Holiday Clubs: It will cost €300,000 plus €20,000 annual maintenance fees to buy 28 days a year in The Oyster Circle's holiday homes. Kate McMorrow reports
Owning a second home overseas is fine for some. Others are put off by the hassle of upkeep, not being there to manage tenant turnarounds, clean the pool, worry about security. There are as many pitfalls as benefits.
An alternative is to join one of the upmarket members' clubs which have sprung up in answer to this dilemma. Like investing in a managed property fund, people can buy a share which entitles them to the use of a selection of holiday properties across the globe as a dividend. Maintenance taken care of, your own PA to organise outings and catering - all you have to do is book a flight.
"Time" and "share" adds up to "timeshare" and the scandals which gave this property investment a bad name several decades ago. But the notion of owning a share in a variety of properties has its attractions. Like joining an expensive golf club, in a way.
Enter The Oyster Circle, an exclusive Irish-based destinations club with a portfolio of mouth-watering properties which could tempt overseas owners to sell up and join.
The idea of a property investment vehicle targeted at high net worth investors came from entrepreneur Bill McCabe, who has a background in IT and educational software.
Other founder members Martin Scully, Ken McCullagh, T G Marsh and Bill Beamish have a combined expertise in property investment and financial services. Paul Henry is sales and marketing manager.
The Blackrock-based company is managed by chief executive Paul Crowe, former director of golf at the K Club, so perhaps the golf club analogy is an accurate one. Investors pay €300,000 for a share in the Oyster Circle, which allows 28 days usage per year.
Each share owner also pays €20,000 per annum for running costs.
Members can go anywhere and for any duration within the permitted 28 days, says Paul Crowe, who has the job of sourcing and buying luxury properties on behalf of the circle.
Properties in Sotogrande in Spain, Quinto do Lago in Portugal, Tuscany and Cannes are currently on the books, with Cape Town, St Lucia, the Bahamas, Marrakesh, the French Alps, Dubai and New York currently under negotiation.
"These are beautiful properties to suit people with high expectations. They're all over €2 million in value, with four to six bedrooms, interior designed, pool, high-level security and a maid and concierge service.
"Each owner will share a PA assistant who will look after their every requirement. Many of the properties include access to private beach clubs. Towels, robes, toiletries and a local chef service is part of the package, " says Crowe.
The €300,000 ownership share is perpetual, he adds. It can be passed on as an asset to future generations or sold after an initial period of four years at 80 per cent of the current market value.
The downside? Well, €300,000 plus €20,000 per annum would buy many years of luxury holidays. And you don't actually own any of the properties, simply a preferential share in the company, albeit one that may increase in value over the years.
But for Celtic tigers too busy to manage an overseas home and reluctant to invest millions in a luxury villa they would use for only a few weeks in the year, it could make sense.
www.the oystercircle.com
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