Private Holiday Home Guide

With all the money you save by not staying in a hotel, why not splurge on one of the many luxury homes available for rent? Even the ones that come with staff and other amenities can be quite affordable, especially if you are traveling with a large group of friends.

Maid service, private chefs, butlers, elevators, gyms, extensive private gardens, private beaches, tennis courts, heated swimming pools, private boats and docks are some of the comforts you can expect in a luxury home rental. Of course, you can always cut down on the cost by renting a home that does not include a chef or some of the more exclusive amenities. Sometimes it’s fun to cook while you’re on vacation, especially if you have an outdoor gourmet chef’s kitchen overlooking a private bay!

If you prefer a more urban setting, there are many luxury apartments and penthouses available in the best locations of the metropolitan centers of the world. How about a stunning Parisian 3-bedroom, 4,500-sf loft a short walk from the Louvre? It sleeps 6, so if you bring 5 friends, it’s quite affordable - only around $1,700 per person/week. With hotel prices being what they are in Paris, I think that’s a fantastic deal. And this way, you can enjoy a bottle of champagne while watching the sunset from your private balcony instead of at a restaurant, saving even more.

Or, if you’re really in the mood to splurge, go all out and rent a private island. Nygard Cay, a Mayan-inspired extravaganza in the Bahamas, rents for $47,000/day. It sleeps up to 24 people (2 of the rooms are on a private 82′ yacht), and the price includes amenities such as 2 pools, 5 jacuzzis, the yacht, a fishing boat, a staff of 20, 2 Hummers (with chauffeurs of course), a movie theatre, a disco, all food and liquor and more.

If you’re looking for something a bit more subdued, Necker Island, Richard Branson’s private paradise in the British Virgin Islands, might be more your cup of tea. It also rents for $47,000 day and sleeps 28 (that breaks down to $1,679/person per night) and includes transfers from Virgin Gorda, 2 pools and jacuzzis, 50-person staff, all food and drinks, sailing and speed boats, a local calypso band, a gym and much more.

If owning an entire house or condo seems a bit too much, there is always the option of buying a timeshare. It’s definitely a more flexible option: if you decide you want to vacation somewhere else that year, you can just sell your week or rent it out. And these days, many timeshares work a little bit differently than they used to. Instead of buying a week (or more) per year, you can buy points or credits you can use to stay in various resorts in different places. The downside is of course that you’re not the only owner of the property. You can’t leave your clothes in the closet, and you can’t visit whenever you feel like it. But it certainly is a convenient and affordable way to vacation. You don’t have to worry about maintenance, and you always get to use the amenities of the resort where your timeshare is located.

Buying Timeshares
Before buying a timeshare, there are some important things to keep in mind:

• If you’re buying at a resort you’ve never visited, rent a unit there for a week before purchasing anything. There’s nothing like a first-hand experience. While you’re there, look at how the property is maintained and what the amenities are like. Look at the maintenance budget. Talk to other timeshare owners and ask about their experiences.

• Buying the best possible unit in the most popular season at that particular resort will give you a lot of leverage when it comes to exchange options.

• Find out what the exchange options and member benefits are. Ask about the cancellation policy.

• Check with the Better Business Bureau to see if any complaints have been filed against the developer or the management company.

• Each state has it’s own, pretty strict, laws when it comes to buying and selling timeshares, but there are several different kinds of so called “vacation ownership”. Make sure that what you’re buying is definitely a timeshare, registered as such under that particular state’s laws.

• Get everything in writing and take it with you home to read through carefully. Take some time to consider your investment before making a decision. You might also want to have your lawyer take a look at the contract.

Selling Timeshares
Selling timeshares can be a bit tricky. There are many shady companies who will offer to sell it for you, but before you agree to anything, make sure to do your homework:

• Check with the Better Business Bureau to see if there are any complaints filed against the company.

• Are their agents licensed real estate brokers in the state where you’re selling your timeshare?

• Will they allow you to sell or rent your timeshare on your own while they are marketing it?

• What are their fees and/or commissions?

• Are there any other costs?

A good policy is to not pay anything in advance, and only do business with companies that bill you after they have sold your timeshare. Always make sure to ask the company for everything in writing before signing anything.

If you are looking for more information, The American Resort Development Association (ARDA) is a great source when it comes to both buying and selling timeshares as well as other forms of vacation ownership.

As fun as it is to see new parts of the world and explore unknown cities and landscapes, sometimes you find a place you can’t stop thinking about. Something about it just speaks to you, it makes you feel at home, and you end up going back again and again. If this is the case for you, you might want to consider investing in a holiday home of your own in your favorite vacation spot. If you add up all you’ve spent over the years on hotels and meals in restaurants, you’ll see that it might even save you some money in the long run. Not to mention the ease and convenience of being able to keep a closet full of clothes and everything else you need on your vacation in your second home instead of packing a suitcase ever single time.

How Do I Find My Dream Holiday Home?
Chances are you are buying in an area you have visited many times, so you will have some idea of where you’d like your home to be and what the local real estate market looks like. (If you think that you’d like to buy a home in an area you have never visited, I strongly suggest renting there for a season first. You never know how you’ll like a place until you’ve experienced it for yourself, no matter what others are saying about it.) Searching on the Internet is a given option of course, but I think it is always a good idea to work with a local realtor, especially if you’re looking to buy in a very popular vacation destination. They are there full time and can let you know about new properties the moment they come on the market. They will also check the property out for you, and decide if it’s something you might like, saving you several trips just to see a property.

One important thing to consider is whether you are planning to rent out your holiday home or just use it for yourself and your family - it can make a difference in your mortgage. If you plan to rent it out, you may have to get a commercial loan with a slightly higher interest rate. But don’t let that hold you back, just crunch the numbers and make sure that your rental income covers (and hopefully exceeds) your mortgage payments. Talk to your lender and discuss all aspects of your second home investment before jumping in.