Timeshare? No thanks! August is not Timeshare nor a property club
As pioneers of the alternative to holiday ownership, Timeshare has always been associated with the concept of sharing holiday properties, hands-off home management and your own private property that doesn't cost you an arm and a leg. However, as the pioneers, Timeshare also carries with them a reputation that is difficult to shake off.
August shares the same key principle as timeshare: the concept of balancing out the amount you pay with the time you intend to use the property for. Why pay for 100% of a property, when only using it for a few weeks? We understand this at August, however, to be clear, the concept of sharing is the only thing that August has in common with Timeshare. In practice, August is very different to Timeshare and fractional ownerships. Here is why.
Owning with August means:
True real estate ownership: We set up a UK Limited (LTD) Company specifically designed for co-ownership which allows for real title ownership, streamlining the legal process and minimising the hassles while giving complete transparency and ownership to the co-owners. Timeshare and other fractional ownership models don’t allow for real title ownership.
Transparency & control: Unlike other models, August co-owners have full transparency on all budgets and expenses which are voted every year by the co-owners themselves.
Unique and private homes: We buy, renovate and interior design homes to the highest standards single properties in the best location which will be yours and for your own use only.
Not one, but five homes and locations: Five beautifully designed homes in five of the best locations in Europe - French Alps, Tuscany, The Cotswolds, French Riviera, Mallorca. Easy to get to destinations and homes you will be proud to call your own.
Easy to use booking system: Online point-based system that allows families a fair way of booking holiday time with an average of 3 months per family. A lot more time than Timeshare and other fractional ownerships.
Hassle free ownership: You never need to worry about the buying process or maintenance of your homes. August handles everything while giving you full transparency. The homes are regularly renovated in order to keep them in great condition and maintain the value of your ownership.
Dramatically lower management costs: Compared to just owning just one of these properties on your own with zero markups on items such as property management and repairs.
Timeshare and fractional ownerships
At August, we know finding the ideal holiday homes takes time. We know it's a long term commitment from when you decide to buy the home, to finding it, renovating it and furnishing it. So choosing the right home and finances can be a big decision. August is the better way to own second homes. Read below on how we compare to other holiday home ownership models.
What is Timeshare?
A Timeshare is a holiday property arrangement usually in large resorts rather than single homes that allow you to buy the right to use a property for a specific time that is shared with a large group of people (sometimes up to 50 people per room at a resort). This is a Timeshare.
As such, your arrangement guarantees 'time' at the property. Initially, Timeshares started with fixed week systems and evolved into more flexible arrangements known as floating week systems, point systems and even holiday clubs, which allows owners to book different weeks every year. Sounds like a great idea however what tends to get left out and not mentioned often are the state of the properties, growing maintenance fees and other incidental costs that can turn your future dream holidays into more of a nightmare.
Most importantly the main question around ownership remains - What do you really own, and what control or visibility do you really have?
Behind every Timeshare is a vault of complications with respect to ownership, titles, trusts, blind trusts, secret trusts and offshore companies. The entire system is utterly messy in respect to jurisdictions and legal arenas.
The simple reality and the main issue with Timeshare is that there is no true ownership or gained equity. In other words, owning a timeshare negates you from the usual real estate advantage that is equity.
Finally, there is also the resale aspect to consider as there is a much higher supplier than demand, with over 200,000 Timeshare units available in the US market at over 1,500 resorts.
This combined with the fact that you own ‘time’ in these properties, the likelihood of you selling your Timeshare can be very low, especially at the same price you initially paid including what you've spent over the years in management, maintenance and other taxes as it can sometimes be incomparable. And, that's if you can find someone who will buy your Timeshare from you that shares the same desires of holiday location, season and time.
What are private residence clubs?
Private residence clubs are fractional ownership models that offer ownership interest in shares of luxury holiday homes. However, private residence clubs, frequently operated by luxury hospitality chains, add amenities typically found in high-end hotels.
These clubs often sell condominiums that have access to the club’s golf courses or ski resorts, along with maid-cleaned rooms and turndown service. Owners also gain access to other properties in the chain’s portfolio.
Entry-level prices start at around £50,000 at the lower end of the market, and can easily exceed £200,000. These models often offer 4 to 6 weeks access to the properties and have very high annual fees often exceeding £15,000 for just 4 weeks a year. Finally, like Timeshare, owners often have little visibility and control over the management of the properties and minimum holding periods are often imposed on buyers who cannot sell their shares during the first 4 to 6 years.
Co-ownership - The better way to own holiday homes
Sole ownership of private second homes is the alternative to Timeshare or hotels and rentals. However, the complex hassles and costs linked to buying and owning a home abroad often outbalance the usage and benefits of owning a second home.
A better way to own second homes, where you can share the costs while still enjoying real ownership is co-ownership. Co-ownership has always existed where friends come together to buy a holiday home and split the costs. We have modernised co-ownership and set up a structure that allows you to increase your buying power, lower costs but without any of the risk and hassle associated with the DIY co-ownership process.
We have spent time defining the best structure and process to streamline and modernise co-ownership of second homes in order to help maximise the positives. We provide full transparency and dramatically help reduce the cost and complexity of purchasing, allowing you to own five holiday homes in the best locations.
To understand more about the August concept feel free to drop us a line on email@example.com or join our next webinar.