Investing in a vacation home through fractional ownership should be just that…a sound investment first. Yes, the locations and properties matter. But if your top priority is smart investing, then Lifestyle Asset Group’s collective asset ownership of multiple properties is the most straightforward and risk-averse model.
Since the concept debuted years ago, a number of fractional real estate ownership models have emerged. Collective asset ownership and vacation clubs and are two of the most popular models for luxury vacation home buyers. Vacation clubs, like Inspirato, offer nice destinations and perks for members. But for savvy investors, collective asset ownership of multiple properties, offered by Lifestyle Asset Group, is the only logical choice. This fractional home ownership model maximizes returns and minimizes risks. Here are 7 reasons why collective asset ownership trumps vacation clubs.
1. You own the property. Everyone who buys into Lifestyle Asset Group’s collective asset ownership becomes a co-owner with an equal share in the property. In contrast, Inspirato offers memberships that give you the right to rent one of the company's properties for your vacation, there is no equity or return on investment.
- It’s a true investment. Your buy-in to one of Lifestyle Asset Group is an investment in your future. After a defined LLC term, typically 6-8 years, the property is sold and any proceeds are distributed among the LLC members. When your membership is up with Inspirato and other similar destination clubs, you walk away with some vacation memories and a significantly smaller bank account.
- You are owners without the hassle of property maintenance. You are the owners. We are the management. You and the other owners are the outright owners of the properties. You are the masters of your domain, leaning on the Lifestyle Asset Group to maintain the properties and carry out the covenants detailed in the ownership contracts. The owners of each LLC select a Founding Member to represent them and their interests on the Board of Advisors, so all owners have a real voice in how the program is managed. This is very different from Inspirato or any other privately-held subscription-based service. They can change the rules, destinations and cost at any time without input from its members.
- Booking your vacation home is simple. The Lifestyle Asset Group offers several options. You receive a specific number of points depending on the ownership option you choose and how many nights per year you want to vacation. These points are used to reserve weeks in your home LLC as well as sister LLCs. It's easy. Inspirato offers a number of confusing membership options, add-ons and rules that you must navigate before you can even think about packing your suitcase.
- Limited release means greater flexibility. Lifestyle Asset Group limits the number of members into it's LLCs. With such a small group sharing time, you have much more flexibility and availability when making your travel choices than with a vacation club that has unlimited membership numbers.
- You know where your money goes. Unlike the members of Inspirato's destination club, owners in the Lifestyle Asset Group’s LLC receive quarterly financial reports so they always know where every bit of their money is spent.
- Collective asset ownership costs less, and you get more. Some people find destination clubs like Inspirato appealing because of their relatively low entry fee, but do the math. Both Inspirato and Lifestyle Asset Group have an initial entry cost and annual fees. As a member of Inspirato, you must also pay nightly rentals anytime you use one of the properties. Using an average of 30 vacations days per year for seven years, Inspirato members may end up paying $100,000+ more than owners with Lifestyle Asset Group. And, they get no potential payout in the end. LAG owners have the potential to get back some, all, or more than their initial investment when the properties are sold.
Along with the practical reasons collective asset ownership is the only choice, investing with Lifestyle Asset Group is an investment in your family too. When you spend time each year in the properties you own through the Lifestyle Asset Group, you build family memories that will last. There's a comforting familiarity as you return to homes that you own in your favorite destinations as your family grows and matures. You will enjoy bringing your family and different sets of friends to your homes…taking them to that amazing Italian restaurant you found last year. Ownership does have its benefits.
Collective asset ownership with the Lifestyle Asset Group is an investment that makes sense for you, your family and your finances. Call one of our representatives today at 1-800-318-6966 to find out how you can make your vacations work for you. Email: karla@lifestyleassetgroup.com for more information.
