Fractional Ownership offers a smart, responsible way to buy and own a second home
With economic uncertainty comes a question: Is this the right time to buy a second home? While it’s hard to predict the future, the current market and past economic cycles position fractional ownership as the future-forward option.
This model brings together buyers to co-own a second home, and then provides ongoing management to make the experience of second home ownership easier, more enjoyable and more responsible.
“Our company exists to make second home ownership possible for a broader audience,” says CEO Austin Allison, who co-founded Pacaso after achieving his goal of owning a second home.
According to the company’s Second Home Market Analysis, the demand for luxury second homes remains strong. Whether buyers have been searching for a second home or never thought they could afford one, the co-ownership model is the perfect solution. It enables buyers to purchase the amount of ownership they’ll actually use, starting at ⅛, and tap into a market at an accessible price point.
While co-ownership of real estate is nothing new — groups of families and friends have owned property through LLCs or informal arrangements for decades — it simplifies the process and removes potential friction. “We create a property LLC for each home, find and vet co-owners, and handle all the sales details,” says Austin. “At closing, co-owners together enjoy complete ownership of the home.”
Unlike a timeshare, the LLC co-ownership model offers ownership of a home, not “right to use” time in a condo or resort hotel unit. The value of the owner’s real estate property asset moves in line with the whole-home market, and owners can sell at a price of their choosing.
The LLC professionally designs and furnishes each home, and handles the ongoing demands of homeownership, like paying the bills and maintaining the lawn. Owners simply show up and enjoy their home.
Using the company’s SmartStay system on the app, owners can reserve their home with as little as two days’ notice throughout the year. The app distributes reservations equitably according to ownership percentage and even accounts for holidays. Luxury homes are located in over 40 world-class second home destinations, and the company makes it easy to tour any home virtually or in person.
Ready to start enriching your life today? Give us a call.
Why Fractional Ownership is the smarter second home alternative to a timeshare
Even during a difficult macro environment, people still look for ways enrich their lives — including owning a second home. Historical data shows that real estate remains resilient.
Because this model is co-ownership, one of the most common questions buyers ask is, “How is this different from a timeshare?” The fractional ownerhsip model might seem similar to a timeshare. After all, the home is shared. But that’s where the similarity ends.
First, each property is a luxurious one-of-kind home — not a room in a hotel or resort. The homes are expertly designed and come furnished with beautiful decor, offering the comfort, convenience and privacy of a real home.
Second, a small owner group owns each property. A timeshare, which sells weekly blocks of use, may have 52 owners. The number of shares is limited to eight, and rentals aren’t permitted. Owners agree to a Code of Conduct to ensure they will treat the home as their own.
Third, buyers have real estate ownership. Because a timeshare is not true real estate — it’s “right to use” time — buyers are likely to see the value depreciate quickly.
Fourth, owners can use their homes throughout the year. The scheduling app is equitable and flexible, allowing owners to plan stays up to 24 months ahead of time or book a short-notice stay just two days in advance. Timeshares typically limit bookings to specific weeks, and if they offer an exchange system, owners can expect to pay extra for more desirable dates or locations.
Finally, resale is streamlined. Fractional owners set their price, and we can list and market your share much like a whole home sale. Fractional ownership listings resell in an average of 12 days with a 12% gain on an annual basis. It’s streamlined, fast and simple.
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