Things to consider with your holiday ownership purchase
November 21, 2011 11:09 am
Buy because you plan to use your holiday ownership in the future. Consider your purchase as an investment in future holidays, not in terms of a real estate or other type of financial investment.
Choose a holiday that fits your lifestyle.
Think carefully about what you value most for your holiday and travel experience, then explore the wide variety of holiday ownership products and options available. Choose those which will best suit your family’s needs today and into the future.
Read all documents carefully and understand what type of product you are being offered.
Ask for a clear explanation of the terminology and terms, such as “titled based” (a real estate interest) or “right-to-use” plan (no real estate interest).
Understand the Cooling-Off Period.
The Cooling-Off Period refers to the period of time following the purchase of a holiday ownership property or points in a holiday ownership club during which a buyer may cancel the agreement without incurring monetary or legal penalties. The Cooling-Off Period for ATHOC Members in Australia is 7 days. There is a 14 day cooling off period for non ATHOC members.
Through their resort or club, owners help maintain the quality and future value of the resort property. Yearly maintenance fees, which are set and directed by the
Resort or club, pay for onsite management, unit upkeep and refurbishing, and utilities and maintenance of the resort common areas and amenities. The annual fee will also include applicable Land taxes and rates. The amount of the yearly maintenance fees typically depends on the size, location, and amenities of the resort and is paid by each owner in proportion to the amount of time and/or unit owned.
Allow time to learn.
To get the most of your new purchase, like with any new purchase ensure that you take time to learn how to best use your new product to get the most from it.
Legal structure of holiday ownership in Australia.
Holiday ownership in Australia offers the consumer a great deal of protection and security. Holiday ownership is considered to be a Managed Investment and must meet the requirements of the Managed Investments Act and the Corporations Act 2001 managed by the Australian Securities and Investment Commission. www.asic.gov.au
It must be noted that while holiday ownership is governed under ASIC and must comply with the managed investment act – holiday ownership is not an investment product – it is a lifestyle choice.
Download the ATHOC Consumer Guide here.
Categorised in: Consumer Tips & Advice