Picking your vacation home



	Second home	Time share	Fractional ownership	Private residence clubs	Condo hotels
How it works	You buy a standalone home or condominium outright. If the home or condo is in a community, there may be a homeowners association that charges fees for maintenance or amenities (use of beaches, golf courses, tennis, etc.). Aside from association fees, you pay all taxes, utilities, insurance and the mortgage.	You pay a one-time fee for a set number of annual weeks (or "points" or "credits") within a network of properties. Typically, you pick a home resort but can swap weeks or trade in points to use at other resorts. Some programs let you bank points, while others require you to use them within the year they're issued. Some time shares are sold on 25- or 30-year contracts, while others are for a lifetime.	You pay a fee to buy a portion of a property within a resort community, and you receive a deed for that portion of the property. You could set up fractional ownership among friends with the aid of a lawyer or real-estate agent, but more commonly you buy from a company that sells fractional shares. Rules vary depending on the developer.	These clubs market either club membership or fractional ownership and charge premium prices. Because there are few owners for each residence, these properties offer more vacation availability. They typically are high-end, with homes that are mansion-sized or in the most exclusive locations. The clubs charge a high one-time fee (typically six figures) and annual dues.	You buy a condo unit or room from a developer within a resort. When you're not using the unit, you offer it for rent through an in-house management program and share a percentage of income from management-booked visitors with the resort. The management company handles check-in and check-out, property upkeep and cleaning during rentals. It also manages resort amenities, such as pools, spas, golf courses, etc.
Pros	You get tax benefits and unlimited use. If you choose to rent it out, you can oversee that yourself or hire an outside management firm. Many who buy vacation homes choose property that doubles as a retirement home.	Time shares are relatively affordable, and for travelers who like to explore, it's easy to use points or weeks as currency within the time-share network. Increasingly, a few days or weekends are possible in addition to multiweek vacations.	A fractional property has a far smaller number of owners for each unit than a time share typically has. That means securing dates and access to a property is easier. It also may mean the property is more upscale. A deeded fractional ownership may make you eligible for second-home tax deductions.	Homes are luxurious with state-of-the-art entertainment systems and furnishings. In some clubs, up to 80 percent of the joining fee is refundable. Some allow for vacationing within a network of clubs, using a system of points or credits reminiscent of time shares. If the club offers deeds, there may be tax benefits.	Buyers own a vacation property that has built-in cash-flow opportunities from rentals. In addition, condo hotels typically are situated in either high-end resorts or in downtown urban cores near attractions. If run by a major hotel developer, your unit will be marketed nationally. There are usually on-site amenities for owners and guests.
Cons	You could be locked in to visiting the same place every year. Managing a vacation home can be costly. If the property's success depends upon unpredictable factors, such as the weather, rental income can vary. Some homeowners associations or local municipalities restrict how you rent the property (time limits for a visit, special taxes, etc.).	Because a time share does not typically offer you a deed to property, you are ineligible for tax deductions. Members must sometimes plan far in advance to secure time at their preferred resort, and there may be extra fees if you rent your time to outsiders or break your contract.	Fractional ownership is typically for one particular property. But some developers will let you access other properties within the network if the developer owns fractional properties nationally.	Some sell membership rather than a fractional share or real-estate deed, and it's important that buyers understand which type of club they're considering.	If a management company or developer is not reputable or successful, it can affect your income from rentals. Real-estate agents listing condo-hotel units are not allowed to discuss the units' investment potential, so buyers must do their own research.
Financial details	You are allowed the same tax deductions (mortgage interest, etc.) on one property in addition to your primary home. If you rent the property out more than 14 days a year (or use it less than 10 percent of the time that others do), your second home may qualify as an "investment property" which can increase your deduction options.	Most involve a one-time flat fee (usually less than $20,000) plus annual maintenance fees. Most do not give you a deed to property, so there are no tax benefits to ownership. However, many operators let holders pass a time share on to friends or heirs in a will, meaning heirs can assume the membership without paying initiation fees.	You buy a fraction (one-fourth, one-eighth, one-twelfth) of a resort property and pay annual fees to the management company to maintain it. The more you pay, the more use you get out of the unit or the nicer the unit will be. This is a deeded ownership.	Buyers pay a high one-time fee and annual dues. Some clubs allow for transfer of membership to others within a family or in a will or estate.	Most units are marketed at low prices in the early stages of development, with prices escalating as the development nears completion. You will own the property outright, meaning you may be eligible for tax deductions on the property as a form of second home. You can sell at any time.
Who's in the business	Suncadia, www.suncadia.com; The Resorts at Moses Pointe, www.mosespointe.com; Seabrook, www.seabrookwa.com	Trendwest Resorts, www.trendwest.com	Trendwest Resorts, www.trendwestresidenceclub.com	Signature Destinations, www.signaturedestinationsclub.com; Exclusive Resorts, www.exclusiveresorts.com; Ultimate Resorts; Private Escapes, www.privateescapes.com; Abercrombie & Kent Destination Clubs	Starwood Hotels and Resorts Worldwide, www.starwoodhotels.com; Ritz-Carlton, www.ritzcarlton.com; among others

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