The Residence Club at Fisherman’s Cove will be complete by the end of 2007.
Just a few hours north on Vero Beach, developer George Heaton is seeing plenty of interest in The Residences at Vero Beach Hotel and Club, despite a downturn in the market. “All of the papers in Florida are talking about the taxes and insurance costs,” Heaton says, “But there are still a number of buyers out there who would like to own a portion of a vacation home, and not have to bear the entire cost themselves. We’ve already had a tremendous amount of interest in the 20 residences we’re selling as fractionals. After talking to many of our hotel guests, I’m confidant people will be signing on the dotted line when the residence club opens in November.”