Vacation homes are known to be a costly investment due to the never-ending upkeep, maintenance, and cleaning costs — even during slow seasons when most homes are unoccupied. Second-home buyers are seeking alternative solutions to help them own vacation homes without incurring more costs and frustrations. Thus, homebuyers are embracing
co-ownership of luxury properties as it allows multiple owners to share the capital costs while reaping the benefits of owning a vacation home.
What Makes Co-Ownership Appealing?
Co-ownership appeals to homeowners because it answers the ongoing problem of caring for a vacation home when not in use. The average vacation home is occupied just 11% of the year, so homeowners have to worry about upkeep and maintenance on something they do not use for a significant portion of the year. On the other hand, one of the considerable benefits of co-ownership is that the home is occupied for more than 90% of the year. You can easily see how this arrangement has become a more economical option.
A co-ownership arrangement is also beneficial to vacation destinations because it creates jobs and helps to stimulate the local economy. Since someone is living there for most of the year, local restaurants and shops will benefit from visitors and tourists.
How Does Co-Ownership Work?
In a co-ownership arrangement, homeowners purchase a specific portion of their desired properties. They can make their purchase based on how much they think they will use the home. For example, someone who says they will use the home for about a month out of the year will purchase 1/12 of the house.
When someone owns a portion of the home through this arrangement, there will also be a maintenance team that can prepare the house before the next homeowner arrives. This means that owners come to a fully prepared home, reducing the need for maintenance and cleaning work for the property.
Unlike other methods of co-ownership, such as a timeshare, owners could own a significantly larger portion of the property and have full access to the amenities available with that accommodation. Using the co-ownership model allows budget buyers to buy a vacation home in destinations they would otherwise be unable to purchase. Since they only buy a portion of the house, each owner can invest in a more luxurious home that better suits their vacation dreams than they would otherwise have been able to. This creates a situation that benefits all the homeowners involved.
How Can Real Estate Agents Help Customers Interested in Co-Ownership?
As a real estate agent, you want to help your clients take advantage of the latest trends and opportunities to invest in real estate and achieve their dreams with real estate. Learning more about how co-ownership arrangements work can help you tap into this potential market with buyers. You can help those interested in owning a vacation home and looking for a solution regarding their limited time or limited budget.
By: McKissockSeptember 19, 2022