Despite sagging sales of vacation homes in many resort areas, "equity residence club" shares continue to thrive, says Steve Dering, a founding partner of DCP International
. His company markets such high-end fractionals as the Chateaux at Deer Valley in Utah and the Reefs Club in Bermuda. "People are drawn to this because it is a lifestyle choice and not an investment decision." Dering says Reefs Club sales and those of a new property on the Jersey Shore at Cape May are outstripping the whole ownership market.
DCPI's premise? Deeded fractional ownership of a luxury home with buyers guaranteed they will get the amount of time they want. "If people use it, they are getting their value out of it," he says. There are "lower carrying costs" on a fractional, so there is less pressure to sell when the market suffers a downturn.