The concept of timeshare is built on solid principles, however, as time has evolved, the industry has been tarnished with several negative issues. There are three main aspects which make timeshare unattractive. The way in which the product is sold, the excessively high purchase cost and the high on-going annual fees.

The slick marketing tactics employed by most timeshare companies where prospective members are subjected to high pressure selling techniques, has resulted in many complaints to the extent that legislation was introduced to prevent such unethical practices.

The two biggest negatives, however, relate to the cost. Firstly, the excessive purchase price where properties are typically sold for two to three times their actual value. Secondly, the annual maintenance fees do not usually reflect the actual running costs, the management company which has total control simply takes advantage with a pay up or else attitude. (Many timeshare companies now charge more in annual fees than it would cost to rent a similar property on a one-off basis.)

The difference between timeshare and HPC could not be more stark. Firstly, HPC is working on a commission of just 15% compared to 100 – 200%, so it’s clear from this which offers better value for money. HPC accounts for every cent spent on maintenance etc and the members have the option to replace the management company if they feel we are not acting in their best interests.

Finally, HPC members own a share of the property portfolio and are likely to sell at a profit if/when they decide to do so. With most timeshares, you own nothing other than the right to use your week(s) for a given period. This means that selling your timeshare at a profit is virtually unheard of with many selling it for less than 10% of what they paid or even giving it away just to get out of paying the excessive annual fees.

Fractional ownership has grown dramatically in popularity in recent years as it’s really the most cost-effective way of owning a holiday home. With this concept, you actually own a share of the property and will enjoy both the occupation of the asset as well as benefitting by any increase in its value.

Most fractional offerings have between four and twelve owners with the most popular ones having eight or ten who use the property for a set number of weeks each year, either on a fixed basis or perhaps on a rotating or floating basis.

Entry costs vary considerably with most companies tending to focus on high-end, luxury homes with a share typically costing more than €150K euros and sometimes even more than €500K! Perhaps a direct comparison with most fractional options is not valid as HPC will not be buying properties costing €1M or more – not in the foreseeable future, at least!

HPC is, in effect, a fractional model, however instead of owning a share in just one property, members own a share in a portfolio with typically 50 holiday homes at their disposal. With membership starting at just €20,000 and the option to add to this in multiples of €5,000 to increase your holiday usage, the flexibility that HPC offers should not be underestimated.

In time, we intend to offer a more luxurious range of holiday homes, however our starting point has been directed at the sector of the market where we feel there is the highest demand. Good quality at affordable prices.

Buying a holiday home outright is the dream of many, however very few can afford to buy the standard of property that would satisfy their requirements. For those that do have the available funds, it does not always make economic sense to buy a property for 52 weeks a year if they only plan to use it for a few weeks. (The average owner usage is less than six weeks each year!)

Many take out a mortgage to buy and then rely on renting it out to cover the repayments and other costs. In a nutshell, owning a holiday home is not always the best course of action as there may be more practical alternatives.

As a member of HPC, you will not only have access to one property but almost certainly the number will be in excess of 50 properties of various sizes and locations. This provides the flexibility to stay at a one-bedroom apartment if there are only two in the party or to book a detached villa with a private swimming pool if it’s for a larger group.

For those with extra funds available, they may choose to buy a membership in multiple locations thus giving even more flexibility for their holidays as well as enjoying the likely increase in the value of their investment.

The largest sector of the market tends to book their accommodation for each holiday on a one-off basis either via an online platform or the many letting agencies. With so many variable options, it’s difficult to compare, so for the benefit of this exercise we will take the booking of a quality two-bedroom apartment for two weeks twice each year for the next ten years.

If we assume that these holidays are taken in May and October, a typical cost to rent this apartment will be around €750 per week or €3,000 per year. If we ignore inflation on these prices, this will cost €30,000 over the next ten years.

Compare this with HPC where you will, of course, have paid a €20,000 joining fee and an estimated €600 per year towards running costs. There will be sufficient points issued each year to cover the cost of accommodation so the total cost will be around €26,000. However, you still have your membership which has likely increased to at least €25,000 in value over the ten years so the real cost of ten years of holidays with four weeks each year has been just €1,000.

To be fair with this comparison, if you deposited the €20,000 in a bank for the ten years, you would probably have earned about €10,000 in interest so your actual cost is just €20,000 and not €30,000 but still a lot more than the €1,000 it would have cost with the HPC option.

Add to this the possibility that, as an HPC member, you could introduce at least one new member each year and earn a commission of €1,000 for each one, you’ll also have an extra €10,000 over the ten years which would go a long way to covering your flight costs!