Pandemic Vacation Home Buyers Cut Costs and Maintenance Hassles Through Co-Ownership
Home purchases in vacation destinations surged during the COVID-19 pandemic thanks to low mortgage rates and the rise of work-from-home opportunities, but the average vacation home is used just 11% of the year, according to Forbes. As a result, vacation home owners are turning over their keys to professional hospitality services for part of the year and instead embracing the ease and convenience of co-ownership.
Companies like Pacaso and Timbers Resorts specialize in co-ownership homes that prohibit third-party rentals. Buyers are able to purchase luxurious vacation homes to be shared with other owners and their vetted guests, splitting costs and maintenance responsibilities with each individual resident along with the third party luxury developer.
“Co-ownership enables buyers to purchase an interest in a vacation property that is proportional to their ability to use It,” [Jeff] Tisdall says.
“The model reduces the capital requirements of second-home ownership, while enabling multiple co-owners to share in property upkeep and related overheads . . . Homeowners arrive to a fully prepared home, with no maintenance issues to address, and a dedicated team to keep an eye on the property when not in use.”