Americans spend more than $167 billion each year on travel lodging, such as hotels, motels and rental homes, according to the U.S. Travel Association. That's more than three times what it cost Sochi to sponsor the 2014 Winter Olympics, and more than five times what the United Nations says it would cost to solve the global food crisis.
The sad truth about the money spent on traditional vacation lodging is that it's throwaway money with no tangible return. Why do Americans continue to spend such exorbitant sums on sums on renting vacation homes? It's mainly due to the belief that owning a second home to use while on vacation is too expensive and wasteful.
Busting the Myth
Renting a luxury vacation home worth $1 million or more can cost $750 to $1,000 per night and up, depending on the home's size and location and the time of year you want to travel. For those who vacation for six weeks each year, vacation home rental costs can be as high as $31,500 to $42,000 or more annually. Invest in Lifestyle Asset Group's collective asset ownership model, and you'll spend only $15,000 per year for that same six weeks of time across the company's portfolio of luxury vacation homes.
Return on Investment
While vacation renters walk away from their travels with great family memories, the money they spent on rental homes is gone forever. Multiply the annual cost times several years of vacations, and that's a big chunk out money that could have been sitting in a retirement or investment portfolio.
A buy-in to one of Lifestyle Asset Group's portfolio of properties is an investment that makes financial sense. A one-time capital contribution provides you with an ownership share in over $8,000,000 worth of assets, all owned with zero bank debt. Only 50 investors in each property portfolio have access to all of the properties for four to six weeks each year. After seven years, these high-end vacation homes are sold, your capital contribution is returned along iwth 90% of the gains are distributed among the investors.
Good Living. Good investment.When you buy into a collective asset ownership arrangement with Lifestyle Asset Group, you can put the homes to work for you, even if you're allotted more time than you can use. Once you invest in one of the Lifestyle Asset Groups portfolios, you are allocated a certain number of points that you can redeem for time in any of the portfolio's homes. This generally works out to be between four and six weeks annually depending on the homes you choose and the time of year you travel. But a minimum of 28 nights of use annually is guaranteed.
If you cannot use all of your points, you can offer them to friends, family or your family charity. Or, you can rent them out and use the profit to defray your annual maintenance fees. This puts you in the position of being the rentee instead of the renter, and you're lowering your overall cost of ownership. At the end of seven years when the homes are sold, you could find yourself in a better financial position than you ever dreamed you would. No matter how you look at it, vacation ownership is a sound financial decision.