Ever dream of owning a home in Aspen?-haven for movie stars, sports heroes, and others of unimaginable wealth? Even there, where the common second home goes for middle to high seven figures, it may be possible for the common millionaire to "buy in," thanks to a more affordable arrangement being offered by the Ritz Carlton organization.

According to demographic economist Harry Dent, author of The Roaring 2000s™, as the baby boomers approach the final trimester of their lives, they will seek out wide varieties of second-home living. Rapidly escalating current real estate prices in second-home communities from California to Florida bear out the accuracy of Dent's predictions.

The boom in demand for recreational homes is also evident in the proliferation of shared ownership arrangements. These can take a variety of forms, ranging from buying "time credits" that can be used at a number of facilities to outright ownership of a specific property for a stated number of weeks or months a year.

Such interval ownership arrangements can be used to provide variety and meet differing interests for vacations.

For example, my ideal second home is a cabin high in the mountains, covered with snow most of the year, while my wife likes a place on the beach where the only ice is in the refrigerator. Our domestic compromise uses two different shared ownership arrangements to give us both what we want.

Owning interests in recreation property is an ideal way to participate in the second home boom, providing one keeps in mind two important points.

Ownership of second home properties should never be considered an investment.

In the first place, the prices of these properties will be the last to go up in a boom and the first to come down after it. In a slow economy, you may not be able to give away a second home! This is even more true of shared ownership interests.

Moreover, the ownership cost of a second home does not compare favorably with renting properties at resorts you wish to visit. In most cases, it will take you from five to ten years of regular use to break even. When you add the association dues, maintenance charges, and exchange fees to the purchase costs, the total will generally exceed what you can expect to pay for comparable facilities on an as-needed basis.

On the bright side, those maintenance fees do free you from the worry of property upkeep.

This type of ownership works best for the family with a variety of travel or recreation interests.

Shared ownership arrangements make it possible to take many different vacations. Ordinarily, owners can exchange time in one resort community for time in another, so there is opportunity to travel to a variety of places at a variety of times. For the "Type As" among us, this causes us to think and plan for much needed time away from work.

Major resort chains such as Ritz Carlton, Four Seasons, Marriott, Hilton, and Disney market many of these ownership arrangements. For as little as $165,000, you can own a month at Aspen in the Ritz Carlton Club-if you don't want the more popular winter and summer months!

Still, for an opportunity to hang out at the J-Bar in the Hotel Jerome, the price isn't bad. If you need a mountain guide, let me know.

Next Article

Contact Saperston Asset Management Inc. at: web@saperston.com

If you experience any problems with this web page, or have any questions or comments regarding it, please E-mail the Webmaster at: web@saperston.com