Timeshare Investment OpportunitiesTimeshare seems like a bad idea for many when it comes to arranging a holiday destination. Francis Higney reports how one company is promoting the concept as an investment vehicle The mere mention of the word ‘timeshare’ will have most of us running a mile with our hands clutched firmly over our ears, screaming: “I don’t want to know.” This is because it evokes memories of being pestered by students in holiday resorts trying to tie you to a property for life at a cost that was about as attractive as the vendor’s appearance.So what’s changed? For some of the
operators in the market absolutely nothing. But there’s now a new kid on the apartment block and he’s making music that’s sweet to the ears of investor and holiday maker alike. Timeshare Investment Opportunities & Keven BarkerKevin Barker, chief executive of Keynote, is promising investors in his bond scheme not only cheaper holidays in more exotic destinations, but a return on their investment as well. Although based upon the timeshare model, the KeyWorld Bond, is a single-premium life assurance policy and claims to offer three times better value than a traditional timeshare investment. Baker says: “In the UK, timeshare has enjoyed a mixed reputation, primarily due to the high pressure sales techniques that have been employed.
“With organisations such as Disney, Hilton, Hyatt and Marriott now involved in timeshare, this sector is becoming more professional in the manner in which it conducts its business, and Keyworld believes that its own business practices will set new standards.” Timeshare Investment Opportunities - Traditional TimeshareAs opposed to traditional timeshare where 75 per cent of the outlay pays for
the marketing operation behind the timeshare, Keyworld says that it has turned this figure on its head and 75 per cent of the money now goes into the property with the rest contributing to the running of
the operation. And unlike traditional timeshare you are not limited to returning to the same destination year after year. It is also a properly regulated financial product that provides a holiday destination and, as such, will soon be available through independent financial advisers. It operates on a points basis. The more points you purchase the wider your choice of destination and length of stay. The minimum investment into the bond is £2,000 and that opens up a choice of over 3,500 destinations worldwide. There is also an annual membership fee of £99 and a charge of 15p per point for management. On that basis, for an investment of £2,500 (1,866 Keypoints) a bondholder is likely to pay a total of £379 per year in charges. Timeshare Investment Opportunities & The RedemptionThe redemption value will, like most bonds, be regarded as zero for the first three years. The aggregate value in ensuing years is calculated as a percentage of the value of the assets in the property fund periodically published by the assurance company - Criterion, a subsidiary of German giant HVG. The redemption value in year four will be 25 per cent, 50 per cent in year five and in year six 75 per cent and 100 per cent thereafter.
Upon death of the last named investor, the bondholder’s estate is entitled to 101 per cent of the redemption value of the bond. Bondholders automatically become members of the Keyworld Club which from next year will operate a comprehensive travel and reservation service, including flights, car hire and travel insurance through a reputable third party.
Barker adds: “This bond offers better value than any other similar holiday vacation product, and in addition is a financial investment which is regulated by the PIA in England.” For more information on Keyworld contact:
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