During the real estate boom of the last quarter of the 20^th century, some US real estate “genius” invented the concept of developing resort properties using money from the general public. The idea is this:

1.       The developer locates a nice scenic property and starts to build a hotel and club house with the usual amenities.

2.       In the mean time, it begins to build and sell fully furnished vacation home next to the hotel and club house to individual buyers

3.       The buyer assumes all the risk and cost of vacation home ownership. But the developer takes over all maintenance and rental of the vacation home when the owner is not on the property and/or using it.

4.       So long as the owner does not use the home for more than 14 days per year, the vacation home is considered an investment in the eyes of the authorities and enjoy various tax advantages.

5.       The developer take anywhere 30 to 40% of the rental income as well as a yearly maintenance fee in return for cleaning and maintaining the home and other public facilities.

6.       The developer also sells the hotel rooms on a time share basis and becomes the resort manager for the entire complex of rooms, homes, and recreational facilities.

7.       This way, the resort was built and financed by individual owners. The developer avoids the risk of tying up a large sum of his own money and makes his profit being a good manager of resort properties. Persons who normally cannot afford a vacation home or do not wish to bother with maintaining a home now can have the feeling of ownership without the bother but the financial tax benefit. It is a win-win situation during the boom time of the past quarter century.

 

Half Moon Bay used to be a fishing village during the turn of the 20^th century. But tourist and real estate boom in the past several decades had turned this stretch of northern California – Carmel, Pebble Beach, Half Moon Bay into a giant seaside resort region. All the century old downtown buildings had been renovated into art galleries, jewelry and clothing stores, and restaurants. The Ritz-Carlton hotel corporation developed just outside of the town on a scenic sea cliff a complete resort-vacation home-golf course complex based on the above model.

 

Our family has not spent holidays all together for several years. So this time, we rented an entire vacation home at the Ritz-Carlton of Half Moon Bay. Mom and Dad, son and daughter-in-law, two daughters (the youngest flew back from Africa as a surprise for her mother) and the six grand children (four boys and two girls ages 10 - 19) all piled into this fully furnished house of five bedrooms and three baths to spend Christmas and New Years together. We had a grand time. Here are some photos:

1. Downtown Half Moon Bay