[katy]

Well a new name for it…Property Ownership 😆 Was reading Mark’s news section and find that for twenty odd thousand pounds people who can’t afford more can buy into the property dream 🙄

A new concept at Desert springs in Almería and fronted by some aging tennis player with a beer gut. Now I know someone who bought into timeshare and for the privilige of paying £15,000 they can spend a week every year in Marbella. The only snag is they have to pay £350 maintenance fee every year. Whilst staying there they rub shoulders with people who have hired an apartment for as little as £150! Doesn’t make sense does it. Anyone think it’s a good idea?

[Anonymous]

£15,000 plonked in the bank at 2.5% brings in £375 plus the £350 maintenance = £750. For that you can choose to rent anywhere you want for a week’s accommodation.
Doesn’t make sense to me but then timeshare never did.

I would like to know if this maintenance charge is fixed, or can it be increased over the years?

[Anonymous]

“I would like to know if this maintenance charge is fixed, or can it be increased over the years?”

Charlie nothing is fixed, not even a Tombstone.

[Anonymous]

It’s not timeshare. It’s fractional ownership and it’s not a new concept. You benefit from capital gains (if any) for a fraction of the normal price. As far as use goes you get 2 weeks at Desert Springs and another 2 weeks at David Lloyd resorts around the world. Bound to appeal to some people.

Mark

[Anonymous]

@mark wrote:

It’s not timeshare. It’s fractional ownership and it’s not a new concept. You benefit from capital gains (if any) for a fraction of the normal price. As far as use goes you get 2 weeks at Desert Springs and another 2 weeks at David Lloyd resorts around the world. Bound to appeal to some people.

Mark

I agree it will appeal to some people, however it all depends on the cost of the annual charges.
Marriott have 2 vacation clubs on the CDS offering very good quality accommodation and facilities.
These sort of schemes will always appeal to those that want quality holidays and are prepared to pay for it.
I guess that the David Lloyd resorts will appeal to the same market.
Much lower initial cost with no ownership hassle normally associated with owning a holiday home.

[Anonymous]

Interesting to read the David Lloyd brochure for this ‘fractional’ ownership concept.

You buy equity share(s) from David Lloyd for a period of 10 years, but it’s not clear whether that is a share in the property itself (ie your name along with others on the notarised escitura), or is a share in a holding company that owns the property outright. Should imagine there’s tax advantages for the latter, and also resale should be easier, without the need to go to notary. In fact, resale options are not really touched upon in the literature, as it isn’t with many of these schemes. So, if everything goes fubar, what are your options to get out?

“Our business plan for Desert Springs is to sell each property after 10 years and, at that stage, return the proceeds to the 13 owners in a manner which is proportionate to their original equity investment.”

So, after 10 years the property will be sold, whether you want to sell or not, but to whom? Would have to assume it’s David Lloyd. But at what price? The Market or David Lloyd?

In answer to an earlier query, the maintenance fee is fixed for three year periods throughout the 10-year plan, with the first year being free, naturally enough. Maintenance charge surprises wait ’til they have you on the hook good and proper! Having said that, it is guaranteed that any increase will be no more than 5% each 3-year period.

They also claim that no utility bills, legal fees, community, governnment or local taxes are paid by the ‘fractional’ owner, so I’d be well prepared for hefty maintenance fees from year 2, even though the blurb says it’s about a grand a year currently for a 2 bed property.

£24,000 outlay plus £1000 a year and rising for 2 weeks in Almanzora and 2 weeks in, say, Morocco with hope of ‘capital gains’? Don’t think so. 😀

[katy]

We spent a few days at Desert Springs, I am saying nowt 😯 😉

For that money and with interest as Charlie pointed out plus yearly fees one could have some real luxury holidays. Still sounds like timeshare to me, although there is a chance of a windfall after 10 years 🙄

That price will presumably be for the basic 2 bed unit which sounds an awful lot of money (around £300,000) for desert springs.

[Author]

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