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Press Release - Fractional Vacation Homes
Why the Fractional Vacation
Industry is Booming...
www.vacation-finance.com
- Demographics — 78 million US Baby
Boomers that will retire in the next 15 years (the largest
population turned 50 in 2004-05, with 50th birthdays occurring
every 7 seconds). The under told statistic is that there
will be 103 million Empty Nesters in Europe by 2009 and Japan
will have 32 million boomers by 2010, in a total population
of only 127 million people. 213 million Boomers will compete
for a uniquely similar lifestyle in retirement.
- Boomers
Like Debt — Unlike
the previous generation, Boomers have proven that they are
willing to pay, and borrow for the lifestyle they want. The
boomer generation has innovated everything from disposable
diapers to SUV’s, they will innovate the idea of retirement
homes.
- The Wealth
Transfer — Not
everyone is going to get rich. Boomers are estimated to
get the biggest slice of the inheritance pie: $17.8 trillion.
Distributed evenly, each of the 78 million US boomers get
$228,205. But these inheritance dollars will not be distributed
evenly. The 73.5% of the boomer cohort will likely join
the wealthier classes. Within the next 15 years, 20.7 million
boomers will become over $658,000 wealthier, and 57.3 million
people will get less than $72,900 to boost their meager
net worth/retirement. 20.7 million people may be able to
afford luxury retirement residences if they innovate to
fractional ownership, condo hotel, and private residence
clubs. Whole ownership is going to be bid farther out of
reach by the sheer mass of this population competing for
prime property, a trend that is already under way. Boomers
will need to get creative by purchasing a combination of
a primary residence, Condo Hotel and Fractional and PRC
ownership options, to more efficiently use their limited
nest eggs and to have active and dynamic golden years.
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Fast Facts:
- Traditional timeshare grew 21%
to $7.87 billion in 2004, average price $15,784.
- High-end
timeshare grew 22%, to $1.075 billion, average price $40,270,
50% of owners say they would buy more fractional shares in
the future.
- Only 3% of US population currently owns
fractional real estate interests.
- ARDA expects a 300% growth rate in Non-equity club memberships
with average annual dues of $9800, and 4-8 weeks of fractional
ownership.
- The average American worker gets 2.4 weeks of vacation, and
will retire at age 62. Many boomers expect to continue to
work, possibly in a different career after retirement.
- The $100,000+ income cohort is growing 8 times faster than
any other income group in the USA. Mortgage leverage has
also grown in recent years. These people have money and are
not afraid to borrow to own more real estate and lifestyle.
- There are 142 fractional projects in
the USA, 23% in Florida, 21% in Colorado. That’s 549,295
boomers for each project in supply.
- The most economical way to own more than one home, is to
only own the piece you want to use.
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