Estimated read time: 4-5 minutes
Owning a vacation home can be a great way to keep your sanity amid the hustle, bustle and grind of daily life. If things start to feel overwhelming, you simply slip away to your favorite hideout without a care in the world, right? Well, that's not really how traditional vacation homes work.
As the sole owner of a vacation property, you bear a heavy financial burden all on your own. First, there are the upfront costs — down payments, closing costs and property taxes — and then there are the maintenance and utilities expenses, which can add up over time. It doesn't matter how many times you visit each year; you alone are responsible for the care and upkeep of this house.
According to an article in U.S. News & World Report, nearly 10 million second homes in the U.S. remain empty for 10 to 11 months annually.
That begs the obvious question: Is it really worth paying for an entire vacation home when you're only using it a few times per year?
Before dismissing the idea entirely, consider a smarter alternative: co-owning a vacation home. This approach allows you to enjoy the benefits of a getaway without bearing the full financial burden. Here's why co-ownership could be the ideal solution for your vacation dreams.
Financial benefits
The most significant advantage of co-ownership is the substantial cost savings it offers, both in the short and long term. By sharing the purchase price with other owners, each individual pays only a fraction of the total cost, which is known as "fractional ownership."
Here's how it works: The property is divided into shares and each buyer acquires an equal stake. Typically, the property is held under a Limited Liability Company (LLC), with buyers purchasing shares in the LLC.
Fraxioned, a Utah property management company specializing in fractional home ownership, outlines several financial benefits to this model. If you choose to fractionalize your property, you might actually earn more than if you sold the property outright, depending on market conditions. You can also sell a portion while retaining a share for your personal use if you still enjoy the property.
This financial structure benefits everyone involved, making vacation home ownership more attainable and allowing access to high-end properties that might otherwise be out of reach.
Shared maintenance responsibilities
The last thing you want to worry about while on vacation is an unexpected maintenance issue. With fractional ownership, that's no longer a concern because a third party manages and maintains your home. Companies like Fraxioned take care of all aspects of upkeep, including property maintenance, lawn care, rental management, financial oversight and legal matters.
This means you can relax and enjoy your time off, knowing that your property is in good hands. It truly removes the hassle of vacation home ownership, allowing you to focus on what matters most: your getaway.
Access to luxury homes
Forget spending your hard-earned money on a rundown cabin in the woods with shoddy furniture and a toilet that only flushes occasionally. Through co-ownership, luxurious vacation homes that were previously outside of your budget are suddenly within reach. For example, Fraxioned offers homes in some of the most desirable vacation spots in and around Utah, including Bear Lake, Lake Powell and St. George. To see the full list of currently available properties, click here.
Flexibility and convenience in prime locations
One of the stand-out features of co-ownership through Fraxioned is the ability to vacation in prime Utah destinations without the headaches and hassles of owning a second home outright. With the fractional ownership model, you get between 28 to 44 nights available to you throughout the year, depending on how many owners you share the property with. A convenient online calendar allows you to view availability and book your desired dates in advance.
If you're feeling spontaneous, you might also be able to take advantage of a short notice stay, which allows owners to reserve the property if it's unbooked within three nights of a specific date. These bookings don't count against your yearly allotment of days, which allows you to optimize your property use even further.
Maximized vacation time
At the end of the day, a vacation home should feel like a vacation. Eliminating the financial and maintenance burden associated with a property frees up more time for all the fun stuff. No more worrying or stressing about expenses or unused vacation time; just relax and enjoy making memories with your family!
Co-own your dream vacation home today
Fractional ownership could be a very attractive and cost-effective alternative to traditional home ownership. You save money, reduce stress and maximize your time in some of the most beautiful vacation homes you'll find.
Fraxioned is leading the way in this innovative vacation model, offering Utah residents and visitors a fresh perspective on vacation home ownership. If you want to elevate your getaways while managing costs, co-ownership with Fraxioned could be the ideal solution.
To see if fractional ownership might be right for you, visit fraxioned.com today.
