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Advice needed Lodge Membership

Discussion in 'Falls Creek' started by Tigers64, May 2, 2017.

  1. Tigers64

    Tigers64 First Runs

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    Hi all, looking into buying a lodge membership in Falls Creek and wishing to ask some general questions. Does a lodge member essentially own a share of the property or do they own the right to stay at the property or both ? If the members don't own the lodge, who does ? Is there a standard transfer form that is used to transfer ownership of the membership ? Is there any legislation re: rules governing lodge memberships ? If annual fees are involved, who controls receipt of payments etc ? I'd better stop there, I can think of plenty more. Can anybody provide a link to a website that may answer all these questions and more.... cheers... Tigers
     
  2. currawong

    currawong Old but not so Crusty Ski Pass: Gold

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    Most clubs will be incorporated associations, regulated by Victorian law, including some mandatory requirements in a constitution. Secretaries and treasurers have legal responsibilities. Some clubs may be companies or other structures. All property at Falls is leasehold, but leases tend to be very long. Club assets, ie the lodge, would usually be owned by share-holding members. A club might have other types of members too.

    Each club would have is own forms and paperwork. Our club issues debentures and there are forms for applying for membership or transferring to a family member. Our club pays an accounting firm to receive fee payments (among other things) but not all clubs would do that.

    There is some info on incorporated associations at https://www.consumer.vic.gov.au/clubs-and-not-for-profits/incorporated-associations but it is not specific to ski clubs, and some clubs may not have this structure.

    Hope that helps a bit
     
    Richard likes this.
  3. absentskier

    absentskier Old n' Crusty Ski Pass: Gold

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    Depends on the club structure entirely. Many of them run a membership model where you are essentially buying a right to stay at the place for a set rate, with an entrance fee and annual sub. Some of them are structured as companies and yes you buy a share from someone (or in rare cases, subscribe for a new share) and pay annual subs.

    TBH, these aren't really the most important questions to ask until you are actually ready to buy a membership. The most important thing to do (and it takes a bit of work) is to compare the various options available to you carefully from both a practical and financial perspective. For example, you need to get a feel for a lodge, how it's run, whether the club is dominated by a core group of members, what are the booking procedures and policies (particularly at peak times), what the working bee requirements are etc.

    Also, clubs all charge differently. Some charge much higher annual subs but then lower nightly rates (or even include some nights for the annual fee). Others may have low subs and higher annual fees.

    Some memberships are family memberships, others aren't. On it goes.

    You need to do the maths over say 10 years based on entrance fees, subs and nightly rates, inputting your anticipated usage per year. It's quite a process.
     
    currawong likes this.
  4. Tigers64

    Tigers64 First Runs

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    Thanks to both currawong & absentskier for replying. In your experience, would it be better to be part of the ownership of the lodge or not ? I would imagine a membership where you are part owner of the property would be more expensive, is that correct ? Is the income raised via annual subs and nightly rates used to meet the lodge's ongoing costs (ie Falls Creek Resort Management fees, R & M, utilities, wages for Winter Managers, cleaners etc) ? What would the average ratio of members to available rooms be ? Apologies for asking so many questions :)
     
  5. Legs Akimbo

    Legs Akimbo Grumblebum Ski Pass: Gold

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    In most clubs a company or co-op owns the building and members hold shares (there are variations) so you "own" part of the lodge in the sense that you hold a share in the entity that owns the lodge. That company or co-op pays all outgoings from income derived from membership fees and accommodation charges. The member/room ratio is very important as is the booking policy and every lodge will be different. It is something you should look at very carefully.

    Without intending to be disrespectful, you seem quite commercially naive. Before committing a swodge of money you should discuss the ins and outs of each lodge with your accountant or solicitor so you know exactly what you are getting.
     
  6. Tigers64

    Tigers64 First Runs

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    Thanks Legs, appreciate your reply, no offence taken, just trying to get my head around how it all works. I'm curious about the different models available. I would like to be as informed as possible before making a final decision.
     
  7. Apresski

    Apresski Pool Room Ski Pass: Gold

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    The land is usually leasehold, so even if you buy an apartment you buy shares in the company, each apartment being allotted a designated amount of shares, according to the size of the apartment......that was our experience in Falls Creek at any rate.
     
  8. Seth

    Seth Pool Room Ski Pass: Gold

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    The formalities of the club is really only something you need to worry about once you've found a lodge that you like.

    Focus on more important aspects, like access to beds, booking procedures, do you need oversnow to get there, do they allow kids, location.
     
    currawong likes this.
  9. currawong

    currawong Old but not so Crusty Ski Pass: Gold

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    A key consideration in choosing a club is how likely you are to be able to get bookings when you want them. Part of that will be the club's booking rules and pay will come down to ratio of beds to members. The more members per bed, the less chance of getting what you eant at peak times. If a club has share owning members and members with booking rights only, the share owners will probably have priority. The fewer members, the higher the likely cost of joining for similar standard.

    As others have said, find the club you'd like to join and then see if the financial and legal setup is acceptable to you.