Magexpect, I second what you said. When I've looked at these clubs what I see is a $350k or larger investment where at least 20% is immediately lost in most cases. Furthermore, one has to be prepared to lose all of it when making the purchase since bankruptcy is a very real possibility for organizations of this type -- think about that cruise ship that was selling apartments!

Let's do the math.

First of all, assume you could get 5-10% annually on this money if you found a decent investment. Then amortize the amount they won't refund and add in a percentage for the bankruptcy risk. Finally, add the annual "membership" fee and any "per day" fees to use the properties.

It really doesn't make much economic sense to me. Just paying the rack rate at Amanresorts would be way cheaper.

Presumably, those who buy do so for emotional or other reasons in most cases.