Money News: Equity Estates - The Smart Alternative for Savvy, World Travelers

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Category: Business/Financial News
Published on Wednesday, 10 June 2015 20:52

Equity Estates' Luxury Residence Fund offers investors a smart alternative for dream vacations while also making a sound financial investment. This private fund allows for the opportunity to own a portfolio of exceptional residences without the troubles of ownership.

The diversified global portfolio includes access to 70+ spectacular private residences spanning 30 countries that average $2 to $4 million each.

Founder Philip Mekelburg saw a trend in luxury destination clubs but felt there was a gap in the market for those who preferred true equity ownership and variety. With this in mind he and his partners launched a company that raises capital from luxury vacationers and second home buyers.

We’re seeing a trend with ownership vacationing evolving past the traditional 2nd home model and timeshares to so much more. Equity Estates and others offer a smart alternative for savvy travelers.

Aside from Equity Estates, there is the Canadian based Luxus Group with a similar equity/luxury home ownership model as Equity.

There is also The Hideaways Club who also offers a global portfolio of luxury villas and chalets. But, it doesn’t stop at travel. There is the company PartnerShips, which offers the same equity opportunity as Equity Estates (home) but for YACHTS. And, of course, the most widely known fractional ownership opportunity is probably NetJets for planes.

In return the investors, also known as “owner-members” own a diversified portfolio of the best homes in the most desirable locations with professional property management and five star concierge support.

A standard investment is equal to about one-half of the typical 20 percent down payment on any one of these single vacation homes.

The return on this investment (ROI) is measured in three ways—1) long term gains to share when the properties sell for a profit and proceeds are shared with the investors, 2) consistent outstanding quality vacations with personal travel concierge attention, and 3) investors share in the actual operational costs and carry of the homes prorated amongst all investors with no markup. 

As a result, average nightly costs work out to 25% to 50% of what a similar home would cost rent, if one could find a home of similar quality and with similar support services to make the vacation experience truly hassle free.

“Over the past 20 years, the resort real estate market has grown at a compounded rate of over 10% per year. There is no better hedge against inflation than real estate. Our success is measured by return on investment and return on living. We take pride in designing inspired experiences that create lifelong memories. This is undoubtedly the smartest way to own and enjoy luxury vacation homes around the world,” explains Equity Estates Founder Philip Mekelburg.

Of course, ownership in Equity Estates has its privileges - everything is taken care of for you. And this is a major selling point for investors who want to own, but not worry about the hassle and upkeep that comes with vacation home ownership.

Property management and maintenance are included, and accommodations are luxurious with five-star concierge services. 

Support services include researching and procuring the best transportation options; pre-arrival grocery shopping; making dinner reservations, spa appointments and/or golf tee times; procuring ski passes, concert tickets and access to other events; and arranging for babysitting services and/or activities for the children and much more. There are no fixed weeks or nightly minimums with home reservations.

Currently, Fund I investors are looking forward to 2021, and Fund II to 2025 when each fund plans to sell off its homes and share in any profits. Prior to that, there are methods in place to sell one’s stake in the fund, “it’s happened over a dozen times, but we prefer to find investors that understand the value of sticking with the general long term plan,” shared Philip Mekelburg.

For more information, visit equityestatesfund.com.

Images owned and under copyright protection of Equity Estates Fund and used with permission.

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