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Summer is finally here, and summer means vacations. You might be dreaming of crashing waves on a sandy beach and the smell of salt in the air. If you're one of those people who looks forward to their beach vacation all year, it's time to invest in a permanent real estate asset.
And if you think that dream is out of reach—it's much more feasible than you might think.
Thanks to the growing trend of vacation home co-ownership, more people are making their vacation home dreams come true. In fact, a study from the National Association of Realtors determined that sales of vacation homes increased 57% year-over-year from 2020 to 2021. Add in the fact that younger generations face increasing barriers to buying a second home, and you've got the burgeoning new industry of fractional home ownership.
All the home for a fraction of the cost
Say that you go out for pizza with seven friends. You split the cost of the pizza equally amongst yourselves, and you each get to enjoy a delicious cheesy slice. That's the concept of fractional home ownership—you buy one-eighth of a share of a home while still getting to enjoy all the benefits of a private, single-family vacation home.
Investing in co-ownership of a home is a true real estate asset that grows with time, just as owning your own home would. But for many buyers, the benefit is really in the usage of the home. You get to enjoy a property that would normally be far out of reach, and instead of paying thousands of dollars to rent it for a week or two—it's yours!
Hassle-free vacations
With co-ownership, you get the benefits of owning the house without all the maintenance headaches. Homes are typically professionally managed and maintained so that you can show up and get right into vacation mode.
Additionally, maintenance costs like HOA fees, home repairs, and landscaping are split equally between all the owners. This is a huge win for someone looking to afford a second home, because it's often the high taxes and extra bills that make having a vacation home unappealing or unaffordable.
Luxury for less
Instead of waiting years or even decades until you can afford a second home, fractional ownership gives you the opportunity to live your dream life now. Perhaps a million-dollar home is out of reach for you as an individual, but a one-eighth share of that same million-dollar home is just right. You get access to a beautiful home for a set amount of time each year, but without all the burden or cost. Why compromise? Co-ownership gives you the luxury you want, without all the responsibility, taxes, and fees falling solely on your shoulders.
Better for the economy
One downside to owning a vacation home is deciding what to do with it when you aren't there. Should you rent it out? Hire a property management company? Let it sit? Co-ownership solves that problem, while also being better for the economy!
In a recent Forbes article, Jeffrey Steele writes, "The average vacation home is used just 11 percent of the year, while the homes of one major co-ownership provider are occupied more than 90 percent of the year. That means the local economy profits from nearly year-round patronage of restaurants, retailers, and service businesses in the area."
Co-own with Nelson Family Estates
Co-ownership with Nelson Family Estates is the smart way to buy and own a second home. Unlike vacation rentals or those shady opportunities you hear about in sales pitches, co-ownership means you actually own a stake in the home and can resell it anytime at your price.
Nelson Family Estates sets up an LLC for the owners of each property, with either six or eight shares available. Owners can buy one or more shares. Nelson Family Estates vets every buyer and makes the sale process simple. The share is as transferable as any other real estate transaction, meaning you can list your interest anytime. Nelson Family Estates will even help you through the selling process if requested.
Put simply, Nelson Family Estates makes it affordable for people like you to own a vacation home. The company manages luxury condos in destinations like Oahu, Newport Beach, and Oceanside. Visit their website to learn more about their available properties.
