Bermuda Beckons – The Reefs Club Offers A Rare Opportunity For Foreigners To Own Real Estate On The Small Island

Bermuda, an island known for its laid back, refined lifestyle and pink-sand beaches, is located 650 miles east off the coast of North Carolina. Flights from several East Coast cities reach the pristine shores of Bermuda in just two hours, a proximity that renders the island an ideal second home destination for many Americans. Until recently, however, real estate ownership for Bermuda enthusiasts was usually not within the realm of possibility for most non-Bermudians.

A government policy, expanded in 2005, restricts the amount of real estate that can be offered to foreigners, thus drastically limiting the supply of vacation homes available on the island of just 21 square miles. With only 10 homes for sale starting at $4.4 million and 15 condos with an average price of $2.4 million on the market, real estate opportunities are limited and virtually unattainable for most, according to Rego Sotheby’s International Realty agency. As a result of the undersupply and over demand of whole ownership properties and their exorbitant prices, fractional ownership has become the hottest trend to hit Bermuda.

The Reefs Club, a new private residence club poised to open in 2009, is making luxury home ownership on the island more accessible to Bermuda enthusiasts. It is being constructed next to The Reefs, the island’s most award-winning hotel, and will offer hassle-free, luxury vacations at a fractionof the price of traditional island homes.

“Right now there’s such a limited supply of real estate in Bermuda,” explains Buddy Rego of Rego Sotheby’s International. “Locals are not able to sell property to non-Bermudians. Residence clubs such as The Reefs Club fill a niche. They’re selling to people who want a vacation home in Bermuda, but don’t want the multi-million dollar price tag.”

Now in its 60th year, The Reefs is widely recognized as Bermuda’s best resort by all the major travel publications, including Condé Nast Traveler and Travel+Leisure. The Reefs is committed to offering the same first-class, award-winning service and hospitality to families wishing to own a second home in Bermuda.

“The more we researched and asked our guests about fractional ownership, the more we realized it’s ideal for people who want to own something in Bermuda, don’t want the year-round responsibilities, and want to be able to keep it in the family,” says David Dodwell, The Reefs Club developer. “Since before we even broke ground, the response from repeat guests and their families has been exciting,” Dodwell says. “And because they’ll own a piece of The Reefs, they can come more often and enjoy the dining, the spa, and the private beach.”

The Reefs Club features elegantly furnished two- and three-bedroom residences with unobstructed ocean views seen through dramatic walls of windows. Residences are just steps away from the hotel’s three gourmet restaurants, a spa, a private pink sand beach, and snorkeling with world-class diving closeby. Amenities include an owner’s lounge, infinity-edge pool, fitness center and rooftop putting green with impressive views of the Atlantic. An on-site concierge coordinates dinner reservations, golf tee times, spa appointments and various island adventures.

Two-bedroom residences at The Reefs Club are currently priced at $350,000 while three bedrooms are listed at $410,000.

“This price point is also attractive to British visitors to Bermuda,” Dodwell reports. “Because the Bermuda currency is tied to the American dollar, British tourists are enjoying unprecedented value in addition to the ease of getting here from London thanks to non-stop service on British Airways from Gatwick.”

In fact, the number of visitors from the United Kingdom to Bermuda in 2007 increased by 12.5 percent over the previous year.

Dodwell enlisted the pioneer of the private club concept and industry consultant DCP InternationalSM (DCP) to advise on this ambitious development. DCP launched the world’s first private residence club, The Deer Valley Club, in Park City, UT in 1992 and has since consulted with numerous developers on successful residence club projects throughout the United States, Mexico, the Caribbean, Italy, and beyond.

“Residence clubs are a sensible way to own in any market, but especially now that developers have adjusted purchase prices to reflect today’s economy. The value of residence club vacations exceeds annual ownership costs, so owners have real estate equity and save money relative to what they would spend on luxury vacations,” says Steve Dering, president of DCP International.

Highly respected resort market research firm Ragatz Associates reported continued growth in the residence club industry in 2007 with an estimated sales volume of $1.2 billion, a 12 percent increase over 2006.

Residence clubs are also ideal for those who want to spend several weeks per year at their home, but don’t want the hassles of maintenance, security and insurance costs associated with traditional whole ownership.

Although often confused with timeshares and destination clubs, private residence clubs differ greatly in that club owners actually own deeded real estate, which can be sold or willed like any other form of real estate. Owners may reserve accommodations well in advance, and on a short-notice, space-available basis. They are also entitled to vacation in any residence in their category rather than being limited to a specific residence. This policy allows for greater flexibility and availability for owners.

MORE INFORMATION
The Reefs Club is also part of the Elite AllianceSM – an exchange program offering owners luxury vacations at other private residence clubs in other fine destinations including Key Largo, FL; Deer Valley, UT; Huatulco, Mexico; and Jackson Hole, WY.
Visit www.dcp-international.com


Click Here to view this article in its original form in the July 2008 Edition of Owners Perspective Magazine.


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