The kids have left for college or jobs, and your once-bustling home is quieter than ever. The empty nest phase can feel unsettling, as it opens up a world of possibilities — all you need are some ideas for empty nester adventures. Here are 20 activities and events by region and season. Northeast empty nest ideas The Northeast is full of seasonal activities to enjoy year-round. From local New England festivals to iconic events in the Big Apple — there are plenty of empty nester activities to enjoy here. Cherry blossom viewing Spring One of the most enchanting places to view cherry blossoms in the Northeastern U.S. is the Brooklyn Botanic Garden in Brooklyn, New York. Each spring, typically in late April or early May, the garden's Sakura trees burst into a breathtaking display of pink and white blossoms. Buffalo, New York, is home to Buffalo Cherry Blossom Festival, a gathering full of great music, food and blooms. Firefly viewing Summer Head to The Fells Historic Estate & Gardens in Newbury, New Hampshire, to see a dazzling performance of light. Visit the estate in late June when fireflies are at their peak. New England nature enthusiasts gather here to witness the electrifying display of fireflies twinkling over the beautiful gardens and serene lakeside setting. Apple picking Fall One of the quintessential autumn activities in the Northeast is apple picking, and a wonderful place to do this is at Honey Pot Hill Orchards in Stow, Massachusetts. This family-owned orchard is nestled in the countryside and offers an apple-picking experience for all ages to enjoy — from families to empty nesters. Ice skating Winter Located in Central Park and framed by the city's skyline, the Wollman Rink offers the perfect New York winter experience. Whether you're a skilled skater or a beginner, you can glide across the ice while enjoying the iconic ambiance of the park. The rink is typically open from late October to early April, making it a must-visit winter destination. Midwest empty nest ideas The Midwest has so much to offer for nature lovers and empty nesters. Try something you’ve never done before or relish in the familiarity of local seasonal events. Tulip festival Spring In the Midwest, one of the most vibrant flower festivals to attend in spring is the Tulip Time Festival in Holland, Michigan. This colorful May event celebrates the Dutch heritage of the region with millions of tulips in full bloom, transforming the city into a vibrant spectacle full of flowers, food and dancing. Visit the Great Lakes Summer Lake Michigan is an excellent choice for a summer visit to the Great Lakes. Its sandy shores and clear waters make it perfect for swimming, sunbathing and water sports. For a more urban experience, you can explore Milwaukee along its western shore, Chicago on the southern shore or venture to small beach towns like Traverse City, Michigan, to the northeast. Visit a cider mill Fall In the Midwest, visiting a cider mill is one of the best things for empty nesters to do in autumn. One cider gem worth exploring is the Franklin Cider Mill in Franklin, Michigan. Nestled amidst colorful foliage, this historic mill welcomes you to watch the cider-making process, savor seasonal treats and take a leisurely stroll along the Franklin River. Ice fishing Winter Lake of the Woods in northern Minnesota is a premier destination for a classic ice fishing experience. Visitors to the "Walleye Capital of the World" can set up ice shanties, drop their lines and try to catch walleye, sauger and northern pike. The adventure features the cozy camaraderie of fellow ice anglers from near and far. West Coast empty nest ideas From watersports to wine-tasting, the West Coast has it all and then some. Head up north for captivating views of world-famous mountain peaks, or soak up the SoCal lifestyle by the beach. Wherever you go, bring your camera to capture the memories. Go whale watching Spring One of the best places to whale watch on the West Coast is Monterey Bay, California. Spring is the peak season for whale migrations along the Pacific coast, and Monterey Bay offers abundant opportunities to spot gray whales, humpback whales — and even the occasional orca. Don’t be surprised if your first visit quickly turns into one of your favorite empty-nester activities. Go surfing Summer In the summertime, one of the prime surfing destinations on the West Coast is Huntington Beach, California. Known as "Surf City USA," this iconic spot offers consistent waves and a vibrant surf culture. With its long, sandy beach and various breaks catering to different skill levels, it's a fantastic place for surfers of all abilities. Sample wines Fall Calling all empty nesters who love to sip back and relax. For an unforgettable wine-tasting tour experience, head to California's Napa Valley. This world-renowned wine region is especially gorgeous during the autumn months as grapevines turn vibrant shades of red and gold. The cooler temperatures create ideal conditions for both wine production and enjoyment of these legendary librations. Visit a national park Winter With the scorching desert heat subsided, the cooler temperatures make exploring Joshua Tree National Park more comfortable. Enjoy navigating through the park's surreal rock formations and iconic Joshua trees. You can take advantage of the numerous trails or simply relax and stargaze in one of the best dark-sky areas in the United States. Southwest empty nest ideas The Southwest is far more than just cowboy country — although horseback riding is first on the agenda. Luxury hot springs and river adventures await you in the desert landscape. Try horseback riding Spring Head to the Red Rock Country of Sedona, Arizona, for a horseback riding experience you won’t soon forget. The stunning red rock formations, steep canyons and picturesque desert landscapes provide a breathtaking backdrop for trekking with your steed. Horsin’ Around Adventures has experienced wranglers who are ready to show you the ropes this spring. Go river tubing Summer What do empty nesters do to beat the southwestern summer heat? You float down the Salt River near Mesa, Arizona, with a cool drink in hand. With the desert landscape in the background, grab a tube and cruise through breathtaking scenery. Numerous outfitters in the area provide tube rentals and transportation to the launch points, making it accessible for all ages. Camping Fall One of the best ideas for empty nesters who love the great outdoors is to go camping in autumn. The crisp air makes hiking, fishing and stargazing more comfortable. Zion National Park in southern Utah is an idyllic place to set up camp in the fall. There are fewer crowds, dozens of trails to explore and an awe-inspiring backdrop for your camping adventure. Soak in a hot spring Winter Pack your bags for a fall getaway to Truth or Consequences, New Mexico, where luxury hot springs with towering mountain views await you. Whether you want to soak in the public baths or book a private hot spring suite, Riverbend Hot Springs has it all. If tranquility is a priority, don’t skip one of the most relaxing empty nester pastimes. Southeast empty nest ideas Last but not least, the Southeast promises thrilling experiences for empty nesters who love history, leisure and being near pristine water. With various landscapes to enjoy, these empty nester activities will keep you busy all year long. Boating Spring Boating is one of the more relaxing activities for empty nesters to enjoy before it gets too hot. Consider Lake Norman in North Carolina for your next maritime adventure. This expansive lake, often called the "Inland Sea," offers a wonderful setting for a day on the water. With over 500 miles of shoreline, you can explore secluded coves, enjoy water sports and drop anchor for picnics. Visit a botanical garden Summer The Atlanta Botanical Garden in Atlanta, Georgia, is a must-visit destination for empty-nest nature enthusiasts. This lush oasis offers a refreshing escape from the summer heat, featuring beautifully landscaped gardens, including the Orchid Display House, Japanese Garden and the whimsical Children's Garden. Don’t miss seeing the garden from above at the treetop Canopy Walk. Take a haunted house tour Fall For a spine-tingling experience, head to the historic city of Savannah, Georgia, and embark on a haunted house tour or two. Known for its rich history and eerie legends, Savannah offers numerous ghost tours that guide you through its haunted mansions, cemeteries and squares. The Sorrel-Weed House and the Mercer-Williams House, both famous for their paranormal activity, are popular stops. Head to the beach Winter One of the best empty nester ideas is to hit the beach. Visiting the Florida Keys in the winter means soaking up the sun and enjoying everything you’ll love about at a tropical destination — like snorkeling and seaside dining. Catch the spectacular sunsets from Key West's famous Mallory Square. Do these empty nest ideas already have you thinking about how to stay at these destinations year-round? If you could see yourself enjoying a seasonal home away from home in one of the regions, consider co-owning a second home in another state. Pacaso’s streamlined buying process makes it possible to buy your new luxury home sight unseen.
Although it may take some time, embracing an empty nester lifestyle can open you up to new experiences that weren’t possible while your kids were still at home. From candlemaking to scuba diving, there is an abundance of hobbies for empty nesters to try. Read on to learn more about 35 hobbies to enjoy after your kids leave the nest, like: 1. Travel If your dream has always been to travel the world and experience different cultures, there is no better time than now. You can start small by planning day trips to nearby cities and local attractions. However, if vacation costs are not an issue, consider embarking on long-term travel that allows you to immerse yourself in different environments and make lasting connections to places across the globe. And if you fall in love with a vacation destination, you might want to consider owning a second home there. A fully managed co-ownership model like Pacaso can help put a second home in reach, and and make it easy for you to schedule getaways to your favorite place throughout the year, without the hassles and stress of managing a whole and paying for whole ownership. 2. Volunteering Volunteering is an impactful and meaningful hobby for empty nesters who want to fill their new free time with purpose and joy. Volunteering can help you connect with your community, get to know your neighbors, learn new skills and contribute to a cause you care about. Whether you love animals, children, nature, art or simply helping those in need, there is a volunteer opportunity nearby waiting for you. 3. Dance lessons If you’re looking for a creative way to break a sweat, you might want to consider taking dance lessons. Dancing is not only a great form of exercise but it’s also a wonderful way to express yourself while going through the transition to empty nesters. Whether you prefer ballroom, salsa, swing or hip-hop, you can enjoy learning new steps and the social interaction that comes from dance. 4. Foster a pet Fostering a pet can be a fulfilling hobby for empty nesters who miss their children. Pets can offer unconditional love, companionship and affection while providing home to animals in need. Fostering a pet also has the advantage of being flexible and temporary. You can travel to pet-friendly destinations or go anywhere after your foster pet is adopted. By fostering a pet, you are not only enriching your own life but also helping a homeless animal find a forever home. 5. Learn a new language Learning a new language is a great hobby for empty nesters who want to keep their brains sharp. There are many resources and methods available to help you learn a new language at your own pace. You can also set realistic expectations and celebrate your progress along the way. Learning a language can give you opportunities to also learn about the history, traditions and values of the people who speak it. 6. Gardening Gardening is as rewarding as it is relaxing. It’s a hobby that can help parents cope with the transition of their children leaving home by providing a sense of accomplishment and a connection with nature. Gardening has the potential to improve physical and mental health, as it involves being outdoors and interacting with a variety of living organisms. Anyone can start gardening at a low cost via raised garden beds, indoor containers or small plots. 7. Beekeeping If you find yourself with an empty nest, consider creating your own hive. Beekeeping is a hobby that can bring joy and satisfaction to empty nesters who are looking for a new challenge and a way to contribute to the environment. Not only can you enjoy delicious honey and beeswax products from your own hives, but you can also help the environment by supporting the pollination of flowers and crops. 8. Bird-watching Bird-watching can be done from your backyard, at a nearby park or even in exotic locations around the world — making it the perfect hobby for anyone interested in having a second home in another state. Enjoy the challenge of spotting rare or elusive birds. Consider participating in projects that involve collecting and reporting data on local bird populations to help researchers and conservationists protect these unique creatures. 9. Fishing Fishing can be enjoyed solo or in a group setting. It’s a hobby anyone can try, regardless of their skill level or budget. All it takes is some basic equipment, patience and a willingness to learn. Fishing also offers you the chance to learn more about the aquatic ecosystem, local marine species and conservation efforts happening in your area. 10. Hiking Hiking is a hobby for empty nesters that can help you rediscover yourself. You can set your own goals, pace and schedule, and enjoy the freedom and flexibility that comes with having more time for yourself. You can also use hiking as an opportunity to bond with your spouse or partner, who may also be going through the same difficult emotions. It can challenge you both to learn new skills, explore new places and connect with nature. Consider booking a hiking trip in the mountains and staying at a vacation rental as a couple’s getaway. 11. Camping Searching for a hobby that gets you back to the basics and provides an instant connection to the great outdoors? Then grab your gear, pack your bags and hit the road for unforgettable camping adventures. This hobby can be as mild or intense as you’d like by choosing from different types of accommodations such as tent camping, RV camping, backpacking or glamping. 12. Snorkeling Snorkeling is a relaxing hobby for empty nesters who want to explore the underwater world. Snorkeling does not require any special training or equipment other than a mask, snorkel and fins. You can snorkel in any clear and calm water, such as lakes, rivers or oceans. 13. Scuba diving Scuba diving is for thrill seekers who want to dive deep and experience underwater ecosystems. Whether you are a beginner or an experienced diver, there are many opportunities to scuba dive all around the world. From coral reefs to shipwrecks, you’ll never run out of subterranean playgrounds to explore. 14. Running Running can be an enjoyable and beneficial way to prioritize your health. All you need is a pair of running shoes, some comfortable clothes and a positive attitude. You can start running slowly and gradually increase your distance and speed as you get fitter and more confident. You can also vary your routes and routines to keep things interesting and challenging. For example, compare how it feels to run along the beach vs. city streets. Consider living in a home where 15. Biking Biking is a low-impact exercise that can improve your cardiovascular fitness, strengthen your muscles and bones, and reduce stress. As a hobby, biking offers many opportunities to explore new places and enjoy nature. Whether you prefer neighborhood biking, mountain biking or biking through the city, there is a bike and a trail waiting for you. 16. Golf Golf is a popular hobby for many people who have more free time after their children leave home. It’s a low-impact sport with courses all over the world, so it can also involve travel and stays at golf resorts. You can even purchase golf real estate built with golfers in mind. 17. Tennis Tennis is another sport that can be enjoyed by people of all ages and skill levels. You can choose to play casually or competitively, depending on your goals. Playing tennis can help you develop coordination, agility and strategy skills. Whether you want to have fun, challenge yourself or make new connections in your community, tennis can be the perfect active hobby for empty nesters. 18. Painting Painting is a wonderful hobby for empty nesters who want to let their creativity flow and express their emotions during a time of transition. You can display your paintings in your home (or second home), give them as gifts or even sell them online. With a wide array of styles and techniques to choose from, like watercolor and still life, painting offers a new skill to learn and experiment with. 19. Cooking Cooking is one of the best activities for empty nest couples who are searching for a simple way to reconnect. You can work together (or solo) to experiment with new recipes, flavors and ingredients or revisit old favorites. You don’t have to be a foodie to fall in love with cooking. In fact, it can become a fun way to prioritize your nutrition and reduce eating-out expenses. This hobby is also a great way to break in a luxury kitchen in your new home or second home. 20. Pottery Making pottery is perfect for those who don’t mind rolling up their sleeves and getting their hands dirty. Pottery can help you discover new aspects of yourself, enjoy the process of creating something beautiful and create unique works of art that can be used on a daily basis. From vases, bowls and mugs to one-of-a-kind sculptures that become the focal point of your zen room, pottery has endless creative potential. 21. Sewing If you’re searching for a practical hobby that helps you reduce waste and express your creative side, look no further. Sewing can turn scraps of fabric into quilts, clothing and bags. This hobby is also a fun way to experiment with fashion and create customized clothes that are tailored to your body and personality. Share the fruits of your labor with your family and friends or sell your goods online for extra cash. 22. Knitting Knitting has a reputation of being one of the most common things for empty nesters to do, and for good reason. For empty nesters who are missing their little birds, knitting offers a creative way to make handmade gifts for those you love. It also serves as a way to make practical clothing accessories that are perfect for visiting your favorite winter destinations. 23. Photography Photography is an ideal hobby for empty nesters because it can spark your creativity, . help you express yourself and capture the beauty of the world around you. Enjoy experimenting with different cameras, lenses and shooting styles — or just play with your phone camera. From landscapes to portraits to starry skies, there are muses to be found anywhere. 24. Candlemaking Making candles is the perfect hobby for empty nesters who love to use essential oils and create a relaxing ambiance. This hobby can also help you share your love of aromatherapy with your family and friends in the form of customized candles. 25. Music lessons One way to cope with the transition into empty nest life is to pursue a hobby that you have always wanted to try or improve. Taking music lessons can help your brain process information in different ways while expressing your emotions and learning new skills. Whether it’s singing, reading sheet music or learning how to play an instrument, music lessons challenge your mind — keeping it active and sharp. 26. Jewelry making Jewelry making is all about self-expression. It allows empty nesters to express their creativity and personality through original designs. To begin creating your own jewelry and accessories, you’ll need basic tools and materials like pliers, wire cutters, beads, wire, clasps and hooks. Or you can take classes in working with metals and precious stones. 27. Home renovation Home renovation can be a dynamic hobby that allows empty nesters to cultivate their design skills, improve their living space and increase the value of their property. Home renovation can be tailored to your budget, skills and preferences. From simple DIY projects to major overhauls, you are in control of how much work you take on at once and what your home will look like in the end. 28. Blogging Blogging is one of the best things for empty nesters to do if they want to keep advancing their technical skills and become an expert on a certain topic. You can blog about another hobby you enjoy, a subject matter that interests you or simply share your lifestyle and daily routines. Since blogging is commonly done on a computer, it is the perfect hobby for those who already have a functional remote work office at home. 29. Journaling Journaling is the practice of writing down your thoughts, feelings, experiences and goals on a regular basis. It can help you process your emotions, gain new perspectives and document your personal growth after your children leave home. It’s a process that can potentially lead to other hobbies like blogging or simply remain a method of recording your life experiences. 30. Reading Reading can challenge, inspire, educate and amuse empty nesters. Fiction lets you escape into a different world and nonfiction helps you understand the real world. Self-help books can give you tools to improve yourself while memoirs help you relate to someone else's experiences. The best part about this hobby is that you can enjoy it anywhere — on the beach, at a coffee shop or in the coziest spot of your vacation home. And reading as part of a book group can help you make connections and explore new ways of looking at what you’ve read. 31. Podcasting A podcast is an audio-only series that covers just about anything under the sun: true crime, comedy, news, sports, health and fitness, and much more. Starting a podcast is not as hard as it may seem, and it can be a good way to dive deeper into a topic that interests you. You don't need any special skills or expensive equipment to get started. All you need is a computer, an internet connection and a microphone. 32. Collecting As an empty nester, you can collect anything that appeals to you: stamps, coins, books, art, antiques or memorabilia from travel. Take advantage of your empty nest by devoting a room to organizing and displaying your collections. 33. Meditation Meditation can have many benefits for people of all ages, but it can be especially helpful for empty nesters who may experience feelings of loneliness, sadness or anxiety after their children leave home. Meditation can help empty nesters cope with these emotions by providing them with a relaxing sense of control. This practice can be enjoyed anywhere and at any time, making it a convenient and flexible hobby for empty nesters. There are many types of meditation to choose from, such as mindfulness, transcendental, zen or guided meditation. You can experiment with different methods and find the one that works best for your lifestyle. 34. Martial arts Martial arts can be a great hobby for empty nesters who want to stay fit while learning new skills that can balance their physical and mental well-being. There are many types of martial arts to choose from: karate, taekwondo, judo, aikido, kung fu, tai chi and more. All of these martial arts can help you develop a sense of self-confidence, discipline and drive to improve yourself. If you find a style that suits you, consider adding a dojo to your second home wishlist. 35. Yoga Yoga is both a spiritual and physical practice that aims to clear your mind while connecting you deeply with your body. While practicing yoga, you will become aware of sensations and emotions you carry on a daily basis — making it a wonderful hobby to begin while dealing with a lifestyle transition. If you crave a social aspect to this practice, consider signing up for a class at your local gym or yoga studio. As you research which hobbies for empty nesters fit your new lifestyle, notice if any of the activities could benefit from a regular stay at your favorite destination. Buying a second home might be easier than you think, and it's is a great way to build a new nest that is tailored to your new lifestyle. Check out the top second home destinations of 2023 to begin gathering inspiration for your next dream vacation.
The term “empty nester” refers to an individual whose children have grown up and moved out, either to college or into a place of their own. The name comes from the fact that the kids have left the proverbial nest. The children’s departure can prompt parents to feel various different emotions, from a loss of purpose to a sense of excitement as they experience more free time. How old are empty nesters? Empty nesters are typically in their late 40s, 50s or 60s. Collectively, people in this age range make up 40% of home buyers and sellers, according to the National Association of Realtors. While not all people in this age range are empty nesters, many are. Downsizing a home or moving to a new destination are common real estate activities for people who no longer are actively raising children. What are the main characteristics of empty nesters? There are over 22 million empty nesters in the United States. Many still work full time and are often in a time of financial transition. Some may no longer be financially responsible for the everyday expenses of their children — things like food, clothing and activities — and may find themselves with more disposable income. Others may be on the hook for college tuition, housing and food. Still others may be juggling increased taxes if they no longer have dependents to claim. What is empty nest syndrome? It may take some time for parents to adjust to the new normal of no children in the home. Parents often report feelings of grief, a loss or purpose and loneliness after the children move out. This is called empty nest syndrome. For most people, these feelings pass over time as they learn to navigate their new reality. While entering the empty nest phase of life represents the closing of one chapter, it also represents the beginning of another — one with more time to focus on other parts of life, like relationships with partners and friends, hobbies and travel. It also offers an opportunity to get to know grown children as adults, which can be very rewarding. How can you make the most of the empty nester stage? Once the dust has settled on the initial transition, usually after two to three months, you may find yourself ready to define a new routine. You may dedicate time to a new self-care routine. Or you might decide it’s the perfect time to adopt a new hobby or pick up an activity that went by the wayside during your hectic child-rearing years. Many empty nesters decide it’s the right time to reconsider their living situation. This might include downsizing the family home, renovating to meet future accessibility needs or buying a second home in a favorite vacation destination. If a second home is on your empty nester bucket list, consider Pacaso. We offer luxury second homes in dream locations. Our fully managed LLC co-ownership model allows up to eight owners to each have an ownership interest in the LLC. You own 1/8 to 1/2 of your home, with maintenance, management and day-to-day hassles handled by us, so you can enjoy stress-free ownership as you navigate this new phase of life.
Every time you move into a new stage of life, there are adjustments to make. Becoming an empty nester is no different. When the kids are grown and no longer living at home, you may find yourself with a lot more free time—and a lot of mixed emotions. When you reach this milestone, you may feel a sense of relief. You may feel excited to begin a new chapter. But at first, you may also feel some loneliness, grief or loss of control. Together, these emotions are called empty nest syndrome. As you join the ranks of the 22 million-plus empty nesters in the United States, let a good book be your guide. Check out our list of the best books about being an empty nester and start embracing your new lifestyle. For a good laugh 1. My Nest Isn’t Empty, It Just Has More Closet Space: The Amazing Adventures of an Ordinary Woman By Lisa Scottoline and Francesca Scottoline Serritella You’ll find yourself laughing out loud while reading this book, written by a mother-daughter duo. My Nest Isn’t Empty is a humorous reflection on family life, with plenty of cameos from the hilarious family matriarch, Mother Mary. Read along as they spill family secrets while navigating their changing relationships. 2. Text Me, Love Mom: Two Girls, Two Boys, One Empty Nest By Candace Allan This witty book maintains its humor, even as the author writes earnestly about saying farewell to her children as they leave for college and to live abroad. Allan has a knack for writing beautifully about the conflicting feelings that are the hallmark of this transition, and readers may just come away from Text Me, Love Mom feeling like her family is their own. 3. The Dog Stays in the Picture: How My Rescued Greyhound Helped Me Cope with My Empty Nest By Susan Morse Both hilarious and moving, this memoir tells the story of how an adopted retired racing greyhound threw a wrench in the author’s plans for her empty nest years — and how the dog ended up helping her through the transition. The Dog Stays in the Picture is the perfect read for dog-loving empty nesters. For reinvention 4. Finding Joy in the Empty Nest By Jim Burns Insightful family educator Jim Burns helps new empty nesters answer the question, “Now what?” Full of practical advice and endless encouragement, Finding Joy in the Empty Nest tackles topics like finances, finding your purpose and redefining the relationship with your kids. 5. HappiNest: Finding Fulfillment When Your Kids Leave Home By Judy Holland Journalist Judy Holland does a deep dive on the empty nest phase in this meticulously researched book, which pulls from over 300 interviews with psychologists, sociologists, parents and young adults. Happinest, peppered with Holland’s own experiences as a new empty nester, explores the biggest challenges you may face during this stage. 6. Going Gypsy: One Couple’s Adventure from Empty Nest to No Nest at All By David and Veronica James Awaken your wanderlust with this first-person account of an empty-nesting couple who said goodbye to the home where they raised their kids and hello to a nomadic RV adventure. Each author takes turns narrating chapters of Going Gypsy, with refreshing realizations on the importance of finding your post-childrearing identity. For good advice 7. Walking on Eggshells: Navigating the Delicate Relationship Between Adult Children and Parents By Jane Isay Harnessing insights from interviews with parents and children from 25 to 70, author Jane Isay offers advice on how parents and newly grown children can stay connected, even as their relationship and roles evolve. Best of all, the interviews in Walking on Eggshells may make new empty nesters feel like they’re not alone. 8. Empty Nest, Full Pockets By Matt Meline This phase of life is full of financial uncertainties, and financial coach Matt Meline’s book is the roadmap for figuring it all out. Topics in Empty Nest, Full Pockets include paying college tuition while still saving for retirement, reevaluating your financial priorities and living arrangements, and how to help positively impact your child’s financial future. 9. Die with Zero: Getting All You Can from Your Money and Your Life By Bill Perkins They say “you can’t take it with you,” and in this book, Bill Perkins explores making the most of your money and your life. Put simply, in Die with Zero he points out that it’s about living rich, not dying rich. Because empty nesters are entering a new phase of financial life, this book is a timely read for those planning for their golden years … while still wanting to enjoy the best things in life in the meantime. Pack your favorite book — it’s vacation time Need a change of scenery as you embrace your new empty nest status? Consider a second home with Pacaso. Choose from luxurious vacation homes in crave-worthy vacation destinations and you’ll find the perfect place to devour a new book or two. As a co-owner of a Pacaso property, you’ll enjoy second home ownership for a fraction of the cost. We take care of the management and maintenance, and scheduling your trips is as easy as a few taps on our app. Pick your favorite destination and discover the very best way to live the empty nester life.
After years of raising and supporting your children, what happens to you when they leave home for college, career or marriage? While most parents are eager to see their children spread their wings, the transition can be a little bittersweet. Many people experience a combination of the loneliness of a quiet house and the excitement of getting to put your wants and needs first. Here’s what you need to know about empty nest syndrome and how to embrace it. Who are empty nesters? Empty nesters are parents whose children have grown up and moved away. According to the 2020 census, there are 22.5 million empty nesters in the United States. Most people become empty nesters between the ages of 40 and 60. Many are still working, and some experience newfound financial freedom since they’re no longer paying for food, clothing, childcare and other costs related to raising kids. What is empty nest syndrome? While empty nest syndrome isn’t classified as an official health condition, it’s well documented — and very common. Signs of the syndrome include feelings of sadness, anxiety and loss of purpose. And it’s easy to understand why, after so many years of prioritizing your children’s needs over your own. Symptoms of empty nest syndrome While the experience is different for every parent, it’s common to have a variety of emotions during this time: Loneliness. It can be quite jarring to go from a full house to a much quieter residence and from a packed family calendar to ample free time. Grief. You may reflect on your time as a parent and grieve for the life you had together. Lack of purpose. After years of homework, sports practices, family vacations and birthday parties, your calendar might feel unsettlingly open. Loss of control. With your children grown and on their own, you may miss keeping them safe, happy and healthy. Marital stress. For couples who’ve focused on raising kids to the detriment of growing their relationship, the empty nest phase can bring on new levels of relationship stress. Restlessness. You may feel like you aren’t able to focus like you could previously. It’s common for your mind to wander to your children and what they’re up to. Relief. It’s common to feel a sense of relief when children leave the nest, though it’s often accompanied by a sense of guilt. It’s understandable: The transition to empty nester is full of milestones. How to embrace this new phase of life Most empty nesters settle into their new routines within two or three months, eager for what’s to come. Here are a few recommendations for transitioning into and enjoying this phase of life. 1. Practice self care Be gentle with yourself. With a newly open calendar, shortened to-do list and big emotions, now is the time to focus on taking care of your physical and emotional needs. Exercise, sleep, meditation and other forms of self care are recommended. 2. Invest in yourself You may have spent many years prioritizing your kids’ needs over your own, with their activities dominating the family calendar. Once the kids have flown the nest, you might find yourself with more free time than you’re used to. This is the perfect time to re-prioritize hobbies or interests you pushed to the back burner, pick up a new hobby, learn a second language, double down on your efforts at work, or travel more. 3. Focus on friends An abundance of free time means you can expand your social horizons. You may choose to reconnect with old friends you’ve lost touch with over the years or seek out new relationships. Volunteer activities, affinity groups and community organizations can be great places to find new friends who may be in the same season of life. 4. Get to know your kids — as adults Your kids may not be little anymore, but part of the beauty of watching them grow up is the opportunity to know them as adults. This transitional period offers the chance to redefine your relationship and establish new roles and communication norms. 5. Reconnect with your partner In dual-parent families, it’s easy to slip into a routine where your daily and weekly routines revolve around caring for your children. Once your kids move out, it’s an ideal time to rediscover your partner and focus on spending quality time together. 6. Seek professional help If your empty nest syndrome seems to last longer than expected or seriously affects your day-to-day life, it may be time to seek out a therapist or counselor. As an objective third party, a therapist or counselor can provide coping strategies and connect you with helpful resources. 7. Find a change of scenery When the kids have flown the nest, many parents find themselves feeling less tethered to their primary home. That can be a good thing — vacation, anyone? Pacaso co-ownership takes vacations to a new level and puts luxury second home ownership within reach. You’ll enjoy easy, equitable scheduling and hassle-free ownership of a professionally designed and fully managed home in one of the world’s most sought-after destinations. Pacaso properties offer flexibility, too. Because you have real estate ownership, you can swap to another Pacaso or sell your ownership with ease.
Ready to search for your dream property? There are many things for buyers to consider, so we’ve created a checklist to help you set your priorities. Let the search for your dream home begin! 1. The area Location, location, location — we’ve all heard this property mantra, and for good reason. When you’re buying a home, it’s imperative to know if the area is right for you. Are your required and desired amenities close at hand? Do you feel “at home” and comfortable in the neighbourhood? Will the area hold its value, or is it an up-and-coming place that will become even more desirable? Check the history of property values, explore shops and restaurants, and talk to people about the area to get the “feel” of the place. 2. Age of the property Are you lured by the charm of a period property or the opportunities of a new build? Period homes have charm and character, but may be more expensive to maintain. New homes are a tabula rasa, built with more energy efficiency and designed for modern lifestyles. Ultimately, the choice comes down to personal preference. 3. Aesthetics Home style is also a matter of personal preference, and you’ll likely go into your house hunt with certain aesthetics in mind. Are you looking for a modern, minimalist single-family home, a townhome rich in Victorian details or an eclectic retreat? Each will have its pluses and minuses, depending on your point of view. Finding a style that feels like you and your family is key to knowing which property is right for you. 4. Size It may seem obvious, but size matters. You don’t want to to rattle around in (and care for) a huge home if you don’t need the space. Nor do you want to be cramped and uncomfortable. Are you a family that enjoys plenty of space and privacy, or are you happy with the buzz and hubbub of having everyone together? Either way, you need to choose the space that fits your needs and lifestyle. 5. Resale value There will come a time when you need to move on, so it’s smart to consider the resale potential of properties you look at. Is it a desirable place? Is it in a desirable place? Does the home and similar homes nearby have a history of selling quickly? Keep this in mind when splashing out on your dream home. 6. Affordability It’s easy to fall in love with a home only to realise it’s beyond your budget. Before you shop, check an online affordability calculator to get a sense of how much you can afford to borrow for a mortgage. It’s important to keep your emotions in check so you don’t overstretch yourself and risk your financial stability. 7. The X factor At the end of the day, it’s all about the home feels. Can you imagine yourself enjoying life there? Does it “spark joy?” We humans are emotional creatures, and it’s important to connect with a space we’ll call home. A brilliant option Pacaso offers spectacular dream homes that are sure to spark joy. Check out our fully managed, turnkey second homes in more than 40 world-class destinations.
Ready to embark on a house-hunting journey? Skip the headache of dead-end home searches by using only the best house-buying websites. Whether you’re searching for your primary home — or a vacation home — each home-buying site has special features, like commuter calculators and walkability scores, that can help you buy your dream home. Let’s explore the pros and cons of: 1. Zillow Best for getting to know a neighborhood With its user-friendly interface and robust search features, Zillow makes it effortless for home buyers to explore a vast, up-to-date inventory of available properties. Its interactive maps, comprehensive property listings and detailed neighborhood information empower users to make informed decisions about prospective homes. Zillow also offers valuable tools like mortgage and affordability calculators, making it one of the best websites for buying houses. Pros Cons User-friendly interface Zestimate can be inaccurate In-app calculators Limited information on off-market properties 2. Trulia Best for searching on a map What sets Trulia apart is its commitment to delivering comprehensive and up-to-date property listings, making it a top choice for prospective home buyers. Trulia's interactive map functionality and detailed property information enable users to easily explore homes in their preferred neighborhoods. The platform provides valuable insights into local real estate market trends, offering users a better understanding of price fluctuations while using websites for buying a house. Pros Cons Extensive property listings Potential for outdated listings Valuable neighborhood insights Distracting sponsored listings 3. Realtor.com Best for connecting with a Realtor Realtor.com maintains its reputation as a reliable real estate experience. This house-buying website has a direct connection to the Multiple Listing Service (MLS), which guarantees that users receive timely updates on new listings and property status changes. The platform's user-friendly mobile app keeps users connected to the latest real estate developments, making it an invaluable tool for house hunters on the go. Pros Cons Direct access to MLS listings Regional variability of listings Realtor listings on their website May need to share personal information 4. Redfin Best for accessing home data Redfin offers a robust search platform, complete with detailed property listings, neighborhood insights and agent reviews. Redfin's unique feature, the Redfin Estimate, provides an estimate of a property's value, enhancing transparency in pricing. The platform also employs a team of agents who prioritize customer satisfaction. Buyers must work directly with a Redfin agent or partner to purchase a home. Pros Cons Take advantage of salaried real estate agents Limited support for complex transactions Shares transparent home data Potential conflict of agents’ interest 5. Homes.com Best for co-shoppers Homes.com provides an extensive database of property listings, ensuring that users have a wide range of options to explore — whether they're in search of a cozy single-family home or a modern condo. Homes.com's intuitive search tools, detailed property descriptions and neighborhood information make it straightforward for users to shop for homes. Pros Cons In-app collaboration tools Potentially incomplete listings Free mortgage tools Less information about rural areas 6. Homefinder.com Best for those searching for rent-to-own Homefinder.com is known for its dedication to simplifying the home-buying process and for listing rent-to-own properties. Detailed descriptions, high-quality images and neighborhood information provide valuable insights for users looking to make informed choices about potential homes. Homefinder.com also equips buyers with essential tools like affordability calculators to aid financial planning. Pros Cons Rent-to-own information Less extensive listings compared to competitors Helpful articles on their blog Interface could be more user-friendly 7. Estately Best for commuters With an extensive and regularly updated property listing database, Estately ensures that house hunters have access to a wide range of homes, condos and apartments across urban and rural regions. Estately also offers unique features like commute time calculators, which help users assess the practicality of a location for their daily routines. Pros Cons Commute time calculators Limited low-budget availability Real-time updates Limited international listings 8. RE/MAX Best for those looking for in-person agents RE/MAX is not a traditional house-buying website, but a global real estate brokerage network renowned for its expertise in connecting buyers with properties. RE/MAX agents are known for their local market knowledge and commitment to ensuring that buyers receive personalized guidance. Pros Cons Physical offices you can visit Higher commission fees Access to exclusive listings Variable agent quality 9. RealtyTrac Best for home buyers on a tight budget RealtyTrac has a comprehensive database of foreclosure and distressed property listings, making it a valuable resource for buyers seeking investment opportunities or budget-friendly homes. The platform provides insights into foreclosure trends, property details and auction dates, enabling users to identify potentially lucrative deals. Pros Cons Specializes in foreclosures Not great for general home searches Great for home buyers on a budget Subscription paywall 10. FSBO.com Best for those who want to speak to homeowners directly FSBO.com, which stands for "For Sale By Owner," serves as a unique and valuable house-buying website by connecting buyers directly with homeowners who are selling their properties without the assistance of a real estate agent. This platform allows buyers to access a wide range of homes listed by homeowners, often resulting in cost savings due to reduced commissions. Pros Cons Contact homeowners directly More due diligence is needed Potentially more cost-effective Potential negotiation challenges 11. Foreclosure.com Best for those searching for foreclosures Foreclosure.com specializes in providing information on distressed properties, offering opportunities for savvy buyers and investors. This platform is particularly valuable for those seeking properties in foreclosure, pre-foreclosure or auction stages, as it offers a comprehensive database of such listings. Pros Cons Access to distressed properties Not great for comprehensive searches Customized alerts Possible subscription fees 12. Auction.com Best for those who want to bid Auction.com is the best website to buy a house through an online auction. This platform stands out by offering users access to a wide range of properties up for auction, including residential homes, commercial properties and land parcels. Pros Cons Access to low-cost properties Potentially low housing quality Convenient online bidding Bidding can be competitive 13. Pacaso Best for luxury second homes Pacaso specializes in luxury real estate, catering to those seeking shared ownership in second homes or vacation properties. Pacaso allows multiple buyers to co-own a property, providing them with a hassle-free and cost-effective way to invest in a second home. The platform's user-friendly website and app make it easy for potential buyers to explore available properties, understand co-ownership financials and schedule tours. Pros Cons Access to exclusive luxury listings No primary home listings Professional management Pacaso has revolutionized the way people experience second home ownership, opening the door to luxurious properties in sought-after destinations. Our commitment to creating a shared ownership experience that is seamless, equitable and enjoyable makes Pacaso a standout choice for those looking to invest in a fully managed luxury vacation home.
Whether you’re searching for a primary residence or a second home, we know what question is weighing on your mind: Is now the right time? Due to economic and employment uncertainty, 79% of consumers believe the answer is no. So, is now the right time to buy a house? The answer depends on your financial stability, lifestyle goals, and your readiness to own a home. Read our guide to understand the housing market in 2023 and discover answers to questions that will help you know if now is the best time to buy a home — or second home. Is it a good time to buy a house? 3 housing market factors to consider If you need to finance your next home purchase, there are three market factors you should consider. 1. Mortgage rates Despite last year’s dip, current U.S. mortgage rates are generally around 6%-7%. Although these numbers appear higher than in previous years, the national mortgage rate was above 7% in December 2022. 2. Median home prices The current national median home price is around $380,000, a 4% increase from last year. Given the momentum of increasing housing prices, now might be an opportunity to secure a home before the price increases, as they have done historically. 3. Home supply Housing has been in short supply for over a decade, and this year is no exception. A 14% increase in construction costs is also keeping builder confidence low, preventing new homes from entering the market. When should I buy a house? 7 questions to ask yourself Mortgage rates are up, home prices are steadily increasing, and home supply remains stagnant. So, is now a good time to buy a house? That depends on how you answer the following questions. 1. What is motivating this purchase decision? Whether this purchase is for your first or second home, consider what is motivating the investment. Potential answers could include: I’m ready to stop paying rising rent prices. My family is growing and I need more space. I want to live in a specific neighborhood. I want to be closer to good schools. I’m ready to buy a vacation home. I want to make memories with my loved ones. Although owning one or more homes cannot guarantee that you’ll benefit from equity, understanding your motivation can help you determine if it’s a good time to buy a house in today’s economy. 2. How long will I live there? Remember that a house is a real estate asset. The amount of time you plan on holding your property should be considered in your ownership. Mortgages can come with a 15- or 30-year fixed interest rate. If this purchase will be your new primary residence, there might be additional funding opportunities for you to explore. Or if you want to buy a second home to visit on occasion, factor other expenses such as property management into your budget. 3. Am I financially stable enough to purchase a home? Purchasing a home is a large financial commitment, and lenders will examine your financial history before deciding to give you a loan. Review the following elements before you decide to buy a home: Debt: Loans and credit card debt can take away from your housing budget. Attempt to pay off your debt before applying for a home loan. Credit score: Your credit score will help determine what kind of funding opportunities you have while financing a new home. Aim for a credit score above 620, although a score above 740 would be ideal. Savings: Before purchasing a home, reflect on how much money you need for an emergency fund and set it aside from your housing budget. Investments: Ideally, you want to be financially secure enough to contribute to a retirement account and other investments before purchasing a home. If you have lingering debt, a low credit score, little to no savings, or an empty retirement account, consider waiting to buy a home until you are more financially stable. 4. What can I afford to spend on a mortgage? There are several factors that contribute to the cost of owning a home, but your mortgage payment will most likely be the largest chunk of your housing costs. Consider the following expenses while determining if now is the time to buy a house: Interest Property taxes Insurance HOA fees Maintenance Property management Combine these costs with your living expenses to determine if you are financially stable enough to buy a home. If you already have a primary residence, use a second home calculator to determine how much you can afford to spend. Consider your salary when budgeting for a mortgage. A general rule of thumb is to aim for a mortgage payment that is no more than 28% of your yearly income. 5. Do I have enough for a down payment? Although most of the home can be financed through a mortgage, you will still be responsible for providing around 20% of the purchase price upfront. Depending on the cost of a home, primary and second home down payments can range from $10,000 to well over $100,000. While it is possible to find additional funding for down payments, this will increase your monthly payments. Try to save up the cost of the down payment before buying a home. 6. Do I understand the responsibilities of home ownership? Owning a home is a major responsibility that requires a long-term commitment. You may need to sacrifice luxury expenses to pay your mortgage, maintenance, taxes and insurance. Although you will no longer be paying rent, keep in mind that owning a home does come with recurring expenses like utilities and repairs. 7. How will this affect my future financial goals? Take stock of your future financial goals and reflect on how buying a house could affect them. If you will be financing your home, remember that you’ll have significant housing costs that may require you to curtail savings for things like children’s education and retirement. What’s more, these housing costs could require you to sacrifice aspects of your current lifestyle like vacation planning and spending habits. Consider if you are ready for this lifestyle change or if you are comfortable putting larger goals like owning a second home, on hold. When should I wait to buy a house? It may not be the best time to buy a house if other financial concerns are distracting from your housing budget. If the following factors are affecting the housing market where you want to live, it may be the ideal time to buy a house: Home values are dropping Inventory is increasing Personal finances need to improve Other investments need your attention If you already own a home and are in the market for a second, fractional ownership might be a good option to consider — like the one offered by Pacaso. With this fully managed co-ownership model, you are able to enjoy a second home at a fraction of the cost with none of the typical second home hassles. So, is now the time to buy a house? The answer depends on external factors like mortgage rates and median home prices as well as your goals and the state of your personal finances. If you can afford the down payment and are ready for a new level of responsibility — as well as a new milestone in your life, it may be a good time to buy a home. But if home values are decreasing and your personal finances need improvement, consider waiting to buy a house.
Vacation rentals are a popular accommodation option for many travelers, and it’s easy to see why. Compared to hotels, renting a private home (or a portion of one) has a lot of advantages. You’ll likely have more space than a hotel room, and having a kitchen and laundry facilities is convenient. Vacation rentals can also be more affordable than hotels, depending on your destination and length of stay. But while millions of people successfully book and stay in vacation rentals around the world every year, you do hear occasional horror stories of vacation rental scams. Here’s how to protect yourself from falling victim to a vacation rental scam. 1. Do your research Look at multiple listings within a neighborhood before deciding on one. Take a close look at the pictures and compare the prices across multiple listings. The listing you’re coveting should be priced similarly to other listings in the area, taking into consideration size and amenities. And while you might not have the specific property address before booking for the owner’s privacy, you should have a good feel for the neighborhood. Snoop around Google Maps and be sure it looks like a safe neighborhood that’s likely to have that type of listing. Google’s reverse image search is another invaluable tool. 2. Read reviews Take the time to read reviews from previous renters. Reputable listings should have ratings and reviews from happy customers, or at the very least be forthcoming if they don’t have ratings if their listing is new. Above and beyond reading listing reviews, seek out reviews for the property management company or rental agent responsible for the property. Start by searching the name of the company alongside words like “complaint,” “scam” or “review.” 3. Have multiple ways to contact the owner or agent While it’s a best practice to contact the owner or property manager within the booking platform you’re using, be sure you have another way to get in contact with them — a phone number or email address, for example. They should also provide special instructions on who to contact if you have problems during your stay. 4. Get your questions answered One good sign of a legitimate owner or property manager is willingness and availability to answer your questions before you book. Not only should you get all your burning questions answered about the property, but you should ask a few questions about the surrounding area. The owner or property manager should know the area, so you’ll get a good feel for if they’re who they say they are. 5. Keep communication and payment within the rental platform Whether you’re using Airbnb, Vrbo, Booking.com or another site, conduct all your business within the platform so you always have a paper trail. An owner or property manager who asks you to communicate via text or WhatsApp instead may be a rental scammer. An even bigger red flag? An owner or property manager who asks you to pay for the rental via a wire transfer or a third-party app, unaffiliated with the booking platform. 6. Pay with a credit card Most credit card companies provide protection from fraudulent charges, meaning you can be reimbursed if the rental ends up being fraudulent. Never pay with cash, check, wire transfer or gift card. 7. Don’t share unnecessary personal information The property owner or management company doesn’t need information like your birthday, bank account number or Social Security number. Providing this kind of information may make you vulnerable to identity theft. 8. Follow your gut As with all things, if it sounds too good to be true, it probably is. If you find a five-star property with ocean views and luxurious amenities for half the cost of neighboring listings, it’s probably a scam. Don’t let yourself be pressured to rush into a decision. Take the time to make sure everything feels legitimate. If it doesn’t, or you’re not sure, it’s best to go with another rental. 9. Stay in your own place instead One sure way to steer clear of vacation rental scams is to stay in your own vacation home! Pacaso puts second home ownership within reach for ⅛ the cost, thanks to LLC co-ownership. You’ll have all the benefits of a vacation rental (plenty of space and privacy, a fully furnished home and a well-stocked kitchen) without the risk that comes with staying somewhere unknown. Plus, Pacaso offers several advantages to owning a traditional vacation home. Pacaso second homes are available in top vacation destinations across the country and beyond, whether you’re looking for a beachfront escape, a Wine Country getaway, desert oasis or a mountain chalet. Best of all, you have the services of a dedicated property manager who makes sure the house is ready for every visit.
When it comes to buying a house — whether it’s a primary residence or a vacation property — doctors are in a unique situation. Many doctors are considered high earners, but it can take years for the hard work to pay off. What’s more, many younger doctors are saddled with a large amount of student loan debt, which can make qualifying for a mortgage trickier than it might be for other buyers. Whether you’re just considering buying or are thinking of adding a second home to your real estate portfolio, here are a few things doctors should consider, from how much you can afford to how to approach the process. What salary do I need to afford a million-dollar home? Conventional wisdom says that you need an annual salary somewhere around $200,000 to afford a million-dollar house, but it all comes down to your individual financial situation. If you’ve managed to save a large down payment — 20 percent or more — your monthly mortgage costs will be lower than if you have a meager down payment. Interest rates also play a big role in home affordability. What was affordable with the historically low interest rates of 2020-21 may be more of a stretch with rates that are significantly higher. You’ll also want to consider monthly costs above and beyond your mortgage payment. This includes things like HOA dues, utilities, maintenance, insurance and property taxes. When is the right time for a doctor to buy a home? Buying a house is a big financial commitment, and it can take a significant amount of time to gain enough equity to offset the upfront purchase expenses like closing costs, repairs and moving expenses. It’s common for doctors who are just starting out to move frequently, in pursuit of a specialty program, new opportunity or fellowship. In this busy career phase, renting may make more sense until you land a long-term position. Buying a first house during residency Deciding to buy your first home is a milestone for all kinds of buyers, but physicians have a couple of additional financial realities to address during the application process. If you’re a newer doctor, your loan debt may be high and you likely haven’t secured the salary of more established colleagues. This hurdle is specifically high for those buying a house during their residency. A core part of getting approved for a mortgage loan is meeting the debt-to-income ratio requirements, or DTI. This is a calculation that compares your monthly debt obligations to your gross income. It’s a way lenders can be reassured that you’ll be able to repay your loan without defaulting. Most medical school graduates have significant student debt. According to the Association of American Medical Colleges, anywhere from 76% to 89% of graduates have student debt, with an average of over $200,000 owed. And that can make it hard to stay under the debt-to-income ratio limits. Enter the physician mortgage loan. Also called doctor loans or medical professional loans, these mortgages are specifically designed for doctors whose highest earning years are yet to come. These loans may have low (or no) down payment requirements, no requirement for private mortgage insurance (PMI) or more generous qualification criteria. Ask your mortgage lender for more information about this loan option. Purchasing a second home as a doctor As your career progresses, you may want to consider buying a second home. Being a physician is time-consuming and stressful, so it’s nice to have a place of your own to relax and unwind. Imagine cozy weekends in a mountain cabin, summer vacations in a sunny lakefront retreat or watching an ocean sunset from your private patio. Pacaso is a great solution for busy professionals in a wide range of occupations to buy a second home. Ownership is shared among up to eight co-owners, which means that your upfront investment is lower. And we have homes in California Wine Country, the mountains of Colorado, sunny Mexico, fun-filled Florida, to name just a few crave-worthy destinations. Co-owning a second home with Pacaso is a smart option for busy doctors, as it gives you the benefits of second home ownership without the work. Your dedicated property manager takes care of maintenance, repairs, cleaning and making utility, insurance and tax payments. That means that every time you’re ready to relax, you can just show up, unpack and unwind. Our equitable scheduling ensures that every owner has plenty of time to enjoy the home throughout the year. The Pacaso app allows you to access real-time booking, scheduling stays from two days to two years in advance. Ready to see how buying a second home would pencil out for you? Try our calculator.
Can I use my IRA to buy a house without penalty? Yes, you can withdraw up to $10,000 without penalty if you qualify for early withdrawal exemptions. Scouring every nook and cranny for ways to come up with the down payment for your next home purchase? You’re not alone. In fact, 16% of respondents in a 2020 Investment Company Institute (ICI) survey reported using IRA withdrawals for home purchases, repairs or remodeling. If you’ve been contributing to an individual retirement account (IRA), you can make an IRA withdrawal for a home purchase — if you satisfy the requirements. We’ll break down the qualifications for penalty-free withdrawals, the differences between retirement accounts that you can pull from, and the pros and cons of using an IRA to make a home purchase. Penalty-free withdrawal qualifications So, can you use an IRA to buy a house? Yes — however, you must satisfy at least one of these IRA withdrawal rules to avoid a fee. Withdrawing from your IRA can lead to a 10% early withdrawal tax penalty unless you qualify for any of the following exemptions: First-time home buyers: The "first-time homebuyer" status refers to not having owned a home in the past two years. Death of the IRA owner: You may make penalty-free withdrawals to purchase a home if you inherit the IRA from the original owner. 59½ years old or older: This is the age retirement account owners can begin withdrawing without a penalty. It's important to remember that while you might avoid the IRA early withdrawal penalty, you may still need to pay income taxes on any withdrawn amounts from a traditional IRA. Additionally, taking money out of your retirement accounts could impact your long-term financial goals and retirement savings, so consider exploring other financing options before tapping into your IRA. Withdrawal differences between traditional and Roth IRAs Can you use a Roth IRA to buy a house? Yes, both traditional and Roth IRAs offer provisions for penalty-free early withdrawals, but there are differences in how these withdrawals are treated in terms of taxes and eligibility. Here's a breakdown of the key differences between Roth IRA and traditional IRA withdrawal rules: With traditional IRAs, first-time homebuyers can withdraw up to $10,000 without the 10% penalty, though taxes will be owed on the withdrawn amount. With Roth IRAs, the same penalty-free rules apply. However, this IRA may offer more flexibility since contributions (money you've already paid taxes on) can be withdrawn anytime without taxes or penalties. Whether you want to use a traditional or Roth IRA toward your home purchase, you'll want to consult a financial advisor so you understand to potential impacts on taxes and retirement savings. How to use an IRA to buy a house If you plan on using retirement funds to buy a house, you have the option of putting your withdrawal towards a down payment. Here is how to begin the early withdrawal process. 1. Check the IRS qualifications If you plan on withdrawing funds from your traditional IRA, double-check the IRS withdrawal exemptions to ensure that you qualify for penalty-free withdrawals. If you skip this step and don't meet the exemption requirements, you could owe a 10% withdrawal penalty fee and income taxes. 2. Choose your retirement account After you’re sure you qualify for penalty-free withdrawals, it’s time to choose which account to take funds from. With various retirement account options, it’s important to note the difference between your early withdrawal options: Traditional IRA: This IRA is potentially a good option for first-time home buyers or those who haven’t owned a home in the last two years. Roth IRA: A Roth IRA is another option first-time home buyers should consider. Remember that withdrawing from this account could result in a loss of interest and potential gains from compounding. Self-directed IRA: Unlike traditional and Roth IRAs, a self-directed IRA can be a dynamic way to purchase real estate. If you want to buy a second home to generate rental income, for example, then you can purchase a property with a self-directed IRA — as long as the home isn’t for personal use. 401(k): You can withdraw from your 401(k) to buy a home by applying for a loan of up to $50,000 or the hardship withdrawal exemption. Consider using this account if you do not qualify for penalty-free early IRA withdrawals. Consider the different tax responsibilities associated with each retirement account before making a withdrawal to avoid unexpected fees. It’s also a good idea to consult a tax advisor before making a withdrawal. 3. Confirm your withdrawal amount Retirement account holders can withdraw up to $10,000 from their IRA. Although you can withdraw the maximum amount, it’s important to keep your savings goals and contribution limits in mind when making this decision. If that amount is not enough to cover your entire down payment, you may also need other funding sources. Even though the first-time home buyer exemption gives homebuyers an advantageous solution to their down payment problems, withdrawing from your IRA also has drawbacks that you should carefully consider. Let’s take a look at the pros and cons of involving your IRA in a home purchase. Pros and cons of an IRA home purchase Using an IRA for a home purchase has both advantages and disadvantages. On the positive side, leveraging an IRA can offer a pathway to homeownership while maintaining the potential for tax-advantaged growth. Let’s explore the pros: Penalty-free: You can potentially make a first-time home buyer IRA withdrawal without penalty. Long-term savings: Even after withdrawing funds for a home, your IRA can continue growing and compounding, providing potential future retirement benefits. First-time homebuyer status: IRAs can assist those who haven't owned a home for at least the past two years to enter the housing market. However, there are considerations, such as potential penalties and tax implications, that need careful attention. Here's a breakdown of the cons: Tax implications: Traditional IRA withdrawals are taxed as income, affecting your annual tax liability. Lack of compounding: Withdrawing impacts the IRA's ability to maximize compound earnings. Nest egg risk: Using retirement funds for a home purchase might lead to insufficient savings during retirement. Complexity: Self-directed IRAs involve additional complexities, risks and potential fees due to unconventional investments like cryptocurrency. An IRA-based home purchase can benefit some, providing access to funds while maintaining growth potential. However, you should assess your financial situation, understand the implications and consider seeking professional advice before making a decision. Making an IRA withdrawal for a home purchase is one of the many ways to finance a luxury home or second home. If affordability is stopping you from making your next home purchase, consider using a second home calculator to determine how much you can afford and explore alternative paths, like co-ownership, to afford your dream getaway.
When inflation is high, it’s common for the Federal Reserve to raise interest rates. Of course, there are many more factors than simply inflation that play into their decision, but when inflation makes everyday goods and services more expensive for the average American, rate hikes are a commonly employed tool. Interest rates were at historic lows leading into and during the COVID-19 pandemic, making it more affordable to buy a home or carry debt. But beginning in 2022, the Fed went in the other direction, and they’ve made 10 separate rate hikes between March of 2022 and May of 2023, with increases totaling more than 5%. While these rate hikes make it more expensive to borrow money for everything from cars to homes, there are a few financial silver linings of rising interest rates. Here are four ways you may be able to benefit from recent rate increases — one of which could be to park money in a second home. 1. Higher returns on savings If you’ve had a savings or money market account over the course of the last few years, you probably noticed you weren’t earning much money on your hard-earned savings. Banks like to make a profit by earning more money on what they lend than what they pay you to keep your money parked in their coffers. That means when interest rates are low, your savings yields are even lower. The inverse is also usually true: When banks can charge higher interest rates, they also reward their savings customers with higher yields. And it’s not just savings accounts. Rates from certificates of deposit (CDs) are beginning to climb back up, making it more appealing than it has been in a number of years to keep your money in these types of accounts. 2. More interest earning opportunities for retirees The boost in savings account yields is especially beneficial for retired Americans. When you’re approaching or already in retirement, it’s recommended to not keep much of your money in the stock market, as you don’t want market volatility to eat up your nest egg. But when savings yields are low, retirees are unfortunately limited in their earning potential outside of the stock market. In periods of high interest, retirees who can keep their money in high-interest savings accounts and CDs can stretch their retirement budget a bit further. 3. Easier access to financing When interest rates are low, banks and other lenders often tighten lending criteria, because they have less incentive to lend money. When rates are high — and lenders can profit more — lending requirements are often relaxed. For individuals with less-than-ideal credit profiles, this can make it easier to qualify for a mortgage, car loan or credit card. 4. Better overseas purchasing power Typically, higher interest rates strengthen the dollar’s exchange rate. That means that when interest rates are high, American travelers often enjoy higher purchasing power overseas. That makes vacationing or owning a second home in places like Europe or Mexico more affordable. Don’t put your goals on hold due to interest rates If your bucket list includes buying a second home in a dream vacation destination, you may feel that higher interest rates have put your goals out of reach. But really, it just means it’s time to get creative! Pacaso puts second homes within reach with an LLC co-ownership model that offers ⅛ to ½ shares of a luxury property. The costs of maintenance and upkeep are shared equitably with the other owners. Plus, Pacaso has negotiated competitive-rate financing with its banking partners, so owners can finance up to 70% of the home’s purchase price. Pacaso second homes are available in top vacation destinations like California Wine Country, the Scottsdale desert, the waterfront in Florida and beautiful Baja, Mexico.
Buying a second home is exciting, but coming up with the down payment can be daunting. The good news is that if you already have one home purchase under your belt, you’re in a stronger financial position now than you were when you bought your first home. There are a variety of second home down payment options to make it manageable. But first, are second home down payments always required? In the majority of cases, a down payment on a second home is required. If you plan to pursue a conventional loan for financing a second home, you’ll need to put money down upfront since they aren’t backed by the government. Even if you plan to pay for the home entirely in cash, you’re still technically putting down a large payment. If you plan to turn your second home into a primary residence, then it’s possible to get a government-backed loan. In that case, you won’t need a down payment for a second home. How much do I need for a down payment on a second home? The down payment for a first home can be as low as 0% and as high as 20% for a conventional loan. But the required down payment for a second home is around 10%, and sometimes more than 20%. The amount you’ll need for a down payment on a second home depends on several factors, including your credit score, your debt-to-income (DTI) ratio and the cost and type of property you’re purchasing. Down payments and interest rates for second homes can also vary depending on the lender, so it’s a good idea to shop around. Here is a closer look at how these factors can affect your down payment: Credit score: The higher your credit score, the less money lenders will require for a down payment on a second home. Debt-to-income ratio: A lower DTI can often mean a lower down payment for your second home. Type of property: A second home classified as an investment property will require a higher down payment than one classified as a vacation home. Cost of property: Financing a less expensive property is a lower risk for a lender, so it will require less money down. Now that you know how the down payment amount is determined, let’s look at how you can come up with this money. How can I fund my down payment on a second home? A down payment for a second home can be as simple as accessing funds from a bank account or as creative as combining sources of funding, including the equity you’ve built in your primary residence and selling other assets. To help you determine how to best fund the down payment for your second home, here are the pros and cons of using different funding sources. 1. Bank account Using your personal bank account to fund your second home down payment is about as easy as it gets. The money is easy to move around and will only accrue low interest if left in the account. It may be smarter to use it rather than taking out a larger loan. But that’s not the only personal fund you can tap into for financing a second home. 2. Investment account Using money from your investment account is similar to withdrawing it from your savings account. The only difference is that you may need to pay taxes on any gains the money made while it was invested. If you’re short on savings, consider selling property to close the gap. 3. Sale of an asset Selling assets when you come up short on funds may be the only way to keep that second home of your dreams from slipping through your fingers. If you see your property as a better investment than your savings, it may be worth it to withdraw from your retirement account to fund the down payment. 4. Retirement account This second home down payment strategy is more age-sensitive than others, and isn’t recommended for people who plan on retiring in the near future. If you’re not comfortable dipping into your savings or selling assets, there’s still an option for outside funding help. 5. Home equity loan or HELOC Home equity loans are one of the most popular financing options for second home buyers. They work by taking out a line of credit against the equity you currently have in your primary home. But we still have one more way to make that down payment on your second home. 6. Combine any of the above While sticking to one funding source may not be enough for your down payment — or put you into financial jeopardy — using a mix-and-match approach may improve your situation. Mitigating risk is still important even though real estate is considered a relatively safe investment. Look into each of these strategies further to learn which is best for you in financing a second home. Any tips on how I can reduce the down payment on my second home? One of the best ways to lower the out-of-pocket expense for a second home down payment is by reducing how much you’re paying for the home. But that doesn’t necessarily mean sacrificing square footage, quality or location. Pacaso’s LLC co-ownership model allows you to own one-eighth to one-half interest in a beautiful, spacious second home in a prime vacation destination, giving you full ownership rights without the full price tag. Pacaso also offers a variety of financing options to help you achieve your dream of second home ownership. FAQs on second home down payments Read on for more insight into second home down payments. Do you have to put 20% down on a second home? A down payment of 20% isn’t always required for purchasing a second home. The lowest down payment you can expect to pay is 10%. Ultimately, the lender you use and your financial situation will determine the down payment you must have. Can you write off a second home? Second homes are eligible for tax deductions, but it will depend on how the house is used. Investment properties can deduct maintenance expenses, while deductions for personal vacation homes are much more limited. Can a married couple have two primary residences? No. A married couple can claim only one primary residence on their taxes. This is the home where they live for the greatest amount of time throughout the year.
If your empty-nester status has you considering moving somewhere new, there are a lot of factors to consider. Whether you’re looking to fully relocate your primary residence or find a second home to enjoy when your schedule allows, browse this list of the best locations for empty nesters. Our picks are based on the benefits these places offer empty nesters, from plenty of activities to the average age of residents to financial upsides — and good weather, of course. Why you should celebrate being an empty nester in a second home When you enter a new phase of life, you can reimagine how and where to spend your free time. As a co-owner of a Pacaso second home, you’ll have ample time to enjoy luxury living in your favorite vacation destination, without the cost and burden of full ownership. Pacaso homes are available in top locations across the United States and beyond — including all the following locations. 1. Los Cabos, Mexico Every day is a vacation in Los Cabos, the Baja destination that includes both Cabo San Lucas and San Jose del Cabo. This sunny destination features both Pacific Ocean and Sea of Cortez coastlines, along with unforgettable activities. On any given day, you can choose one of over a dozen golf courses, take a sport fishing excursion, hike in the Sierra La Laguna Biosphere Reserve or snorkel near the famous Land’s End Arch. While real estate can be costly in this area, many empty nesters find the overall cost of living to be lower in Los Cabos than in many parts of the United States. Thanks to the strength of the U.S. dollar, you may find restaurants, groceries and utilities to be less expense than back home, allowing you to stretch your budget further. 2. Fort Lauderdale Nearly a third of the population in this South Florida paradise are between the ages of 45 and 64, meaning there are plenty of fellow empty nesters. With an average of 246 sunny days each year, 24 miles of beachfront, and a massive network of canals that has earned the city the nickname of “Venice of America,” Fort Lauderdale is an ideal destination for empty nesters looking to soak up some sun. But there’s more to Fort Lauderdale than just beaches. The city boasts an impressive arts scene and plenty of cultural institutions. Take in a play or concert at the Broward Center for the Performing Arts, see if you can spot all 20 outdoor murals that are part of the Downtown Hollywood Mural Project or get lost inside the 83,000-square-foot NSU Art Museum. Best of all, since you’re just a short drive from two major airports (Fort Lauderdale-Hollywood Airport is right in town and Miami International Airport is 30 miles south), it’s easy and convenient for the kids to come visit. 3. Hilton Head Island South Carolina’s Hilton Head Island is an idyllic waterfront town straight from a postcard. While the island gets an incredible 3 million visitors each year, the year-round population is only 35,000, giving it a small-town feel, especially in the off season. Empty nesters choose Hilton Head Island for its slower pace of life. Popular activities include taking the ferry to Daufuskie Island and exploring by bicycle, walking the 14 miles of trails in the Pinckney Island National Wildlife Refuge, and sampling Lowcountry cuisine in charming local restaurants. Getting in and out of Hilton Head Island keeps getting easier. The recently expanded Hilton Head Airport keeps adding flights, making it convenient to head back to the mainland for work or pleasure — or visiting the kids at college. 4. Jackson Hole Jackson Hole is an increasingly popular destination for relocating empty nesters. While Jackson Hole is best known for its winter activities, there’s actually plenty to do in this Wyoming outpost, no matter the month of the year. First, the town is a great jumping off point for exploring Yellowstone National Park — the south gate of the park is just 60 miles away. There’s also plenty to do right in town. The town of Jackson is brimming with Wild West charm. Explore the valley on horseback, shop for a new pair of cowboy boots downtown or take in some live country music. 5. Lake Tahoe Tucked away high in the Sierra Nevada Mountains on the California-Nevada border, the Lake Tahoe area accommodates a wide range of lifestyles. Truckee boasts a charming historic downtown and enviable location near North Lake Tahoe’s best ski resorts. Incline Village tempts with a wide range of summer festivals. South Lake Tahoe is action packed, with everything from family-friendly activities to casinos and nightlife. Financially savvy empty nesters who are still working may decide to live on the Nevada side of the lake — the Silver State has no personal or corporate income tax. Once it’s time to retire, it’s worth noting that Nevada also doesn’t tax retirement distributions or Social Security benefits. 6. Napa Valley Toast your empty nester status in California Wine Country! Napa Valley is an ideal place to live for many, but it’s especially well suited for empty nesters. Without kids in tow, you’ll have plenty of time to explore the valley from end to end, plus sip everything from cabernet sauvignons to zinfandels. What’s more, when you live in one of the world’s top wine destinations, your empty nesting friends are sure to want to visit. Napa Valley is also a great place for active pursuits, thanks to an ever-expanding network of bike trails, ample hiking, kayaking and paddleboarding and more. And when you need a little rest and relaxation, you’ll discover that Napa Valley — and the town of Calistoga, specifically — is a wonderful place for pampering. 7. Newport Beach Empty nesters often enjoy more free time than they’ve had in many years, and Newport Beach has so much to offer. Newport Beach and nearby Balboa Island are known for their local events, which include a jazz festival, wine and food festival, and an annual Christmas boat parade. Choose from 10 distinct neighborhoods within Newport Beach. Opt for ocean views from high atop Pelican Hill, the bustling Lido Isle near the harbor, ultra-exclusive Crystal Cove and festive Balboa Island. 8. Palm Springs Many of the empty nesters who buy in Palm Springs start out using their property as a vacation home, then eventually become full-time residents of this chic desert outpost once they retire. And it’s easy to see why. Towering palm trees, the surrounding San Jacinto Mountains and the colorful Mid-Century Modern architecture give Palm Springs a vibe all its own. The art and culinary scene is top notch, and its proximity to Joshua Tree National Park makes it a favorite with outdoor lovers. The median age of Palm Springs residents is 56.1 years old, putting most empty nesters squarely in the most popular age group. Palm Springs is also known for its large and accepting LGBTQ+ community, making it an inclusive place to live. 9. Vail Is the Centennial State calling? There are so many mountain towns to choose from in Colorado, but Vail is especially well suited for empty nesters. It’s just 100 miles from Denver, making Vail easily accessible for empty nesters on the go — and for grown children paying a visit. It also has a more laid-back vibe than other Colorado mountain destinations. Of course, Vail is ideal for those who want to spend their newfound free time on the slopes. Whether you’re a long-time skier or snowboarder or if you’re a total beginner, Vail has terrain for everybody. Vail boasts over 5,000 skiable acres and a blissfully long ski season, thanks to its over 11,500-foot elevation.
So the “kids” are now adults and have moved out? You might go through empty nest syndrome as you adjust to your newly quiet home, but you’ll soon be ready to make the most of your new lifestyle. As you start embracing your empty nest, consider creating a bucket list for yourself. It’s a fun way to jump-start your reinvention. Not sure where to start? Consider adding these 10 activities to your bucket list. 1. Travel somewhere you’ve never been before Many families with kids create yearly vacation traditions, returning to beloved destinations year after year. While this is a great way to make family memories, there are so many places to explore! Start by jotting down a list of destinations you’ve always wanted to visit, but never have. It’s time to explore the world on your terms. 2. Take up a new hobby Most empty nesters find themselves with more free time than they had while they were raising children. That makes it the ideal time to take up a new hobby. Perhaps you’ll pick up gardening, start a podcast, take some cooking classes, join a book club, learn to paint or take some online classes to finish a degree or just for fun. You might also consider reconnecting with a hobby you abandoned when you had less free time and more responsibilities. 3. Start volunteering Supporting a cause you’re passionate about is a great way to spend some free time. There are so many ways to get involved and so many wonderful organizations in need of people willing to roll up their sleeves. Maybe you’ll walk dogs at the local animal shelter, organize a food drive, coach a youth sports team or deliver care packages to local seniors. 4. Get your finances in order Entering the empty nester phase is a time when your finances may be in flux. You may find yourself with more disposable income after many years of paying for everything for your kids. Or money may be tight if you’re helping your kids pay for college. Either way, it’s the perfect time to make a financial plan that reflects your new reality. You may even want to bring in a professional to help you set some financial goals and guardrails. 5. Learn a new language Have you always wanted to learn Japanese orr brush up on the Spanish you learned in school? There are so many ways to learn a new language during your empty nesting phase. It can be as simple as downloading an app that teaches you a few new words or phrases every day. You can also enroll in an online or in-person courses at your local community college. If you’re just a bit rusty and need some practice, consider joining a conversation group that meets up to chat. 6. Start a side hustle Owning a small business is a lot of work, but as an empty nester, the time might be right! Start by thinking which of your skills or passions could be monetized. A side hustle doesn’t mean starting a whole new career. It can be as simple as dedicating a few hours a week tutoring, pet sitting, selling your own baked goods, handyman work or hosting short-term renters in a spare room. 7. Reconnect with your partner When you’re in the thick of raising kids, it can be hard to make enough time for your partner. Now that the kids have moved, you could set up a weekly date night to reconnect over a meal. Many empty nester couples also decide to pursue a new hobby together. 8. Focus on self care After so much time caring for others, you deserve to focus on your self care and mental health. What this looks like depends on the person, but it could mean committing to a daily walking routine, re-focusing on nutrition or picking up a new wellness practice like yoga or meditation. It may be as simple as catching up on preventative doctor’s appointments or making sure you get enough sleep. 9. Get back in touch with old friends This is a good time to reconnect with longtime friends who may also have been busy with family obligations. Reach out to a few friends and put something on the calendar. Catch up over coffee, host a game night or plan a weekend group getaway. 10. Consider a second home Many empty nesters decide it’s time to buy a second home. After all, you may find yourself with more time to travel and it can be nice to set down some roots in your favorite vacation destination. Pacaso makes it easy to own a second home in your favorite place. We offer co-ownership of luxurious, professionally decorated and maintained vacation homes without the headaches and price tag of whole second ownership. With impeccable amenities and access to endless activities, your Pacaso home will become the place where your family will want to gather for any occasion. Best of all, Pacaso homes are located in destinations that are great for crossing items off your bucket list: Take up golf in Palm Springs, learn to ski in Colorado, or learn how to cook traditional Mexican cuisine in Baja.
As you bid farewell to the world of work, it's the perfect time to embrace a diverse range of hobbies and activities that will fill your days with creativity, purpose and excitement. Whether you're seeking leisurely pursuits, intellectual stimulation or opportunities for personal development, there are plenty of fulfilling things to do in retirement. From baking and traveling to hiking and antiquing, here are 30 experiences to enrich this exciting phase of life. 1. Make a bucket list Crafting a list of experiences and goals you wish to achieve allows you to set meaningful intentions for this new phase of life. Consider the destinations you've dreamed of visiting and the activities you've longed to try. Whether traveling to exotic locations, mastering a new skill, volunteering or spending quality time with loved ones — your bucket list can serve as a roadmap for all of the wonderful things you’ll do next. 2. Take road trips Pack your bags and hit the open road to enjoy the on-the-go retiree lifestyle. Buckle up because this hobby can quickly lead to a lifetime of adventure. Whether it's the thrill of discovering quaint towns, indulging in local cuisines or simply cruising along scenic routes, road trips grant you the autonomy to customize your travel experience. 3. Work part time Part-time employment allows you to continue using your skills and experience. Moreover, it provides an opportunity to supplement your retirement income and maintain financial stability. Or you might want to try something in a new field and join an organization that matches your interests. 4. Become a mentor As you enter the realm of retirement, your wealth of knowledge and life experience can serve as a guiding light for others on their journey. Becoming a mentor allows you to share your expertise, offer valuable insights and support to those seeking guidance in their personal or professional pursuits. You can mentor individuals in your field of expertise or volunteer to mentor younger generations. 5. Become a consultant Your years of expertise and knowledge in your field make you a valuable resource for businesses and individuals seeking guidance. Stepping into a consulting role allows you to continue leveraging your skills while enjoying a flexible work schedule and earning money. 6. Become a tour guide Becoming a tour guide allows you to share your passion for travel, history and culture with others. Immerse yourself in destinations you love while crafting unique and enriching tour experiences for your customers. Embrace the art of connecting with people from all walks of life as you lead them on curated journeys through one of your favorite places. 7. Become a tutor If social interaction is high on your bucket list, consider becoming a tutor. Your wealth of knowledge and experience becomes a precious gift as you guide eager learners along their educational paths. From assisting students with academic challenges or helping adults acquire new skills, your patient guidance and personalized approach can help them accomplish their educational goals. Becoming a tutor not only keeps your own mind sharp but also allows you to help others. 8. Practice calligraphy In the tranquil realm of retirement, you can explore the ancient art of calligraphy. Enjoy the meditative rhythm of taking pen or brush to paper in this simple yet gratifying hobby. Calligraphy hones your fine motor skills and can result in beautiful works of art. 9. Sign up for a group sport Being part of a sports team in retirement allows you to stay physically active while making new connections. Playing team sports promotes physical fitness, and fosters camaraderie and a sense of belonging. You can join local recreational leagues or community teams of like-minded individuals. Consider transforming your outdoor living space into a dynamic area fit for exercise between practice. 10. Play chess Prepare to ignite your strategic prowess. The 64 squares become your battlefield, where each piece carries its own significance and every move demands careful contemplation. With the luxury of unhurried hours, you can dive into the complexities of the game, honing your skills and exploring various tactics. Whether you're competing against fellow enthusiasts or engaging in solitary matches, each game presents an opportunity to challenge yourself and refine your critical thinking abilities. 11. Practice origami Create the intricate folds and precise creases of classic origami motifs, transforming ordinary sheets into delicate cranes and complex flowers. The act of crafting these paper wonders becomes a journey of patience and precision, a perfect embodiment of the unhurried pace of your retirement. 12. Participate in outdoor cleanups Participating in beach, park and trail cleanups can be a meaningful and environmentally conscious hobby. Engaging in these cleanups allows you to help preserve our waterways and ecosystems. Begin by joining local cleanup initiatives or volunteering for conservation organizations. You can also start advocating for cleaner beaches and parks in your local community. 13. Try tai chi Discover the graceful art of tai chi, a captivating activity that nurtures both your body and mind. The slow, flowing movements become a dance of balance and harmony, guiding you through a gentle yet invigorating exercise routine. Delve into the intricacies of this ancient practice, mastering its forms and sequences. The mindful focus required by each movement allows you to let go of the stresses of the past and worries about the future. 14. Go on a cruise Seize the opportunity to see the sights from the comfort of a cruise ship. The horizon becomes your playground, as you immerse yourself in diverse cultures, and collect stories from every port of call. The sense of freedom and exploration is palpable, as you revel in the solitude of the open sea– or river, and the camaraderie of fellow sailors you encounter along the way. 15. Go foraging Foraging allows you to connect with the outdoors while identifying edible plants. Learning about local flora and fauna is mentally and physically stimulating since it typically involves hitting the trails or digging around your backyard. The thrill of discovering wild edibles and the satisfaction of preparing meals with your finds await you. 16. Ride bikes Cycling is one of the most active things to do when you retire. With more time, you can explore scenic bike trails, participate in group rides and hone your cycling skills. And if you’re not sure about your fitness level, consider trying an ebike. Cycling in retirement allows you to maintain physical fitness, connect with fellow cyclists and enjoy the simple pleasures of the outdoors. 17. Discover local attractions There's a wealth of hidden gems and fascinating places right in your backyard that you might not have had time to discover while working. From historical landmarks and museums to scenic parks and quaint cafes, your local area offers enjoyable experiences. Plus, staying close to home also cuts down on vacation costs. 18. Write a book With ample time on your hands, you have the perfect opportunity to share your stories, knowledge and experiences with the world. Writing a book allows you to explore your passions, engage in self-expression and leave a lasting legacy. Whether fiction, a memoir or a niche topic you’re an expert on, your story is waiting to be told. 19. Learn a new instrument Ready for something challenging and rewarding? Learning an instrument is one of the best activities for retirees because it uses both your mind and body in new ways. Making music can become a gateway of creative exploration that can open the door to other artistic pursuits. 20. Declutter your home By decluttering, you can create a more organized and serene environment, which fosters a sense of clarity and peace. Take the opportunity to sort through your belongings, identifying items of sentimental value and those you genuinely need. You may consider donating or selling items that no longer serve a purpose in your retired life. Embrace the process of letting go, as it allows you to create space for new experiences and decorate your home in a new way. 21. Go antiquing Exploring antique stores and markets allows you to immerse yourself in history, uncover unique treasures and connect with the past. You can learn about various eras, styles and collectibles. Embrace the thrill of the hunt as you seek out valuable items and one-of-a-kind design pieces to add to your collection or home decor. 22. Audition for a play The audition process becomes a captivating journey of self-discovery, as you dive into scripts, practice dialogue and hone your acting skills. Each audition is a chance to immerse yourself in new roles, pushing your boundaries and uncovering hidden talents. The camaraderie among fellow actors and the anticipation of performance nights offer a renewed sense of purpose and excitement. As the spotlight shines on you, you are showcasing that retirement is a chapter for reinvention and the pursuit of passions. 23. Practice yoga Developing a yoga practice allows you to enhance flexibility and strength, and nurture your overall well-being. In retirement, you can fully immerse yourself in this ancient discipline by attending yoga classes or enjoying a yoga flow in your own zen room. Practicing yoga in retirement can help you to prioritize self-care and maintain a sense of balance, making this a time of healthful exploration and self-discovery. 24. Bake Indulge your culinary creativity by experimenting with baking recipes, flavors and seeing your creations rise in the oven. Baking offers you the opportunity to nourish your loved ones as well as your passion for the culinary arts. Your retirement years can be a time of delectable exploration and culinary satisfaction. If this hobby sticks, you may want to invest in high-end kitchen appliances. 25. Go wine tasting With time now on your side, indulge in the nuanced flavors and aromas of wine. Explore vineyards in places like Sonoma and Napa, savoring each carefully crafted vintage. The process becomes a journey of discovery, as you learn about grape varieties, regions and winemaking techniques. Whether you're uncorking a rich red or indulging in a crisp white, the act of swirling, smelling and sipping takes on a deeper meaning. Your palate becomes attuned to subtleties you may have missed before, enhancing your appreciation for the artistry behind each bottle. 26. Brew beer Homebrewing can be a fascinating and educational hobby. The art of brewing beer allows you to experiment with various flavors, creating unique brews tailored to your taste preferences. From lagers and IPAs to pilsners and stouts, there are an endless variety of styles to experiment with. You can delve into the intricacies of the brewing process, honing your skills as a craft brewer. 27. Spend time with your family Now is your opportunity to tune into what your family needs most. Whether you’re an empty nester or still enjoying a house full of family, spending quality time with your loved ones can take many forms. You can learning a creative skill or traveling together, or simply be more present in their lives. Offering your time is a great way to spend your retirement. 28. Upcycle clothing Transform discarded pieces of clothing into unique fashion statements using sewing skills you may already have, or can learn in a class. Each thread, button and patchwork becomes a testament to your ingenuity and craftsmanship. With a keen eye for design, you can reimagine the possibilities of repurposed materials, turning forgotten fabrics into wearable art. This process not only fosters sustainability but also offers a therapeutic outlet for your artistic expression. 29. Create an online course With the luxury of time, you can become an expert in subjects you're passionate about. Develop a curriculum, record video lectures and create interactive materials ti share your knowledge online. The digital realm will become your classroom, where you can inspire learners from around the globe, all from the comfort of your home office. This hobby not only enables you to continue a lifelong journey of learning but also leaves a lasting impact by empowering others with knowledge and skills. 30. Find your dream home Retirement is the perfect time to carefully consider your lifestyle preferences and envision the ideal living space that suits your needs. Whether it's a cozy house in the tranquil countryside, a beachfront retreat or a vibrant urban condo, take the time to explore different neighborhoods and property options for a new primary or secondary residence. You have lots of ideas of things to do in retirement, and you’ll likely add more of your own. And if your bucket list includes a second home, Pacaso co-ownership might be the perfect fit. You spend less up front for a luxury retreat, leave all of the hassles of maintenance to us, and simply show up and enjoy your home with your family.
The only constant is change, and with each season of life, what you need in a home may evolve. If you’re one of the over 22 million empty nesters in the United States, you might be reconsidering your living situation now that your grown children have flown the nest. It’s a great time to focus on you: your goals, your interests and your future. That may mean renovating your family home, or selling it and buying a new place. Or you may want to invest in a vacation home where you can spend your newfound free time. Renovation dreams? For many empty nesters, renovating simply makes more sense than moving. If you love your location, and don’t want the hassle and expense of selling a home and buying another, renovating may be the right solution. A great contractor and renovation crew can help you reconfigure your space to be ready for this new phase of your life. You might want to convert a child’s bedroom into a new craft space for yourself, add a sauna to your bathroom or create a wine cellar in your basement. The possibilities are nearly endless. What empty nesters look for in a home If selling your existing home and buying something new sounds like a good option for you, consider these seven things that many empty nesters look for in a home. 1. Less square footage Downsizing into a smaller home is one of the most popular choices empty nesters make. After all, without children living at home, you may not need or want as much space. More square footage equals more cost and more maintenance, which is why many empty nesters decide to downsize. Downsizing can also free up home equity, which can be used to fund retirement expenses — or purchase that second home you’ve been dreaming of. 2. More luxury While many empty nesters choose to move to a home with a smaller floor plan, they don’t necessarily want to downsize the quality of finishes. In fact, buying a smaller home often leaves room in the budget for luxury touches. It may just be the perfect time of life to treat yourself to an upscale environment — think hardwood floors, gourmet kitchens, spa-like bathrooms and outdoor entertaining space. 3. Single-floor living Savvy empty nesters take a forward-looking approach to purchasing their home. If you plan on staying in the home for a long time, you may want to look at a ranch-style or rambler home — a property with a single story where the primary bedroom, kitchen, bathroom and laundry are all on the same floor. As you age, you may be glad you don’t have to navigate stairs as you move around the house. You may even want to take it a step further and look for a home that was built with accessibility in mind, featuring walk-in showers, wide doorways and plenty of natural light. 4. Low maintenance Some people love having a to-do list around the home, whether that’s taking on everyday maintenance tasks or creating a beautiful garden. But if you would prefer to spend less time on home maintenance and more time enjoying pursuits outside the home, you might consider buying a home that will require less of your precious free time. This might mean buying a brand-new home with a warranty, choosing a home with a smaller yard or purchasing a condominium or townhouse where some maintenance tasks are handled on your behalf. 5. Home office space The majority of people become empty nesters between the ages of 40 and 60, which means most are still hard at work. With more people working remotely, a home with dedicated office space is on many empty nesters’ wish lists. Whether you simply convert an extra bedroom into an office or the home comes with a purpose-built home office space, having a quiet place to focus is a must for remote workers. 6. Lifestyle-friendly Empty nesters have more time to focus on their interests, and the home you choose should reflect how you like to spend your time. Maybe that means a chef-worthy kitchen for entertaining friends, a woodshop for crafting or a garage to hold all your toys. Hoping for grandkids? You may want to consider a home with an extra bedroom or two. 7. Perfect location Is a change of scenery in order? Entering the empty nester phase is the perfect time to reconsider your location. Perhaps you’d like to live closer to outdoor activities like golf, hiking or cycling. Or maybe you’d like to trade your car for a walkable neighborhood, where everything you need is just a stroll away. Speaking of location, the empty nesting time of life may just be the ideal time to buy a second home. Without the packed schedule of school events, sports practices and sleepovers, you just may be able to get out of town a bit more than you used to. Pacaso puts second home ownership blissfully within reach. Our unique co-ownership model allows you to buy your dream vacation home for a fraction of the cost, with up to eight shares available. We take care of the maintenance and management so you can just arrive and jump right into vacation mode.
When you decide to sell a whole home, you might take a look at recent home sales in your area, check your home value on various real estate sites, decide on a price, list the home and wait for offers to roll in. When you own a Pacaso, the sales process includes some of those steps, but you’ll find it more streamlined, faster and simpler. Here’s how it works. 1. Sell on your terms Any Pacaso owner can choose to sell their ownership interest, at any time.* Each owner has independent control over the sale of their share, which is a key benefit of our professionally managed LLC co-ownership model and a big advantage over timeshares. Once you’ve decided to sell, simply let us know, and we’ll provide you with a current comparative market analysis (CMA) for your ownership interest. The CMA is compiled using local market data, comps, trusted valuation models, and our knowledge of what active second home buyers are willing to pay. You’re in control of the final price, however. You can use the CMA in addition to guidance from Pacaso or your own research to decide what the sale price should be. *Applies to homes where all ownership interests have been sold. If units are still pending, owners can sell their interest after 12 months of ownership. 2. Take advantage of an existing marketplace Unlike a typical home sale, Pacaso has two ways to assist you in the sale process before your share is listed. First, the other owners of your Pacaso will be informed that a share is available, and they’ll have first right of refusal. Owners have five days to decide if they’d like to purchase an additional share. Current owners can be the easiest buyers — they already love the home and understand the benefits of owning a Pacaso. Second, many homes have a wait list of interested buyers. Our sales Crew will tap into our buyer pipeline when a share is up for resale and inform any buyers who may have missed out on the opportunity initially, as well as buyers who’ve indicated interest in similar homes in that area. Between current owners and Pacaso’s buyer marketplace, you may be able to sell your share without listing it. 3. Get the full marketing treatment While we make inquiries among our buyer pool, we’ll also prepare your share for broad exposure on the open market to ensure you have every opportunity for a quick sale. If we don’t have an offer right away, we’ll include the home as an active listing on our website, and our local partner agent will market the listing through their network. 4. Experience a seamless and transparent transaction Pacaso’s role in the sale is to help facilitate the transaction and find buyers. There’s no lengthy closing process, no due diligence period, and no need for a title and escrow company, because the title doesn’t change. The LLC membership interest is simply reassigned to the new owner at closing. If the buyer is paying cash, closing can be as soon as the next day. If the buyer is financing their purchase, closing is still much faster than a typical sale, often just 1-2 weeks. Pacaso resale in the real world A ready pool of buyers and a fast, streamlined sale. Sounds good in theory, but does it match the reality of the seller experience? In a word, yes. Chief Revenue Officer Andreas Madsen pulled the resale data, and it confirms that Pacaso’s marketplace is operating as intended. Pacaso’s first homes were in Napa Valley, and when they became available for resale in mid-2021, they provided a good test of the market. “Looking at Napa resale, the value has averaged between 12-15% equity on shares at the 12-month mark,” said Andreas. “One of our Napa Valley homes recently sold for about 13% over the original share price from a year ago. The owner proposed the sale price, and we felt it was reasonable based on the market and the fact that we had a waitlist for that particular home. We were able to facilitate the sale without ever listing it.” Andreas said that scenario was not an outlier: “It’s common to have buyers ready and waiting, which is why the average Pacaso resale is only about two weeks. We just had two shares in Malibu sell in under two weeks. I don’t know of any easier way to transact in real estate today.” Looking across all resales, Pacaso listings on average resell with a 10% gain. Other avenues for Pacaso owners If you decide your Pacaso isn’t a good fit, or if you purchased more ownership than you’re using, you have options beyond a traditional resale. Pacaso Home Transfer Benefit™ Love co-ownership, but realize you’d prefer a different location or amenities? Instead of selling your Pacaso, you can take advantage of a one-time transfer benefit within your first year of ownership. Choose a Pacaso that’s a better fit for your needs and transfer your ownership to another available home. There’s no fee and no waiting period. You pay the difference in share price if the new home is more expensive; if the new home is less expensive, you receive credit applied toward your new home’s monthly operating expenses. Owner selldown Own 1/4 or 1/2 of a Pacaso, but only use it 1/8 of the time? You can right-size your ownership by selling a portion of your ownership interest. A selldown works the same way as a resale transaction, but you retain a share of the home. Pacaso gives sellers an exceptional level of flexibility, control and peace of mind. Hear from Pacaso owners about the ease of their resale experience. Frequently asked questions Can the seller really choose any sale price? Pacaso recommends a price, but the seller makes the final call. If the price seems too high, we’ll share the information we have about the buyers in our pipeline, including what we know about their price ranges. But the seller can choose to proceed with the price they’ve set and see what the market will bear. What happens if a share isn’t selling? Pacaso will actively market the share, which may include hosting open houses and promoting the listing through email or direct mail marketing. If we’re not seeing buyer interest despite these marketing efforts, we might recommend lowering the asking price. Can buyers negotiate on price? Yes, we think of the resale marketplace as fluid and moving in line with the open market, so buyers are welcome to bring offers. The seller can choose to accept or decline any offer. Are there closing costs, commissions or other transaction fees? For sellers, a 6% commission fee is deducted from the final sale price. For buyers, there are no title, inspection or service fees. Buyers fund the first two months of their home’s operating expenses at closing, similar to property tax and insurance “prepaids” in a traditional sale. Buyers who choose to finance their purchase also pay a financing fee at closing.
Have you ever split the cost of a pizza with friends because you were each only eating a portion of the pie? That’s the basic concept of fractional ownership. Fractional ownership is when you split the costs of an asset – usually an expensive one, like a private jet or resort condo – with others while retaining a portion of ownership and usage rights to the asset. Just like with the pizza, you only pay for the portion you plan to use; for a jet, it’s the miles you’ll fly in it, and for a condo, it's the number of weeks a year you'll occupy the property. Once you pay for it, that portion becomes yours to enjoy. It seems simple enough, but there are pros and cons to fractional property ownership that make it more complicated than sharing a pizza. Here are things to consider before you jump into a fractional ownership agreement for a second home. Fractional ownership pros Expanded opportunity to own Owning properties fractionally gives you the opportunity to own a portion of one or more properties – usually a resort condo or vacation home – in prime locales that might otherwise be outside of your budget. With multiple owners sharing the costs, you can enjoy all the amenities of a high-end, resort-like condominium property without breaking the bank. Deeded ownership Unlike a resort timeshare, fractional ownership gives you a deed to a fraction of the property itself, sometimes called a fractional interest. This means that the value of your share in the property increases or decreases in line with the property's real estate value. Any increase in value is divided equally and becomes gained equity for all fractional owners. Usage rights Unlike short-term vacation rentals, with a fractional ownership property you own actual property, giving you the right to use the vacation home according to your share. For example, if you own one-fourth of a share in a property, you hold the right to use the property one fourth – or 3 months – of the year. You can enjoy the home to the fullest extent of your share in the fractional ownership agreement. Shared upkeep and maintenance costs When you hold ownership of a vacation property using the fractional ownership model, you’re also responsible for only a fraction of the upkeep and maintenance. This includes the cost of taxes, HOA fees, repair bills, landscaping, utilities, property management companies and other expenses associated with shared ownership. Lower upkeep and maintenance burden Most fractional ownership agreements include provisions for long-term property management, with owners deciding together how to handle any issues that arise. Potential rental income A fractionally owned property can be rented out either as a short-term or long-term rental if the ownership agreement allows it. Depending on the terms of the agreement, all owners may earn a share in the proceeds of rental income. Fractional ownership cons Fewer financing options Few banks provide mortgages for those looking to buy properties fractionally. You may need to shop around and consider other ways you might be able to finance your fractional ownership property. Less flexibility and freedom All decisions about maintenance, repairs and decor must go through all ownership partners, and this can be a hassle. If you ever want to sell a fractional property, the sale will also have to be approved by the other fractional owners. Most fractional ownership clubs also require you to maintain an agreement with the club or property management company associated with the home, with no option for self-management or management outside the company. Limited travel opportunities While it’s not unheard of to own shares in multiple fractional ownership properties in different locations, each one is a significant financial investment. Unlike the more traditional hotel stays or short-term rental properties, fractional ownership can limit your travel options to just one or two favorite spots, and you'll likely be staying in a resort condo, not a private, detached single-family home. An alternative to fractional ownership Fractional ownership has its pros and cons. Where fractional ownership falls short, Pacaso steps up. Pacaso’s professionally managed LLC co-ownership model gives you all the perks and lower costs of co-ownership with key differences that set it apart from fractional ownership resort clubs. Unlike fractional ownership resorts, Pacaso offers true property ownership of private, luxurious single-family homes in choice locations. Buyers decide how much home they want to own, from ⅛ to ½. Pacaso handles all maintenance and management, and offers easy and equitable scheduling on the Pacaso app. The homes cannot be rented out, so you have peace of mind knowing the property is only being used by a small owner group and their registered guests. And because the co-owner group collectively owns 100% of the home, owners can vote to remove Pacaso as program manager if they decide they’d rather self-manage. For more about buying a Pacaso, check out answers to some frequently asked questions.
If you’ve ever shared a hotel room with a friend to save money or carpooled to spend less on gas, you know that sharing expenses often just makes more financial sense than shouldering the burden alone. So why shouldn’t it be the same with owning a second home? If you’ve never explored shared ownership before, it might feel complicated. But knowing how it works, the different types of shared ownership, and the pros and cons of each type can help you better understand how shared ownership might get you closer to your dream of owning another home. Here are the most important things to know. How does shared ownership in a house work? In shared ownership, interested parties — usually friends or relatives — divide the value of a home into shares, with each share of the property worth a certain percentage or fraction of the home. The co-owners can determine these percentages based on any number of factors, including but not limited to: The square footage each co-owner will utilize (for primary residences) The amount of time each co-owner will spend in the home (for second homes) The amount of money each co-owner is willing to invest (for investment properties) What are some reasons people consider shared ownership? Here are a few reasons why people choose shared ownership in a home: Reducing the purchase price The most common reason to share ownership in a home is to reduce the financial burden on the owners. Two or more individuals can apply for a joint mortgage, and share the debt burden equally or unequally between them. The lender will take into account every applicant’s income, credit score and debt-to-income ratio. This can benefit all parties involved if some of the applicants are stronger financially in areas where others are weaker. Making a purchase possible when one party has poor credit If one person’s credit could negatively impact a mortgage application, they might not want to pursue a joint mortgage. In this case, they might supply the down payment on the home and let the other parties with better credit hold the mortgage in their name. Depending on their agreement, they may leave it at that, or the person with poor credit may continue to pay a portion of the mortgage payment each month to increase their share in the home over time. Relieving a financial burden on an existing property If an individual is faced with financial hardship but has owned their first or second home for a while, they may invite someone else to purchase a share in the home in exchange for the right to live there full or part-time. The co-owner can give the owner a lump sum, or they can take over all or some of the mortgage payments — or any combination of these. No matter how or why you choose to share ownership in a home, it’s always a good idea to have a lawyer draw up a contract so that the property co-owners can understand and agree to their financial responsibilities in the shared ownership agreement. What are the different types of shared ownership? There are three different kinds of legal shared ownership to consider. Each one offers different benefits and drawbacks. The type that’s best for you will depend on your goals, financial situation and desired structure with your co-owners. Always talk through your options with an attorney. 1. Joint tenancy Joint tenancy is when all property co-owners hold the title to the property, and if one dies, the “rights of survivorship” dictate that their share in the property will automatically transfer to their surviving co-owners without the hassle and cost of probate. One downside to joint tenancy is that you can’t choose anyone outside of your co-owners to inherit your share in the property after your passing. It’s also worth knowing that if your co-owner has unpaid debts, a creditor can force a sale, which will affect your share as well. 2. Tenancy in common With tenancy in common, multiple owners hold individual deeds for a percentage of the property, and shares do not have to be equally split. As a co-owner, you have the right to transfer your share of the property to anyone you choose through your will. You can also sell your shares without the consent of other tenants. But keep in mind that if another co-owner passes away or chooses to sell, you may be stuck sharing ownership with an unfamiliar new co-owner. 3. Limited liability corporation (LLC) When you form a multi-member LLC with other co-owners, you essentially create a separate entity that can enter into contracts and purchase property much like an individual can. It limits the financial liability of the co-owners within the LLC by separating the finances of the LLC from the finances of the LLC owners. LLCs have been used primarily for investment purposes in the past, but companies like Pacaso are now using co-ownership LLCs to make purchasing second homes easier. The only downsides of an LLC are that you can’t deduct your property taxes or mortgage interest on your personal taxes, and you won’t qualify for the capital gains tax exclusion if you sell your home. What are the drawbacks of shared ownership in a home? The biggest drawback of shared ownership properties is having to rely on other people’s financial responsibility not only to pay for the home, but also for maintenance, taxes and other expenses associated with the property. Any shared ownership model other than an LLC co-ownership can make you liable for someone else’s financial failings. You may also have to divide — or forgo — potential tax benefits when you have shared ownership. What are the benefits of shared ownership in a home? Shared ownership can help lower the utility, maintenance and tax expenses for your first or second home, and you may also have a lower down payment and a smaller mortgage than you would with traditional home ownership. With the right preparation — like finding trustworthy co-owners and/or entering into an LLC co-ownership — shared ownership can be a smart way to put ownership within reach. What are the benefits of shared ownership in a home? Shared ownership can help lower the utility, maintenance, and tax expenses for your first or second home, and you may also have a lower down payment and a smaller mortgage than you would with traditional home ownership. With the right preparation — like finding trustworthy co-owners and/or entering into an LLC co-ownership agreement — shared ownership can be the perfect vehicle to get you from dreamer to dream home owner. Learn more about Pacaso’s fully managed LLC co-ownership approach. How shared ownership can help you get into your dream second home Shared ownership can be especially useful when you’re buying a second home. Since you won’t be using the home every day, assembling a group of co-owners to share time — and share expenses — makes a lot of sense. Pacaso offers a fully managed LLC co-ownership model where individual owners purchase ⅛, ¼ or ½ shares of a luxury vacation home in a dream destination. Then, Pacaso sets up the LLC and handles all of the ongoing management and maintenance. There’s an easy, equitable scheduling tool that ensures all owners have plenty of time to enjoy the home. When you’re ready to move on, you can sell your shares on the open market at a price of your choosing. Browse Pacaso listings today to discover shared ownership properties across the United States and beyond.
You’re ready to buy your another home, but are you aware of the financing options and tax implications of owning multiple homes? From cash payments to traditional mortgages, there are a variety of ways to make your second home dreams come true. Whether you’re searching for a dreamy beach house or a condo in the city that can earn you extra income, you’ll want to know the pros and cons of owning multiple homes in 2024. Read our guide to get started. Advantages of owning multiple properties The advantages of owning multiple properties make it an appealing avenue for wealth building, income generation and portfolio diversification. Although owning multiple homes comes with many responsibilities like property management, the following benefits can make it all worthwhile. 1. Earn rental income Owning multiple homes gives you the opportunity to create a sustainable and passive cash flow stream. Each additional property adds to the total rental income, which can help cover mortgage payments, property taxes, maintenance costs and other expenses associated with owning multiple rental properties. 2. Diversify your portfolio Rental income from multiple homes also offers diversification. It allows investors to spread their investments across various locations and property types, increasing the likelihood of continued cash flow even if one property faces temporary vacancies. 3. Enjoy a vacation home (or two) Perhaps the biggest advantage of owning multiple homes is the freedom to travel and make the most out of your properties. Whether your vacation home is in another state or down the street, you can indulge in your home away from home at your leisure. Disadvantages of owning multiple properties Although owning multiple homes can potentially help you earn extra income, diversify your portfolio and grant you access to new vacation spots, there are a few drawbacks to keep in mind. Let’s take a closer look. 1. Risk illiquidity Real estate is generally considered a less liquid asset compared to stocks, bonds or cash. When you own multiple properties, it can be challenging to quickly convert those assets into cash if needed. Selling a property may require significant time and effort, especially in slower real estate markets, potentially leading to delays in accessing funds. And since owning multiple properties can tie up a substantial amount of capital, this limits diversification opportunities across your other investment assets. 2. Take on more expenses With each additional property comes a multitude of costs, such as mortgage payments, property taxes, insurance, maintenance, property management and utility bills. These expenses can add up quickly, putting a strain on your finances. Owning multiple properties may also lead to higher transaction costs, such as real estate agent fees and closing costs, if you buy and sell properties frequently. 3. Manage multiple properties One significant disadvantage of owning multiple homes is the challenge of property management. As the number of properties increases, so does the complexity and time required to manage them effectively. With multiple homes, the workload and responsibilities can become overwhelming for individual owners, especially if you are managing properties in different locations. Considerations for owning multiple homes Owning multiple homes can be a rewarding investment strategy with careful planning. Here are some things to consider before taking the leap. 1. Financing options Financing for multiple homes can vary depending on individual financial situations and investment goals. Traditional mortgages are common, but they may become limited as the number of properties increases. Here are a few ways to finance your next home purchase: Pay in cash: If possible, paying in cash avoids the headaches of financing. Apply for (another) mortgage: Even second and third homes can qualify for traditional mortgage financing. Apply for portfolio loans: If you’re interested in buying an investment property, you can qualify for portfolio loans through your lender. Form an LLC: Forming an LLC may qualify you for real estate investment loans and less expensive buy-ins due to fractional ownership. Leverage existing home equity: Consider leveraging your equity in your primary residence to help you finance your other home purchase. Regardless of the method you choose, maintaining a strong credit profile and demonstrating a reliable income stream are essential to secure favorable financing terms and ensure you can afford another home. 2. Property management By renting out the property to tenants, you can offset some of the ownership costs, such as mortgage payments, property taxes and maintenance expenses, while building equity in the property. However, successful rental income generation requires proper property management, including tenant screening, regular maintenance and prompt response to tenant needs. With careful planning and a proactive approach, using a second home as a rental investment can offer an attractive source of passive income. 3. Tax implications The primary tax considerations revolve around usage of the properties. For example, if one of the homes is designated as a primary residence, homeowners may benefit from capital gains exclusions when selling. However, if any of the homes are used as investment properties, different tax rules apply. Rental income generated from investment properties is taxable, but it opens the door to various deductions, including property-related expenses and potential depreciation. On the other hand, vacation homes and second homes used for personal enjoyment may have limited tax benefits, with deductions subject to strict usage rules. Consult with a qualified tax advisor who can provide detailed information based on your individual circumstances and type of ownership. Now that you’re aware of the pros and cons of owning multiple homes, you can explore the advantages of co-owning property. If multiple homes are in your future plan but not quite in your budget, co-ownership may be perfect solution. Through this model, you can own a second home, pay for the time your family uses it, and share the cost of ownership among other owners. Unlike a timeshare, however, this model offers real estate ownership. And with a fully managed co-ownership program like Pacaso, co-owning a second home easy and hassle-free.
If you prefer staying at vacation rentals over hotels when you travel, you might be thinking about buying a vacation home. The freedom of ownership, the investment potential, the ability to stay anytime you want — it sounds like a dream come true! If you take the plunge without considering some key details, however, owning a vacation home can suddenly feel more like a bad dream. Here are eight mistakes to avoid when buying a vacation home. Going over your budget This applies to any home purchase, but it’s easy to get swept up in a vacation home fantasy. If you had a great experience at a vacation rental in a particular area, your fond memories might convince you to spend “just a little bit more” in order to buy in that neighborhood. Or if you happen to catch a spectacular sunset when touring a property, it may seem meant to be, despite the out-of-budget price tag. In addition to your mortgage, you also need to consider ongoing costs — you still have to pay utilities year-round even if you only use the home occasionally — and budget for unforeseen expenses. Since buying a vacation home probably isn’t urgent, take your time to find something you love that’s also within your budget. The Pacaso fix: When you buy a second home with Pacaso, you can have it all — a stunning home in a desirable location for ⅛ the cost. Monthly operating expenses are shared, pro rata, among all owners, so you’re not responsible for a whole home’s ongoing costs. Your second home budget goes further, and you don’t have to sacrifice your picture-perfect vacation home dreams. Counting on rental income to pay the bills When buying a vacation home, many people plan to rent out the property when they aren’t using it to offset the costs of ownership. Multiply the going nightly rate by the potential number of available days, and you might think you’ll not only cover your mortgage, but turn a tidy profit. Well, you might. But there are several factors to consider. Are you willing to self-manage the rental (fix the things that break, market the home, manage the calendar, deal with unhappy renters … the list goes on)? No? Then be prepared to pay a local property management company anywhere from 10-50% of your revenue to take care of that for you. Have you budgeted for the wear and tear of a vacation rental, which means more frequently replacing furnishings, fixtures and appliances? And those are just a few of the considerations that come along with vacation rental ownership. It’s a great option for some people, but it can be a real headache for others. The Pacaso fix: Since you’re only buying the amount of ownership you actually plan to use, you don’t have to worry about filling in the gaps with renters. In fact, Pacaso doesn't allow rentals, as the homes are meant to be enjoyed by each owner and their guests (which also means less wear and tear). Not researching the location or climate If you’ve only visited your vacation home destination for short periods of time or during ideal weather conditions, you might not be prepared for seasonal or geographical surprises. Let’s say you normally vacation in Palm Springs over the winter holidays, but you expect to use your second home mostly in the summers — if you prefer the moderate winter temps, you may be sweltering in July. Or if you buy a beachfront property, understand that the direction your home faces can influence the potential for storm damage or exterior wear over time. Before buying a vacation home in an unfamiliar area, be sure to do your research. The Pacaso fix: We have Pacaso market advisors, and we partner with knowledgeable real estate agents in each of our markets. These area experts know what to expect and can help you decide if the location is right for you. We carefully evaluate each home before selecting it as a Pacaso, and we only choose the best locations for our second homes based on buyer demand. Not getting the right insurance Vacation home insurance policies are usually a bit different than standard homeowner policies. Many providers consider vacation homes higher risk if they will be vacant much of the year. For example, if a pipe bursts and no one discovers it for a month, the damage could be severe. And if you’re buying a vacation home in an area that’s prone to floods or hurricanes, you’ll likely need supplemental insurance for natural disasters. Finally, if you decide to rent out the home — even if it’s just a part-time rental — you need to see if your policy covers damages and liabilities related to rental property. The Pacaso fix: All home costs, including insurance, are budgeted for on an annual basis and passed back to owners at cost. You don’t have to research policies or worry about making a claim if something happens. Pacaso ensures the home has the right policy and handles any issues with the insurance provider. Not checking local property tax rates Property taxes vary considerably from state to state and county to county. If you don’t factor property taxes into your second home budget, you may find yourself overextended. If you’re buying a vacation home in a resort community, there may be additional taxes or fees, so be sure you know your total costs before you make an offer. The Pacaso fix: Property taxes, along with ongoing home costs, are included in the monthly owner expenses for each home and shared with buyers upfront. Pacaso manages the payment of property taxes and provides owners with an annual K-1 tax form. Forgetting to budget for furnishings You own a beautiful second home! A big, empty second home. Unless you’re planning to bring air mattresses, camp chairs and paper plates each time you visit, buying a vacation home also means buying furniture and housewares, potentially upgrading the appliances, and adding decorative touches to make the place feel like home. If you want to invite family and friends to stay, that means multiple beds, mattresses, linens, dressers, a sofa or two, a dining set — and all the dishes, flatware and cookware for meals. That can quickly add up to tens of thousands of dollars, depending on the size of the home. The Pacaso fix: We bring in professional interior designers to customize and furnish each home, and provide all the amenities you need to enjoy your stay. We also install the latest home technology and smart home features for added convenience. These costs are included in the share price, so you don’t have to budget for them after your purchase, and financing is available. Not anticipating the cost of utilities and maintenance You might only use your vacation home a few weeks or months a year, but the bills don’t stop just because you aren’t there. Depending on where your second home is located, you may need to maintain minimum levels of heating or cooling year-round to ensure the home functions properly. You’ll have fixed costs, like sewer and internet, and you’ll need to make sure someone is taking care of the lawn or cleaning gutters while you’re away. Plus, you’ll need to arrange those services and hope they’re reliable. The Pacaso fix: Pacaso estimates all the costs for maintenance — both preventative and ongoing — and utilities for each home. We also hold a repairs reserve to cover unexpected costs or emergency repairs. Pacaso shares the monthly cost breakdown with potential buyers upfront so there are no surprises after purchase. Thinking it’s easy to manage from afar Your vacation home might be within driving distance, or perhaps it’s a plane ride away. Either way, trying to take care of typical homeowner maintenance tasks or repairs is a lot less convenient when your second home is hours away. Outsourcing those jobs will save you time, assuming you can find good handy people or contractors, which can be a challenge. If the home is in a popular vacation spot, those services will be in high demand, which means they may be harder to book and will likely come with a higher price tag. The Pacaso fix: Owning a Pacaso gives you all the advantages of a second home without all the hassles. We work with trusted local property managers who oversee the day-to-day management of our homes. They ensure the home and property are well maintained year-round, and they’re available to respond to any issues that may arise during your stay. The property management fee is passed back to shareholders monthly with no markup. Buying a vacation home can be a great choice if you’ve done your due diligence and are prepared for the costs and upkeep. But if you want the benefits of second home ownership without the responsibilities, and the assurance of predictable costs, Pacaso is an ideal option.
Sometimes, you just need to get away. But how often, and for how long? And where do you like to stay? The answers are different for everyone. Maybe you think of time away from home as an opportunity to explore new and unknown destinations. Or perhaps nothing feels more comfortable than returning to a familiar place where you know what to expect, and you don’t have to search for the things you need. Examining your travel preferences and budget can help you choose accommodations that meet your needs. Three housing options to consider are short-term vacation rentals, a whole second home, and a co-owned, professionally managed second home. Here are five questions to ask yourself when comparing your second home options. How much will I use the home? Do you typically take one vacation a year? Or maybe you’re a “snowbird” who likes to split your time between warmer and cooler locations. Perhaps you enjoy a regular change of scenery and don’t mind combining work and leisure time. Annual vacationers: A vacation rental is a good option if you typically take one annual trip and occasional weekend jaunts. The pay-as-you-go model works well for infrequent travelers. Multi-month, split-residence owners: A whole second home gives you maximum flexibility and is a good choice for people who plan to stay in a second home for several consecutive months each year. Multi-week or work-and-leisure travelers: Co-ownership is a great choice. You can purchase the amount of ownership you’ll use based on your usage preferences. For example, a one-eighth share of a Pacaso gives you access to about one-eighth of your home's calendar across the year. On average, owners of a one-eighth share stay at their Pacaso six to seven times per year, for about a week at a time. Do I plan ahead? Do you sometimes wake up on a Saturday morning, hop in the car and figure you’ll find a place to stay once you reach your destination? Or are you most comfortable making plans weeks or months in advance? Get-up-and-goers: If spontaneity is your jam or commitments make planning ahead difficult, whole home ownership might be the right choice. The home is all yours, so you can show up anytime. Moderate to master planners: If you’re able to plan ahead just a little, both vacation rentals and co-ownership are good options, but they offer different levels of flexibility. Rentals can be booked by anyone — hundreds of people may be competing for dates at any given time — so the most desirable dates have limited availability. Scheduling and cancellation rules vary, and your experience at any particular rental is unpredictable; you have to be comfortable with some unknowns when choosing a rental. When you co-own a Pacaso, a maximum of seven other owners enjoy the home, meaning far less competition for dates. Plus, the SmartStay™ scheduling system makes booking stays easy and equitable for all owners. Planners can book stays up to two years in advance, and those who prefer more spontaneity can take advantage of short-notice stays just two days in advance. Am I looking for a ‘home away from home’? Are you just looking for a comfortable place to sleep? Do you think of a second home as a blank slate, ready for your artistic vision? Or do you want an always-ready gathering place where you make memories with family and friends? Sightseers: If you don't plan to spend much time in the home — you’d rather be at the beach or on the ski slopes — consider a vacation rental. Rentals vary in the amenities they offer, so you can’t always count on a fully stocked kitchen or the softest towels, but most are suitable as a place to spend a few nights. Customizers: Let’s say you’ve always dreamed of a beach house with a nautical theme — you’ve been collecting shells for years, and you’ve found the perfect monogrammed welcome sign on Etsy — then a whole second home is what you’re after. You can decorate and furnish it to suit your personality, and it can be “the family vacation home” for generations. Comfort-seekers: How about a bit of both? When you co-own a Pacaso, you are a true owner of a modern and beautifully designed home, but you don’t have the responsibilities of upkeep. Each owner also has a secured space for personal belongings (even your seashells!), so it’s easy to just show up and relax, knowing everything you need is there. Am I willing to spend time on homeowner tasks? Do you get excited about home improvement projects and bill-payment spreadsheets? Or, when you’re away from home, are utilities and lawn care the last things you want to think about? HGTV enthusiasts: If you’re handy (or have a reliable network of handy people) and get satisfaction from the effort you put into your home, whole second home ownership might be a good fit. You control what gets done, on what schedule, and you can use your skills to maintain the home (potentially saving money, in exchange for your time). Vacationers: If you’re traveling with a vacation mindset, a trip to the hardware store is not on your agenda. Go with a vacation rental, and if the faucet drips, no worries. You’re only there for a few days. Time-preservers: If you’re looking for true ownership, but you want to maximize your time and enjoyment of your second home, professionally managed co-ownership is ideal. Pacaso handles maintenance, repairs, property management, bill payment and more. Operating costs are passed through to owners with no markup, and Pacaso charges a fixed $99 monthly program management fee per share for its services. What’s my budget? Money will likely be an important factor in your decision. The upfront costs associated with a home purchase are much higher than renting a home, but if you use the home often, ownership can offer many benefits. Notably, ownership of a whole home or a Pacaso is true real estate ownership, and any equity gains realized are yours. No big purchases, please: If saving for a second home isn’t part of your financial plan, paying nightly for vacation rentals is a fine alternative. Just keep in mind how often you travel, and recognize that you generally pay a premium when you compare the per-day cost of a rental to an owned home. The sky’s the limit: Great! You can buy a whole second home of your choice. Realistically, however, most people who budget for a whole second home are looking at mid-tier homes which may be in short supply (especially in popular second home locations). If a whole home is the best fit for your needs, be prepared for more competition and more compromises. I want more for less: You got it! Co-ownership boosts your purchasing power, enabling you to buy a higher-end home for a mid-tier price. With ownership starting at one-eighth, you can co-own a luxury $2 million Pacaso for just $250,000. There’s no one right choice for everyone. But if you plan to use your second home several weeks a year, you don’t want the hassles and responsibilities of whole home ownership, and you want your second home budget to go further, Pacaso is a great option.
Maybe you want to achieve your dream of buying a vacation home. Maybe you want to get into real estate investment and need a home to live in while renting out or flipping another. Or maybe you’re just trying to buy a new home while selling your current home. Regardless, navigating how to buy another house while owning a home can be a complicated and stressful experience. For many, the most challenging part of purchasing a second home is finding the cash to make it happen. The following nine strategies can help — the best one for you depends on what you plan to do with your first home. 1. Get approved for another mortgage Best for: When you plan to keep both homes long term and already have a down payment Perhaps the simplest and most familiar strategy for buying another house is to apply for a new mortgage. In this strategy, a bank approves you to hold two separate mortgages simultaneously. You’ll need to have enough cash on hand to cover a down payment and the closing costs for the new mortgage. Use a second home calculator to determine how much money to budget for a second home to help you see whether you can afford two mortgages. Pros Cons The process is the same as applying for your first mortgage, so it’s familiar. Debt-to-income ratio limits and excellent credit requirements make it difficult for most people to qualify for another mortgage. You may need a larger down payment since most special down payment programs don’t apply to secondary mortgages. 2. Become a landlord Best for: When you only plan to live in one residence or are buying the second home as an investment Similar to getting approved for two mortgages, as a landlord you are still responsible for two monthly mortgage payments, but the rental income can help cover your payments. If you plan to rent out your second home, read your mortgage agreement carefully. Some mortgage agreements prohibit you from renting it out or require you to get the lender’s permission. Once you’ve confirmed you can rent out your home, get it appraised so you can determine how much to charge for rent. The amount you charge should cover your monthly mortgage payment on the property. Your lender may also require you to have at least 2% of the mortgage value in investments, cash, etc. to cover the mortgage if you cannot get a tenant. Pros Cons You will only pay one mortgage out of pocket monthly (as long as you have a tenant who covers the payment). You’ll continue to build equity in your first home. You can write off any home improvement and maintenance costs for the home you rent out as business expenses on your taxes each year. If your tenant doesn’t pay rent or your tenant moves, you’ll need to cover the cost of the mortgage. Failure to cover both mortgages could result in the foreclosure of one or both homes. Being a landlord comes with extra responsibilities such as listing the property, hosting showings, vetting tenants, etc. Taxes for a landlord become more complicated and require careful record keeping. 3. Take out a bridge loan Best for: When you are buying your new home while selling your current home A bridge loan is a temporary loan (usually six months to a year) intended to cover the cost of purchasing a new home while waiting for your current home to sell. Also called a swing loan, a bridge loan can finance up to 80% of the value of both your new and current home. When your current home sells, you use the profits to pay back the entirety of the bridge loan and apply for a traditional mortgage for your new home. Pros Cons Bridge loans are a quick way to raise cash to buy your new home before your current one sells. Bridge loans are hard to qualify for (you must have excellent credit) and often come with hefty fees and higher interest rates than a conventional mortgage and other financing methods. Bridge loans are risky since your current home is used as collateral. If you aren’t able to sell your first home, you could lose both homes. Since the housing crash of 2008, many financial institutions have stopped offering bridge loans. 4. Borrow from your investments Best for: When you will be responsible for paying two mortgages, whether temporary or long term Generally, you cannot withdraw from your retirement investments without paying a penalty (usually 10%) and potentially taxes on the amount you withdraw. However, if you have a 401(k), you may be able to take out a loan. Not all providers offer this feature, but if they do, you can generally borrow: $10,000 or half your vested account balance (whichever is more) A total of $50,000 You must repay the loan with interest within five years. Some employers may also prohibit you from contributing to your account while repaying a loan. If you have a Roth 401(k), you can withdraw any contributions from your retirement account without penalty. If you borrow any earnings your contributions accrued, however, you will have to pay a 10% early withdrawal penalty. Pros Cons Since you are borrowing from yourself, you won’t need credit approval and the loan won’t appear on a credit check. Not all 401(k) plans allow you to take out a loan. Opportunity costs are high since any money you take out for the loan won’t be invested, minimizing the amount your account can earn over time. Borrowing limits mean you may only be able to borrow enough for a down payment for a second home, not the entire mortgage amount. 5. Get a home equity loan Best for: When you will be responsible for paying two mortgages, whether temporary or long term A home equity loan allows you to borrow up to 85% of your current home’s equity. You can use any lender (not just the lender currently serving your mortgage), so shop around and apply for the best rate. Depending on how much equity you have in your home, you may be able to raise enough funds to cover the cost of the mortgage of your second home or the down payment and closing costs. Pros Cons Home equity loans allow you to raise cash without depleting your existing cash on hand. You’ll be able to deduct the interest on your home equity loan just like you do with a mortgage if you take out the home equity loan to buy, build or renovate a primary or secondary residence. A home equity loan uses your primary residence as collateral, so your home is at risk if you default. You may end up with multiple loan payments. If you use a home equity loan to raise cash for a down payment, you may end up with three: 1) your original mortgage, 2) your home equity loan covering the down payment, and 3) Your second home’s mortgage. 6. Apply for a home equity line of credit (HELOC) Best for: When you will be responsible for paying two mortgages, whether temporary or long term A home equity line of credit allows you to borrow against the equity in your home, but it’s not a full balance loan like a home equity loan. Instead, it’s a line of credit you can draw from over time, like a credit card limit. If you have enough equity in your home, you can use your HELOC to cover the entire cost of your new home, or you can just use it for the down payment. Pros Cons HELOCs tap into your existing home equity so you can put it toward a second home. Interest rates are variable, so you may not always be able to borrow at the same rate over time. 7. Raise a down payment with a cash-out refinance Best for: When you will be responsible for paying two mortgages, whether temporary or long term With a cash-out refinance, you refinance the entire value of your home up to 80% of its equity. Whatever you don’t owe on the mortgage you’ll receive in cash. For example, if you have $100,000 left on your mortgage but the home has $500,000 in equity, you’d be able to refinance up to $400,000. You would walk away with $300,000 in cash to put toward the purchase of your second home. Pros Cons Just like refinancing your mortgage, you can lower your current mortgage rate if rates are lower than when you initially financed your home. If you can raise enough money in a cash-out to cover the entire cost of your second home, you will end the process with only one monthly mortgage payment. If mortgage rates are higher than when you initially financed your first home, you may pay a higher rate. 8. Consider a reverse mortgage Best for: Seniors looking to purchase a second home If you are 62 or older, you may qualify for a reverse mortgage. Also known as a home equity conversion mortgage (HECM), a reverse mortgage allows you to borrow from your home’s equity without making monthly payments — with the expectation that you will pay back the loan when you sell your home. Pros Cons You get access to your equity without any additional monthly payments. You will accrue monthly interest, which will be added to your loan amount. This can quickly eat up your home’s equity. When you pass away, your heirs must sell your home to pay back the mortgage instead of being able to keep the house or the money from the sale, minimizing their inheritance. 9. Explore other types of ownership Best for: Peeople purchasing a vacation home with others There are other types of home ownership besides sole ownership. If you want to purchase a second home to use as a vacation home while living primarily in your first home, you can choose to purchase a share of a second home. There are two options for owning a home with people unrelated to you: Tenancy in common (TIC): Each tenant holds a deed for a portion of the home, but they pay one mortgage together. Owning partnership/LLC: An owning partnership or limited liability company (LLC) owns the deed to the home, and tenants buy into ownership by purchasing shares of the LLC. You can set up the LLC with the other owners or you can work with Pacaso, who handles the LLC paperwork and the home maintenance for you. Pros Cons A second home is much more affordable when you split the purchase price and maintenance costs with others. Tenants can transfer or sell their shares without the permission of other tenants. You won’t always know the other tenants. You will have to manage a schedule for the occupancy of the home. Buying a second home doesn’t have to be a far-off dream. The strategies in this guide can help you raise the cash you need for a down payment or the entire second home mortgage — whether you plan to rent or flip a home, buy a new home while you wait for your current home to sell, or just plan to relax poolside at your vacation home.
As home prices continue to rise, the question for many is whether to buy or rent their next residence. Factors such as initial costs, maintenance responsibilities and the ever-changing economic landscape are shaping how you choose to live and if you invest in real estate. Let’s break down what it looks like to rent vs. buy a primary home or second home in 2023. From insurance policies and property taxes to monthly payments and lifestyle considerations, we’ll provide cost perspectives for renters and buyers alike. Renting a home Renting works well for those who value flexibility and prioritize convenience. In fact, 34% of U.S. households currently rent their home. Unlike home ownership, renters are not responsible for maintaining their unit, usually making it a budget-friendly option for those who want to save for a down payment to buy a house or invest their money elsewhere. Short-term rental sites like Airbnb and Vrbo provide vacationers a turnkey experience with a customizable length of stay. Long-term and short-term renting often grants access to amenities such as swimming pools, gyms or other facilities that may be financially unfeasible for homeowners. Owning a home On the other hand, owning a home serves as an investment that can build equity over time — 66% of households live in a home they own. Whether it’s your primary or secondary residence, home ownership gives you the freedom to customize your living space according to your lifestyle and design preferences, which is often restricted in rental properties. There are several types of property ownership to choose from, depending on your budget and the level of responsibility you prefer. For example, single ownership may be more expensive than co-ownership of a property, but it gives you more control over the home. While home ownership is often seen as a goal to strive for, renting vs. buying a home may make more sense in certain stages of life. To learn more, let’s take a closer look at the differences between buying vs. renting. Buying vs. renting: Differences to consider No matter whether you rent or buy a home, you will be responsible for some housing costs. If you plan on buying a home with a loan, your monthly payment will take the form of a mortgage, which includes the principal and interest. You will also pay for utilities and maintenance costs, as well as homeowners insurance. If you rent a home, you will pay a set amount for your lease and may or may not be responsible for the utility bills, depending on your rental agreement. You may also want to have renters insurance. Renters Homeowners Pay rent Pay mortgage (if you have a loan) Pay utilities (depending on the lease) Pay utilities 1. Property taxes Tenants who rent typically do not receive direct tax benefits related to the rental payments they make, and property taxes may be fixed into their lease agreements. Homeowners, however, can enjoy various tax advantages, including second home tax breaks. Although homeowners need to pay annual property taxes and mortgage interest, tax deductions are available and can lead to significant tax savings. Even when selling a home, for example, homeowners may qualify for capital gains tax exclusions that further reduce their tax burden. Renters Homeowners Rent may include fixed property tax Pay annual property taxes Do not benefit from tax deductions Potentially benefit from tax deductions 2. Home insurance Insurance considerations differ between renting and buying a home, but both living situations may require some type of insurance. Renters might need to present renters insurance for liability protection in case of accidents or damage to the rental unit. Homeowners are generally required to obtain homeowners insurance in order to qualify for financing. This insurance covers the structure of the home and its contents. It also provides liability protection for accidents on the property. The average cost for renters insurance is around $168 a year, while the average price of homeowners insurance is around $1,117 to $2,950 per year. Renters Homeowners Landlords may require renters insurance Loan officers may require homeowners insurance Rental insurance covers damage to the rental unit and tenant’s belongings Home insurance protects the home itself as well as the owner’s belongings 3. Mortgage interest Those who rent their homes don’t have any mortgage interest to consider, as they do not own the property. Instead, their monthly rent payments go toward the landlord's expenses, which could include mortgage interest payments. In contrast, unless you pay cash, buying a house involves paying a mortgage that includes interest and a principal payment. Although mortgage interest can appear as a financial burden, it can qualify as a tax deduction, depending on the type of loan and the amount. Renters Homeowners Not responsible for paying mortgage interest Responsible for paying mortgage interest if using traditional financing Mortgage interest is tax-deductible 4. Home equity Rent payments contribute solely to the landlord's income and do not provide renters with any property ownership stake or investment value, so tenants do not build equity. As homeowners make mortgage payments over time, they build equity in their property and may benefit from property value appreciation — making buying a home a long-term investment with the potential for financial gains. Additionally, home equity can allow homeowners to access funds through home equity loans and lines of credit. Renters Homeowners Do not benefit from increased equity or property value appreciation Benefit from value appreciation of their asset Potential to access equity loans and lines of credit 5. Lifestyle Lifestyle considerations play a crucial role in the decision between renting and buying a home. Renting offers greater flexibility and mobility, making it an appealing choice for individuals who prioritize a transient lifestyle. Renters can easily relocate for job opportunities or personal preferences without the burden of selling a property. Renting also eliminates the responsibility of property maintenance and repairs, providing a more carefree living experience. On the other hand, buying a home suits those seeking stability and ownership. Ownership allows people to customize their living space and establish long-term relationships within their community. Although homeowners have more control over their living environment, they are responsible for all property maintenance. Renters Homeowners Little to no maintenance responsibilities Responsible for all property maintenance Potential access to shared amenities Potential to build long-term community connections The cost of buying vs. renting a home [$300,000 home example] Renting generally involves lower upfront costs, as renters typically only pay a security deposit and first month's rent, whereas home buyers need to make a down payment, cover closing costs and potentially pay for inspections and other fees. Additionally, renters are usually not responsible for property maintenance and repairs, while homeowners must budget for these expenses. In the long run, renting may be more expensive than buying, as homeowners build equity in their property and benefit from potential property appreciation. However, home ownership offers potential tax benefits, such as deductions on mortgage interest and property taxes, which can result in significant savings. Here is a breakdown of cost expectations of renting vs. buying a $300,000 home. Buyer Renter Down payment/deposit $60,000 (20% of selling price) $2,400 Closing costs $12,000 (4% of selling price) $0 Total upfront costs $72,000 $2,400 Monthly payment $1,414 ($240,000 at 7.07%) $2,400 (0.8% of home value) Property taxes $338/mo (1.35% of value) $0 Insurance $115/mo (0.46% of value) $32 (1.32% of annual rent) Maintenance $250/mo (1% of selling price + 2% inflation/yr) $0 Total monthly costs $2,303 $2,432 Total first-year costs $99,636 $31,584 Whether you’re searching for your next primary residence or vacation home, keep the pros and cons of buying vs. renting in mind before making a decision. Another option: Co-ownership If both the convenience of renting and the equity of home ownership appeal to you, consider the benefits of shared ownership. Through this model, you can co-own a second home, use it for the amount of time that works for you, and split the cost of ownership among other owners. Unlike a timeshare, however, this model offers the potential for real estate equity and a more accessible path to owning a second home. DIY co-ownership can be challenging to set up — a fully managed co-ownership programs like Pacaso co-owning a second home easier than ever.
What is the average cost of a mansion in 2023? The average cost of a mansion in 2023 is approximately $1.8 million, but it depends on a variety of factors. If you've ever found yourself pondering the cost of owning a mansion — whether fueled by aspirations of grandeur as a homeowner, a fascination with architectural marvels or simply curiosity about luxury real estate — you're not alone. But how much does a mansion cost? The cost of a mansion can vary greatly depending on several factors, including location, size, architectural style, amenities and overall real estate market conditions. Mansions are typically high-end, extravagant properties, and their prices can range from $1 million to hundreds of millions of dollars. In this guide, we'll delve into the elements that define a mansion and explore the costs of construction, purchase, rental and joint ownership. What is a mansion? A mansion is a large, opulent private residence that goes beyond the average size and amenities of a standard home. While the average home size in the United States is 2,014 square feet, a typical mansion is at least 8,000 square feet and contains lavish features such as: Multiple floors Expansive living spaces Numerous bedrooms and bathrooms Formal dining areas Grand entrances High-end finishes Mansions may also boast additional amenities like resort-style swimming pools, home theaters, extensive landscaping, private gyms, wine cellars and guest houses. How much it costs to build a mansion The cost of building a luxury home such as a mansion can vary significantly depending on several factors, including the size, location, materials used, labor costs and desired amenities. While it’s challenging to provide an exact figure without specific details, the cost of building a mansion can range from several million to hundreds of millions of dollars. The cost per square foot of constructing a mansion is generally higher than the cost of constructing a standard home due to the higher-quality materials, intricate designs and ornate features. It's important to note that additional expenses like land acquisition, permits, architectural and design fees, landscaping and interior decor should be also considered when estimating the overall cost of building a mansion. Needless to say, it’ll most likely be your most expensive option regarding home types. To obtain a more accurate estimate for building a mansion, it’s best to consult with experienced architects, contractors and construction professionals who can assess your needs and provide a detailed cost analysis based on your desired specifications and location. Below are the pros and cons of getting a mansion built: Pros Cons Customize the mansion to your style Most expensive option Brand-new build with modern trends and styles Unexpected costs and delays in the building process Avoid bidding wars associated with buying Can’t move in right away How much it costs to buy a mansion The median listing price per square foot is approximately $225 in the United States in 2023. Considering mansions have a minimum size of 8,000 square feet, the typical cost of a mansion would amount to approximately $1.8 million. However, the cost of a mansion can vary depending on other factors, which is why you’ll find mansions spanning from $1 million to over $300 million. In extremely wealthy areas such as Beverly Hills, for example, mansions can often be priced in the tens of millions or even hundreds of millions of dollars. On the other hand, in less expensive areas with a lower cost of living, the price range for mansions may be much lower. While it’s possible to find homes larger than 8,000 square feet priced under $1 million, they may be run-down or lack the stately finishes and amenities commonly found in mansions. In this case, a renovation might be worth considering, which is also a factor to think about when buying vs. building a home. It's also important to take into account the additional expenses associated with owning a mansion, including: Interest rates Property taxes HOA fees Homeowners insurance Utilities Maintenance These costs are considerably higher compared to those of a standard home due to the larger size of the property. Below are the pros and cons of purchasing a mansion: Pros Cons Skip the hassle of the building process Extra costs for customizations Invest and build equity High upfront costs Greater privacy and control over your living space Less flexibility How much it costs to rent a mansion Renting a home generally costs approximately 1% of its total value. So if a mansion is valued at $1.8 million, the monthly rental cost would amount to approximately $18,000. However, this number can vary based on factors like the mansion's size, location and amenities. While most rental properties will take care of maintenance and utilities for you, some don’t, so that may be an additional expense to consider when renting. While securing a long-term lease for a mansion may not be a practical option for many people, it can certainly be a fun choice for a short-term stay, such as a weekend getaway or couple’s vacation. Below are the pros and cons of renting a mansion: Pros Cons Experience the luxury lifestyle Pay premium rent for luxury amenities More flexibility Not permanent No responsibility for maintenance Reliant on a landlord or property manager How much a second home mansion costs If you’re looking to buy a second home, either to live in part time or rent out, a mansion is undoubtedly a major investment. In addition to the typical fees associated with homeownership, such as utilities and maintenance, it’s important to factor in the expenses that come with owning a second home, including: Higher interest: Interest rates for a second home loan will be approximately 0.5% to 1% higher than the going rate for a primary home. Higher homeowners insurance: The insurance for a second home is typically higher than insurance for a primary home, and it can vary depending on whether the property is used as a rental or rarely occupied. Property management expenses: If your primary residence is a considerable distance from your second home, you may consider hiring a property manager who can oversee regular maintenance tasks and address tenant-related matters. While purchasing a mansion as your second home may not be a financial possibility on your own, it could be possible via joint ownership. This way, you can enhance your purchasing power and reduce the maintenance and management responsibilities associated with owning a second home. Considering you will only be utilizing the property during specific periods throughout the year, co-ownership is pretty convenient. You might even consider inviting friends or family members to share ownership with you. To ensure mutual understanding, it’s a good idea to engage a lawyer who can assist in drafting a formal agreement that delineates the terms and conditions of the shared ownership arrangement. Below are the pros and cons of owning a mansion as a second home. Pros Cons Own a luxury second home in your favorite place Can’t live there full time Earn additional income to offset expenses Your property suffers more wear and tear More affordable through co-ownership Higher fees and expenses Although living in a mansion may be a dream for those with a taste for luxury, it’s not always a realistic option. Fortunately, your aspirations of owning a mansion can become a reality when you buy a second home through Pacaso. We offer fully managed LLC co-ownership of luxury second homes, allowing up to eight owners to each have a 1⁄8 ownership interest in the LLC. These homes are professionally designed, fully furnished, meticulously maintained and eagerly awaiting your enjoyment. Check out the steps to buying and owning a second home with Pacaso so you can realize your dream of owning a luxury mansion for a fraction of the cost.
In times of economic uncertainty, it’s common to feel a little uneasy. In the years since the Covid-19 pandemic began, the economy has taken many twists and turns. The Federal Reserve raised interest rates with 10 separate rate hikes between March 2022 and May 2023. Mortgage interest rates went from historic lows to over 6%. Inflation made everyday items like groceries, gas and utilities more expensive for families across the country. Depending on your situation, these changes may have had a big or a small impact on your financial outlook. But there are two groups who may be feeling a little more stressed than others: retirees and those approaching retirement. Why? Because retirees want to ensure that they can fully cover their monthly expenses with their savings and investment portfolio, well into their golden years. If you’re approaching or already in retirement, here are five steps you should consider taking — one of which could be right-sizing your real estate investment with an option like co-ownership. 1. Stay calm First and foremost, stay calm. It's hard when external factors wreak havoc on your financial plans, but it’s important to avoid making rash decisions, especially when it comes to your retirement nest egg. Money-related decisions can be emotional, so sometimes it’s helpful to bring in an objective third party, like a financial planner or investment advisor. Skilled professionals can recommend if and when to move investments around, while also providing peace of mind that you aren’t making the wrong decision. 2. Review your portfolio As retirement nears, it’s considered a best practice to rebalance your portfolio, taking money out of high-risk, high-reward stocks and toward more conservative bonds. This strategy can be especially valuable when interest rates are rising as you prepare for or enter retirement. When interest rates are high, bonds, savings accounts and CDs become more attractive — and a historically safer bet for those who don’t have decades to ride out the ups and downs of the stock market before retirement. This is another task where you can seek assistance from a professional. 3. Take advantage of better interest rates on savings accounts During the last few years when interest rates were at historic lows, the rate of return on savings accounts was also incredibly low. As interest rates rise, you’ll see APYs on savings accounts rise, too. To take advantage of this boost, be sure to shop around. While your existing savings account is probably paying out more than it has in a long time, there may be better options out there. Look for a high-yield savings account and note that rates from online-only banks tend to be the highest. However, watch for possible fees on frequent withdrawals. 4. Check out CDs CDs are another savings vehicle that gains in popularity when interest rates are high. Short for certificate of deposit, a CD lets you earn interest on a lump-sum deposit you make that remains untouched for a pre-set amount of time. The longer the term of your CD, the higher your interest rate will be. Terms can range from as short as three months to as long as five years. Early withdrawal penalties often apply, so be sure that you won’t need the money you have stashed away during the entire term. 5. Right-size your real estate investments Retirement is a great time to take another look at your real estate portfolio. Housing needs change for people over time, and tough economic periods can be the catalyst for people to reconsider where they’re spending their money. As retirement approaches, many empty nesters choose to downsize their primary residence. This strategy is also popular as it allows you to access equity that may have been tied up in your home. It’s also common for people to move to somewhere with a lower cost of living. Similarly, if you own a second home, it might be time to reconsider your investment. Owning, managing and maintaining a vacation home can be time consuming and expensive, but going it alone isn’t your only option. During challenging economic times, many second home owners are selling their properties and turning to Pacaso. With Pacaso, you get all the things that are wonderful about owning a vacation property — a place of your own in your favorite destination — without shouldering the entire economic burden yourself. Pacaso homes are co-owned by up to eight individuals, who split not only the cost of purchasing the home, but ongoing costs like maintenance and management. Pacaso homes come fully furnished, professionally decorated and ready for relaxation. Co-owners enjoy equitable scheduling via a convenient app, and you’ll always have the flexibility to sell your share when economic conditions or your plans change.
Did you once dream of owning a timeshare fit for luxury vacations only to have your fantasy ruined by high fees? If so, it’s time to learn how to get out of a timeshare with little to no financial damage. As you may already know, a timeshare is a vacation property that operates within a shared ownership model. It often requires a lengthy commitment and boasts high maintenance fees that are subject to change. Getting out of a timeshare is a notoriously difficult process that can quickly eat up your time and money. Read our guide to learn the top five strategies for how to get out of a timeshare, the associated costs and who would likely benefit most from each method. 1. Use the rescission period For those who just bought a timeshare Cost: less than a dollar A rescission period is a short period of time you’re allowed to change your mind and walk away without incurring a fee. It varies state by state (where the timeshare is located, not where you live), but state rescission periods are usually between three and 15 days. To take advantage of the recission period, you’ll need to write a letter to the timeshare developers with the following information: The names on the signed agreement The name of the timeshare developer Cancellation address of the resort Today's date The purchase date The agreement contract number The amount of the original purchase price A statement declaring your cancellation Your contact information, including mailing address, phone number and email This is one of the cheaper options to get out of a timeshare considering you only need to purchase a stamp to send your letter. For best results, consider sending a registered letter to ensure that the timeshare company receives your document. 2. Try a timeshare deed-back For timeshare agreements with a buyback program Cost: free A timeshare deed-back program, also known as a buyback program, is when the timeshare company buys your timeshare back from you. It’s a legal, low-cost way to give the property back to the resort. However, not all resorts and timeshare developers offer this option, and you may have to be in good standing with the resort to qualify for the program. Even if this option is available, sometimes only major life events like job loss or death qualify. Check your contract to learn how your timeshare works and search for stipulations about your developer’s deed-back program before pursuing this option. 3. Hire a contract law attorney For timeshares with multiple contracts Cost: $4,000 to $15,000+ Although it’s one of the most expensive options, hiring a timeshare lawyer (aka a contract law attorney) is a must for timeshare owners tangled in multiple contracts. These legal professionals can teach you how to legally get out of a timeshare. They will help you comb through your timeshare agreement(s) for loopholes like the recession period and deed-back programs. If you try to negotiate these terms on your own, a timeshare developer may try to sway you by offering “free” upgrades if you keep your timeshare. However, each upgrade can generate a new contract that further complicates the exiting procedure. A contract law attorney can help you make sense of these contracts and mitigate the costs of exiting. 4. Sell your timeshare on the resale market For those who paid off their timeshare loan Cost: $300 to $700 for closing costs If your rescission period has expired and your timeshare developer doesn’t offer a buyback program, take matters into your own hands by selling your timeshare on the resale market. Keep in mind that this option may only apply to those who have completely paid off their timeshare. Timeshares still tied to loans will be listed as “encumbered.” Here is a step-by-step process for how to get rid of a timeshare that’s paid off: Check if your purchase agreement allows you to sell directly to a new owner or if your timeshare developer has first dibs on buybacks via a "right of first refusal" (ROFR) clause. If it is eligible for resale, find out how much it’s worth by looking at the price of timeshare listings similar to yours. Pay close attention to similar locations, square footage and amenities. List your timeshare on an online resale website like RedWeek, and beware of companies that charge hefty fees to list on “exclusive” websites. One of the major drawbacks of timeshare ownership is that they typically depreciate in value, so don’t expect to recoup the purchase price. You will likely lose money through this transaction, but doing so will free you from maintenance fees and the stress of having something you don’t want. 5. Find a timeshare exit company For those who want to skip the headache Cost: $2,000 to $15,000+ A timeshare exit company is your likely last resort for getting out of a timeshare. Only if the other methods are unavailable should you consider working with a company that specializes in complicated timeshare exit procedures. Since there are many timeshare exit company scams on the internet, here are a few tips for how to find a legitimate contender: Search for a company with a proven track record. Check their website to see how many years they’ve been in business and if they have testimonials. Check third-party reviews. Search for the company name on business review platforms like Yelp to see if there are any customer reviews. Avoid companies that ask for payment upfront. This is a red flag that the company is potentially a scam. Keep in mind that exit companies do what you can do yourself, but simply free you from the headache of communicating with the timeshare developers. Do’s and don’ts when exiting a timeshare In many cases, exiting a timeshare requires a solid game plan and multiple exit strategies in case your first plan doesn’t work. Follow these best practices for how to get out of timeshare ownership: Do contact the timeshare developer. See if you are still within the rescission period or if your developer offers a buyback program that you qualify for. Do read through your timeshare agreement. You may find helpful information that can help you craft your exit strategy. Do hire an attorney (if needed). If the low-cost options don’t work or if your timeshare is bound by multiple contracts, a lawyer can take care of the details. If you want to learn how to exit a timeshare without spending thousands of dollars or falling prey to a scam, avoid these methods: Don’t rent out your timeshare. Many timeshare developers don’t allow this, and you will still be responsible for any maintenance fees. Don’t give away your timeshare. Although this may seem like a win-win situation, it may not be legal, and you could still be responsible for maintenance fees and any future issues due to your contract. Don’t quit making payments altogether. For obvious reasons, the timeshare developers could take legal action against you if you quit paying your timeshare fees. These five methods — each with a different cost and level of interaction with the timeshare developers — are ways to get out of a timeshare. If you still want to enjoy a vacation property but skip the headache of timeshare ownership, consider becoming a co-owner of a second home in your dream destination. Pacaso offers real estate ownership of a luxury property without the pitfalls of timeshares. Plus, unlike a timeshare, you can sell your home through a streamlined resale process if you decide to move on.
Ready to buy your first home — or second home — in 2023? Although active home listings dropped 28% between 2020 and 2021, luxury second home transactions increased by 25% in 2022. With 30-year mortgages at an average rate of 6.71% as of June 2023, now may be a good time to check the facts before you close on a new home. With the state of real estate always changing as new homes enter the market, every year showcases new real estate market trends that home buyers should be aware of, such as a lower housing supply and rising real estate costs. Browse through our list of 60 real estate facts to prepare yourself for the journey ahead. Home financing is becoming more flexible Getting approved for a home loan is a first step for people dreaming of owning a house. The following real estate facts explore home financing options in more depth. The median home value is $396,100 in early July 2023. (National Association of Realtors) Mortgage credit availability decreased 3.1% in May 2023. (Mortgage Bankers Association) Mortgage financing options were the primary reason 12% of home buyers purchased a home last year. (National Association of Realtors) In 2022, the median down payment on a house or condo was 13%. (The Mortgage Reports) 14% of home buyers financed their entire purchase with a mortgage. (National Association of Realtors) Only 25% of home buyers applied for a mortgage online. (National Association of Realtors) The 2023 30-year mortgage rates are around 6%-7%. (Pacaso) 10% of all home buyers found the mortgage application and approval process difficult. (National Association of Realtors) 30% of home buyers had their mortgage application rejected due to their debt-to-income ratio. (National Association of Realtors) 92% of home buyers used a fixed-rate mortgage to finance their purchase. (National Association of Realtors) Luxury second home rate locks were 152% higher in Q3 2022. (Pacaso) Approximately 80% of mortgage rate locks result in home purchases. (Pacaso) Residential home-buying trends While some buyers may have felt pushed to buy quickly at the onset of Covid-19 lockdowns, many consider their home to be a long-term commitment rather than a temporary alternative (like a short-term vacation rental). The internet and virtual technology aided home buyers in their search during these unique circumstances, and will likely remain a real estate trend in 2023 onward. 13. A larger share of buyers opted for new homes vs older homes at the end of 2022. (Realtor.com) 14. Luxury second home transactions increased by 25% during Q2 2022. (Pacaso) 15. 10% of home sales are from new builds in Q1 2023. (U.S. Census Bureau) 16. 11% of home buyers bought their home directly from the previous owner. (National Association of Realtors) 17. 51% of home buyers found their listing on the internet. (National Association of Realtors) 18. Luxury second homes maintained their value through 2022. (Pacaso) 19. 81% of Americans value the location of a home over its size. (Coldwell Banker) 20. In April 2023, new single-family home purchases increased by 4.1% month-over-month. (U.S. Census Bureau) 21. Historically, homes listed during April 18-24 sold 14.1% faster than the average week. (Realtor.com) 22. Luxury second home sales have increased by 235% since Q1 2020. (Pacaso) 23. 54% of millennials want to live close to bars and nightlife. (Coldwell Banker) 24. Home appreciation was up 21% nationwide in April 2022. (Pacaso) 25. Existing home sales are down by 9.3% in 2023. (Realtor.com) 26. Unit sales are predicted to increase by 10% in 2024. (National Association of Realtors) 27. 80% of home buyers prefer a move-in-ready house over a fixer-upper. (Coldwell Banker) 28. Homes are spending an average of 43 days on the market in May 2023. (Realtor.com) 29. The number of homes on the market in May 2023 increased by 21.5% compared to May 2022. (Realtor.com) 30. The number of homes pending listings declined in May 2023 by 18.1% year-over-year. (Realtor.com) 31. 12.7% of homes sold in May 2023 had a price reduction. (Realtor.com) Housing shortage facts The unexpected increase in the demand for homes led to an understandable shortage in supply. The desire for primary and secondary homes away from city centers also led to unforeseen growth in housing prices in smaller markets. Although new construction of single-family residences is underway, developers are forced to play catch-up after a decade of insufficient development. Check out these facts about real estate housing supply. 32. In 2023, approximately 1.2 million single-family housing units will be under construction. (Statista) 33. Active home listings dropped 28% between 2020 and 2021. (Realtor.com) 34. The US housing market faced a six million home housing shortage at the end of 2022. (CNN) 35. Home sales in metro areas increased by 20.8% in May 2023 despite housing shortages. (Realtor.com) 36. Apartment builds are expected to reach a 40-year high in 2023. (National Association of Realtors) 37. 86% of home sellers listed their properties on multiple listing services. (National Association of Realtors) 38. 56% of home buyers said finding the right property was the most difficult part of the home-buying process. (National Association of Realtors) 39. 28% of home buyers found the availability of larger lots to be an influence on neighborhood choice. (National Association of Realtors) 40. New listings of homes for sale fell 25% in June 2023, compared to June 2022 data. (Redfin) 41. The average distance between previous and new residences is 50 miles. (National Association of Realtors) The rising cost of real estate As the price of real estate rises, so does the belief in its long-term value. Home buyers see real estate as a reliable store of value, and in some cases, the houses are being used as a secondary source of income. While a spotlight has been placed on corporations purchasing houses, real estate statistics reveal that the majority of rental property investors are individuals. 42. Home sales are predicted to decrease by 3.4% in 2023. (National Association of Realtors) 43. 72.5% of rental property investors in the U.S. are individuals. (Pew Research Center) 44. 13% of home buyers found saving for the down payment to be the most difficult part of the home-buying process. (National Association of Realtors) 45. 10% of home buyers were dissatisfied with the home-buying process. (National Association of Realtors) 46. 11% of buyers wanted their real estate agent to help them with price negotiations. (National Association of Realtors) 47. 25% of home buyers reduced their spending on luxury items to purchase their home. (National Association of Realtors) 48. 88% of home buyers think that buying a home is still a good financial investment. (National Association of Realtors) 49. 45% of home buyers had a household income over $100,000. (National Association of Realtors) Second home-buying statistics Not everyone who buys property in suburban and rural areas is looking for a permanent change in location. Many home buyers purchase second homes as an escape from their primary residences. The demand for second homes in the current real estate market was already on the rise prior to the pandemic, but growth in this market surged after lockdown restrictions were put in place, with second homes outpacing primary home sales. 50. In summer 2021, second home transactions held a market share of 4.3%. (Pacaso) 51. The U.S. vacation rental occupancy rate is forecast to be 56.4% in 2023. (AirDNA) The state of home prices today It stands to reason that the current housing shortage would lead to an increase in home prices. Although many home buyers were motivated to leave their city, not all metro areas saw their populations decline. Many cities saw boosts to their populations and housing prices — likely aided by the implementation of remote work practices. 52. 72% of home listings were sold without ever reducing their price. (National Association of Realtors) 53. 9% of all home sales were identified as urgent. (National Association of Realtors) 54. In the first quarter of 2021, Boise, Idaho, saw a 28% year-over-year rise in house prices, the highest among metro areas. (JCHS) 55. In the first quarter of 2021, Austin, Texas, saw the second highest year-over-year rise in house prices at 23%. (JCHS) 56. Renting was more popular than buying in the vast majority of the largest U.S. metros in December 2022. (Realtor.com) 57. 24% of home sales were above the listing price. (National Association of Realtors) 58. 8% of home buyers sold a distressed property. (National Association of Realtors) 59. Debt delayed most home buyers by four years before they were able to purchase a home. (National Association of Realtors) 60. 27% of buyers compromised on the price of their home purchase. (National Association of Realtors) Allow these real estate facts to guide you as you consider purchasing your first or second home in 2023. Although buying trends are important indicators of how competitive the current housing market is, remember that there are still financing tools and real estate resources at your disposal.
Timeshare salespeople are known for pushy tactics and a tendency to overpromise and underdeliver. The truth is, timeshares rightfully have a stigma attached to them due to their high costs and strict limitations. If you’re tempted to buy into one, you should evaluate these timeshare alternatives before signing on the dotted line. There are better options for your vacation, including: Let’s dive into each alternative and how they stand out from the typical reasons to not buy a timeshare. 1. Vacation rentals Vacation rentals like Airbnb and Vrbo are nothing new, but advancements in technology have aided in their exploding popularity. Renting the property of a private owner is often cheaper than comparable hotel rooms, and they often give travelers added perks like kitchens and convenient locations. Vacation rentals are considered preferable alternatives to timeshares because they give greater flexibility in where and when you can vacation. You’re only paying for specific days, so you aren’t on the hook for yearly fees on top of the purchase price of a timeshare. Timeshare owners often sell their timeshare days when they can’t use them, giving vacationers the option to visit the same timeshare facility without the long-term commitment. Pros Cons No long-term commitment Available around the world Affordable nightly rates Limited quality control Missing sought-after amenities 2. Hotels Hotels are consistent and safe timeshare alternatives that are accessible all over the world. When you book a room at a Marriott in Chicago, for example, you’ll get a comparable experience to a Marriott in Los Angeles, taking out the guesswork in finding quality accommodations. On a night-by-night basis, the cost may be higher than a timeshare, but when you factor in yearly timeshare maintenance fees, you’ll usually come out ahead. Hotels often provide discounts to certain groups (like the military and AAA) or will simply offer discounted rates throughout the year, making them even more affordable. Some hotel chains offer rewards programs, so the more you stay there, the more you get back. Solo travelers and people traveling in small groups can opt for a related option to save even more money: hostels. They are typically sparse in accommodations, but the trade-off is worth it for people who enjoy different locations every year. Pros Cons Professionally managed No long-term commitment Available around the world Offer rewards programs May have fewer amenities than a timeshare Expensive nightly rates 3. Resorts Resorts are like hotels on steroids, offering the all-inclusive appeal of many of the best timeshares. Many resorts provide private beach access, live entertainment, gourmet food and guided tours. You’ll spend less time planning all the details of your vacation, leading to less stress and more time enjoying your break. Just like hotels, resorts give you the flexibility to stay for longer or shorter durations than a timeshare. You won’t be boxed into traveling at predetermined times of year, and you can visit whenever you want. Pros Cons Professionally managed Available around the world No long-term commitment Comparable amenities to timeshares More expensive than a timeshare on a per-stay basis 4. Vacation clubs Vacation clubs are the closest alternative to timeshares. To join, you’ll pay an initial sign-up fee, plus yearly membership and maintenance fees for as long as you’re a member. In return for your membership, you’ll receive discounts to the destinations in the club’s network. Many clubs have blackout dates that restrict your ability to travel unless you pay more money. Depending on the club you join, it could end up costing more per year than even luxury timeshares, but you’ll have easier access to multiple destinations. Pros Cons Access to multiple locations Comparable amenities to timeshares Discounted stays Require expensive membership fees Blackout dates 5. Travel clubs Travel clubs operate similarly to both timeshares and vacation clubs while being slightly more affordable. Travel clubs require yearly membership fees, and some clubs charge maintenance fees as well. These combined costs are often lower than those of vacation clubs. The benefit of travel clubs is that they arrange for group rates, making your stay cheaper while giving you the benefit of travel companions. Oftentimes the club is centered around a shared trait, like a hobby or age group. Aside from the social aspect of travel groups, travel clubs also free you from long-term commitments. Even the cost of an inexpensive timeshare begins to add up over the years if you aren’t able to sell it. Since membership to a travel club is yearly, you’ll only lose what you’ve already spent. Pros Cons Access to multiple locations Discounted stays Organized group travel Expensive membership fees Rigid travel dates 6. Vacation home ownership One big draw of owning a timeshare is the dependability of returning to the same destination year after year while avoiding the rising costs of accommodations. Buying a second home in a vacation destination gives you those same benefits and more. Unlike a timeshare, buying a vacation home gives you real equity in the property, so you have the potential to recoup the money you put into it over the years. Timeshares rarely appreciate in value, and due to the many drawbacks of timeshare ownership, they can be extremely difficult to resell. When you have your own vacation home, you have the freedom to use it as much as you want. In contrast, most timeshare options only allow you to use them once per year and have fixed scheduling limitations. Pros Cons Potential equity in the property Can visit as much as you want Can travel with friends Easier to resell than a timeshare Single location Responsibilities of property ownership High upfront cost 7. Second home co-ownership Buying a vacation home is a greater upfront expense than a timeshare, but you don’t have to be the sole owner. Co-ownership is a viable way to make that dream of a second home a reality. With this timeshare and vacation home alternative, you’ll only be responsible for a fraction of the purchase price and yearly costs of ownership. Whether you’re buying with a group of friends or buying a Pacaso second home, you still have true real estate property ownership. You’re not just buying the right to use a hotel or condo-sized space for a set period of time. Timeshares are notoriously difficult to sell due to the many rules and limitations owners must abide by. The timeshare is also one of many identical units, creating an imbalance between supply and demand. On the other hand, unique homes attract buyers who must compete against each other in the whole housing market. Pros Cons Gain equity in the property Can visit frequently Can travel with friends Lower cost compared to sole ownership Easier to resell than a timeshare Single location Responsibilities of property ownership Evaluate your vacation options Not all timeshare alternatives are equal. Depending on your vacation goals, it might make more sense to either stick to vacation rentals or make the investment in a vacation property. And if you’re interested in the benefits of second home co-ownership, Pacaso is here to help.
Many of us are longing for a great view, a quick dip, a deep breath — that's only some of what a second home can offer. Yet owning a whole second home is unattainable and impractical for most of us due to high real estate prices and maintenance hassles. Enter the shared ownership property industry. Its offerings include timeshares, fractional ownership, private residence clubs and destination clubs. Let’s break down how each one works, and add a smart, modern option to the mix. Timeshare Timeshares, introduced in the United States in 1969, are a way to buy the right to use a vacation property for a specific amount of time. That means no true property ownership and no gained equity. Because dozens of parties own the same timeshares, a single unit could have up to 52 owners. In most cases, buying a timeshare means paying for week-long access to a condo, apartment or resort room. According to the American Resort Development Association, timeshare units sell for an average upfront unit price of $21,455, plus yearly maintenance fees, which often increase over time. The value of timeshares has long been debated. While upfront costs are relatively low when compared to owning a whole second home, depreciation is high and resale opportunities are uncertain. Timeshare pros: Lower price tag than a traditional home Condo accommodations Easy booking Timeshare cons: Hefty, increasing annual maintenance fees Value depreciation over time Difficulty with resale Fractional ownership Fractional real estate ownership is a method of purchasing an ownership interest in a property with others so costs can be shared. Fractional ownership is most often seen in condo and resort communities, and while a traditional timeshare limits access to the property to one to two weeks per year, fractional ownership can allow access to the home for five weeks or more per year, depending on the number of owners per unit. Most fractional ownership properties limit ownership to 6–14 parties per unit. Each fractional owner holds an equal part of the real estate title while reducing liability toward maintenance and taxes. Because these units have fewer owners, fractional owners often have more of a say in decisions regarding property maintenance and upkeep, and many fractional properties also offer onsite storage for owners. Fractional ownership pros: Deeded ownership Value that matches market trends Fewer owners Onsite storage Fractional ownership cons: Higher price tag than timeshares Hefty annual fees Challenges when it comes to resale Private residence club Private residence clubs are similar to fractional properties, in that both offer ownership interest in shares of a vacation property. However, private residence clubs, frequently operated by luxury hospitality chains, add amenities typically found in high-end hotels. These clubs often sell condominiums or villas with access to the club’s golf courses or ski resorts, along with maid-cleaned rooms and turndown service. Owners also gain access to other properties in the chain’s portfolio. Entry-level prices start at around $50,000 at the lower end of the market, and can easily exceed $600,000 for a private club in a prime location. Like fractional ownership, club properties can gain equity, but like timeshares, owners face hefty annual fees, on average between $5,000 and $20,000. Residence club pros: Access to luxury amenities Deeded ownership Gained equity Residence club cons: Expensive price tag Resale challenges High annual fees Destination club A destination club grants members proprietary access to its services, which in this case means high-end vacation homes on a non-equity basis in various locations around the world. Basically, your membership fees pay for you to rent a wide variety of luxury homes. Prioritizing flexibility and choice, members eschew a traditional mortgage payment in favor of membership tiers that offer levels of reservation priority, personalized services, and amenities like beach clubs, private chefs and high-end spas. Prices are similar to private residence clubs, though properties are usually luxury single-family homes. Inventory is based on availability and can sell out quickly during peak times in popular areas. Destination club pros: Single-family homes in varied locales Pay-as-you go model Luxury amenities Destination club cons: Pricey membership fees Limited inventory Rental format; no gained equity The Pacaso difference So that’s fractional ownership vs. timeshares vs. clubs. Then there’s Pacaso. Pacaso’s professionally managed LLC co-ownership model offers a better, smarter, more modern way to own a second home. It's as if a few families came together to purchase a home, but without any of the risk and hassle associated with the DIY co-ownership process. Pacaso offers: True real estate property ownership that moves in value with the whole-home market. As a true owner, any equity realized is yours. Ownership of a residential home, not just the right to use a condo or hotel room. A smaller owner group. Instead of up to 52 owners with timeshares, a Pacaso has a maximum of eight. Exclusive use by vetted owners and their guests through an equitable scheduling system, with no third-party rentals allowed. Dramatically lower operating costs with zero markup on items such as property management and repairs. A streamlined and standardized resale approach — just like a whole home. Pacaso puts the joys of true second home ownership within reach for more people. Check out our home listings.
It seems almost too good to be true: Own a piece of vacation heaven, a guaranteed yearly getaway, at what appears to be a pretty affordable price. But when you take a closer look at timeshares, you may uncover a slew of potential problems. How do timeshares work? The term “timeshare” is just what it sounds like: the right to use a property for a set amount of time, in a place shared by a large number of other parties (usually 52 families per room). In most cases, timeshare “owners” are simply buying rights to use a property type, not true property ownership. Timeshares most often refer to a stake in a hotel or resort accommodation, but almost never apply to single-family homes. The success of the timeshare model depends on each unit being owned by dozens of parties at any given time. And those people travel from far and wide to use the shared space — owners reported an average of 1,001 miles between their timeshare and their primary residence. Timeshares have been around since 1969, and since then have ballooned into a $10.5 billion industry, according to a 2020 study by the American Resort Development Association. What’s more, timeshare sales show no sign of slowing — sales volume has increased an average of 5% annually over the past five years. That’s great for the timeshare industry, but what exactly does it cost potential owners? How much do timeshares cost? The first cost of a timeshare is time itself. Timeshares are usually sold to customers when they are already visiting a resort. Lulled by sunny skies and gentle breezes, would-be-buyers are often lured into extensive sales pitches with the promise of free goods or services. After all is said and sold, if someone decides to purchase a timeshare, the average upfront cost of a unit is about $22,000. Compared to purchasing a whole condo, this may seem like a relatively small price. But there’s more than just the upfront cost to consider when asking, “How much do timeshares cost?” Locked into a specific timeframe of use — often just one week a year — buyers are also locked into maintenance fees, which can exceed $1,000 annually and tend to increase year over year. When you do the math, it’s not uncommon for the total nightly cost at a timeshare to be higher than an equivalent area hotel. What is a timeshare worth? Timeshares are a bit like boats: The second you decide to purchase one, it starts to decrease in value. Timeshare ownership also sidesteps most of the fiscal advantages that owning real estate normally brings, like equity, tax incentives or rental income. What’s more, if a buyer eventually decides to sell their timeshare, the likelihood of recouping the investment plus the yearly maintenance fees is incredibly low. Supply and demand are way out of balance, with 204,100 timeshare units on the market at 1,580 resorts in the U.S., and more on the way every year. The market is flooded with owners looking to pass their timeshare (and annual maintenance fees) onto a different buyer. What else do you need to know about how timeshares work? The industry is highly regulated — make sure you learn about industry rules and regulations before you agree to buy. Be very clear about exactly what type of product you are being offered. Ask for a concise, easily understood outline of terminology and purchase terms. Look for signs of good property management and well-maintained facilities. Review the resort’s annual budget, which is usually available through the property’s homeowners association. Ask yourself, “Is this a place I want to stay year after year?” Why Pacaso is a better than a timeshare One of the main reasons people choose a timeshare over another type of getaway — setting aside the heavy-handed sales pitch — is cost. The price seems like a bargain compared to a whole home purchase, which many buyers believe to be out of reach. When you add in a resort timeshare’s ever-increasing fees and limited access, many owners find it’s not such a bargain after all. An alternative? Professionally managed LLC co-ownership with Pacaso. Owning a share of a Pacaso allows you to co-own an amazing home for ⅛ the cost. It’s the modern way to own a second home. What Pacaso offers True real estate property ownership that moves in value with the market, so any equity realized is yours. Ownership of a luxurious single-family second home, not the right to use a condo or hotel room. You and your co-owners own 100% of the home. A professionally designed, beautifully furnished and well-appointed home, complete with everything you need for a comfortable and relaxing stay. Between 2 to 8 vetted owners who have exclusive access to the home that is never rented. A timeshare unit may be sold to 52 owners or rented out when vacant. No hidden fees. Operating expenses are passed along equitably and at cost to owners. On average, owners stay at their homes 6-7 times per share per year, depending on their personal travel preferences. They can easily schedule their stays and use their home on an ongoing basis. With Pacaso, you enjoy the benefits of second home ownership without all the hassles. FAQs Q: What is the difference between deeded and leased timeshares? A: A deeded timeshare is one in which each owner holds a deed to their share of the vacation property, with the right to sell or rent their share. A leased timeshare is owned by a developer, and tenants may lease blocks of time to use the property. Q: What is the difference between fixed weeks, floating weeks and points in a timeshare contract? A: A fixed week system lets you purchase a specific week to use your timeshare property every year. A floating week system gives you the flexibility to vacation any week within a certain season, but you have to book early. With a points system, you purchase points that you can use to stay in any one of multiple resorts within the timeshare company. Q: How do Pacaso owners schedule time in their Pacaso? A: Pacaso’s SmartStay system lets you view availability and secure a stay in your Pacaso in real time. The app’s technology is designed to ensure that owners are treated equitably based on their ownership share in the property. Learn more about Pacaso’s stress-free scheduling.
On paper, timeshares seem like the perfect option for vacationers looking to escape stuffy hotel rooms while experiencing resort-level amenities at affordable prices. So why is there such a stigma surrounding buying timeshares? There are a lot of conditions that go along with timeshare ownership that can make them a risky purchase. We’ve broken them down so that every potential buyer can come up with their own answer to the question, “Are timeshares worth it?” What are timeshares anyway? Timeshares are an arrangement between a group of people for the shared use of a vacation property. Unlike co-owning a house, a timeshare buys you the right to use the property for a specific period of time throughout the year. Timeshare agreements can be arranged in two ways: Deeded: The owner can use, rent or sell the share of time they own in a single property. Non-deeded: The owner leases their time in a property, sometimes having the option to use multiple locations. Depending on your arrangement, you could have set dates to use the property every year, like the first week of February. Or you can have floating time, where each year you choose a different week to vacation there. Some timeshares give owners points to use throughout the year, with those points being used to “purchase” their time at a property. Timeshare benefits While timeshares face a lot of criticism, they wouldn’t still be around if they didn’t offer some benefits to their users. Take a look at some reasons why people are still buying timeshares. The property is professionally managed Timeshares operate similarly to a condominium, with owners paying annual fees for the maintenance of the property. These are put toward keeping the property in good shape and updating amenities to retain appeal. Since fees are shared between all owners, it can be a smaller financial burden than being the sole owner of a house. It simplifies vacation decisions If you are prone to indecisiveness when looking at the long list of desirable vacation destinations, having a designated location to return to every year can make the process easier. Joining a timeshare that provides a network of locations to choose from reduces the risk of growing tired of a single spot, while still narrowing down possible options. Secondhand timeshares are affordable Since an owner’s stake in a timeshare isn’t tied to the value of the property, prices of timeshares often go down when resold. This is partly due to the recurring yearly fees. Owners who have grown tired of the timeshare or can no longer afford it often sell the property for pennies on the dollar. If the yearly fees are worth the vacation experience to you, buying used is a viable option. You will want to make sure there aren’t any hidden costs with the purchase, so make sure the current owner is up to date on their dues and doesn’t owe a special assessment. Access to resort amenities Timeshare buildings often provide access to a swimming pool, gym, beach, ski mountain and more. The property manager handles all maintenance, so you’re free to enjoy them without stress. Timeshare risks Despite the benefits timeshare programs offer, there are some glaring drawbacks. The value rarely appreciates It’s important to remember that purchasing a timeshare is not the same as investing in real estate. Don’t expect to sell your share for more money in the future, or even for the same price you paid for it. This is one of the greatest problems with timeshares and is usually the main reason they’re avoided. All the money you spend on the timeshare should be seen as irretrievable. Financing is expensive A timeshare purchase can’t be financed through a traditional mortgage since the lender can’t foreclose on the property if the buyer stops making payments. Instead, a buyer needs to get a personal loan, pay in cash, use a credit card or get a home equity loan. Tax breaks also don’t apply to timeshares like they do for other real estate investments. Timeshare costs usually increase over time Timeshare fees aren’t fixed at a specific dollar amount. As inflation rises, it’s likely your annual payments will as well. On top of that, owners are required to pay for major repairs or upgrades if their annual fees aren’t enough. A big problem with timeshares that use points-based programs is that the point value may decrease over time. Locations that cost 75 points to visit this year, for example, may cost 100 points next year, greatly reducing the affordability after you’ve already made a purchase. The timeshare manager may also increase points at desirable locations or during peak travel dates to offset owner demands, so you may not be able to use it when or as often as you want. Timeshares are hard to resell Due to the previously mentioned downsides of buying a timeshare, the potential buyers market is small. To make matters worse, some timeshare programs don’t transfer all of the same privileges to a second buyer, making it even more difficult to sell in the future. While you’re in limbo trying to find a buyer, you’ll still be responsible for paying all timeshare costs for an indefinite period. So are timeshares worth it? 5 factors to consider Since timeshare benefits will ultimately be determined by the deal you get and your intended usage, we’ve broken down some of the factors that make timeshares good — or bad — purchases. Accommodations Compare the cost of a timeshare and its annual fees to the cost of a weeklong stay in a short-term rental in the same location. Which gives you more bang for your buck? Remember to account for amenities and square footage in your comparisons. Since timeshares are similar to condos, they’ll often have kitchens, pools, spas and more at your disposal. Booking Think about how you plan your vacations. Are you comfortable with making plans six months or more in advance, or does that make it feel less like an adventure and more like an assignment? Highly sought-after travel dates are competitive, so you may not be able to take advantage of those long holiday weekends. Destinations Do you have locations that you enjoy returning to again and again, or do you like to mix it up? Consider how owning a timeshare might affect your future travel plans. For example, your kids might love traveling to Orlando, Florida, when they’re young, but grow tired of it as they get older. You’ll still be paying timeshare dues until you can sell it. Deeded ownership Since there’s no guarantee a timeshare will appreciate in value, they usually aren’t seen as valuable assets. Leaving a timeshare to an heir is closer to leaving them with a hefty yearly maintenance bill. Unless you have an adult child who has expressed interest in inheriting the timeshare, it’s not a great legacy. Flexibility Many timeshare corporations allow you to trade your week(s) at your home resort for time at a different resort, as long as it’s part of their parent company. Despite the hype this perk gets from salespeople, most resorts in popular destinations fill up quickly and are more expensive to book, even if you’re a timeshare owner. If your timeshare is in a less popular locale, its trading power is probably less than you think, and it might be difficult to trade up. If you do decide to buy a timeshare, make sure you really like the resort that will be your home base, because you may not be able to trade. But what are some timeshare alternatives? Timeshares can be an attractive vacation option when compared to the expensive alternative of buying an entire vacation house. However, there are other options to consider. Vacation clubs Vacation clubs give members the benefits of resort-like amenities without the financial commitment or travel constraints. Members pay a yearly fee and receive discounts on stays at different locations in the club’s network. As with everything, the quality of vacation clubs does vary, so you’ll want to thoroughly research a club to make sure it delivers on its promises. Short-term rentals The freedom offered by short-term vacation rental sites like Airbnb may be worth the added expense. You won’t be tied to any contracts, and you can make travel plans that are less than a week away and visit just about any place in the world. The costs may be greater in the long run, but the risks are much smaller. If you have an issue with one service or host, you can choose to never work with them again. Second home co-ownership If you’re in love with a specific destination but find that the risks of a timeshare aren’t worth the rewards, co-owning a second home may be the solution. Having multiple buyers makes the purchase price significantly smaller per person, and you share the costs of maintaining the property. And unlike a timeshare, you’ll have equity in the property. If you purchase a second home through Pacaso, you’ll get the added benefits of luxury amenities with turnkey property management. You won’t need to worry about furnishing the space or maintaining the premises. We’ve got it covered. So are timeshares worth it? The answer is rarely, given other alternatives that provide greater flexibility and potential return on investment. Before committing to a timeshare, take the time to research available options that might better suit your needs.
Is Pacaso a timeshare? No, Pacaso is not a timeshare. We provide luxury second home ownership opportunities using an LLC co-ownership model, where we bring up to eight owners to co-own a luxury second home. As a Pacaso owner, you own a real estate asset. If you’re looking for a second home that offers luxury, convenience and flexibility, you might be tempted by the idea of a timeshare. But before you sign up for a timeshare contract, you should consider a better alternative: Pacaso. We enable you to co-own a stunning second home with a small group of like-minded people. Unlike a timeshare, Pacaso gives you real estate ownership, plus more privacy, control and value. In this article, we will explain what sets Pacaso apart from a timeshare and why LLC co-ownership is a smarter way to own a second home. What is Pacaso? The Pacaso second home ownership model is a revolutionary way to buy, own and sell a luxury second home in a world-class vacation destination. We simplify the process of co-ownership by creating a fully managed LLC for each property and selling shares to qualified buyers. Pacaso owners enjoy all the benefits of second home ownership without the hassle of maintenance, scheduling or resale. All of our homes are professionally designed, fully furnished and impeccably maintained, offering a consistent and luxurious experience every time. Buyers can also take advantage of competitive financing options, flexible scheduling and a resale marketplace for owners who want to upgrade, sell or swap their shares. What is a timeshare? A timeshare is a type of vacation property that allows you to share ownership or use rights with other buyers. Depending on the agreement, you may own a fraction of the property, a lease or a right to use it for a certain period of time. The time increments may be fixed or flexible, and may be based on weeks, months or a point system. Timeshares are often sold through high-pressure sales meetings that claim to offer low prices and long-term benefits. Timeshare companies can provide you with a predictable vacation setting in a professionally managed resort. Still, they have some drawbacks, such as lack of flexibility, difficulty in reselling and risk of scams. Pacaso vs. timeshare: 5 key differences If you are looking for a way to own a luxury vacation home in a desirable location, you might be wondering about the differences between a timeshare vs. fractional ownership of a second home. Both options allow you to share the cost and use of a vacation property with others, but there are some key distinctions that make Pacaso a better alternative for many buyers. Here are five reasons to consider LLC co-ownership of a second home. 1. Each Pacaso listing is a one-of-a-kind second home Not just any home can be a Pacaso home. We seek out the best homes in the best locations — each one is different, and all have plenty of wow factor. Then our professional interior designers get to work, selecting the perfect furnishings, modern amenities and special touches to ensure your home is a place you’ll feel comfortable and relaxed whenever you walk through the door. A Pacaso home is a luxurious home away from home. A timeshare is almost always a unit at a hotel or condo complex. Think cookie-cutter floor plans and typical hotel-style furniture. 2. A small group of co-owners enjoy the home Because we limit the number of shares per home to eight, you and (at most) seven other owners will have access to the home. (Only one owner will occupy the home at a time, of course.) Plus, Pacaso homes are reserved for the exclusive use of owners and their guests — rentals aren’t permitted. We vet potential owners who agree to a common sense code of conduct to ensure they will treat the home as their own — because it is! Plus, you won’t feel like you’re “sharing” your home. We conduct a thorough inspection and cleaning after each stay so your home is pristine when you arrive. A timeshare vacation home may be shared by 52 other people — one person or group for every week of the year. Additionally, some timeshares allow for swaps or rentals, increasing the number of potential guests. 3. You own real estate, not time One of the most significant differences between a timeshare vs. vacation home is what you actually own. With Pacaso, your share is real property, not simply a block of time — you own a real estate asset. And because it’s a real estate asset, its value will move with the market, meaning any realized equity is yours. When you purchase a timeshare, you typically own the right to use the property for a period of time, not the property itself. That’s why you can’t usually get a conventional home loan to purchase a timeshare — there’s no “home” as collateral, only time. Financing is offered through the timeshare company, often at a high interest rate, and some buyers secure funds through a personal loan or home equity loan. Since even the best timeshare property is not a real estate asset, you are likely to see the value depreciate, much like a new car begins to lose value once it’s driven off the lot. 4. You can use your home year-round Pacaso’s SmartStay scheduling gives owners easy, ongoing and equitable access to their home. Owners can stay up to six time per year, and they aren't locked into a specific week or weeks each year,. Owners can enjoy a weekend getaway or a mid-week escape, with the flexibility to plan stays anywhere from eight days to two years in advance. When you purchase a timeshare, you’re often locked into a fixed week, year after year. You may have a “floating week” option, but your choices are still restricted to a range of dates. With either option, you can only check in on certain days, and you typically must book a full week. There are exchanges and point-based systems that allow you to choose different resorts, but you’ll often pay extra for more desirable locations, and availability can be limited. If you have a fixed-week schedule, you may never get a particular holiday week if another owner already locked it in. 5. The resale process is streamlined We think you’ll love your second home for years to come — but when it’s time to sell, we want that process to be as smooth and simple as the purchase process. You set the price you want, and we’ll market and list the home much like a traditional real estate listing. Because our homes are thoughtfully selected and located in some of the most desirable second home markets, we’ve experienced strong buyer demand for Pacaso shares. On the other hand, selling a timeshare can be extremely difficult. There’s an entire industry of timeshare exit companies that will help you offload your timeshare for a fee — and, unfortunately, many of them have been known to take advantage of sellers. Pick the right choice for you Keeping your second home goals in mind while comparing Pacaso vs. timeshare opportunities can help you find exactly what you’re looking for. If you’re specifically looking for a luxury getaway and a place to make memories together with your family, browse through our listings or destinations to get started.
Picture this: You’ve been researching financing options and steadily saving a down payment on your first (or second) luxury home, only to discover that the luxury real estate market has changed quite a bit over the past year. Although the luxury real estate market continues to change due to economic factors like inflation and interest rates, your dream of owning a luxury home doesn’t have to. Read our guide to learn about the top eight luxury real estate trends of 2023. 1. Small homes are becoming more luxurious Smaller homes are becoming more popular among luxury home buyers, with small luxury houses selling 19% faster than larger ones in 2022. Research also suggests that some affluent buyers may not need or want extra space anymore as they return to work, school and city life. Smaller homes may also be cheaper and easier to buy with cash. Downsizing into a smaller primary residence or second home may become the new normal as housing prices continue to increase. 2. Luxury houses are in a seller's market The housing market as a whole has seen impressive growth over the last couple of years, but the luxury real estate market still managed to surpass the lower tiers. In May 2023, the luxury real estate market saw a sales ratio of 37.01% — anything above 20.5% is considered a seller's market. One explanation for this growth is that wealthy Americans are less affected by volatile job markets. Being able to work remotely without interruptions to their income has put them in a prime position to take advantage of lower mortgage rates. 3. The luxury real estate market becomes more globalized Due to a strong U.S. dollar, international real estate purchases are expected to increase in 2023. In fact, 92% of U.S.-based respondents to a Coldwell Banker survey said they would consider buying a home abroad. Meanwhile, foreign investors are taking an interest in states like Texas, California and Florida. China was the biggest investor, purchasing over $6 billion worth of American real estate in 2022 alone. India, Canada and Mexico are also increasing their portfolio of luxury American real estate. 4. Large market luxury home median prices are increasing Metropolises like Los Angeles and Austin are experiencing higher median prices for their luxury listings in 2023. In fact, over 24% of Austin homes are being listed at $1 million or higher, and 11.6% of homes in California boast a price tag of over $5 million. The increase in luxury home prices is redefining what the luxury market will look like in desirable locations across the United States. For example, the small luxury market of East Honolulu may lack the volume of buyers that big cities have, but over 70% of its listings are above the million-dollar mark. 5. Buyers are paying for luxury homes in cash All-cash sales comprised 26% of transactions in November 2022, up from 24% a year earlier, according to National Association of Realtors data. Higher interest rates may have made cash more attractive for luxury real estate buyers, who are also using margin loans, stock portfolio loans and private bank loans to fund their purchases. Since luxury real estate is a highly desirable and competitive market where buyers often face multiple offers and bidding wars, paying in cash can give them an edge over other buyers who need to finance their purchase with a mortgage. This, coupled with recent banking shifts and increasing credit card transaction fees, means cash transactions are only expected to become more common in the coming months. 6. Rising interest rates are causing fear in the luxury real estate market The current state of the economy is causing some buyers to hold off on their luxury home prices, with 35% of Coldwell Banker survey respondents hesitant to purchase a home due to rising interest rates. Over 27% of respondents also noted that the possibility of a recession is pausing their luxury home purchase decision. Stock market fluctuation, inflation and higher home prices are additional areas of concern for buyers in 2023. 7. Luxury second home ownership is on the rise Many people have avoided buying a second home, fearing they wouldn’t get enough use from it. With limited personal days off work, the second home would be vacant most of the year and turn into just another expense. Now that more people aren’t tied to one specific location for work, they feel they can get the most out of their money with a second home. In fact, 29.6% of survey Coldwell Banker survey respondents expect demand for luxury homes to increase from 2023 to 2024. Vacation towns in the mountains and along the coasts are turning into workcation destinations. The luxury home market is also seeing gains in co-ownership. Some buyers want a second home without sacrificing the amenities included in a high-end property but aren’t necessarily able to afford it. Becoming a co-owner can make this sort of purchase more achievable, especially since most second home owners only use their properties occasionally. And with a fully managed co-ownership model like Pacaso, buyers can own a second home and create memories with their families — all for a fraction of the cost. Families purchase 1/8 to 1/2 ownership of a turnkey luxury home, and Pacaso takes care of all the maintenance, furnishings and property management. 8. Investors are adding to their portfolio In 2022, there was a 10% increase in the number of affluent individuals owning three or more luxury homes. By owning properties in different locations, markets and segments, investors can potentially reduce their risk and increase their returns. Luxury real estate has the tendency to be less volatile and more resilient than other types of real estate, especially during economic downturns. Investors can also create a cash flow opportunity from these properties by turning them into luxury vacation rentals. High-end real estate often appreciates faster and higher than average properties, due to their scarcity, exclusivity and desirability. Investors can benefit from capital gains and equity growth over time. The luxury real estate market is no stranger to change, and 2023 has a lot in store for high-end home seekers. Whether you're searching for a new primary or secondary residence, our insights can help you find the luxury home of your dreams. 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For many vacation home owners, hiring a property management company is a smart decision. Managing a second home or rental property can be time-consuming when you factor in tasks like finding and scheduling renters, processing payments, answering questions, handling check-ins and check-outs, and fielding maintenance requests. These tasks are especially challenging if you don’t live close to your rental property. Most vacation rental property owners hire a property manager to take care of these ongoing tasks. And while using a property management company will undoubtedly save you time, it doesn’t come cheap. Here’s what you need to know about the costs of using a property manager. Then, read on for tips on how to hire one. Fee structures for property management There are three ways that property management companies can structure their costs: by taking a percentage of the monthly rent, with a flat monthly fee, or with a guaranteed income model. Percentage-based fees In this arrangement, your property management company takes an agreed-upon percentage of the rent your property generates each month. The percentage is usually between 25% and 30% of rent collected. There are many factors that affect the specific percentage you’re charged. For example, urban locations tend to have lower management fees than beach or mountain destinations, because they’re usually easier to access and have less maintenance. What’s included in your property management agreement will also affect how much you pay. One advantage of this model is that the property manager is incentivized to keep your property booked as many nights as possible. Because of this, however, they may want to set limits on how many nights you personally are allowed to use the home, since it is unavailable to rent during those times. Flat monthly fees Also known as a fixed-rate fee model, in this arrangement you pay a flat fee each month, no matter how many nights your property is booked. If your home is located in a destination with predictable high and low seasons, you may go through periods when your property management fee only makes up a small portion of your monthly earnings and other times when it feels like a significant expense. The upside to a flat monthly fee arrangement is that it makes budgeting for your operating expenses easier and more predictable. It is important to note that some property management companies that offer flat monthly fees do have a wide range of surcharges for specific tasks, like responding to after-hours maintenance emergencies. Guaranteed income fees In this model, the management company guarantees the owner a consistent amount of rental income each month, regardless of how many nights the home is rented out. The property management company will propose a rate based on how much rental income they think the property can generate. Any excess profits are kept by the property management company. The guaranteed income arrangement appeals to homeowners who want a consistent income stream. This may be especially attractive for homes that are in seasonal locations. However, it’s important to make sure you’re not overpaying. If your property generates year-round, consistent income, you might make more money with one of the other two models. Other expenses to keep in mind When hiring for a property management company, look for a company that is straightforward about not only their fee structure but any additional setup costs or fees. Here are a few fees to be aware of as you interview potential property managers: Onboarding fees: When you first sign on with a property management company, they may charge a one-time setup fee to get your property rental ready. This includes things like installing a digital lock, taking listing photos and taking inventory of what’s included in the home. Cleaning fees: Some management agreements include the cost of cleaning the property between renters. Others separate this out as a separate, per-cleaning fee. In the case of the latter, you’ll likely want to pass this cost along to your renters. Additional amenities fees: If your property includes special amenities that require additional or specialized maintenance, you may be charged extra. This includes things like a pool, hot tub or garden. Maintenance: Most contracts cover basic maintenance in their fees, but often limit what’s included. For example, you may have to pay extra for things like snow removal and landscaping. Or they may be specifically excluded and you’ll need to schedule those services with your own vendors. Trip charges: Your manager may charge you a flat rate every time they have to go to your property to resolve a problem. How to hire a property manager Just like any time you hire a service provider, it’s important to do your due diligence. After all, the company you choose will be responsible for not only keeping your property in tip-top shape, but making sure you have a steady stream of satisfied customers. Your first step should be to ask around for recommendations of trusted property management companies. You can ask friends and family members. Your real estate agent is also a great resource. If you can’t track down any referrals, start by checking reviews online. You should be able to find both reviews from property owners and guests who have stayed in the homes they manage. Once you’ve narrowed your options to a few top contenders, it’s important to get all of your questions answered. The right property manager should be patient and fully answer them. They should be clear and upfront with all answers, especially those related to fees and inclusions. Here are a few must-ask questions: What is your fee structure? What services are included? What services are not included? Are there any setup or onboarding fees? Do you mark up maintenance and repair costs? Is there a contract or can I cancel at any time? Can I tour some properties currently under your management? How many staff are available where my home is located? How do you handle maintenance emergencies and renter requests? Where do you advertise your rental listings? In addition to interviewing and reading reviews online, you’ll want to read the full property management agreement, compare fees among a couple of companies, and check each company’s licenses and any required certifications. An alternative to renting out your vacation home Many second home owners use a property manager because rental income helps to pay for the cost of their homes. Pacaso offers another way to own your dream retreat. Our co-ownership model allows you to purchase from 1/8 to 1/2 ownership of a luxury second home in a sought-after destination along with other owners. Your home is professionally designed and maintained, so you can focus on what matters most: making lasting memories with your loved ones.
Your second home should be easy to enjoy, and that starts with scheduling. Pacaso’s innovative app, powered by our SmartStay™ technology, is a stress-free scheduling system that makes it quick and easy to plan time to use your home. Imagine waking up on a Wednesday and booking your special retreat for the weekend in real time. Or the peace of mind that comes with securing a special getaway well in advance. Pacaso makes it easy to enjoy the time you want, when you want it. Flexibility is core to a great owner experience, says Pacaso CEO Austin Allison. “The reality is that people don’t plan every week of their year in advance. Pacaso co-ownership strikes this nice balance of having flexibility while also giving people the certainty to secure dates that are important to them. That’s what Pacaso offers because we want to be reflective of how people actually live and travel.” SmartStay has its name for a reason — the custom platform is powered by the Pacaso app and doesn’t rely on draft booking or a ranking order to determine dates. Instead, using algorithms and systems to ensure equity, owners can see availability and secure their stay instantly. As a Pacaso co-owner, access to your home is proportionate to your amount of ownership. Owners of a 1/8 share, for instance, can generally expect to have access to 1/8 of the total available calendar time each year. On average, owners tend to stay at their homes about 6-7 times each year, for about a week at a time. Your actual usage may vary from year to year depending on your personal travel preferences. You have the flexibility to book stays from 2 to 14 nights in duration (or even longer if you own more than one share). In order to ensure equal access for all co-owners, back-to-back stays are not permitted. Owners of a 1/8 share can book six advance stays at a time, including a “special date," and can enjoy unlimited short-notice stays throughout the year. Advance stays can be booked up to two years in advance Short-notice stays are booked 2 to 30 days in advance (applies to fully sold homes; for homes with unsold shares, the short-notice booking window is 2 to 7 days) Special dates include select federal holidays, like Thanksgiving and Christmas, as well as popular local events (e.g., the Sundance Film Festival would be a special date for owners of a Pacaso in Park City, Utah). Special dates are clearly marked with a star in the scheduling calendar in the Pacaso app. Owners may hold up to one special date stay per share, and you can lock in your stay up to two years in advance. Once an upcoming special date enters the short-notice window, it can be booked as a short-notice stay and no longer counts as a special date or advance stay. The SmartStay system also accounts for peak seasons across the year, giving all owners an opportunity to book at least two stays during the most popular travel periods for that region. Peak season booking is staggered across two booking windows, ensuring that every owner has the option to plan and schedule stays at their leisure. Pacaso second homes are never available for rent. Of course, we know that one of the big benefits of having a second home is sharing it with friends and family even when you’re not able to be there, so owners are welcome to extend their homes to their registered guests. If you ever need scheduling assistance, your dedicated Home Manager is available to answer questions or help with any scheduling needs. Want to learn more? Check out our scheduling overview or browse our FAQs.
Looking for the perfect vacation rental? The internet is full of sites offering options well beyond Plum Guide. With rentals ranging from budget-friendly hotels in remote destinations to luxury options in the midst of great cities, our list of Plum Guide alternatives can help you find the perfect setting to launch your next adventure: 1. Airbnb Airbnb is one of the most popular short-term vacation rental companies, with over 6 million listings. The platform lists rentals in major cities and rural areas across the globe. Instead of staying in a hotel, Airbnb connects users with unique listings by local hosts. Amenities can vary and stays may be paired with excursions via the app’s Airbnb experiences feature. Pros Cons A popular platform with some off-the-beaten-track locations Get to know locals by staying with hosts familiar with the area Amenities vary with each listing There are no in-person customer service representatives 2. FlipKey Similar to Airbnb and Vrbo, FlipKey allows you to find and book vacation rentals listed by hosts around the world. You can browse thousands of listings, read reviews from previous guests, and compare prices and amenities. Since FlipKey is owned by TripAdvisor, users who book a short-term vacation rental through this company have access to the travel guides and recommendations they need to create a travel itinerary. Pros Cons Individual hosts offer unique stays You can read verified reviews from previous guests and contact the owners directly May have to pay extra fees for cleaning, service or taxes Issues with the property or owner aren’t covered by FlipKey guarantee 3. Glamping Hub Glamping Hub focuses on providing an authentic, immersive experience for guests who want to enjoy the outdoors without sacrificing comfort and convenience. The term glamping refers to a glamorous camping experience that combines the best parts of nature with the modern conveniences of a vacation home. Pros Cons Guests can enjoy running water, electricity and air conditioning Listings include yurts, treehouses and luxury cabins Does not always provide hotel-like amenities like WiFi May only be available in more remote or rural locations 4. Booking.com Booking.com not only helps you find and book homes and hotels, but also helps you find flights, car rentals, taxis and attractions in popular destinations around the world. Whether you want a relaxing retreat or an off-grid adventure, Booking.com has something for everyone. You can also take advantage of deals and discounts that are exclusive to this vacation rental site. Pros Cons Offers options in a wide range of locations and price ranges Provides customer reviews and ratings that help users make informed decisions May charge higher fees than other platforms or booking directly with hosts May have some inaccurate or outdated information about the listing, such as old photos 5. Tripping.com Similar to Plum Guide, Tripping.com helps travelers find and compare vacation rentals from different providers. The site lists over 12 million properties in 190 countries, making it one of the largest search engines for vacation rentals. Travelers can also benefit by visiting the Tripping blog where they’ll find location guides and travel advice on how to make the most out of their vacation. Pros Cons Enjoy access to listings from multiple platforms Filter by amenity to get exactly what you’re looking for May have to deal with different booking policies and cancellation fees from each site May not get the same level of customer service as hotels 6. Vrbo Vrbo caters to travelers who want nothing less than a home away from home. Enjoy more space, privacy and amenities than you would in a typical hotel room or host-based accommodation. Worry less and relax more with features like online booking, 24/7 customer support and flexible cancellation policies. Pros Cons Enjoy privacy with entire rental units instead of sharing space with your host Listings offer space and privacy that’s great for families Listings can be more expensive due to renting the whole unit May have to follow strict rules and policies set by the host 7. Homestay Homestay connects travelers with local hosts who offer accommodations and cultural experiences. Travelers can enjoy authentic and affordable stays in destinations around the world while also supporting local communities. The vacation site is different from other platforms because it focuses on creating meaningful connections between travelers and hosts, rather than just providing a place to sleep. Pros Cons A great option for students and others who want to be a part of a community Saves money on lodging during extended travel Potential lack of privacy and safety concerns Not able to guarantee the experience will be as described online 8. Sonder Sonder provides access to boutique apartments in major cities around the world. If you are looking for a streamlined, no-nonsense stay in an urban location, look no further. Young professionals, solo travelers and couples may enjoy the walkability of these rentals as well as the site’s in-person customer service representatives available 24/7. Pros Cons Choose from a variety of layout options like studios or one bedrooms Enjoy a predictable accommodation experience Listings are only available in popular urban areas Subject to noise pollution because they are in populous areas 9. TrustedHousesitters TrustedHousesitters is a service that allows homeowners to leave their property (and pets) in your care while they’re away. As a house sitter, you will be expected to perform various tasks such as watering plants, feeding and walking pets, collecting mail, and keeping the house secure. House sitting is beneficial for both parties because the homeowners can enjoy their trip without worrying about their home, and the house sitters can save money on accommodation while enjoying a local’s home. Pros Cons Save money on accommodations Enjoy the company of animals Experience life like a true local You’re responsible for both the property and the pets Limited flexibility in travel plans due to caring for animals 10. Homestayin Homestayin connects you to thousands of host families worldwide. Travelers book a room in a host’s home and are able to share meals and experiences with them. With each booking, the company contributes to a UNICEF program to feed malnurished children in Africa. The platform caters to students, interns and young professionals on international business trips. Pros Cons Stay with local people when traveling new places You can learn about the local culture, language and customs from your hosts May not get along with your host and there is little privacy May have to follow the rules and expectations of your host, such as curfew, chores, or meals 11. Vacasa Vacasa offers full-service solutions for homeowners and guests. The platform has local teams of housekeepers, maintenance staff and property managers who ensure quality and safety standards. With listings across 30 countries and regions, Vacasa has a variety of vacation experiences, from beachfront condos to mountain cabins and more. Pros Cons Take a 3D tour of listings before booking Enroll in optional insurance coverage and damage protection Prices fluctuate during the busy season of the destination Not yet available everywhere in the world 12. Tripadvisor Tripadvisor is so much more than a short-term vocational rental database. The popular site helps travelers plan trips, book accommodations and share their experiences in an effort to educate the next wave of guests. The platform has millions of reviews and opinions from real travelers who have visited hotels, restaurants and attractions, allowing users to compare prices and book accommodations, flights, car rentals and tours from a variety of providers. Pros Cons Take advantage of a large database of user information Book your entire travel itinerary all in one place Some information is outdated and unable to be verified Prices can be inflated due to it being a third-party platform 13. OYO Rooms OYO is a network of 157,000 hotels and homes in 35 countries. The chain partners with existing hotels and provides them with branding, quality control and operational support. It caters to a wide array of travelers, such as couples, families, solo adventurers and young professionals, by offering various types of rooms, prices and amenities. Pros Cons Loyalty program and discounts for frequent customers Easily book, check-in and cancel online Inconsistent quality and service across different locations Low ratings and reviews on some platforms 14. Outdoorsy Outdoorsy is a platform that connects RV owners and renters, allowing them to explore the open road in comfort and style. Outdoorsy has a variety of RVs to choose from, including motorhomes, trailers, campervans and more. Outdoorsy also provides 24/7 roadside assistance, insurance options and a secure payment system. Pros Cons Enjoy the flexibility and convenience of RV travel Provides insurance coverage, roadside assistance and customer support You may not have the luxury of a home with four walls May not be a great option for those wanting to stay in urban are 15. Onefinestay Similar to the Plum Guide, Onefinestay boasts a collection of luxury vacation listings across the globe. On top of that, it provides 24/7 support, local tips and curated experiences. Every listing is inspected by an in-person team to ensure that guests get their money’s worth. Pros Cons Listings are professionally managed by Onefinestay Provides concierge services you would find at a hotel Expensive price points for travelers Mainly in popular urban areas so other destinations are unavailable 16. HomeToGo HomeToGo is a search engine for vacation rentals that allows users to compare offers from different providers and find the best deal for their travel needs. Listings cover over 200 countries and regions, offering a wide range of destinations and accommodation types. It also provides useful information and tips for travelers, such as destination guides, travel trends and inspiration. Pros Cons Can compare prices and availability of different providers in one place Access to exclusive offers and discounts Users may encounter hidden fees from some providers Cancellation policies and customer service standards can differ widely 17. Wimdu Wimdu is a platform that connects travelers with hosts who offer accommodation in their homes, along with local knowledge and guidance. It is a great option for travelers seeking short term rentals during their European vacation. Pros Cons Cancellations the day before may be capable of full refunds, depending on provider’s policies Great option for an extended European vacation Amenities can vary with each listing and host May be difficult to find an entire unit to enjoy on your vacation 18. 9flats On 9flats, you can choose from a variety of apartments, villas, guest houses or houseboats offered by individuals worldwide. You can also enjoy the benefits of having a personal host who can provide recommendations about your destination. Pros Cons Communicate directly with the host and get tips and recommendations Enjoy a more authentic experience than staying in a hotel May have to share the space with other guests or the host May have to follow the house rules and respect the host's privacy 19. Agoda Agoda offers a variety of choices for varying vacation budgets, preferences and needs. Travelers can book pet-friendly, family-friendly or eco-friendly homes. Agoda strives to support local communities and businesses by promoting sustainable tourism. Pros Cons Provides a rewards program for frequent travelers Travelers learn about sustainable tourism and local environments May encounter misrepresentation with listings May have to pay extra fees and taxes depending on the location 20. Kid & Coe Kid & Coe specializes in family-friendly accommodations and experiences. Unlike most travel platforms, Kid & Coe offers curated properties that are designed to meet the needs and preferences of parents and children. Whether it's a spacious villa with a pool, a cozy apartment with toys and books, or a farm stay with hands-on activities, they have something for every family. Pros Cons Listings are specially curated for family travel Baby equipment is often provided in the accommodation May have to pay a higher price than other travel websites May have to book well in advance, as properties are in high demand 21. Hipcamp Hipcamp connects people who love nature with unique outdoor accommodations. Hipcamp helps you book tent camping sites, RV parks, cabins, glamping and more. Don’t forget to check out their blog for the ultimate camping inspo. Pros Cons Access to unique campsites that are not available in public campgrounds Support local landowners and help them preserve their land and generate income May have to pay more than you would for a public campground or RV park May be subject to poor road access, wildlife encounters or weather issues 22. Pacaso Pacaso provides travelers who frequent a single destination with the opportunity to own a second home in their favorite place. Co-ownership model reduces the cost and hassle of owning a luxury second home in sought-after destinations. The company handles all the management, maintenance and scheduling of the property so owners can focus on enjoying their vacation and their luxury vacation home amenities. Pacaso differs from other Plum Guide alternatives by offering travelers the opportunity to own real estate. Rather than spending time and money on different vacation rentals, travelers can enjoy a consistent luxury experience every time, at a place they call home. And in many ways, co-owning a second home makes more sense than getting book a rental for your vacations. Want to learn more? Discover the benefits of Pacaso's co-ownership model and explore our listings.
In real estate, interest rates play a significant role in shaping investment strategies. While conventional wisdom suggests that higher interest rates negatively impact investments, real estate investors can actually benefit from higher interest rates when banks are paying higher rates on cash deposits. The power of cash savings One of the advantages of higher interest rates is the increased earning potential of cash savings. As a real estate investor, you likely maintain substantial cash reserves for various purposes like down payments, renovations and any unexpected expenses. When interest rates are low, the returns on cash deposits are minimal. During periods of high interest, however, you are rewarded by banks for having more cash deposited. This means you could use these savings to increase your earning potential. Leveraging higher mortgage rates on a home While higher mortgage rates may seem like a disadvantage, it actually presents an opportunity for you to maximize your returns and apply your interest income toward a real estate mortgage. Let's consider two scenarios to illustrate this point. Scenario 1: 3% mortgage rate, 0% bank interest rate In this scenario, you secure a mortgage at a low 3% interest rate, while banks are paying 0% on cash deposits. Although your mortgage rate is low, the opportunity cost of keeping cash in the bank is high, as your cash savings do not generate any meaningful returns. This can limit your overall earning potential. Scenario 2: 6% mortgage rate, 5% bank interest rate In this scenario, you secure a mortgage at a high 6% interest rate during a time when banks are paying a generous 5% on cash deposits. Despite the higher mortgage rate, you can generate a substantial return on your savings, resulting in a net positive income. To illustrate, here’s what you could earn in both scenarios with $1 million cash in the bank — and how it applies to purchasing a home. Scenario 1 Scenario 2 Initial cash $1,000,000 $1,000,000 Bank interest rate 0% 5% Annual cash interest income $0 $50,000 Home purchase price $500,000 $500,000 Loan amount (70% financing) $350,000 $350,000 Mortgage interest rate 3% 6% Annual mortgage interest expense $10,500 $21,000 Net annual income ($10,500) $29,000 In the first scenario, you are not generating any interest income from your cash reserve despite having a low mortgage rate. Consequently, you would be paying $10,500 in mortgage interest. In the second scenario, however, you have the opportunity to earn $50,000 in interest income. While you would be paying $21,000 in mortgage interest each year, your cash savings income means you have a net income of $29,000. This example demonstrates how higher mortgage rates combined with higher interest on cash savings can give you a cost advantage when you buy a home. Ways to maximize your cash returns In addition to capitalizing on their cash reserves, real estate investors can strategically allocate their funds to maximize returns. Here are a few ways to increase your earning potential and offset higher mortgage costs: Short-term investments Consider short-term options like high-yield savings accounts, certificates of deposit (CDs) or money market funds. These low-risk investments can provide more attractive returns than near-zero interest rates from banks. Portfolio diversification Explore alternative investment options that offer higher returns than cash deposits like bonds, stocks and real estate investment trusts (REITs). Diversifying your portfolio can help you to generate more net income despite higher mortgage payments. Prepayment strategies Analyze your mortgage terms to determine if any prepayment options are available. By paying down your mortgage principal, you can reduce the overall costs of your interest. Play it smart with your investments While higher interest rates may seem unfavorable to real estate investors, they also provide unique advantages. By leveraging the earning potential of your cash reserves and diversifying your portfolio, you can maximize returns in a changing economic landscape. This enables you to achieve a net positive return — which could be beneficial when investing in a stable and reliable purchase like real estate. And with Pacaso’s co-ownership model, you can take your dollar even further. To get started, explore our listings in some of the top second home destinations.
What does it mean to buy a house sight unseen? Buying a house sight unseen means purchasing a property without touring it in person. After weeks (or months) of browsing online, you’re confident that you’ve found your dream home. But what if timing or distance prevents you from viewing it in person? Sight-unseen real estate purchases are becoming more common — especially in competitive markets and sought-after destinations. We’ll walk you through each step of how to buy a house sight unseen, discuss the pros and cons, and share tips on how to determine if the home is right for you. How to buy a house sight unseen To a buy a house sight unseen, you'll do a virtual walkthrough and experience the home using pictures, video clips or 3D models instead of being physically present. These steps to ensure you have a smooth and positive experience with buying a home (or second home) sight unseen. More than a third of Pacaso sales in March 2023 were booked for purchase sight unseen, marking the highest level since January 2022. 1. Work with a trusted real estate agent An important step to buying a house virtually is having a good real estate agent. A qualified and experienced local agent can help smooth out every step of the purchasing process and provide expertise in negotiation, communication and knowledge of real estate and community where you plan to buy. 2. Get pre-approved Pre-approval involves determining how much money you can borrow to buy a home. Getting pre-approved can help you stand out from the crowd and increase your chances of your offer being accepted. 3. Take a virtual tour of the home When you buy a home sight unseen, you should take advantage of all virtual tour opportunities to get a complete picture of a home. This can include: Taking virtual tours Conducting online walkthroughs Joining virtual open houses Look at all the home’s details and features to hone in on your needs and determine if the home meets all your requirements. 4. Get a home inspection A home inspection is crucial if you’re purchasing a home you’ve never seen in person. An inspection should uncover any current and potential issues, including electrical or structural problems and water damage. This is especially valuable if you’re buying a second home that you’ll need to maintain and manage from afar. 5. Ask friends or family to tour Consider asking a friend or family member in the area to tour the home in person, with you tagging along on the phone. They can help you experience the home, get a feel for the place and get answers to questions in real time. 6. Make a sight-unseen offer A sight-unseen offer isn’t too different from a traditional home offer. Once you have a pre-approval letter, you will need to decide how much money to offer and how much to put down. Your agent will help work through contingencies and negotiations to keep your offer competitive. 7. Secure financing If you’re looking to finance a portion of your purchase, you’ll want to work with banking partners and lenders. Save time by securing your financing before you make a sight-unseen offer. 8. Close on your home To close on your new home, you will virtually sign purchase agreements and other paperwork including the inspection report, seller disclosures and any other documents relevant to your purchase. You or your lending institution will then wire your funds and complete the home purchase. The pros of buying a home sight unseen Buying a home is an important decision — especially if you haven’t seen the property in person. However, buying a house sight unseen offers distinct advantages. You can move fast. If you’re looking to grab a home in a competitive market, buying a home sight unseen allows you to move quickly. It offers convenience. With virtual tours and walkthroughs, you're able to see a home at a time that works for you from wherever you are. You can save on expenses. You can save both time and travel expenses by browsing and purchasing a home completely online. This is especially helpful if you’re buying a home out of state, since you likely don’t have time to physically visit the home. While other buyers might be scheduling in-person tours, you’re already viewing the home of online and putting in an offer, saving you time and money. The cons of buying a home sight unseen Although buying a house sight unseen has its benefits, there are potential cons to putting an offer on a home you haven’t seen in person. You’re missing the vibe. While a video walkthrough or 3D tour is helpful, it can be difficult to gauge the size of rooms and how the home feels without being there in person. You won’t get a feel for the community. Unless you’ve previously visited the community where the home is located, you might not know if the neighborhood is right for you. You can’t experience home amenities. Virtual tours don’t let you capture the full experience of a home — you can’t dip a toe in the pool, sit down by the fire pit or enjoy the other luxury amenities that make it easy to say “yes.” Now that you know the pros and cons of buying a house sight unseen, let’s explore the factors that determine whether or not you should make a sight-unseen buy. How to determine if you should buy a house sight unseen Buying a house sight unseen is not for everyone, but it can be done with careful planning and communication. Before making a sight unseen offer, take the following measures to ensure it’s the right choice for you: Send a trusted representative on your behalf Request an inspection contingency Request a second walkthrough contingency Be sparing with sight-unseen offers to blacklisting When determining if you should buy a house sight unseen, it’s important to know what can potentially go wrong. If you are proactive and diligent with your research, you can score your dream home even if you can't visit it in person. Although buying your primary (or second) home can be stressful at times, buying a house sight unseen doesn’t have to be nerve-wracking. Follow each step of the process, carefully weighing the pros and cons, to determine if this is the right strategy for you. If you’re ready to buy a second home at a fraction of the cost, consider the benefits of LLC co-ownership. This is a great way to own a vacation home, and with Pacaso, you can co-own a luxury second home that is professionally designed and fully managed.
Beaches are a magnet for family vacations, but finding one that checks all the boxes can be a challenge. Finding a beach that can provide safe waters, nearby amenities and enough personal space is easier said than done. We collected the best beaches for kids around the country so that you can find the perfect destination for your family: Now let’s wade into our options! 1. Coronado Beach (San Diego, California) Coronado Beach has all the ingredients necessary to make a great kid-friendly beach. San Diego has one of the best climates in the country, making for comfortable beach conditions. Crowds at Coronado Beach are rarely overwhelming, so it’s easy to keep track of everyone. The water is cool and the sand won’t burn your kid’s feet as they run on the shore. When you’ve had your fill of the water, you can easily retreat to the city for food and added entertainment. 2. Main Beach (Laguna Beach, California) Laguna Beach, located along the Pacific Coast Highway, is easy to get to from either Los Angeles or San Diego. The posh town of Laguna Beach takes great care of its ocean access, which enhances the experience. The water is typically calm, so your kids can play in the water without risking colliding with surfers. There are also active whale and dolphin sightings in the area for added fun. 3. Santa Monica State Beach (Santa Monica, California) The kid-friendly state beach in Santa Monica has no shortage of space or activities. Stretching over 3 miles, the beaches make you feel like you’ve entered a public resort. The beaches are monitored by lifeguards for added security, and there’s a playground area and water toys available to rent. Follow the pathways to discover scenic lookouts, picnic areas and volleyball courts. 4. Vikingsholm Beach (South Lake Tahoe, California) Want a taste of old-world Scandinavia without the hassle of a transcontinental flight? Then head to Tahoe to play on the shores of the lake in the shadow of Vikingsholm Castle. Built in 1928 by a Swedish architect to replicate the aesthetic of his home country, the castle is now managed by the Sierra State Parks Foundation. Tours are available between May and September. Even without access to the property, your kids will love playing in Emerald Bay, imagining their own Viking adventures. 5. Cannon Beach (Oregon) National Geographic picked Cannon Beach as one of the best beach towns in the country, and it’s easy to see why. Fans of “The Goonies” will recognize the famous Haystack Rock jutting out from the water just off the beach. The beach spans 4 miles and is rarely crowded. The cold, shallow waters allow your kids to play in safety. And at low tide, your kids will love exploring the sea life that gathers in the small tidepools. 6. Long Beach (Washington) Long Beach, Washington — not to be confused with California — is about 40 miles north of Cannon Beach and well worth the visit when you’re in the area. Located on a peninsula, Long Beach lives up to its name, with sandy beachfront stretching across 28 miles. The flat open space makes for a perfect setting to hunt for shells, fly a kite or ride bikes. Marsh’s Free Museum is a local treasure that’s great for browsing oddities and picking up memorable souvenirs. 7. Waikiki Beach (Honolulu, Hawai’i) Waikiki has tropical weather, beautiful scenery and calm waters — what more can you ask for from a kid-friendly beach? Waikiki Beach Activities rents equipment like lounge chairs, toys and beach umbrellas, and lifeguards are on duty during the day. After a day at the beach, head to nearby Honolulu Zoo for a twilight tour and learn about its exotic animals. 8. Big Foot Beach State Park (Lake Geneva, Wisconsin) Lake Geneva was a popular destination for wealthy Chicago residents looking for summer escapes in the late 1800s. Catering to this crowd, the town turned into a resort community that exists to this day. The lake water is clean and swimmer-friendly, although many visitors prefer cruising on boats. The shore path wraps 26 miles around the lake, making for a peaceful tour of beautiful estates. Notable buildings include the Maxwell Mansion (now a boutique hotel) and Black Point Estate. 9. Sleeping Bear Dunes National Lakeshore (Maple City, Michigan) Sleeping Bear Dunes offers some of the best views of Lake Michigan. The beach is essentially one large sandbox, allowing the kids to dig, build and swim to their heart’s content. The kids can also run themselves ragged racing each other up the Dune Climb. The area is surrounded with hiking trails of varying difficulty. The Empire Bluff Trail follows a wooden pathway to scenic overlooks along the lake. There’s also the option to kayak or tube down the Platte River, which empties into the lake. 10. Oval Beach (Saugatuck, Michigan) Western Michigan is covered with great beach towns, but Oval Beach stands out as one of the best family beaches. Conde Nast named Saugatuck as one of the best lake vacation towns in the country. Oval Beach has rolling sand dunes and a beautiful shoreline. It also has showers, changing rooms and convenient, on-site concession stands. 11. Indiana Dunes National Park (Porter, Indiana) Indiana Dunes National Park covers 15,000 acres of sandy real estate that’s begging to be explored. Complete the three-dunes challenge by hiking to the top of the three tallest dunes in the area. There are 18 miles of beaches in the park, with State Park Beach and West Beach being the most popular. Visitors can play in the water and see the Chicago skyline on the other shore. 12. Race Point Beach (Cape Cod, Massachusetts) Race Point Beach is one of the best beaches for toddlers, thanks to its calm waters. Located at the tip of Cape Cod, it’s rarely crowded, making it easy to play and keep track of everyone. Older kids can enjoy paddleboarding and kayaking. The beach also connects to a short hiking trail that will take you through sand dunes to reach the Race Point Lighthouse. 13. Menemsha Beach (Chilmark, Massachusetts) Menemsha Beach, located on Martha’s Vineyard, delivers on the New England fishing village charm sought by many vacationers. The beach is small, but the surrounding area is sparsely populated, so you won’t be fighting for space. The waves are mild, so kids can easily play in the water. Nearby Larsen’s Fish Market is a great place to pick up take-out dinner before returning to the beach for an ideal sunset. 14. Mother’s Beach (Kennebunk, Maine) Mother’s Beach is one of three beaches along Beach Avenue in Kennebunk and is by far the most kid-friendly. Large rock formations on either end of the beach shield it from turbulent waves. The soft sand paired with a playground area make for hours of potential fun. The eastern side of the beach also has several tide pools enclosed by the rocks. 15. Dewey Beach (Rehoboth Beach, Delaware) Dewey Beach resides in an old-school beach town, serving as a mainstay of summertime activity. The Indian River Inlet has a great jetty for fishing. Dewey Beach Watersports rents pontoons, jet skis, paddleboards and more. Between March and December, head to the Hopkins Farm Creamery for award-winning ice cream after a day in the sun. 16. Sunset Beach (Cape May, New Jersey) As its name implies, Sunset Beach delivers beautiful sunsets. Unlike other beaches in New Jersey, this gem doesn’t attract the same large crowds of swimmers and sun tanners. There’s an old shipwreck just off the shore, which makes for an intriguing sight. Your kids will especially love hunting through the sand for Cape May diamonds — unique quartz pebbles that look like the real thing. 17. Buckroe Beach (Hampton, Virginia) Buckroe Beach sits on the Chesapeake Bay with lifeguards on patrol through the summer months. There are large restrooms and outdoor showers, and parties can rent picnic shelters equipped with grills and tables. There’s also a nautical-themed playground and an observation pier for added entertainment. 18. Corolla Beach (Outer Banks, North Carolina) Corolla Beach is a popular tourist destination on the Outer Banks islands. It has dozens of local activities that will delight your family. One of the area’s main attractions are the feral horses that roam freely. Tours of the coast are conducted via kayak, paddleboard and crab boat to accommodate all ages. The Donal C. O’Brien, Jr. Sanctuary preserves the natural beauty of the island and is a hot spot for watching birds and other wildlife. 19. Coligny Beach (Hilton Head Island, South Carolina) Coligny Beach is adjacent to downtown Hilton Head, and has plenty of activities along with a great beachfront. The beach has changing rooms and restrooms, and even free Wi-Fi. There are gazebos with swings and chairs for when you need a break from the sunshine, and Coligny Plaza has restaurants, ice cream stores and live entertainment. 20. Kiawah Beachwalker Park (Kiawah Island, South Carolina) Kiawah Beachwalker Park is the only public beach accessible on the island. It’s equipped with lifeguards, a snack bar, dressing rooms and bathrooms. There’s also a boardwalk with a wheelchair-accessible ramp. The beach sand is compacted, ideal for bike riding. End your day with a stop at Freshfields Village for food and shopping. 21. Gulf State Park (Gulf Shores, Alabama) Gulf State Park sprawls across 6,150 acres and is filled with options for nature lovers. The Fishing and Education Pier is the ideal spot for fishing, complete with a retail store and concession area. Beach Pavilion has air-conditioned restrooms and provides access to three miles of beaches, giving your family plenty of space to spread out. Then head to Hugh S. Branyon Backcountry Trail for more than 28 miles of potential hiking. 22. Back River Beach (Tybee Island, Georgia) Tybee Island is just 20 minutes from downtown Savannah, and is a favorite escape for locals. Grab a bite to eat at the Tybee Pier & Pavilion and spot the cargo ships coming to shore. The island has five beaches, though Back River Beach is considered the most family-friendly. The crowds are smaller and the waves are calmer than elsewhere on the island. Dolphins are also often spotted in the waters around sunset. 23. Seagrove Beach (Seaside, Florida) Seaside is a charming town in Northwest Florida that is known for being the filming location for “The Truman Show.” It remains a picture-perfect area, with pastel-colored buildings and white picket fences. Seagrove Beach has warm water and soft sand, and is lined with mangrove trees. Beach access is marked by unique pavilions that protect the dunes and offer easily identifiable meeting points. 24. Siesta Beach (Siesta Key, Florida) Siesta Key is just off the coast of Southwest Florida in Sarasota County, and Siesta Beach ranked second on Tripadvisor’s 2022 Travelers’ Choice Awards of the best beaches. The sand is remarkably soft — it feels like walking on powder. The beach features modern amenities, including showers, pavilions, a playground and wheelchair access. There’s also a full-service snack bar when you need some nourishment. 25. Henderson Beach State Park (Destin, Florida) Henderson Beach State Park is located in the Florida Panhandle and is a popular destination for events like family reunions. Visitors enjoy walking the nature trail and staying at the park’s campsites. There are six pavilions for picnicking and grilling, plus boardwalks for easy beach access and a playground for added fun. 9 tips for a family beach trip Don’t let the stress of planning your next family beach trip spoil all the fun. Follow these tips so your kids aren’t the only ones having a blast. Pack the night before: Decrease the chances of forgetting any essentials by packing when you aren’t pressed for time. Apply sunscreen before you leave: The first thing kids often want to do when they get to the beach is jump in the water. Sunscreen needs time to set in, so applying the first layer before you leave improves its effectiveness. Bring extra clothes and towels: Have extra layers on hand in case the beach or water is colder than expected. Plus, you’ll want plenty of towels to dry off and fresh clothes for a comfortable ride home. Have a bag for wet clothes: Separate your wet clothes and swimsuits to make for an easy cleanup when you get home, keeping sand and dirty water from spreading to other things. Bring reusable water bottles: Staying hydrated is important when you're spending hours being active in the sun. Either bring enough for the day or refill them if there are water fountains on-site. Portion out snacks in small bags: Help ensure your snacks last the entire day by portioning them out ahead of time. You can pass them out when needed without risking kids eating too much too fast. Bring your own shade: Many beachgoers' goal is to tan, but having a haven for everyone to get breaks from the sun is a good idea. A large umbrella or beach tent should suffice. Be selective with toys: Don’t feel pressured to bring every toy possible. One or two toys per child is usually all that’s needed. Consider toys that are collaborative, like beach balls, buckets and shovels. Have a travel potty: Even when beaches have bathrooms, they aren’t always well maintained or reliably accessible. Bringing your own travel potty can be a lifesaver in these situations. Now that you know where the best beaches for kids are in the country, all that’s left to do is to start planning. Find your next vacation and you just might find your future second home.
Airbnb changed the game for how travelers book accommodations for their vacations. Renting directly from private owners offered a less-expensive alternative to hotels and resorts. However, Airbnb’s explosive growth has led to reports of quality control issues and — as of late — prices that aren’t much less than the hotel chains it tried to replace. The good news is there are a number of Airbnb alternatives that are attempting to dethrone the reigning king, offering benefits like long-term stays and luxury experiences. They are: These sites might offer the perfect option for your next vacation, long-term stay or even a second home. Why travelers need Airbnb alternatives Airbnb has quickly become the best-known name in the vacation rental industry, thanks to its large selection and user-friendly app. However, its quick success comes with challenges. With more than 6 millions listings in hundreds of countries, Airbnb as a company has been faced with accusations of prompting overtourism, changing residential neighborhoods into tourist zones and making it difficult for locals to find affordable long-term rental housing. A recent study highlighted the most common problems Airbnb customers have run into: Customer service not living up to expectations Scam listings leaving renters high and dry Reservations being abruptly canceled by hosts These challenges present an opportunity for Airbnb competitors to step in and step up. And while some of the cons can be the same across all vacation rentals — inconsistent property owners, for instance — these Airbnb alternatives do have some pros that may make them viable options for your next vacation. 1. Pacaso Pacaso differs from the other Airbnb competitors on this list by offering travelers co-ownership of their very own second home. Rather than stressing over research and wasting money on vacation rentals, you instead own a home that you can return to throughout the year and enjoy a consistent luxury experience each time. Pacaso works by offering up to eight shares in a property. Co-owners can choose the amount of ownership that's right for them, and schedule exclusive stays in their home using the Pacaso app. Pacaso acts as the property manager, taking care of the interior design, furnishings, cleaning and maintenance while owners show up and enjoy. Co-ownership helps buyers afford luxury amenities in turnkey second homes that are never rented out. Since owners have real estate equity in the house, they also have the option to sell their home in the future. Pros: Turnkey luxury properties in more than 40 world-class destinations Benefits of real estate ownership Opportunity to own a second home for less cost Hassle-free property management Consistent experience and service Second home community Cons: Owners have a fixed travel destination 2. Booking.com Booking.com has been around since 1996 and was known for scheduling air travel and hotel accomodations. It now offers short-term housing and apartment rentals. It is becoming a formidable Airbnb competitor, with offices in more than 70 countries and over 6 million listings currently. Booking.com does charge hosts a higher booking fee — 15% compared to Airbnb’s 3% — and those fees are often passed on to renters in the form of higher prices. Pros: Provides service in 43 languages and operates in 226 countries Many professionally managed properties 24/7 customer experience team to answer questions and advocate for guests Con: Higher costs on average than Airbnb Inconsistent property owners 3. Vrbo Vrbo was one of the first sites to give property owners a marketplace to connect with travelers. Despite being early to the table, Vrbo lags behind Airbnb’s impressive growth, with 2 million rentals. The two sites are very similar in the types of rentals offered, with many property owners listing on both sites. If you plan to use Airbnb, it’s worth checking out Vrbo — you might be able to get the same place for a lower price. Note that Vrbo offers only whole properties, not shared homes. Pros: Comprehensive search tools Great for a group of people traveling together Cons: Inconsistent property owners Complicated cancellation policies 4. Tripadvisor Vacation Rentals The popular review site has followed the lead of other businesses and stepped into the rental marketplace. Tripadvisor offers a broad range of accommodations to choose from in 43 markets. Its service is also accessible in 22 languages. The company has leaned into the greatest strength of its flagship service: reviews. A large number of listing reviews help users manage expectations and potentially avoid bait-and-switch landlords. Pros: User reviews to make an informed decision Cons: Inconsistent property owners 5. FlipKey FlipKey is owned by Tripadvisor and benefits from its large catalog of user reviews. FlipKey improves upon Tripadvisor’s service by having more functional search tools to find the specific amenities. Travelers can search for gardens, fireplaces and even nearby walking trips. While FlipKey can be used by solo travelers, it is best suited for groups. Simply finding a place big enough for a group can be challenging on other sites, but finding one that suits everyone’s tastes can be a pipe dream. FlipKey is facing the problem head-on. Pros: Easily search for amenities Tripadvisor user reviews Cons: Solo travelers may have to rent properties that are larger than they need Inconsistent property owners 6. Plum Guide Plum Guide offers the cream of the crop of travel accommodations. Vetted by experts, the site is a great Airbnb alternative for travel in the U.S. and Europe. Plum Guide only lists the top 3% of rentals in any given destination, weeding out less desirable options. It has a thorough vetting process, testing properties against 150 criteria. Even water pressure gets inspected. Expect to pay more than the average rental on other sites, but the price may be worth it if you value the luxury vacation experience. Plum Guide does offer price matching just in case you see the same rental listed for less on another platform. Pros: Curated list of high-end rentals Guarantee the rental will be as advertised Cons: High prices 7. Onefinestay Onefinestay, like Plum Guide, focuses on quality over quantity in its listings. It knows its rentals are among the best of what’s around because a team member stays at each potential property. All of the listings are whole units, so you won’t be sharing with other travelers or the owner. The accommodations include houses, chalets and villas, giving you the personal touch missing from hotels while delivering on professional property management. Pros: Luxury amenities Carefully vetted listings Cons: Expensive compared to other Airbnb competitors 8. ThirdHome ThirdHome is another luxury vacation home provider, but it takes exclusivity to another level. This is a travel club that allows members to exchange stays at second homes all over the world. In return for offering stays in your home, you’ll receive credits to use toward stays at other members’ homes. To qualify, your second home needs to be worth at least $500,000, be in a desirable location and be well maintained. This niche marketplace has 14,000 options to choose from, including entire estates and yachts. While you won’t pay a rental fee, Thirdhome does charge a booking fee that ranges between $495 and $1,395 per week. Pros: Luxury amenities Exclusive membership More affordable than comparable listings on other Airbnb alternatives Cons: Must own a luxury second home 9. Homestayin When you travel, do you value cultural immersion above all else? Homestayin delivers by placing you in a room in a host’s house where you can share meals and learn about the area. Homestayin operates in 129 countries with a user-friendly matching tool to help guests and hosts find the perfect fit. It’s an affordable alternative to hotels while being a step up from the typical hostel. Homestayin is available for short- and long-term rentals, appealing to backpackers and students alike. Pros: Ideal for solo travelers Affordable accommodations Immersive experience Cons: Lack of privacy 10. Homes and Villas by Marriott International Managing expectations is one of the hardest factors to deal with when staying at independent vacation homes. Hotel chains can deliver on cookie-cutter expectations, but lack the personal touch. Marriott has stepped into the vacation rental industry by offering units backed by their trusted brand. Travelers can find beach bungalows, townhouses, penthouses and more, ranging in quality from premium to luxury levels. The inventory is still growing — currently about 60,000 listings — but it has something most other alternatives to Airbnb don’t: a rewards program. Travelers can earn and redeem points for discounted stays in the future with their Marriott Bonvoy account. Pros: Rewards program Reliable standards Cons: Limited catalog 11. Hopper Homes Hopper began as a travel booking service, but it recently launched a vacation rental program as well. It’s off to a strong start, with over 2 million listings around the world. Hopper Homes uses professional property managers to ensure its rentals are of a high quality. It has a streamlined app-only interface that id convenient to use with fewer distractions than many other platforms. Travelers can book their stay instantly rather than waiting for approval and are provided with flexible cancellation policies. Hopper even has its own rewards program in the works, Carrot Cash, to help customers save even more money while traveling. Pros: Clean user interface Instant booking Cons: No desktop option 12. Agoda Agoda is the go-to Airbnb competitor for the Asian market, although it operates on other continents, too. It has nearly 3 million listings that include hotels, homes and hostels. Like other Airbnb competitors, Agoda only offers whole unit rentals but it also places a heavy emphasis on making accommodations affordable. You can receive a discount for being a solo traveler and find other discounts through a “secret deals” feature. Agoda’s website and app operate in 38 languages, with customer care in 16. While travel booking sites have moved into the rental property industry, Agoda performed a reverse migration. In 2019 the site launched its own flight aggregator to compare hundreds of sites at once. Pros: Frequent booking discounts Large inventory Cons: No shared spaces Inconsistent property owners 13. 9flats 9flats is a German-based company with over 6 million locations to choose from. It’s one of the closer companies to Airbnb, with a range of rental types from guest houses to villas. Travelers can even rent a private room to cut down on the cost of renting a whole apartment. It works like an aggregator for other travel sites, so if you have issues with the interfaces of the other big names, 9flats might be more to your liking. It offers features like instant booking and advertises the max occupancy of every listing on the results page for quick scanning. Pros: Instant booking Scannable search results Cons: No unique listings 14. Sonder If you’re looking for a service like Airbnb that retains the comforts of a hotel, check out Sonder. The company owns or leases all of its listings, so you won’t be dealing with private owners or shared spaces. While striving to deliver next-level experiences, Sonder also aims to keep their service accessible and affordable. They operate in just 10 countries with approximately 6,300 available listings, so selection is limited at the moment. Every unit has a full kitchen, mini toiletries and Wi-Fi, making it great for long-term stays. The app allows for contactless check-ins along with requests for clean towels and restaurant recommendations. Pros: Hotel-level quality standards 24/7 concierge service Cons: Limited listings 15. Hipcamp Hipcamp is like Airbnb for campers, offering a range of campsites from tents to RVs. It even has camping-adjacent accommodations like treehouses and cabins, for those who prefer glamping. Since guests may be traveling to remote locations, Hipcamp has established standards to ensure safety and privacy. For example, hosts must limit occupancy at campgrounds and provide safety warnings for common dangers in the area. Hipcamp’s search filters allow you to find the perfect spot for your desired activities. So if you want to hike, fish or ride horses, your hunt just got easier. The affordability and convenience make Hipcamp a great option for nature lovers. Pros: Affordable Wide range of camping options Cons: Limited listings 16. Blueground If you’re living the digital nomad life, Blueground offers fully furnished living spaces to people planning on spending one month or more in a given area. While it doesn’t own the listings, Blueground does handpick its properties and takes care of the interior design. With that in mind, you can be certain Blueground’s over 8,000 rentals in 26 cities will maintain a defined level of quality. Since these are long-term rentals, apartments have smart home entertainment, kitchenware, toiletries and work space. Pros: Flexible long-term stays Fully furnished Con: Not ideal for short getaways 17. Vacasa Vacasa acts as a property manager and vacation rental service, handling the booking and maintenance of over 35,000 properties. Vacasa puts technology at the forefront of its operations with AI-powered features and a quality app. Visitors can get a virtual tour of the property, so there will be no surprises upon arrival. The app holds all of the rental details, with instructions on how to operate special features in the home, including WiFi access. Pros: AI-powered scheduling and prices Virtual tours Cons: Limited options outside of the U.S. 18. HomeToGo Like Airbnb alternative 9flats, HomeToGo works as an aggregator for vacation rental units. It searches rental companies like Tripadvisor, Booking.com and Vrbo to provide results that best meet your needs. HomeToGo operates local apps and websites in 25 countries. HomeToGo saves travelers time by allowing them to compare multiple sites in a single location, rather than having to set search filters like budget and amenities on multiple sites to find answers. Once you find a rental that’s to your liking, you finish booking through the provider’s website. Pros: Comprehensive search tools Works for all travel budgets Cons: Travelers deal with the pros and cons of the final service they book through 19. Glamping Hub Glamping Hub is another Airbnb competitor that specializes in connecting travelers with the great outdoors to promote more sustainable tourism. Its over 30,000 accommodations include tents, treehouses, yurts and more. Like Airbnb, Glamping Hub is only a booking platform, so you’ll still depend on the property owner to deliver on the rental as advertised. Glamping Hub allows you to filter through listings based on the type of building, cost and features, so you’ll have as rustic or luxurious an experience as you’d like. Pros: Unique properties Safe booking system Cons: Inconsistent property owners Just because Airbnb quickly became the Google of vacation rental sites doesn’t mean they have the best service. Looking into the Airbnb alternatives included in this list can improve your vacation experience, save you money and help you avoid some of the travel nightmares of working with bad hosts.
Million-dollar homes are a niche market all their own, and in order to sell your luxury home to that market, you have to understand it. Here are our top tips for selling million-dollar homes. 1. Get an experienced real estate agent Don’t underestimate the value of hiring an experienced real estate agent who knows how to sell million-dollar homes. The process for selling a luxury home is significantly different than the process for selling an average-priced home in a typical suburb, and it’s important to have an agent who understands what buyers are looking for and how to showcase it. Experienced agents can not only help you prep, list and market your home, but they can also use their connections to reach out to other agents and brokers to find buyers who are looking for homes like yours. 2. Know your property’s strengths Pay attention to what buyers are looking for in your area, and be sure to highlight those features in the sales listing – especially if they’re rare. For example, if you live in a city and your home has a large yard, that can be a huge draw for buyers. Features like extra closet space, wine cellars, fireplaces, swimming pools and rooftop decks can also spark interest in a property. An experienced local real estate agent familiar with your competition can help identify your home’s standout features. 3. Make your home irresistible Most luxury home shoppers aren’t looking for a project property, so make sure your home is move-in ready. Simple updates can make a huge difference: a fresh coat of paint, new high-quality fixtures, freshly polished floors, new carpeting and professional landscaping. To take things up a notch, hire a professional to stage the property with upscale furnishings and decor. Stagers help draw attention to the home’s best features, like having plush towels by the sauna or dinner party place settings on the dining room table. Their work helps buyers envision what it’s like to live in the home. 4. Create stunning visuals Once your home is looking its best, your agent will arrange for top-quality photos and video footage of the property. Remember, the quality of your listing sends a distinct message about the quality of your home. Consider drone photography and video footage that includes life and movement, like a luxury car coming down the driveway or someone relaxing by the pool. You’re not just selling a home, you’re selling a luxury lifestyle. In addition to all major real estate listings sites, you can post photos and video on your social media channels. 5. Educate potential buyers Your home and community likely have hidden perks that buyers won’t know about unless you tell them. In listings and social media posts, be sure to highlight home features like smart security, home automation, central vacuums and heated floors. You might also want to share your favorite area restaurants, parks and other points of interest. These little extras can give your listing the added boost it needs to make it to the top of buyers’ lists. You may also want to host an invite-only party (in addition to agent open houses) to give brokers and potential buyers the full picture of what your home has to offer. 6. Price properly It may be tempting to pick the real estate agent who’s promising the highest list price for your property, but agents who know how to sell million dollar homes know that “comps” are key. Make sure your agent is basing your list price off competitive market analysis research, and have them explain their numbers. Keep in mind that listing strategies vary by market; sellers in some markets do well with bidding wars while others know it’s better to ask for top dollar up front and negotiate down. Again, an experienced real estate agent will know the ideal strategy to sell your home quickly for the best price. 7. Know when to list Mother Nature can be one of the best marketing partners you’ve ever had – or your worst enemy. If you’re selling a mountain lodge close to a ski resort, listing in the snowy season gives buyers the opportunity to see their future million-dollar home looking like a picture-perfect winter wonderland retreat. Likewise, sparkling water views sell great in the heat of summer, but if they’re in a hurricane zone it’s safer to aim for spring instead. Use your area’s climate and your home’s character to choose a season that will showcase your property’s best features. 8. Be patient When it comes to knowing how to sell million-dollar homes, one secret the pros don’t always share is this: It takes time. Again, it’s a niche market, and it’s kind of like dating – just like you have to kiss a lot of frogs before you find your prince or princess, your home might have to have a lot of walk-throughs and showcase parties before it finds its future owner. In the meantime, trust the process, work with your agent and stay the course.
Your new home is a blank canvas, giving you the chance to transform it into an amazing space inspired by design magazines, Pinterest or Instagram. While everyone’s design style is different — or even if you feel like you don’t have one at all — there are always some tried-and-true tips to follow. Here’s our list of 10 great ways to decorate your new home like a pro. 1. Paint a colorful front door Your front door is your home’s first impression. A bold, colorful door makes a statement before your guests even cross the threshold. It’s an easy, affordable upgrade that sets the tone for your design aesthetic throughout the rest of the home. As for which color to choose, go with your gut — and be sure to complement your home’s overall exterior paint and trim colors. 2. Give every room a focal point Decide where you want the focal point to be in each room (and no, it doesn’t have to be a TV!). Perhaps it’s a stately fireplace, a feature wall, or the gorgeous view through a floor-to-ceiling window. Whatever it is, arrange your furniture and accessories to highlight the focal point. Consider layouts that encourage conversation, too. 3. Layer your lighting For function and drama, you should have three kinds of lighting in any room: ambient, like the room-wide light that comes from recessed lights or ceiling fixtures; task lighting, like pendants hanging over a kitchen island or a tabletop lamp in a library; and accent lighting, like wall sconces that light a particular area or object. Using multiple types of lighting gives every room a polished look. 4. Add houseplants Houseplants instantly make every room feel more welcoming. And even if you don’t have a green thumb, plenty of houseplants are very forgiving. Don’t be afraid to put multiple plants in one space. Tuck small succulents on a bookshelf near large, verdant foliage in floor pots. Bonus: They keep the air clean. 5. Use mirrors strategically Some designers believe every room should have a mirror, but even if you don’t go that far, decorating with mirrors can be especially useful in small or dark rooms. In cramped spaces, mirrors give the impression of more space. And in shadowy areas, they reflect light perfectly. Here’s one expert tip: Hang mirrors perpendicular to windows, not across the room. That way, you can avoid all that beautiful light going right back out the window. 6. Mix and match furniture It’s convenient to buy a sofa and matching loveseat and matching armchair and matching ottoman, but resist that urge! Mixing and matching furniture pieces adds more visual interest and depth to a room — and keeps it from looking like a furniture showroom. This can be as simple as decorating your dining room with a gorgeous dark wood table, accented by contrasting wood or upholstered dining chairs. In a living room, you might pair a sofa in a neutral color with a leather ottoman and side chairs upholstered in a fun fabric. 7. Combine different textures In the same way that you don’t want your furniture to be too matchy-matchy, you want variety in your home’s textiles and accent pieces. Here are a few examples: a tiled fireplace paired with a reclaimed wood mantle, a neutral-color jute rug topped with a colorful (and smaller) wool rug, or a leather couch accented with a plush throw. Mixing metal objects is also on trend. 8. Upsize your artwork One of the most common mistakes people make is choosing artwork that is too small for the wall where it will hang. (Another common misstep is hanging artwork too high — it should always be at eye level.) On a big wall, go with an oversized, framed piece that makes a statement. Or group multiple frames to create a gallery wall. The standard rule of thumb is that artwork should take up two-thirds to three-quarters of the available space on a wall. 9. Get rid of what you don’t love Everyone has pieces they simply don’t like, whether it’s a pricey chandelier bought on impulse or an inherited piece of furniture that’s just not your style. A new home is your chance to say goodbye! You should truly love every piece of decor and furniture in your home. Sell or donate the things you don’t like because someone else may love them! 10. Use your editing eye Less is often more when it comes to decorating. It’s easy to get caught up in adding pieces which might end up being detractions instead of enhancements. Periodically go room by room and remove items that have either found a home in the wrong place or are simply overwhelming or crowding the space. Let a pro handle it instead Channeling your inner designer isn’t for everyone. If you’re looking for a second home but feeling overwhelmed by the prospect of decorating it, consider a Pacaso. Every Pacaso second home comes fully furnished and professionally decorated. Take a look at the beautiful homes for sale and leave the details to us.
When purchasing real estate, it’s not as simple as buying a property and putting your name on a deed. Just as there’s more than one type of house, there’s more than one type of property ownership, and the one you choose can have practical implications, plus estate planning considerations and tax liabilities. Unfortunately, you may not even realize them until a death occurs or a tax bill comes due. Keep in mind that these are just suggestions, and your situation might call for something else. If you’re unsure which property type will work best, explore your options with a real estate attorney. 1. Sole ownership Type of owner: individuals As the name implies, sole ownership is when an individual is the only property owner. Since they are the only owner, they don’t require anyone’s consent to sell, lease or transfer the property to another person. Property owned by a sole owner is sent into probate when the owner dies until the will is validated. Pros: You have complete control over all the decisions related to the property. Cons: The probate process can be costly and time-consuming, making transferring real estate to your heirs complicated during an already stressful and emotional time, especially if your heir cannot afford the property and needs to sell it. 2. Joint tenancy with rights of survivorship (JTWROS) Type of owner: married couples The most common form of property ownership for married couples is joint tenancy with rights of survivorship, which awards both parties undivided ownership. Both parties have equal liability and financial responsibility for the property, including the cost of upkeep and repairs, as well as equal rights to access the property. In JTWROS, one owner may sell or transfer their portion of the property without the consent of the other owner. Pros: When one owner dies, the property passes immediately to the remaining owner without going to probate. Cons: If one owner has unpaid debts, a creditor can legally force a sale to recoup their money. One party cannot will their share to another heir, such as a child. 3. Tenants by the entirety (TBE) Type of owner: married couples Married couples may instead opt to own property as tenants by the entirety, which is the same as JTWROS, except an owner can do nothing with their ownership portion without consent from their spouse, since the couple is legally considered one entity. Divorce will automatically change the ownership agreement to tenants in common. Pros: If one spouse is ordered to sell the property to pay off debt, the other spouse must be reimbursed their ownership interest. Cons: Only about half of all U.S. states, plus the District of Columbia, recognize TBE: Alaska, Arkansas, Delaware, Florida, Hawaii, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Virginia and Wyoming 4. Community property Type of owner: married couples Only 10 U.S. states are community property states. This real estate ownership type classifies any property obtained by a spouse during marriage as “community property” — that is, owned by both spouses, even if the property is only listed in the name of one spouse. This includes all real estate purchases made during the marriage. The states that recognize community property include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In Alaska, residents can opt in to a community property agreement. The same community property laws apply to registered domestic partnerships in California, Nevada and Washington. Pros: Both spouses have equal rights to the property and must consent to a sale or transfer of the property. Cons: This law makes any real estate obtained during marriage subject to sale by a debt collector to pay off a debt, even if the debt is only in one spouse’s name. 5. Owning trust Type of owner: minor children or adult with disabilities An owning trust entrusts the care and management of a property to a trustee acting on behalf of someone else, usually a child or an adult with special needs. A living trust is established while the original owner (also called a trustor or grantor) is still alive. The trustor names the beneficiary as the owner of the property, but until the trustor’s death, they also serve as the trustee. The property remains in the beneficiary’s name, but a new trustee is selected (usually named by the trust) to keep the property out of probate. Pros: An owning trust allows your property to stay out of probate when you die while also protecting your home from creditors. Cons: Establishing an owning trust can be a complex and expensive process. 6. Tenancy in common (TIC) Type of owner: unrelated multiple owners of a single property When owning property as a tenancy in common, each tenant has a separate deed for their presentation of the property. For example, four owners might divide ownership into four equal shares, or one owner may own half while the other three each own one-sixth of the property. Each tenant is allowed to sell, will or otherwise transfer their ownership share without the permission of the other owners since they lack survivorship rights. When a tenant dies, their ownership passes into probate before being transferred to any named heirs. Pros: You can add owners at any time to minimize your portion of the mortgage, taxes and maintenance costs. Cons: A tenant can sell or will their share in the property to whomever they want, without the consent of the other tenants. If one tenant stops paying their portion of the mortgage and taxes, the other tenants in common are responsible for making up the difference. 7. Owning partnership/LLC or co-ownership Type of owner: unrelated multiple owners of a single property Properties can be organized into a limited liability corporation (LLC) and multiple owners can purchase ownership shares in that LLC. This form of property co-ownership protects the owners and maintains more privacy than a tenancy in common since their personal finances are separated from the LLC. An owner can sell their share in the LLC without content from the other shareholders at any time. Owners can create the LLC by doing it themselves or use a third party co0 like Pacaso. Pros: Properties owned by an LLC aren’t taxed directly, so you may see significant annual tax savings. LLCs allow you to own a property with other people like TIC, but with legal protection in the event of an accident on your property. Your name is not associated with the property, just the name of the LLC, making it more private than a traditional home purchase. Cons: Creating and maintaining an LLC requires contracts and other costs that can be overwhelming on your own. What’s right for you? Different types of ownership in real estate can offer different benefits to owners. If you’re still not sure which type of real estate ownership is right for you and your situation, it’s a good idea to consult a legal professional. How to become a co-owner of a second home Pacaso makes it possible for individuals to become co-owners of a luxury second home in vacation destinations across the United States and beyond. Instead of being responsible for the entire property, you and up to seven other owners share the cost of owning, managing and maintaining a second home — and equitably split time enjoying the home. In Pacaso’s ownership model, an LLC ensures true property ownership for each member. Unlike a timeshare when you only pay for time to use a property, Pacaso ensures you enjoy the many benefits of second home ownership without the high cost or headaches. Plus, Pacaso takes care of all of the management and maintenance, so you can just arrive and enjoy.
Do you have your perfect home in mind but struggle when you try to describe it? Well, you’re not alone. There are many types of houses — with many having their own variants — and unless you’re an architect, it can be difficult telling them apart. Learning what makes each type of home unique can help you in your search for the perfect first or second home. That’s why we’ve compiled this list of common house styles that breaks down their defining features. First, let’s get into house structures. Types of houses by structure Before we get to the different types of houses, it can be helpful to know the common types of residential structures. Knowing whether you want a single-family home or a condo can narrow down your search and make it easier to find something that suits your budget and lifestyle. Single-family detached A single-family home is a structure that is not physically attached to other houses. These homes offer the highest degree of privacy and customization by the owner. They are most popular in areas with lower population densities. Apartment An apartment is a residential unit contained within a larger building or complex. An apartment is only available for renting and requires a contractual agreement with the landlord. Some apartment buildings provide amenities such as pools and fitness rooms. Condominium A condominium, or condo for short, is an apartment-like unit that is owned by an individual. The owner can make renovations and rent out the unit so long as they do not violate the rules of the homeowners association (HOA). Co-op A housing cooperative, more commonly known as a co-op, has many similarities to a condominium but with more restrictions. Instead of purchasing a specific unit within the building, the buyer is purchasing shares in the company that owns the building. The number of shares the person owns translates to the size of their unit. Townhome A townhome is a private unit that is attached to at least one other private unit. It usually has exterior access and multiple stories for added space. Townhomes sometimes provide access to shared building amenities. Coach home Coach houses, sometimes called carriages, were originally used to house horse-drawn carriages and were converted to be private dwellings. Now, a coach house can refer to any detached unit on the same property as another building. They can be rented out by the property owner of the main house, or owned by a second individual. Chalet A chalet is the traditional house of shepherds in Switzerland. Today, the term refers to a vacation home located in the mountains. They usually have easy access to ski routes and are specially designed with steep roofs to deter the accumulation of snow. Cabin A cabin is a type of single-family structure defined by its minimalist features and rustic design. It is often used as a vacation residence but can also be a primary dwelling. Cabins are almost always located in remote areas. Tiny house A tiny home is usually considered to be any home under 400 square feet. Tiny homes were inspired by the modern trend of people downsizing their possessions and financial burdens. Mobile home A mobile home is a factory-built house that can be towed to a lot for a semi-permanent residence. The mass-produced nature of mobile homes makes them an affordable option for home buyers. Modular home A modular home has different sections that are fabricated in a factory. The sections are then shipped to the build site and assembled atop the foundation. Types of houses by architectural style Now that you know the different structures that can make up a home, it’s time to dive into the house architecture styles you’ll likely come across. When we talk about house styles, we’re referring to the exterior aesthetics of each house and some of their practical functions. As you examine the different kinds of houses, take note of what is beneficial for the area you live in, versus what is simply decorative, as this can drive costs up unnecessarily. For example, while a home with tall ceilings and lots of windows may be great for hot climates, it’s going to raise heating costs in areas with harsh winters. Victorian The Victorian house style came to prominence in the 1830s — during Queen Victoria’s reign — and continued into the early 1900s. These homes are quite large, usually two to three stories tall. This type of house is known for its ornate wooden exterior with gabled roofs and turrets. Defining features: Ornate designs Large porch Bright colors Bay windows Turrets Tudor The Tudor house style came to America in the late 1800s and remained popular into the 1930s. Tudor homes often evoke feelings of an English country manor. They were inspired by medieval architectural elements and incorporated masonry, timber framing and narrow windows. Defining features: Asymmetrical structure Mostly brick exterior Timber frame with white stucco filling Shingled roof Farmhouse The Farmhouse style is known for its warm and cozy aesthetics. It typically employs hand-hewn beams and wrought iron hardware over a rectangular design. Farmhouse-style homes often have wood flooring, clapboard siding and contrasting shutters. Some even mimic barn roofs. Defining features: Exposed wood beams Tall ceilings Large porch Rectangular layout Modern Farmhouse Modern Farmhouse homes blend traditional Farmhouse elements with the sleek, clean lines of contemporary design, resulting in warmth, simplicity and functionality. The style is characterized by natural textures and materials, especially wood and galvanized steel. Color schemes lean toward cream with black trim and fittings, though bolder hues are also used. Defining features: Galvanized steel Clean lines Tall ceilings Contemporary features French Country As the name suggests, French Country-style houses take inspiration from homes found in areas like Provence, France. These types of homes share traits with the Farmhouse style by incorporating distressed wood, subdued color palettes and window shutters. They differs in their stone exterior and fireplace. Defining features: Stone exterior Pointed roof Distressed wood Window shutters Mid-Century Modern Mid-Century Modern style is all about simplicity, with clean lines, organic and geometric shapes, floor-to-ceiling windows and minimal decoration. Made popular after World War II, Mid-Century Modern design puts function front and center. This type of home also aims to complement the surrounding environment. Defining features: Straight lines Floor-to-ceiling windows Steel and concrete materials Open spaces Tuscan/Mediterranean The Tuscan style is a natural fit for areas that have a mix of indoor and outdoor living. It’s a style that looks particularly fitting in the rolling hills of wine country and in sunny Southern California. These kinds of houses feature detailed stonework, lavish balconies with wrought iron railings, terracotta tiles, textured walls and stucco façades. Defining features: Stucco walls Tiled roof Wrought iron accents Balcony Ranch Ranch houses first popped up in the 1930s and hit their peak in the 1950s. They are known for open living spaces and low-pitched roofs, rarely being taller than one story. Since these homes hit the market during the suburban boom, they often have an attached garage for commuters and a large backyard. Defining features: Low-pitched roof Attached garage Large backyard Open spaces Split-Level The Split-Level house style is an offshoot of the Ranch style and became popular in the 1950s and 1960s. Its main difference is that it will contain multiple stories that are connected with short flights of stairs. Defining features: Multiple floors Short flights of stairs Low-pitched roofs Attached garage Bungalow Bungalow houses were first constructed in the 19th century by the British elite as simple rest houses. This affordable style was adopted all over America in the 20th century, with offshoots popping up in Chicago, California and Michigan. Bungalow homes are known for their column-supported roofs, large main floors and stone elements. Defining features: One or one-and-a-half stories Exposed rafters Square, tapered columns Stone exterior Cottage Cottage houses were first built by working class English farmers before this type of home was first brought to America. Now, they are ideal vacation homes due to their tight quarters, creating a cozy atmosphere and requiring little maintenance. They can be identified by their wood or wood shingle siding and small front porches. Defining features: Condensed layout Wood shingle siding Small porch Art Deco Art Deco is one of the most visually distinct types of homes in this list. Like Mid-Century Modern and Cottage, this style can also be applied to certain interior design elements. Concerning house architecture styles, Art Deco is defined by its stucco walls with rounded corners and its often flat roofs. Other common traits include glass brick windows, shiny chrome and detailed exteriors. Defining features: Rounded corners Stucco walls Mirrored surfaces Colonial The Colonial house style in America dates back to the 1600s and draws from English, French, Georgian, Dutch and Spanish influences. These homes are at least two stories tall and have a rectangular frame. They have a symmetrical façade with evenly spaced windows. It is also common for them to have a decorative crown over the entryway that is supported by columns. Defining features: Two to three stories Symmetrical, rectangular shape Brick or wood siding Central staircase Cape Cod Cape Cod homes are similar in style to Colonial houses, and they originated around the same time. They also have a symmetrical appearance, but are usually smaller in size. They were designed to withstand harsh weather, so they have heavy shutters to protect the windows and a central fireplace for heating the whole home where essential. Defining features: One to one-and-a-half stories Wood clapboard or shingle siding Symmetrical Center door Craftsman The Craftsman style is a rebellion against the mass-produced homes in modern developments. These houses are handmade and built to stand the test of time. Each one is unique since they are designed according to the specifications of the owner. Some common traits include built-in shelves, custom fireplaces and reading nooks. Defining features: Wood siding Exposed beams Tapered columns Greek Revival The Greek Revival style arose during the 1800s when people found inspiration in ancient Greek culture. This translated to buildings emulating traits of historic structures like the Parthenon. These types of houses in America had large wood columns that were covered in white plaster to mimic stone. Defining features: High ceilings Large entryway White columns Prairie The Prairie house style is a uniquely American creation. These types of houses were created by architects looking to break away from the traditional European styles of the time. It can be seen as a precursor to the Mid-Century Modern style with its heavy reliance on horizontal lines and desire to complement natural surroundings. Defining features: Flat roof Open floor plan Horizontal lines Stucco, stone or brick siding Contemporary The Contemporary style refers to homes that are presently being built and do not fall under a previously defined style. They sometimes share elements with modernist styles — such as clean lines — but will also appeal to current trends, like utilizing eco-friendly materials. Defining features: Clean lines Neutral colors Minimalist details Now that you know the types of houses you’re likely to come across during your house hunt, you can narrow your search down to the styles you find most inspiring and practical to your needs. If you’re currently in search of a second home, learn how Pacaso can simplify the process and increase the benefits of home co-ownership.
A primary residence (also known as a principal residence) is where an individual spends the majority of their time. Second homes are defined by how you use the home — you must occupy the property for a portion of the year, but it cannot be where you live day-to-day. There are key differences between the two occupancy types that lenders pay special attention to when you’re applying for financing. Understanding second homes vs. primary residences Although you might visit a second home for weeks on end, it’s only a personal residence for part of the year. The rest of the time it may be vacant or rented out to others. By contrast, lenders expect your primary residence to take priority because it’s where you live and sleep. You can also own more than one “second” home; a second home is defined as a property that’s secondary to your primary residence. Can a second home be a primary residence? In short, no. A second home cannot be a primary residence because their qualifications are in direct conflict with each other. A primary home is where you spend the majority of your time, and a second home is where you spend a lesser portion of it. Characteristics of each occupancy type Primary residence Owned and occupied at least 2 of the last 5 years Where someone lives the majority of the year The address listed on your driver’s license and tax documents Secondary residence Occupied for some portion of the year Usually more than 50 miles from a primary residence Can be rented out for less than 180 days Example: Alexis and her boyfriend own a house in Detroit, Michigan. Alexis purchases a condo in Florida to enjoy over the winter and holiday weekends. Although Alexis owns two properties, she spends more than 80% of her time in Detroit and uses this address for banking and legal documents. Her primary residence is in Michigan and her Florida condo is her second home. Takeaways A primary residence is where you spend almost all of your time — your day-to-day home A property cannot be a primary residence and a second home at the same time Lenders refer to your occupancy status to determine your financing rates In more detail: Why does occupancy status matter? Lenders care about how you’ll use your property because they use that information to determine your financing. It’s easier to qualify for a mortgage loan on a primary residence and they usually have lower interest rates. Lenders view these loans as less risky — after all, wouldn’t buyers be motivated to continue paying for the roof over their head? Second homes are a different story. They have higher interest rates and tougher qualification requirements because lenders view these properties as investments. It’s critical to be honest about how you’ll be using your home when you apply for your mortgage because misrepresenting your occupancy status can have real consequences: Your lender can demand the full balance of your loan immediately, you’ll pay additional penalties, and you can even face prison time if convicted of bank fraud charges. Can a second home become a primary residence? It is possible to change a property’s occupancy status should you meet all the requirements of a primary residence. An example of this might be if a retired couple decided to downsize by selling their primary residence and moving into their second home. Occupancy type does determine specifics for your financing, so it’s important to reach out to your mortgage lender before making any changes. What happens if I decide to sell my primary residence or my second home? The IRS views second homes as investments. Unless you’ve lived in your second home for an extended period of time before the sale (to change occupancy status), you’ll pay long-term capital gains of up to 20% of the property’s value. Selling your primary residence allows capital gains exclusions. Check with your accountant, but you should be able to write off up to $500,000 on your tax return if you’re filing jointly with a spouse. Does the IRS view a Pacaso as a second home? Your Pacaso is a single-family residence that you own in part as a member of a property-specific LLC. Along with your co-owners, you gain a second home that meets the qualifications outlined earlier (some distance away from your primary residence, occupied for some of the year). Unlike most second homes, Pacaso homes are never rented out. You can rest easy knowing that when you’re not staying at your second home, it’s being well-managed. Can a Pacaso be a primary residence? Pacaso offers second home co-ownership. Owners are guaranteed to stay at least six weeks out of each calendar year, but no one owner can occupy a Pacaso full-time as a primary residence.
A growing number of Americans are warming up to the idea of mindfulness and zen-influenced practices. In fact, between 2012 and 2017, meditation more than tripled in use in the U.S. Having a dedicated room where you can escape negative emotions can make it easier to implement soothing practices on a daily basis. However, not everyone responds well to the same decor and practices, so tailoring your zen room style to your personality will help you get more of the benefits. Explore our zen room ideas for inspiration on designing your own, and follow some expert tips for how to outfit your own emotional escape room. What is a zen room? A zen room is a space where you can isolate yourself from the distractions or negative emotional triggers of the outside world. Traditionally, zen rooms are used for meditation, and having a dedicated area makes it easier to incorporate this practice into day-to-day life. Today, the concept of zen rooms is taking on many forms. People use zen rooms to focus on the activities that bring them peace and a sense of calm, no matter what those activities may be. Benefits of a meditation space A meditation room or zen room is a perfect place to enjoy some solitude. It can be a sacred space for relaxation, de-stressing, or simply introducing greater feelings of rejuvenation. This relaxing room can be an ideal location for reconnecting with self-care practices. What is needed for a zen room? Since the overarching goal of a zen room is to encourage peacefulness, minimizing distractions is a recurring theme. That still leaves plenty of room for personalization, which is partially responsible for zen rooms' growing popularity. Inspiring meditation room ideas include: Cool tones Cool colors and earth tones can increase feelings of serenity. Surrounding yourself with shades of blue, green or purple will aid you in your pursuit of peace. Conversely, using sharply contrasting colors, like blue and yellow, can have a stimulating effect and act as a barrier to getting into the right mental state. According to experts like Rick Berres, owner of the home remodeling company Honey-Doer, “Achieving a peaceful space starts with your use of color. You can’t achieve serenity, zen, and peaceful mindfulness in a violent red room, right? So you need to think about what brings about that sense of calm for you. For most people, that’s either bright white, or a pastel shade of blue or lavender. Think blue skies or spring flowers.” Minimalism Leaving distractions at the door is an important step toward relaxation. With this in mind, keep things simple when designing your zen room. Avoid decorating your relaxing space with too many trinkets or pictures. Prioritize only having items in the room that will nurture your mental well-being. Natural light Abundant natural light can increase feelings of calm in your meditation space. Choose a room with ample windows where you can avoid the need for artificial light during the daytime hours. East or west-facing windows may allow for sunrise or sunset views in your sacred space. Even better, consider creating your meditation space outdoors. Negative space Negative space is an area that is not being occupied by an object. It is an important design element to apply when pursuing minimalist ends. Properly implementing negative space will keep the room from feeling either too cluttered or too bare. Plants Spending time in nature is linked to reducing negative feelings like stress while increasing positive ones. Bringing natural elements like plants into your meditation room can be a great way to bring out those positive emotions. Scents Aromatherapy can be used to induce relaxation. This can take the form of incense, candles or essential oil diffusers. Stay away from scents that are very strong — especially if you are in a small space — as they can get irritating over prolonged periods in your meditation space. According to Lily Wili, CEO of Ever Wallpaper, “Scents such as lavender and jasmine are ideal for creating a calm environment. You’ll instantly get a feeling of peacefulness when you enter a room that smells and looks good. Additionally, it’ll help you focus as you prepare to meditate and let go of negative emotions.” 7 inspiring meditation room ideas for every personality The type of zen meditation room that is right for you is heavily dependent on your personality. Here we’ve constructed four types of personalities, informed by the Myers-Briggs personality test, to help you determine which zen room is right for you. Strategists (INTJ, INTP, ENTJ, ENTP): If you have an analytical mindset and prefer working independently, then this could be you. Strategists tend to be introverts who value logic and order. They have high expectations and often pursue perfection. Creatives (INFJ, INFP, ENFJ, ENFP): If you are an enthusiastic soul with a passion for the arts, then you might be a creative. These personality types are idealistic and charitable. They are tirelessly optimistic and often make inspiring leaders. Practical dwellers (ISTJ, ISFJ, ESTJ, ESFJ): Practical dwellers like to keep facts at the forefront of their minds. They are incredibly caring and like to use their skills to protect their loved ones. They make effective managers and are very reliable. Free spirits (ISTP, ISFP, ESTP, ESFP): Free spirits mix creativity with practical goals. They’re tinkerers and explorers. Plans often get pushed to the wayside in favor of spontaneous ideas. 1. Meditation room Great for: Strategists A meditation room is the classic zen room. Its primary purpose is to center oneself to increase mental peace. A dedicated meditation room can even have physical benefits, like reducing the wake time of insomniacs by 50%. Strive to keep distractions to an absolute minimum. Objects that don’t directly aid your focus should be left in other areas of your home. If possible, select a room that gets plenty of natural light. A sheer fabric can be used as a window shade to diffuse intense light. Since meditation rooms do not require many objects or a large area, sometimes it isn’t necessary to use an entire room. You can design a meditation corner that takes up minimal space while still providing peacefulness. “Regardless of how devoted you are to mindful meditation, the space that is created for sitting (zazen) is important,” says Anne-Marie Emanuelli, creative director of Mindful Frontiers, a mindful meditation coach. “Whether it is a corner in the bedroom with just a pillow and mat or a separate room in the house with an altar, music, incense, and lots of pillows, feeling comfortable in the space will become the container of your meditation practice. It will be where you want to go for a few minutes or hours of calm and mental space.” Meditation room ideas: Minimal furnishings: Give yourself space to wander Plenty of sunlight: Natural light helps you relax Natural elements: Take design inspiration from the outdoors Neutral colors: Keep a muted color palette Zen decor: Incense or scented candles, tranquil instrumental music, a rug and meditation cushion Textures: Wood and stone 2. Music room Great for: Creatives and free spirits Music can give a profound boost to your mood and reduce anxiety, helping you manage stress and even cope with physical pain. If music is a constant in your life, harnessing it in your zen room can have lasting benefits for you. Bring your music collection or instrument into the room — whether you already play one or want to learn. Having a private space to express yourself, free from scrutiny, could not be more important. This is one zen room idea where it is fine to bring in extra knickknacks if they bring you joy. A poster from a concert you went to or your favorite band’s merch is all fair game. It’s all about surrounding yourself with things that elicit positive emotional feelings. Music room ideas: Zen decor: Sound system, records/CDs, instruments, rugs or carpet Texture: Vinyl Color palette: Tan or black and white 3. Reading room Great for: Creatives and strategists The principles behind a reading room are very similar to a music room. Surrounding yourself with books that you are fond of or look forward to reading can bring out comforting feelings similar to a favorite album. Reading can bring down your cortisol levels — a hormone related to stress. The number of books you keep in this relaxing space is limited only by the available shelving. Keep your books organized to avoid feelings of claustrophobia and disarray. If the room is in order, your mind will be less likely to wander from the words on the page. Try sorting books by size or color to discover which produces more calming decor. Get a comfortable chair or couch that you can spend hours in. Reading room ideas: Shelf space: Allow plenty of room for your books Organization: Minimize visual clutter by organizing books by color or size Zen decor: Give a cozy feel with built-in bookshelves, heavy blankets and parquet flooring Texture: Wood and leather Color palette: Brown 4. Hobby room Great for: Free spirits and practical dwellers Sometimes the best way to find inner peace is through actively doing what you enjoy. People who do things they enjoy benefit from lower blood pressure and better moods. Dedicating a spiritual room to your hobbies can help pair the two and lead to constructive mental and physical growth. Your hobby room can incorporate woodworking, painting or puzzling — basically anything you want. Adorn your walls with the tools you use. Display completed projects that you’re proud of. Even enjoyable hobbies can lead to stress when things aren’t going right. By decorating with reminders of past successes, you can recenter yourself more easily and get the rewards of a zen room. The greatest hindrance to a hobby room is clutter. Cleaning the space after every session will help you get into a flow more quickly each day. Hobby room ideas: Natural light: Ample lighting for crafting or tinkering Zen decor: Tools or equipment, countertop space and storage bins Texture: Wood Color palette: Tan 5. Green room Great for: Practical dwellers While most zen styles incorporate natural elements, green rooms take it to the extreme. Cover your floors and walls with plants to fill the space with green leaves and the colors of blooming flowers. Incorporate furniture that’s practical but doesn’t overwhelm the space. Chairs and couches with low backs can make room for plants to hang low and envelop you in a forest of your creation. The aesthetic quality of the plants is only part of the appeal of this room. The act of caring for the plants day to day is where you will find even more benefits. Surrounding yourself with houseplants can help clean the air in the room and promote physical healing. If you find it difficult to meditate because your mind is distracted by stressors, watering and pruning each plant can give you something to focus on. Green room ideas: Small furniture pieces: Allow plants to be the focal point Elevated plants: Hang green plants from the ceiling for an immersive feel in this sacred space Carefully selected plants: Choose plants that match your lifestyle in terms of effort Zen decor: Potted plants, hangers, small furniture Texture: Wood and bamboo Color palette: White and neutral colors (keep walls and floors a neutral color to let the plants take center stage) 6. Yoga room Great for: Creatives and free spirits The meditative nature of yoga makes it easily integrate with the concept of a zen area or minimalist meditation room. While yoga can lower stress levels, it also can improve your physical health overall. The zen decor of a yoga room can be similar to a meditation room, as it also uses minimalist zen interior design elements. Since you won’t want many objects hindering your movements, optimize negative space in the room. Keep objects tight against the wall so that you’ll have free range of motion. Mirrors can be helpful when working on your form, but they can be a distraction when trying to focus. Having the option to draw curtains over the mirrors can increase the functionality of the room as a whole. “For yoga or somatic therapy, anything that requires movement, keeping furniture to a minimum and allowing open space to practice is key,” says Eva Prettyman, principal designer of Lincoln Home and Design, a home design firm. “Incorporating artwork that encourages the state of mind you are hoping to reach, or that have symbols that are wellness-related, can be helpful.” Yoga room ideas: Zen decor: Resin or laminate flooring, incense, a mirror and relevant artwork Lighting: Plenty of natural light Texture: Stone Color palette: Blue 7. Weight room Great for: Strategists and practical dwellers A strenuous activity like weight lifting may seem like the opposite of “zen” to some people, but it’s all about your mindset. Exercise can release endorphins that make you feel good and help you let go of the day’s irritations. Workout rooms help you find your zen by serving as an emotional escape room. Leave daily worries at the door and focus solely on reaching new personal bests. The regimented structure of workout routines can bring order to the chaotic structures of daily life. It’s important to find a balance between the cold practicality of normal weight rooms and the coziness of a zen room. Keep weights and workout accessories well organized to prevent chaos from spilling in. Use ambient sounds like trickling water to drown out distracting noise. Weight room ideas: Zen decor: Resin or laminate flooring, mini fountain and a mirror Music: Portable speaker for inspiring songs Texture: Metal Color palette: Gray How to create a meditation room when you don’t have a lot of space Not everyone has an extra room in their home to create a dedicated meditation space. A meditation room must often do double duty as another functional space similar to a home office, bedroom or patio. And that’s okay. Here are some tips for creating a meditation space and relaxing environment for yourself when there’s not a full room available: Find a quiet corner: Aim to find a space that’s “off the beaten path” of your home where you’re more likely to be undisturbed. Focus on a few key decor items: Decorate your meditation space with a handful of items that make you feel the calmest, whether that’s a cozy blanket, a scented candle or a lush houseplant. Make it portable: Take your meditation space on the go! Gather a few of your favorite meditation room decor items and keep them in a basket. Then, if your available space changes, you can pick up and create your own space anywhere — in a bedroom that’s not being used, in your home office or in the backyard on a sunny day. Incorporating elements of zen into your daily life can have a profound impact on your mental health. If one of these zen room ideas seems like a good fit for your lifestyle, experiment with our suggested design styles. You may like it so much that you implement it in your second home too.
It’s often said that the kitchen is the heart of the home — it’s where friends gather, families cook meals together, flavors come alive and traditions are established. And if the kitchen is the heart of the home, great appliances are what keep it pumping. There's more to kitchen appliances than function, though. Great kitchen appliances become statement pieces in every luxury home. Whether you’re a serious home chef or just like the look of a sleek, upscale kitchen environment, these are the seven crave-worthy kitchen appliance brands you’ll want to add to your wish list when shopping for a new home or planning a kitchen renovation. 1. Gaggenau This German brand is known for its professional-grade appliances including ovens, cooktops, refrigerators and wine cabinets. But the star of the show is their sleek, built-in stainless steel espresso machine. It’s designed to be built into a wall of cabinets, and it features one-touch controls, constant water temperature and an integrated milk system. It’s even Wi-Fi enabled. No matter which appliances you choose from Gaggenau, you’ll enjoy a sleek, industrial-inspired design aesthetic, perfect for modern homes. 2. Miele Another German brand, Miele appliances are popular for their durability. Since they’re manufactured entirely in-house, they’re known to last up to 20 years. Miele’s business is built on the German phrase immer besser (or “forever better"), and their kitchen appliances help amateur chefs achieve just that. With a simple design aesthetic that fits flawlessly in any kitchen, Miele offers ranges, hoods, cooktops, dishwashers and microwave ovens built with thoughtful, convenient features. For example, some of their dishwashers boast knock-to-open doors, so you can more easily open the dishwasher when your hands are full of dishes. 3. Sub-Zero Sub-Zero is without a doubt known for its world-class refrigeration units. This Wisconsin-based, family-owned company has long been the industry standard in commercial kitchens, but the quality of their residential line is just as impressive. This brand is especially valuable for uniquely designed kitchens. They offer a wider range of sizes, depths and styles than most other brands. Another must-have from Sub-Zero? Their undercounter wine storage refrigerator. It’s equipped with rolling racks, UV-resistant glass and humidity-controlling technology. You can customize the door to match your kitchen cabinets, or simply go with classic stainless steel. 4. Wolf A sister company to Sub-Zero, Wolf is known for its professional-grade ranges — you can easily spot their signature red knobs. Ideal for the home chef who wants to cook like a pro, Wolf stoves come in four sizes and are available in gas, dual-fuel and induction versions. With options like an infrared charbroiler, infrared griddle and up to six dual-stacked burners, Wolf ranges can be customized to fit your culinary needs. 5. Dacor Sleek, modern and blissfully high-tech, Dacor appliances are made with a level of attention to detail that can be hard to find — think glass refrigerator doors instead of plastic, dishwashers with third racks for extra space, and a combination convection-steam oven. Wine lovers won’t want to miss their incredible WineStation. It’s an automated, temperature-controlled, four-bottle wine dispensing and preservation system that can keep open bottles fresh for up to 60 days and impress your friends. 6. La Cornue La Cornue ranges are more than just appliances — they’re showpieces. Handmade (and hand-numbered!) in France since 1908, La Cornue ranges really stand out. They feature side-swing enameled steel French doors, polished brass accents and ornate detailing. Since each La Cornue range is made to order, it can take months for your new appliance to arrive. But that also means you have the option to customize. Choose from over 8,000 configurations, colors, finishes and sizes. Rangetop configurations include gas and induction, and you can always add a matching range hood. 7. Bertazzoni Italian-owned Bertazzoni offers high-performance kitchen appliances, including wall ovens, ranges, microwaves, refrigerators and dishwashers. While every Bertazzoni appliance is available in classic stainless steel, their Professional Series appliances also come in a rainbow of showstopping colors inspired by the Emilia-Romagna region of Northern Italy where the company is based — think high-gloss yellow, orange and red. In fact, they even partner with Italian sports car manufacturers to ensure the perfect application of metal, which is all done by hand. Find your dream kitchen in a Pacaso Pacaso second homes are designed with luxury in mind — and nowhere is that more evident than in the kitchen. You’ll find stunning luxury kitchens crafted for those who love to cook, bake and entertain in their own second home. Whether you’re looking for professional-grade appliances, expansive kitchen islands, eye-catching wine storage or a whole separate outdoor kitchen, you’ll find just what you’re looking for in a Pacaso second home.
If you’re wondering how to buy a house in another state — possibly a vacation property — it’s important to get organized and set reasonable expectations about the process. Without being able to see the house in person or drop off paperwork at your real estate agent’s office, you’ll need to plan ahead to stay on top of it all. We’ve gathered these steps so you know where to start with buying a house out of state. You’ll be enjoying mountains, deserts or beaches in no time. 1. Get pre-approved for your new home Mortgage pre-approval gives you buying power to make an offer on a home you love. Meeting with mortgage lenders to determine your loan options and secure pre-approval is the first step for any serious house hunter. Financing a second home still requires a down payment (depending on your loan type) and your mortgage will include an interest rate. In fact, some lenders have larger debt-to-income (DTI) ratio and down payment requirements, since second homes often come with a larger risk for the lender. While you may be pre-approved for a large loan, you should still use a budget to determine how much home you can afford. The pre-approval represents buying power, but you know better than your lender what is a reasonable monthly payment for your budget. Once you know your price range, you can start evaluating the homes and locations you’re interested in. Affordability To some extent, you can use your mortgage pre-approval as a baseline for your budget. It determines your buying power, so you can’t exceed that amount unless you have the cash available to make up the difference. Be careful, however: Your pre-approved amount may overestimate how much you can afford to pay each month. Make sure you build a proper budget before borrowing the full allotted amount. Budgeting for a new home isn’t just about your mortgage payments. Home inspection costs, closing costs, mortgage insurance and homeowners insurance are just a few of the additional costs to consider. Of course, furnishing your second home and the cost of moving can get expensive, too. Start to price out what you’ll need to buy immediately to enjoy your new home as part of your home-buying budget. 2. Research your target destination What you want out of your second home and where you want to live are huge factors that help you narrow your search and give you confidence that a home is right for you. If you’re buying in a larger city, see if there are tour videos on YouTube or local social media groups and Subreddits you can read. Local influencers or parenting blogs can provide a personal perspective of the area without ever making the trip. Consider these location factors to decide if a new town or city is right for you. Property taxes Property taxes are determined by the value of your property (land and structures) and the property tax rate. Property taxes vary by city, county and state, so where you decide to move can have major implications for your taxes. Many government sites have property tax calculators, so you can estimate how much you may be charged based on your buying budget and the local tax rates. However, these are estimates, and other influences, like recent renovations or local real estate market trends, can also impact your property taxes. Cost of living Property taxes aren’t the only cost variable you should consider in your budget. Homeowners insurance, HOA requirements and utilities are all home costs that are likely different than your primary residence expenses, especially if you’re buying in a vacation hot spot. Beyond the home costs, you should consider how much you’ll spend while you’re in town. Groceries and restaurant bills, gas prices and entertainment expenses will also vary so you should set a reasonable budget for each. Attractions and amenities Your vacation home is meant to be a comfortable space to relax with plenty of opportunities to explore and have fun. Consider what attractions you want near your new home: Ocean beaches Lakes for boating Designer or artisan shopping Ski mountains Golf courses Local amenities like the types of businesses, parks and the community as a whole are also valuable insights that can help you envision your life there. If you love local bands and dancing, a bustling nightlife may be just what you’re looking for, while a family of five may want playgrounds and children’s museums. Check local newspaper websites for community events, and the city and community sites to get a feel for what’s happening. Crime rate Safety is an important factor when determining where you want to live. Especially if you’re buying a second home that may be vacant for long periods of time, you want to know your home and possessions are safe. Crime rate data from the FBI or city crime maps can help you research safety if you’re unable to visit a neighborhood. However, you should consider that crime data can be biased, and a safe neighborhood means something different for everyone. Visiting a location at all hours of the day will give you the best understanding of how comfortable a neighborhood is. If that isn’t feasible, check out local social media groups or apps to chat with residents and hear their experiences. Seasonal changes Seasons can impact your personal mood, the entertainment options in a city and the maintenance needs of your new home. Decide ahead of time what you’re willing to live with as far as seasonal changes. If you’re looking for a beach home and hate the winter, consider southern beaches rather than northern East Coast residences that will need winter-proofing and receive heavy snow. Seasonal population changes are also valuable factors in your decision. Is your new home in a university town that will have summer slow-downs? Or is your new property in a tourist town where you’ll be one of many snowbirds flying in for the winter? Understanding what you want from a new town or city, and what seasonal weather or social changes may impact your experience, can help you choose the best neighborhood for your lifestyle. 3. Visit the area Even if you can only swing a weekend visit, seeing a prospective area in person is the best way to experience a new place and decide if it’s right for you. While visiting, think about: How interactions with locals go What entertainment and amenities are available The culture of the town or city What daily life may look like The cost of restaurants, entertainment and shopping Browse Google Maps to check out local shops and restaurants and see which neighborhoods have the amenities you love. Then spend as much time there as possible. 4. Plan your home-buying process Buying a house in another state follows the same home-buying process as buying a home across town, but it requires some additional planning to get everything organized. We’ve already covered the initial steps of finding a lender and determining a general location for your vacation home. Next, the active part of home buying picks up as you chat with real estate agents, start considering active listings and get your paperwork in order to submit an offer. Having a timeline prepared so that you understand the next step is key, and this article is a great reference for the overall process. It’s also a good idea to create a to-do list for each section and identify important dates along the way. For example, if you want to close on a home by September so you can entertain for the holidays, when should you get a mortgage pre-approval and start shopping? If you’re going to take your time looking for the perfect home, when does your pre-approval expire? Here are some other factors to consider for your timeline: Preferred communication among your home-buying team Contact information for agents, lenders, etc. Important dates like holidays or current lease expiration Goals like a date to start getting inspection quotes Assigned responsibilities among home buyers You’ll also want to determine your home-buying needs and wants while considering the home’s features and your budget. Include everyone involved in the decision so you can initially chat through potential compromises and everyone feels heard. Home preferences Before you consult a real estate agent and start house shopping, you should decide what type of house and features you want. Start having conversations with your family about what they want from a vacation home and what you need to be comfortable. Making a list of your wants and needs will help you compromise when house hunting and provide a baseline for when you should make an offer. Wants and needs are subjective, though. A family with a large dog may believe a yard is an absolute must, while someone else who hates yard work may decide a yard is an immediate no. Sharing the style of house you want, your needs and wants, and your neighborhood preferences will help your home-buying team find your perfect vacation home. 5. Find a local buyer’s agent Your real estate agent is a major asset when shopping for a new house, especially if you’re out of state. Finding the right buyer’s agent in another city can be tough, but online reviews, video conferences and phone calls make it easier than ever to decide who’s right for you. Your real estate agent doesn’t just find properties for you to consider — they can give you insight into the neighborhoods you’re interested in and the local real estate market. If you’re buying a home sight unseen, they also help you tour homes virtually, draft offer letters and closing paperwork, and recommend other real estate professionals so your whole home-buying team is top-notch. Additionally, they’ll have the details about local real estate laws and regulations you may be unfamiliar with. Each town, city, county and state can have different laws, so it’s helpful to have your home-buying journey guided by a local professional. 6. Get videos and tour virtually When you can’t tour a home in person, the next best things are virtual tours, videos and listing pictures. Many online home listings even include floor plans so you get a better feel for a home’s layout. A good agent will take you on a virtual tour of a home via FaceTime or Zoom. They’ll help you get an honest look at the property and highlight positives or concerns based on your needs and wants. Even if you can visit a home in person, be sure to take videos and photos so you can revisit your open house experience when deciding if you want to make an offer. It also allows you to share the home with your family and friends to get their opinions. 7. Explore local property management costs Property management costs like lawn care, cleaning, repairs and routine servicing can vary significantly between cities and states, especially if your new vacation home is in a popular tourist destination. If you’re going to be the only resident of the home, you can work with contractors as needed to maintain your property while you’re away. If you want to offer short-term rentals between your stays, a full-service property management company may be worth investing in. With year-round residents, maintenance needs will increase, and you’ll be responsible for any repairs needed to provide a safe and comfortable home for tenants. A property management company would be helpful in taking care of these concerns while you’re at home across state lines. 8. Get your finances in order A second home will add to your recurring home ownership expenses (mortgage payments, insurance and utilities). The actual mortgage process for purchasing a second home also varies from purchasing a primary residence. You may also find your pre-approval includes a higher interest rate than you expected based on your first home-buying experience. Because second homes also mean a second mortgage and increased costs, lenders increase interest rates to accommodate the extra risk associated with a second loan. If you’re planning to rent out the house when you’re not visiting, you’ll still be on the hook for the extra expenses of a second home. However, there are tax benefits available to alleviate some of the cost, depending on how you use your home. 9. Find a trusted title agency Title agencies are responsible for digging into the details of the property’s previous owners, property structures and property lines. This is called a title search, which ensures that the current owner selling the property has full authority to do so. Financing companies will often choose a title company and oversee this process, but some states require that the buyer find a title agency. Your real estate agent and mortgage lender will be able to tell you who’s responsible for this step and can provide recommendations for reputable title companies. Title searches identify anyone who owns or has a right to the property via liens. This is important because it validates your home ownership after closing so nobody else can claim the property. Additionally, any open and undisclosed liens, like unpaid property taxes, can become your responsibility once you purchase the home. If a title search was run, the title company takes responsibility for missing these details in the title search. 10. Get a house inspection A home inspection is another important step toward closing on your new home. Unlike the title search, a house inspection isn’t required to purchase a home, but it is highly advised. A professional home inspector will check the home’s exterior and roof, interior, electrical, plumbing, appliances and more to make sure the home is move-in ready and doesn’t require any major repairs. After the inspection, you’ll receive a report detailing what they found, including any necessary repairs or concerns. At this point, you as the buyer have the power to re-negotiate the home’s sale price considering repairs, ask the seller to complete repairs before you close, or exit the deal without repercussions. Buyers who waive a house inspection agree to buy a property as-is, which means a leaking roof or electrical shortage is entirely your responsibility once you complete the transfer of ownership. 11. Buy your second home Once you’ve chosen a destination, found the perfect home, had your offer accepted, and wrapped up every step of the closing process, it’s time to finally enjoy your new vacation home! There’s no doubt that learning how to buy a house in another state includes a lot of steps, organization and time. Luckily, buying a second home is easier with Pacaso. You can: Browse luxury second home listings Book a virtual or in-person tour Secure flexible financing Co-own a fully managed, turnkey property in more than 40 world-class destinations Financing is key to the buying process. Pacaso offers typically lower second home interest rates than traditional mortgage rates (depending on your down payment). In addition, Pacaso also takes care of the design, furnishings, property management and scheduling, giving you the peace of mind you need when owning a home in another state. Learn more about Pacaso co-ownership today.
You know what you want in a second home, and each person’s wish list will be different. Building a luxury home to fit your lifestyle and tastes can be a rewarding alternative to buying an existing home, since you can create it exactly how you want it. But it can be expensive, and it’s easy to get carried away with luxury finishes. How much you’ll pay to build a home depends on a lot of factors, among them the size of the lot and home, level of finishes and labor costs where you live. Generally speaking, it costs $200-$500 per square foot to build a custom or luxury home. Labor typically makes up 40% of the total cost, with materials, permits and design fees making up the other 60%. To give you a more detailed understanding of where your budget goes when building a luxury home, we’ve broken down the costs into eight key areas. Remember, your specific costs will vary based on the factors discussed above, and fluctuating material costs – more on that later. Land/site One of the first expenses in building a luxury home is your homesite. The cost of land will vary based on the lot size, location and the local real estate market, but it’s also important to consider how the physical features of the land will factor into your budget. For example, a fully wooded lot will require tree removal, rocky soil will cost more to excavate for a foundation, and land with a steep grade might need extra engineering to make it suitable for building. Plan for 3-8% of your budget to go into site prep work (not counting the cost of the land itself). Planning How will you design your new home? There are a few options when it comes to creating blueprints for your new home. The least expensive is to work with a developer and choose from pre-existing floor plans, with some customization options. If you’re looking for a completely custom home, you’ll need to hire professionals to put your vision on paper, including an architect and engineer, and possibly an interior designer. You can expect to spend 5-15% of your budget on these services. Foundation The larger your home, the more your foundation will cost. A larger footprint simply requires more excavation and more concrete. The topography of your lot will be a major factor as well. Building on a hill will cost significantly more than building on a flat, well-drained lot. Generally, your foundation costs should be 5-15% of your budget. Framing In a typical year, framing eats up 10-20% of your budget, but between 2020 and 2021, lumber costs have skyrocketed. By the end of April 2021, lumber prices were up an incredible 340% from the year prior. According to the National Association of Home Builders, this price surge is tacking on almost $36,000 to the average cost of building a new single-family home. Internal systems Your basic internal systems are the behind-the-scenes workhorses that keep your life running comfortably from day to day, and they include things like insulation, HVAC, plumbing and electricity. Luxury add-ons can include radiant floor heating, intercoms, security systems, built-in stereo systems, smart home features, central vacuums, indoor pools, spas and more. Getting these systems right the first time is worth it, in terms of both money and hassle down the road, even though they represent 10-15% of your budget. Appliances & interior finishes This is where you get to have the most fun. Selecting high-quality kitchen appliances, plumbing fixtures and little details like exposed beams and crown moulding can take your home from average to amazing. Plan on setting aside 25-35% of your building costs for interior work. Exterior The cost to build a luxury home also includes essentials like roofing and siding, and the materials you choose will impact your budget. Stone and brickwork will increase the cost, as will specialty roofing materials like slate or metal. You’ll also need to budget for paving walkways and driveways, and for landscaping, including outdoor lighting and sod. Expect to use 15-20% of your budget for this important exterior work. Contractor fees & permits Approximately 17% of your budget will go to paying your contractor and handling miscellaneous expenses like site waste removal and building permits, so be sure to factor in those costs. The Pacaso difference If a luxury second home is in your dreams but the time and money to build it are out of reach, a Pacaso might be a perfect fit. Pacaso co-ownership offers all the comfort of a fully furnished, professionally decorated luxury home in a stunning location. Plus, you’ll get the peace of mind of integrated property management from the experienced Pacaso Crew. Visit Pacaso to view listings and learn more about the many benefits of co-ownership.
You’ve dreamed about buying a second home — the relaxing summer afternoons on the patio, the cozy winter evenings gazing out at the stars — and now you’re ready to make it happen. You’ve come to the right place! If you’re unfamiliar with co-ownership, you may be wondering how the buying process differs from a typical whole home purchase. In some respects, it’s similar — but when you buy with Pacaso, it can also be faster and easier. Here are 11 steps to buying and owning a Pacaso. 1. Find a home you love Dream big! All of our homes are exceptional, so the challenge might be narrowing down your choices. Homes that meet Pacaso’s selection criteria offer great amenities and features, and are located in top second home destinations. A few things to keep in mind when you browse our listings: Home prices reflect the cost of one share, or 1/8 ownership. Operating expenses for each home can be accessed from the listing details page, so you know upfront what costs to expect. Homes marked “Available Now” are actively listed and ready for co-ownership. Homes marked “Prospect” are under consideration for purchase. They are listed for sale on the MLS as whole homes and meet Pacaso’s highly selective home criteria. If there’s enough buyer interest, we’ll purchase the home and turn it into a Pacaso. If you don’t see your perfect match among our listings, let us know what you’re looking for, and we can help guide you. Or, if you’ve seen an amazing listing you think would be a great Pacaso, share it with us! If it meets our criteria, we might purchase a portion of the home through our discovery program for buyers. 2. Talk to us We’re excited to share all the details about our homes. If you’re not sure which one is best for your needs, we’ll go through each home’s unique attributes and location to help you decide. You can easily schedule a time to talk with one of our Crew members from any listing details page, or if you have general questions about co-ownership, you’re welcome to get in touch via our contact form. 3. Take a tour We’ll give you all the information we have about the home, but seeing is believing. While you’re on the call with our Crew member, they can arrange a time for you to tour the home. Buyers can schedule a virtual tour or in-person tour or attend an open house. An in-person tour can be a great opportunity to involve the whole family and enjoy a day in your future second home town. 4. Say yes! You talked, you toured, you fell in love — you’re ready to buy your second home! We’ll walk you through the purchase process and paperwork, and our Crew will make sure you understand all the terminology related to co-ownership, such as: What it means to have ownership interest in a home (the short answer — it’s true real estate ownership) How a Pacaso property LLC is organized and managed, and why it makes co-ownership simpler and more enjoyable The purpose of an LLC operating agreement We want you to feel confident in the process, so ask as many questions as you’d like. Once you’re ready to proceed, you’ll reserve your share with a 10% deposit. 5. Secure financing If you’re interested in financing a portion of your purchase, you’ll work directly with Pacaso and our banking partners. We've negotiated competitive rates and offer multiple financing tiers, up to 70% of the purchase price. Pacaso facilitates the transaction, and the approval process is straightforward and fast. Once all documents are provided — typically your most recent pay stub, bank statement and tax return — approval takes just a few days. You also have the option to pay all cash or take out a HELOC or personal line of credit through a lender of your choice. 6. Close on your new home Pacaso’s closing process is streamlined and, unlike most traditional home purchases, can be completed within days rather than weeks or months. Once you’ve signed your purchase agreement, we’ll send additional documents to review and sign. Some will look familiar if you’ve bought a house before, such as the inspection report and seller disclosures. Others are specific to Pacaso and our property LLC model, including the program manager agreement and operating agreement. Once you’ve had a chance to go through the paperwork, we’ll schedule a call to review the documents and answer any remaining questions. You’ll sign, wire the funds to complete your purchase, and you’re done! 7. Get ready for second home bliss Congratulations, you own a Pacaso! Our commitment to owners doesn’t end at closing. We assign a dedicated Home Manager to each home, and they’ll schedule an onboarding session to ensure you have the Pacaso app, which you’ll use to book stays, and answer any questions. Your Home Manager will be your point of contact throughout your ownership, and they are available to provide support whenever you need it. 8. Book your stays You can begin scheduling stays after closing, and the home will be ready for your enjoyment as soon as home upgrades are completed. The home does not need to be 100% sold before owners can begin using it. As an owner, you have ongoing access to the home, and you can quickly and easily book multiple stays with the Pacaso app, powered by our SmartStay™ scheduling system. Go ahead, plan that weekend getaway you’ve been talking about! 9. Experience the ease of managed ownership One of the best things about owning a whole second home? It’s all yours! One of the worst things? It’s all yours. The responsibilities and hassles of second home ownership can take a lot of joy out of the experience. Pacaso’s professionally managed co-ownership model gives you the benefits of second home ownership without all the headaches. We take care of maintenance, repairs and cleaning; manage payments for utilities, insurance and taxes; handle property management; and so much more. You just show up and relax, every time. 10. Flex your ownership muscles Pacaso’s management services are designed to make your ownership experience easier — but that doesn’t mean you don’t have a voice. In fact, you and your home’s co-owners have 100% ownership of the home once all shares are sold, which means your co-ownership group has decision-making authority. Here’s how this works in practice: Owners can bring major issues about their home to a vote of the co-ownership group, and every share owned holds one vote. A major issue might be a costly home upgrade, like the installation of a hot tub. To call for a vote, you would reach out to your Home Manager. Routine maintenance and necessary repairs (such as replacing a broken dishwasher) are handled by Pacaso and do not require a vote. 11. Feel confident when it’s time to move on We think you’ll love your Pacaso for years to come, but at some point your needs may change. Within your first year of ownership, Pacaso's Home Transfer Benefit™ allows you to easily transfer to another eligible that better meets your needs. You are also free to sell at any time if the ownership interests in your home are sold, and you set the sale price. We'll work with you to facilitate a fast and streamlined resale. Unlike a timeshare, which can be hard to sell and typically depreciates in value, your Pacaso is sold on the open market and any gains realized are yours. Our goal at Pacaso is to make second home ownership simpler, more enjoyable and attainable for more buyers. We’ll help you every step of the way, but the first step is yours — so check out our listings and imagine where the journey can take you.
Cryptocurrency is proving to be less of a trend and more of a force that’s here to stay. And with a single Bitcoin ringing up at a value of over $60,000 (as of October 2021), it makes sense that cryptocurrency investors are thinking big when it comes to tapping into the power of their crypto stashes. Can you use cryptocurrency to buy a house? If you’re considering using Bitcoin, Ethereum, Dogecoin, Litecoin or one of a number of other cryptocurrencies to purchase a home, you’re not alone. It’s becoming increasingly common, but there are some challenges to be aware of, and the volatility of the cryptocurrency market can make some transactions complicated. Former child actor Brock Pierce, now an entrepreneur and director of the Bitcoin Foundation, is reportedly the first person to use cryptocurrency to buy a home, using $1.2 million worth of Bitcoin as collateral to secure a loan for a property in Amsterdam in 2019. While not everyone can be a “Bitcoin billionaire” like Pierce, you can convert your cryptocurrency into real estate. Here’s how (and some pitfalls to watch out for). How do you buy a home with cryptocurrency? There are a few options for using cryptocurrency to buy a home. Convert cryptocurrency to cash One of the simplest ways to use your cryptocurrency nest egg to buy a home is to sell the cryptocurrency for fiat money (dollars) using a service like BitPay, then use that money to purchase a home. However, keep in mind that you’ll need to keep the fiat money in an account in your name for at least two months before it’s considered an asset that can be used to purchase a home, and a deposit that large may get flagged by the IRS. Any money you make from selling cryptocurrency may also be subject to capital gains tax, so check with your financial advisor or tax attorney. Borrow against cryptocurrency Companies like Nexo allow you to use your cryptocurrency as collateral to get a loan in fiat money, which you can then use to buy real estate. However, you’ll find higher interest rates than you would with a typical mortgage (8% or more) and again, you might have some issues with the IRS flagging your account when a big chunk of money appears. On the plus side, if you want to use your cryptocurrency as a long-term investment, it will remain in your account and its value can continue to follow the market trends. Transfer cryptocurrency directly to the seller While it can be challenging to find a seller willing to accept cryptocurrency as payment for a home, many sellers are warming up to the idea. In fact, some sellers are looking to acquire Bitcoin, Ethereum and other cryptocurrencies. In those cases, offering cryptocurrency might push your offer to the front of the pack. What are the pros to buying a home with cryptocurrency? While pros and cons of buying a home with cryptocurrency may be different depending on which method you choose, here are a few pros to consider: You’ll be converting a less stable asset into a more stable one. The market value of cryptocurrency can vary wildly from month to month, week to week, and even day to day. Real estate, on the other hand, is more likely to appreciate and depreciate over longer periods of time. Direct cryptocurrency transfers can happen much faster than traditional home sales. Just like with a cash sale, a direct cryptocurrency sale from one party to another cuts out the hassle and paperwork associated with a traditional mortgage-funded home sale. You may get a better deal. Sellers who would prefer to pad their cryptocurrency accounts may accept a lower offer on a property if it’s in cryptocurrency. You may pay less than you would with a cash offer or mortgage-funded offer. What are the cons to buying a home with cryptocurrency? As enticing as cryptocurrency may be, it’s still something of an unknown entity in the real estate industry. When considering buying a home with cryptocurrency, watch out for these drawbacks: Not all sellers accept cryptocurrency. While trust is growing in Bitcoin, Ethereum and their competitors, few sellers are ready to go all-in and accept cryptocurrency as payment for a real estate transaction, so it may limit your home-buying options. Cryptocurrency exchanges may be subject to capital gains taxes. The IRS considers cryptocurrency a type of property, property that must be sold in order for you to realize its value in dollars. Be sure to consult a tax professional to find out how using cryptocurrency to buy a home may affect your tax liability. You may have fewer legal protections in a cryptocurrency transaction. For users of cryptocurrency, two of its main selling points are security and anonymity. But that means transactions are difficult to trace, so if anything goes wrong, you could face a sticky legal situation. Be sure to consult a legal professional to learn how to protect yourself. Mortgage lenders may not accept cryptocurrency-derived dollars for a down payment. Again, because cryptocurrency is anonymous, when it’s sold and converted to cash, there’s no paper trail that lenders can use to trace a sudden windfall of money in your account, and they may be hesitant to approve your loan without documentation of funds. The value of cryptocurrency is constantly changing. Imagine offering four Bitcoin for a home, having the offer accepted, and then watching the value of Bitcoin double right before the contract is signed. Need we say more? The bottom line If you want to buy a home with cryptocurrency, do your homework and be prepared to face some hurdles. If you’re not sure you’re cut out to be a cryptocurrency pioneer, consider giving the real estate industry a few years to get more comfortable with digital currencies before dropping any cryptocurrency on a house. But if you don’t want to wait, consider using cryptocurrency to buy a share of a Pacaso second home. The process is streamlined — no hurdles! Get the details.
When you think about owning a second home, co-ownership is a great way to lower costs and increase access to potential properties. There are a wide variety of co-ownership structures to choose from, each with distinct advantages and disadvantages. Let’s break it down. The common structures for co-ownership include: limited liability companies (LLCs), tenancy in common (TIC), real estate trusts, and not-for-profit corporations, just to name a few. Pacaso has modernized LLC co-ownership, improving on the proven model to maximize the positives. Offering owners increased protection, tax benefits that may help their bottom line, and increased purchasing power, Pacaso is the smarter way to buy and own a second home. Want to learn more about the benefits of LLC co-ownership? Read on. The basics What is an LLC? A limited liability company (LLC) is a legal business entity composed of individual members that acts to protect its owners from personal liability. Multiple-member LLCs, like those created by Pacaso, are a unified front that represent and protect a group of buyers. A blend of partnership and corporation, LLCs have their own bank account, tax ID number and assets, conducting real estate investment and transactions under their own name, and transforming the way buyers purchase and own a second home. How is an LLC funded? The beauty of LLC property ownership comes from its simplicity. Whether the entity is made up of two members or many, the LLC pays for real estate purchases using its own funds, making it crystal clear where the ownership lies. With Pacaso, buyers purchase owner membership interests in a property-specific LLC. Financing a LLC property is simple. Buyers can use a HELOC or other lines of credit lines. Pacaso also offers qualified buyers flexible financing options. The top advantages of LLCs include: Protection: A second home should be all about relaxation and enjoyment, but accidents can happen. As a general rule, LLCs offer owners increased protection, containing liability within the LLC rather than placing blame on individual owners. For any claim against a property — a guest slips on the infinity pool deck, a passerby interrupts a perfectly hit golf ball, or a neighbor gets a scrape on your ocean shoreline — your assets are protected with an LLC. This is not the case with other forms of co-ownership. Privacy: Privacy is paramount in this digital age, and LLC property ownership is one of the easiest ways to ensure it. When a home is purchased, the LLC name is recorded on the deed and available to the public, as opposed to the owner’s name being in the public records. Additionally, if you’d prefer to keep your second home address to yourself, or you’d rather not have everyone you know able to find the exact sale price online, LLCs offer a simple and smart way to reduce searchability. Profits: One of the major pros of LLC property ownership comes at tax time. With an LLC, properties aren’t taxed directly — owners instead report profits on their personal tax returns. Defined as pass-through taxation, this LLC property ownership benefit should be counted firmly in the plus column when buyers ask themselves, “Can I afford a second home?” — it could mean thousands of dollars’ worth of annual tax savings. Passing it on: Since an LLC operates as a registered business entity, owners can sell shares — or in the case of LLCs, “interests”— of the property to others. The paperwork process is simple and straightforward, and does not require a new deed. Proven model: The last advantage of LLCs is that they are a known quantity. It’s not uncommon to see 20% of homes in a second home market being LLC owned, and they are the most common form of ownership in commercial real estate transactions. The cons Contracts: Though the pros of the LLC property ownership model are huge, the headaches can be too. From finding a lawyer to researching regulations to outlining a complex operating agreement, creating your own LLC can be a major undertaking. And getting it right is critical — your rights, responsibilities, and profits depend on it. Costs: There are costs associated with forming an LLC and for keeping it in good legal standing. The Pacaso solution Navigating the ins and outs of property ownership can be a complicated process, but Pacaso is here to help: Pacaso creates a property-specific LLC for each home, minimizing the hassle while providing all of the proven benefits of this approach. Pacaso does the hard work so you don’t have to. We’ve invested countless hours and boundless energy into consulting with experts to create a best-in-class owner operating agreement that bypasses red tape and brings like-minded buyers together. Instead of going it alone, owners purchase a membership ownership interest sold in ⅛ shares. Pacaso’s professionally managed LLC co-ownership structure allows for a personalized approach, with maximum flexibility to create the operating framework that works best for second home owners. With Pacaso, selling ownership interests is streamlined and secure, a real benefit when and if it’s time to move on. Pacaso helps you leverage all the benefits of LLC property co-ownership of fully managed second homes. It’s true ownership with less expense and stress, and all the joy. (As with all major investments, it’s smart to consult your certified public accountant.)
Owning a second home or a vacation rental property is a dream come true for many people. Yet keeping up with a home in your favorite getaway destination can be more work and expense than many owners are prepared for. From maintenance and repairs to dealing with renters and taxes, it can quickly go from dream to nightmare, especially if you live far away. If you’re thinking of purchasing a vacation home, it’s best to go in with your eyes open. Here’s what you need to know about managing a property, especially if you’re considering renting it out. Overall property management Just like your primary residence, your second home or vacation property will require both regular maintenance and unexpected repairs. Part of what makes second home upkeep so tricky is that you’re most likely many miles away most of the time. In your primary residence, you may spot early signs of maintenance needs — like when the refrigerator is making a weird noise or the hot water is suddenly not so hot. You may not be at your second home enough to notice these early red flags, which means that small, preventative tasks and fixes can turn into major, costly repairs. The best approach is to create a calendar of preventative maintenance tasks to be completed on a regular basis. Depending on the location and characteristics of your second home, this could include a wide variety of to-do’s. Major systems An ounce of prevention really can be worth a pound of cure, to paraphrase the old adage. Preventative maintenance on your home’s major systems can prevent, or at least delay, big-ticket repairs down the road. Furnace and air conditioner/HVAC service Septic system service (if applicable) Water heater maintenance Pool and spa service Chimney cleaning Water utility check valve Test smoke and carbon monoxide detectors Seasonal care You’ll need to pay close attention to seasonal maintenance tasks, especially if your second home is in a location where the weather varies significantly throughout the year. Spring: Prepare the lawn and garden, clean gutters, repair or refinish deck and patio spaces, turn on water features and sprinklers Summer: Get your pool swim-ready, tackle any pest control problems Fall: Rake leaves, clean gutters, shut off sprinklers and valves Winter: Insulate pipes, stock up with items like road salt for icy sidewalks Regular upkeep Another way to keep your vacation property in tip-top shape is committing to regular cleaning and upkeep. This includes things like house cleaning, landscaping, carpet cleaning, filter changes and repainting. Turning your second home into a vacation rental property Many second home owners decide to rent out their property when they’re not using it. This can be a smart way to cover some of your ownership costs, while ensuring your house isn’t sitting empty most of the year. However, vacation rental ownership can be a lot of work, especially if you decide to do it yourself. Before you go down this path, ask yourself these questions: Am I legally allowed to rent my vacation home out (per city regulations or HOA bylaws)? Do I have time to manage this property on an ongoing basis? How often do I want to rent the property vs. use it myself? Am I comfortable with strangers staying in my home? Are there licenses or insurance considerations I should be reviewing? Am I available to answer renter questions around the clock? Is the amount of money I’ll be able to make worth the effort? Key responsibilities of managing a vacation renal property As the owner and manager of a vacation rental, you’ll be responsible for six key areas. 1. Booking and scheduling A vacation rental needs renters, and the vast majority of them find homes on sites like Airbnb, Vrbo, Vacasa, HomeAway, Booking.com and Expedia. Of course, you can try and attract bookings on your own website, but these sites have the reach you need to fill up your calendar. Most vacation rental property owners choose a listing site based on the cost and services available. Some owners choose to advertise on multiple sites, but that requires keeping a closer eye on the calendar to ensure you don’t double-book your property. There are a handful of software tools that help homeowners synchronize their calendars across multiple sites. Regardless of which site you use, you can expect a fair amount of back-and-forth communication between you and your potential guests. Renters often have questions about amenities, availability and restrictions, and most sites facilitate email communication between owners and guests. 2. Decorating and design When you’re first getting your property ready for the rental market, you'll want to make design and decor choices that appeal to renters. Strive for tasteful pieces that are stylish, yet broadly appealing and durable. Make the space feel warm and welcoming, without using breakable or irreplaceable items. You should also make sure that you’ve equipped the property with everything your renters will need. This includes a fully equipped kitchen, bedding and linens (with extra sets!), a starter kit of items like toilet paper and dishwasher detergent, and reliable Wi-Fi. Other touches renters love include things like beach chairs, board games and baby equipment. 3. Finances A knack for numbers can come in very handy when managing a vacation rental. First, you’ll need to determine a rental rate that’s competitive with others in the area. Consider setting different prices based on length of stay, seasonality and holiday demand. Most online listing tools help you determine the right price. Once you’re up and running, you’ll need to keep a good handle on both revenue and expenditures, as well as paying bills for things like utilities, maintenance and cleaning services. 4. Maintenance and upkeep In addition to standard maintenance and upkeep, a vacation rental can need even more attention since renters don’t always treat the property with as much care as you would. You’ll need to ensure that your property is in tip-top shape because renters expect a clean, well-kept home with everything in good working order. Ideally, you would do a quick inspection between every renter, while also blocking out time to take care of larger maintenance and repair issues. 5. Marketing Vacation rentals are a competitive business, so it’s important to help your listing stand out. Use professional listing photos, write detailed and engaging descriptions, and make sure you’re showcasing all of your home’s amenities. Marketing your property isn’t just about attracting guests. It’s also about impressing the guests you already have. After all, your renters are the ones who will be writing reviews about their experience! Little touches like welcome baskets, special offers for local businesses and thoughtful amenities can make a difference. 6. Customer service Great customer service is important when things are going smoothly, but it’s doubly important when they don’t. Be sure you are able to respond to your renters quickly, whether it’s a simple question about how to use something or there’s a major problem. It’s all about how you respond — and how quickly. Consider hiring a property manager Managing a vacation rental property can feel like a full time job — and depending on the needs of your property and renters, it can quickly become one! Many second home owners decide it’s worth the money to hire a property management company instead of trying to handle it all on their own. This can be a smart strategy if you live far from your rental property and don’t want to drive or fly back and forth whenever a maintenance or management issue arises. While the included services vary by each property management company, most of them take responsibility for a wide range of tasks, including: Advertising your listing on multiple listing sites Fielding guest questions and requests before and during their rental period Arranging check-in and check-out Inspecting and cleaning the property between guests Responding 24/7 to guest emergencies Alerting you to any maintenance and repair needs, then scheduling and overseeing the work Coordinating regular and seasonal upkeep Keeping track of rental income and expenses Of course, this work doesn’t come for free. You can expect to pay between 25% to 30% of the nightly rental rate in property management fees. Initial setup fees and extra charges for after-hours or rush requests may apply. An even better option: Pacaso If you want to own a second home but don't want to maintain the home or deal with renting it out, consider co-ownership. With Pacaso's fully managed co-ownership model, you can buy from 1/8 to 1/2 of a professionally designed and fully furnished second home in your favorite vacation destination. Pacaso takes care of all the maintenance and property management of your home, and because you're a co-owner, your home is occupied year-round by other owners. Scheduling time in your home is easy and equitable — all you have to do is to show up and enjoy. Find your dream second home in a crave-worth destination and start enjoying hassle-free second home ownership.
A letter of explanation can be a key to qualifying for home loan funding. If an underwriter requests a letter of explanation, welcome it as an opportunity to clarify your financial situation and clear up any confusion about your credit history or assets. Whether you're applying for a mortgage for your first or second home, writing a letter of explanation can be vital in securing funds. Our guide will teach you how to write a letter of explanation, plus offers a free template to help you write one of your own. What is a letter of explanation? A letter of explanation is a short document that allows you to clarify your financial situation and address any concerns an underwriter may have while reviewing your mortgage application. Underwriters examine your financial history and determine if you qualify for the home loan you’re applying for. Since loan applications don’t include space for explanations, an underwriter may request that you submit a letter of explanation as evidence that you meet the funding criteria. Why do you need a letter of explanation? There are several reasons why an underwriter or mortgage lender may request a letter of explanation. Most pertain to gaps in employment, rental history or on-time payments. Here are some of the most common reasons you may need to write a letter of explanation. 1. You have a poor credit history Your credit history helps lenders know how you’ve handled debt in the past. The following red flags can potentially indicate poor debt management and may require a letter of explanation: Late payments Bankruptcy Foreclosures If your credit score is low, it may be in your best interest to have a letter of explanation on standby. Share the details of how you got negative marks on your credit history and explain why you are still a good candidate for the loan. 2. You don’t have rental history Ideally, lenders want to see that you have a consistent rental history for the last 12 months. This reassures them that you will be able to handle regular mortgage payments. If you have a gap in your rental history, explain the cause. Caring for a family member or recovering from an accident are possible explanations for a rental hiatus. 3. You have employment gaps Similar to your rental history, lenders prefer to see consistent employment in the year prior to your loan application. This shows the lender that you have the income to make regular mortgage payments. It’s possible for a lender to be flexible when they know more about the circumstances that led to an employment gap. Being laid off or raising children are possible explanations for the lack of recent work experience. 4. You report different addresses If the address on your driver’s license does not match the address on your loan application or credit report, a lender may ask you to explain the discrepancy. 5. Your income is inconsistent Underwriters will carefully review your income. If it fluctuates often, they may request an explanation letter. If you are self-employed, your accountant may also have to write a letter of explanation to verify how you generate your income. 6. You work remotely If your remote career is tied to an address in a city or state that is different from where you are buying a home, a lender may request that your company provide a letter of explanation verifying that your career (and income) will not be affected by your move. 7. You have substantial losses on your tax return If you are a self-employed business owner or independent contractor, it’s normal to file losses on your first few tax returns. A lender may request a letter of explanation to ensure that these losses will not be consistent and will not affect your ability to make regular mortgage payments. 8. You cosigned a loan In the event that you cosigned a loan, a lender will want an explanation letter ensuring that you are not the one making the payments. This can apply to student loans, auto loans and mortgages. 9. You opened a new credit account If you open a new credit account while applying for a mortgage loan, a lender may suspect that the debt could affect your ability to repay your loan. Remember that the underwriter will also review your finances during closing, so hold off on opening new lines of credit until the sale is complete, if possible. 10. Your family members are on your bank statements If multiple people appear on your bank statements, like parents or children, you will need to write a letter explaining that you’re in control of the funds being used to pay for your new home. Anyone who helps you with the down payment of the home will also be responsible for writing a gift letter of explanation. 11. Your accounts are under fraud alert A lender will want to know that you’re aware of any suspicious activity on your credit report. If your accounts are under fraud alert or your credit is frozen, prepare a letter of explanation that outlines how you will regain control of your finances. How to write a letter of explanation Before you write a letter of explanation for mortgage financing, you’ll need to gather the following records: Your full legal name Your spouse's full legal name (if applying together) Your current mailing address The address of the lender Your phone number Marriage license if applicable Bills of sale (for large assets like a car) Title transfers Once you have your personal information on standby, you can begin to construct a thoughtful explanation letter that details your circumstances and readiness to be a homeowner. Here is how to write an explanation letter: Address your letter: Write the date and lender’s address at the top of the explanation letter, then address the lender or lending institution. State your financial situation: Be upfront about your financial issues. Your application already indicates something suspicious to your lender, so there’s no need to hide the truth. Quickly state the fact of the matter and proceed. Briefly explain the circumstance: Keep your letter as concise as possible. After you state the problem, provide a short explanation of the circumstances around your issue. Share proof that you’re prepared: After you explain your financial situation, provide the lender with evidence that you are now capable of buying a house. Proofread and close your letter: Check your letter of explanation for any spelling or grammatical errors. Ensure that the tone of your letter is professional and courteous, then close the letter with your full name and current address. Keeping your explanation letter short and sweet is key. If you're struggling to write a concise letter of explanation, model yours after our letter of explanation sample. Letter of explanation template An explanation letter request is no cause for panic. Here is a letter of explanation example to help point you in the right direction: September 20, 2023 Faux Lenders 333 Rent Free Ridge Dallas, TX 75088 Dear Faux Lenders, I’m writing to you to explain the late payments from 04/03/2022-05/04/2022 on my Visa credit card, account #7654321. On March 30, 2022, my spouse had a serious accident that resulted in large medical bills. I was working on a payment plan with the hospital when I missed those credit card payments on my account. As of May 5, 2022, my credit history shows that I have since made regular payments to my credit card company and the hospital. I have attached a copy of my credit card statements from May 5, 2022, to today as evidence of my improved credit score and ability to make timely payments. Sincerely, John Doe 777 Fake Lane Dallas, TX 75088 Writing a letter of explanation can get you one step closer to financing the second home of your dreams. For best results, remember to keep your explanation letter brief, honest and respectful. While you're exploring options for financing a second home, consider the possibilities of fractional ownership. This type of ownership can help you afford more home for less and reduce the amount of mortgage you are responsible for paying. And a fully managed co-ownership model like Pacaso, you leave behind many of the costs of owning a second home like maintenance, upkeep and furnishings. Plus, Pacaso offers flexible financing options. Refer to our free template if you need help preparing an explanation letter for your next real estate purchase.
Travelers seeking adventurous stays without the hotel price tag enjoy the convenient features vacation rentals have to offer. Two popular vacation rental sites are Sonder and Airbnb. Both platforms give travelers an array of amenities in international locations — but which one is better? Our Sonder vs. Airbnb comparison highlights the differences between the two platforms, the pros and cons of each and a third option for travelers who frequent the same destination. We’ll break down: Let’s find the best option for your next vacation. Sonder Airbnb Number of listings 5,000+ 6 million+ Types of rentals Entire units Shared rooms, private rooms, entire units Typical guests Business professionals, digital nomads, solo travelers, groups Business professionals, digital nomads, solo travelers, groups, amilies Fees Nightly fee, taxes Nightly fee, taxes, cleaning fee, service fee Instant booking Available Available Reviews Not currently available Submit a 1-5-star rating and written review within 14 days after the stay Cancellation policy Full refund if canceled within 3 days of booking if the Flex Rate is selected at checkout. No refunds if the Flex Rate is not selected at checkout. Full refund if canceled within 48 hours of booking if the Refundable Rate was selected at checkout (varies). Partial refund after the 48-hour window for select listings. AirCover coverage plan offers full refunds if a similar or better Airbnb is unavailable during an emergency with the original booking. Sonder vs. Airbnb rental types Airbnb is known for unique stays in over 200 countries and regions. From treehouses to vineyard mansions, there is a rental type for everyone’s travel style and budget. Guests have the choice of staying in a shared room, a private room or booking an entire unit. You can book both long-term and short-term rentals, though amenities will vary with each listing. Sonder, on the other hand, is a boutique-style hotel found in over 40 cities across the globe. Guests only have the option to book entire units and are supported by Sonder staff rather than individual hosts. Sonder generally caters to short-term stays and provides hotel-style amenities like bathroom supplies and coffee. Sonder vs. Airbnb user interface Both vacation rental websites have convenient apps you can download on your mobile device. While searching for a place to stay, both rental sites offer these filter options: Location Price range Number of bedrooms Number of beds Number of bathrooms Air conditioning Gym or fitness center Laundry services Parking Given the appeal of Airbnb’s unique stays, not all rental units have Wi-Fi, television or even electricity. However, guests can browse through extensive accessibility features and choose to stay somewhere that meets their needs. All Sonder stays are equipped with high-speed internet and contactless check-in. Sonder does not currently offer pet-friendly accommodations, and availability varies from host to host on Airbnb. Sonder vs. Airbnb selection Given that Airbnb has various rental types in almost every country in the world, guests in need of a stay right away may have better luck on Airbnb. The rental site also specializes in exotic vacation destinations for travelers eager to get off the beaten path. If security and a seamless check-in experience are your priority, Sonder has you covered. Since its listings are only available in major cities, Sonder vacation rentals can be a great option for those visiting tourist destinations. Sonder vs. Airbnb prices and fees Sonder charges a set rate for every unit it lists. This fee includes the price of lodging, cleaning and administration. The only other fees guests will be responsible for are tax and cancellations. Sonder offers a Flex Rate at checkout that offers guests free cancellation and a full refund on their booking for a premium. However, bookings canceled within three days of a reservation do not qualify for a refund or free cancellation. Airbnb, on the other hand, charges a service fee for using its platform and a cleaning fee that can vary depending on the host. Guests can choose the Refundable Rate at checkout for free cancellation within 48 hours and a partial refund a week before the scheduled stay. AirCover by Airbnb is a free comprehensive coverage plan that guarantees all guests a similar or better booking in the event that they cannot check into their accommodation, the host cancels on them within 30 days of their booking or their unit isn’t as advertised. If a similar or better unit is not found, guests will be given a full refund. Sonder vs. Airbnb reviews Airbnb offers both guests and hosts up to 14 days to leave a review. A review is not mandatory for either party, and only hosts are able to respond to reviews left on their listings. Since guests have up to two weeks to share feedback, you may not have access to the most recent experiences of previous renters. Unlike Airbnb, Sonder does not have a rating or review system on its website. Since the platform chooses to operate like a hotel, each listing shares what guests can expect when they book the unit. Third-party reviews, however, are readily available on mainstream travel sites such as TripAdvisor and Booking.com, similar to hotel stays. Sonder vs. Airbnb customer service The Sonder app grants guests access to 24/7 customer support, and in-person attendants are available if virtual communication is unable to resolve the issue. Customer service at Sonder is able to provide guests with fresh towels, coffee refills and no-contact check-ins and checkouts. The customer service experience at Airbnb depends on the listing and the host’s level of involvement. Airbnb provides 24/7 virtual chat services to all guests under its AirCover coverage plan, however, in-person representatives are unavailable. Hosts may be available to help resolve issues, although this depends on the listing and is not consistent within the platform. Sonder vs. Airbnb safety Sonder emphasizes security and health safety within each of its buildings, and guests can select listings with a doorman for an additional layer of comfort. Contactless check-in helps keep guests safe while traveling and units are cleaned after each booking. Airbnb allows guests to share their itinerary with family and friends, which is especially helpful for solo travelers who prefer to stay in remote areas. It is the host’s responsibility to clean and maintain their listings, the hygiene standard can vary across bookings. Contactless check-ins are available but are not standard. Another option for long-term stays: Second home ownership Sites like Airbnb and Sonder offer convenient booking options for occasional adventures. Travelers who find themselves drawn to the same destination, however, have another option that can save them money in the long run. Owning a second home could be a sound investment for those who prioritize safety, consistency and comfort when they visit a destination they love. Not to mention, homeowners can benefit from potential equity and are able to customize their dwelling so they truly feel at home. Owning a second home — especially through a fully managed co-ownership like Pacaso — offers many valuable, unexpected benefits for your family vacations. Rather than wasting time and money looking for vacation rentals, you own a home that you can return to year-round and enjoy a consistent luxury experience. As a co-owner of a Pacaso, you can choose the amount of ownership that's right for you and schedule stays in your home. Pacaso acts as the property manager, taking care of the interior design, furnishings, cleaning and maintenance, as all you have to do is show up and enjoy. So when it comes to Sonder vs. Airbnb, both rental websites offer guests a convenient way to travel internationally. But is one better than the other? That depends on what you need out of your vacation rental. However, if you frequent a particular destination and are searching for a secure and comforting way to enjoy your favorite place, owning a second home could be the solution.
There are a lot of upsides to owning a vacation home: You can set down roots in your favorite vacation destination, avoid paying for hotels time after time, and potentially offset the cost of your vacation home with rental income. But people who rent out their vacation home often find that it’s very time consuming. In addition to regular maintenance and upkeep, owners are responsible for finding renters, accepting payment, arranging check-in and check-out times, resolving issues, and ensuring the property is always clean and ready for the next guest. It’s no wonder many vacation home owners choose to hire a property management company to handle all those day-to-day tasks. Here are some of the key benefits and drawbacks of using a vacation rental management company, plus a guide to five well-known options. Using a property management company: Pros and cons Undoubtedly, the biggest advantage of using a property management company is knowing that your property is in good hands and renters are being taken care of. Most property management companies promise a quick response time to renter issues, so you don’t have to drop everything to respond to renter questions or concerns. Additionally, many property managers work hard to promote listings, which means you may enjoy higher occupancy rates than if you manage the listing on your own. The biggest owner gripe you’re likely to have about property management companies is the cost. Most full-service property management companies charge between 25% and 30% of the nightly rental rate, but how much an owner pays depends on exactly which services are included. Cleaning, maintenance and advertising charges are some of the most common, and you’ll likely pay more to address a maintenance emergency. Initial setup fees may also apply. How to choose the right vacation home management company As you compare and contrast management companies, it can seem like they’re all offering the same core set of services. Here are a few things to consider when narrowing down your choices: Local expertise and presence: One key to providing good service for renters is proximity. Especially if you live far from your vacation property, you’ll want your property management company to have local representatives available. Not only do they have an understanding of the local rental market for pricing purposes, they’re nearby in case of a maintenance emergency. Contract transparency: Not all property management contracts are the same. Make sure you take a close look at commission fees, costs for services like maintenance and repairs, payment terms and the length of contract. Some companies even limit how many days per year you’re able to stay in your home. Customer service: Try to get a feel for both the level of service you’ll receive as the owner and the responsiveness they’ll have with renters. Ask to see their guest relations policy, especially in regards to how quickly they respond. What’s included: Make sure it’s clear upfront what’s included in your management fee and what will be billed to you separately. Rental profits are easily eaten up by things like after-hours maintenance, cleaning charges and marketing fees. Best vacation rental management companies Here is a rundown of five of the most well-known rental property management companies. Note that this list includes primarily large, nationwide companies. There are plenty of local and regional vacation property management companies providing great service as well. 1. Vacasa Vacasa offers full-service vacation rental management, focused on “drive-to” vacation destinations across the United States. They represent about 35,000 vacation homes in places like San Diego, Miami, the Florida Keys, Park City, Lake Tahoe and Cape Cod. You’ll also find Vacasa-managed properties in Belize, Canada, Costa Rica and Mexico. The company focuses on whole-family rentals, including single-family homes, condominiums and townhomes. The hallmark of their offerings is 24/7 customer service for renters via phone or app, as well local management teams in case issues arise. For property owners, Vacasa’s sales marketing services are a big draw. They provide 3D virtual home tours, professional photography and data-driven, dynamic pricing technology. 2. Evolve Since launching in 2011, Evolve has hosted over 10 million guests and served more than 25,000 owners in vacation rentals across North America. Homes represented by Evolve can be booked directly on the Evolve website, but they’re also showcased on sites like Airbnb and Vrbo. Evolve boasts a lower-than-average property management fee, just 10%. It comes paired with a “risk-free guarantee,” which says they only charge their management fee once bookings are secured. Like Vacasa, Evolve offers dynamic pricing and top-notch marketing. They also don’t limit personal stays, so you can enjoy your home as much as you want. Evolve has listings in destinations from California to New England, the Southwest to mountain ski resorts, and plenty of beach towns. 3. AvantStay If your property is on the larger side, you’ll want to take a look at AvantStay. They specialize in vacation rentals for larger homes — from three to 10 bedrooms, specifically. Their portfolio boasts unique properties like sprawling ranches, beachfront homes, mountain cabins, picture-perfect villas and lakeside retreats. They represent homes in trendy locations like Asheville, Austin, the Coachella Valley, Sonoma and Vail, and their rentals are popular with large families and groups of friends, as well as corporate retreat-goers. AvantStay appeals to property owners with specific investment and financial goals, and those who want top-notch service. Owners enjoy the services of a dedicated account manager, flexible contracts and included liability coverage. Perhaps the most appealing perk may be the Vacation Club membership, where property owners earn travel credits that can be redeemed for stays at other AvantStay properties. 4. SkyRun A collective of over 30 independent vacation rental companies, SkyRun offers the technology services and management expertise of a large property management company paired with staff who are on the ground in your destination, making sure everything is running smoothly. SkyRun offers second home owners two key differentiators. First, their preventative maintenance program uses regular inspections and smart home technology to ensure your home is in good working order for every guest. Second, they don’t charge any onboarding fees to new owners. 5. Casago Casago is a smaller, Arizona-based property management firm with a combination of resort properties and individual homes in its portfolio. Management services are available in a focused set of locations, mostly Arizona, Southern California and Mexico. However, Casago operates with a franchise model, which means you’ll find Casago-managed homes in many destinations. Their full-service property management includes marketing, filing of local and state sales taxes, utility payments and everything related to renter management, like check-in and check-out, cleaning, maintenance and monthly inspections. An alternative to renting out your vacation home Many owners rent out their second homes to offset the sheer expense of owning and maintaining it. But it can also be a lot of work, and there’s no guarantee your property will generate enough revenue to offset all or most of your costs. Pacaso offers a great alternative: hassle-free co-ownership of vacation homes in top destinations. Up to eight owners share costs while getting to equally schedule time in their fully furnished and fully managed and maintained second home. Just unpack and enjoy the benefits of owning a second home. Find your luxury Pacaso second home today. Properties are available across the United States, in Mexico and in a growing number of locations in Europe.
If you’re thinking about purchasing a second home, you’ll want to answer the question “Can I afford a second home?” first before you fall in love with a vacation property that’s out of reach. Our second home calculator can give answers to that question and more — with no complicated math needed from you. You’ll also want to read through our list of five key considerations about buying a second home that go above and beyond the numbers. How to use the second home calculator This easy-to-use calculator breaks the number-crunching down into a few steps. Simply plug in details about your monthly income and debt obligations, then continue on to determine how much you can afford. The calculator is only as accurate as the numbers you put in, so try to be as exact as possible with your current financial status. Let’s walk through the steps: Step 1 On the first screen, you’ll input some of your financial data to calculate your monthly debt-to-income ratio. As you do, here are the figures you’ll be asked to enter: Employment income: This is the amount of money you receive from your primary job each month before taxes are withdrawn. Supplemental income: Add any money outside of your primary income that you can reliably depend on from month to month. Rental income is a common form of supplemental money, as are investment earnings, child support and alimony. Current monthly mortgage payment: This is how much you spend every month on the mortgage for your primary residence. For an accurate representation of your monthly costs, you’ll want to include property taxes and homeowners insurance — not just the principal and interest portions of your mortgage payment. Monthly housing expenses: Enter how much you spend each month on other household-related costs, like utilities and maintenance. Monthly debt payments: Total up other monthly payments that go toward debt obligations. This includes things like car payments, credit cards, home equity loans or student loans. Step 2 On this screen, you’ll see your current debt-to-income ratio (DTI). A commonly used term in real estate lending, DTI is calculated by dividing your monthly debt obligations by your gross monthly income. The lower your DTI, the more favorable you will be seen by lenders. This screen also shows you your estimated cash on hand. This is the amount of money you have left over each month after deducting recurring expenses. Step 3 This step helps you figure out how much you can afford to spend on a second home. You’ll be asked to input the following information: Second home down payment: This is the amount of money you’re willing to pay upfront for the home. A larger down payment (20% or more) usually results in a lower interest rate. Second home mortgage interest rate: This is the rate of interest charged by your lender. You’ll want to do some quick research on current interest rates. Note that interest rates on second homes tend to be a bit higher than on primary residences. Mortgage loan length: This is the number of years it will take to pay off your loan. The longer the loan, the higher the interest rate. Step 4 Here, you’ll see your results. Based on all your inputs, you’ll see how much you can afford to spend on a second home. If you’d like to explore Pacaso second homes, you can simply click “View listings” and check out the homes that are available within your budget. Now that you’ve done the math, let’s explore how you can make second home ownership work for you. 5 factors to consider when buying a second home Since lenders make money off of interest rates, they are incentivized to offer the highest amount possible to a home buyer. Just because you may qualify for a large loan doesn’t mean it’s in your best interest to accept it in full. Remember that in addition to monthly mortgage payments, second home owners are still responsible for: Annual property taxes Homeowners insurance Utility payments Possible homeowners association fees Regular maintenance These added expenses can easily cut into your cash on hand. That’s why it’s important to figure out how much you can afford for a second home by using our second home calculator, also known as a vacation home mortgage calculator. For added help in getting the right mortgage loan, read the following five tips. 1. Know your financing options Knowing how you plan on paying for your home will help determine what you will be approved for. Here are some of the common routes home buyers take: Home equity loan: Also known as a second mortgage, home equity loans allow you to borrow against the current equity you have in your home. They provide a lump sum of cash or line of credit for you to make a purchase. If your property loses value, you may owe more on the loan than the property is worth. Conventional loan: You can receive these loans through traditional lenders like banks and credit unions. Just like your primary mortgage, you’ll make monthly payments of principal and interest until your loan is paid off. Cash: Paying for a home in full will reduce the overall cost of owning a second home because you won’t be paying interest on a loan. The purchasing method that’s right for you will largely depend on your current financial status, which we’ll get into next. 2. Revisit your current financial status Lenders want assurance that you will be able to uphold the terms of your loan, so they’ll look at your current financial situation. Typically, you will need to have a favorable credit score, as anything below 640 could result in a rejected application. How much of your income goes to paying off debts is another important factor. Qualified mortgages have a maximum debt-to-income ratio (DTI) of 43%, but many lenders set their own limit below this amount to curtail risks. Your DTI is important because if a large portion of your income is dedicated to paying off debts (including your primary mortgage), even a small reduction in your income can bring your budget underwater. 3. Understand second home mortgage requirements The second home buying process is similar to buying a primary home, but it does have stricter requirements. Along with having higher interest rates — usually 0.5% to 1% higher — second home mortgages usually require larger down payments, too. This is due to the greater financial burden a vacation home places on the owner. The rule of thumb is that your housing and debt payments should add up to 36% of your pre-tax income at most. Sticking to this guideline can prevent you from being “house poor,” which means tying the majority of your income up in housing expenses and leaving little cash on hand for unexpected expenses, either related to your second home or not. Be prepared to pay at least 10% of the second home’s value as a down payment. This is substantially higher than the rate for a primary mortgage due to the added loan risk. 4. Know your options for second home ownership Getting a second home mortgage may be out of reach if your goal is to become the sole owner, but that’s not your only option. Pursuing co-ownership can make up for shortcomings in your financial status and get you into the second home of your dreams. Purchasing your home through a co-ownership model like Pacaso can also provide many benefits that you’d miss out on with traditional methods. For the price of a mid-tier home, for example, you can have a share in a luxury home with all the benefits that come with it, like top-of-the-line amenities, high-end furnishings and a prime location. You’ll simply share ownership with up to seven other owners as part of a multi-member LLC. Pacaso manages the property for you, ensuring it’s flawlessly maintained and stocked with the essentials you need for a relaxing stay. This sort of turnkey ownership allows you to bypass the common hassles — and big price tag — of owning a whole second home. 5. Learn how to increase your borrowing power After evaluating your finances, you may find that you don’t meet the requirements for purchasing a second home at the moment. The good news is that you have the power to increase your appeal to lenders with just a little time and strategy. Offer a larger down payment. Your current income may be fixed for the time being, but if you have enough savings, you can pay a greater percentage of the house price in cash. This will reduce your monthly payment and make your loan less risky to lenders, which may give you access to a lower interest rate. Improve your credit score. Higher credit scores mean lower interest rates, keeping more money in your pocket every month. Paying debts on time has the biggest impact on your score, but utilizing 30% or less of your credit line also plays a big role. Or you can try consolidating your debts so that you’re only dealing with a single payment that might have a lower interest rate. Improve your DTI. If your current debt-to-income ratio exceeds 43%, focus on paying off some of your debts or finding ways to increase your income, or both. Reduce unnecessary spending. Small, individual expenses like eating out add up fast. What small (or not-so-small) luxuries are you willing to forgo in order to secure your second home? If you’re struggling to save for a down payment, take a look at your everyday spending habits and see where you can cut back or find more affordable alternatives. Applying these strategies can put you in better standing to get an affordable loan in the near future or down the road. Track your progress over time Still wondering, “Can I afford a second home?” Even if the answer isn’t a yes right now, you have the power to change it. Bookmark this calculator and come back to recalculate based on your progress. When you’re ready to make a second home purchase, Pacaso will be ready to help you through the process and find you the house of your dreams.
Your home should reflect your personality, your style and your tastes. Whether you fancy yourself an amateur interior designer or just want design inspiration you can trust, there are luxury furniture brands for every design style. If you’re redecorating your home, furnishing a second home or just enjoy decorating eye candy, you won’t want to miss these 20 luxury furniture brands. 1. Artifox Calling all minimalists! Artifox is known for minimal yet functional style. This online-only shop offers solid hardwood desk, tables, shelves, lighting, benches and even the occasional wooden bike rack. Everything is designed to work seamlessly with your electronics, making this St. Louis-based company especially popular with the work from home set. 2. Design Within Reach With showrooms across the country and a vast online store, Design Within Reach offers a can’t-go-wrong approach. Everything is carefully curated to fit a modern aesthetic, and if you’re not sure where to begin — or are overwhelmed with all your options — they offer complimentary design services in store, in your home or via virtual live chat. 3. Jonathan Adler The eponymous Jonathan Adler brand is known for its bold color choices, conversation-starting accessories and glamorous aesthetic. Whether you want to spruce up your decor with just a few vibrant pieces or are going full glam, the Jonathan Adler website is simply bursting with options. Choose from furniture, rugs, lighting, bedding, arts, accessories and even pottery — the medium where Jonathan Adler himself got his start. 4. Castlery Channeling your inner Don Draper? Castlery is a haven for Mid-Century Modern design, with clean lines, geometric shapes and the effortless combining of mixed materials. Castlery is a direct-to-consumer brand, which means they oversee the entire build, ship and delivery process. Not sure what you’re looking for? They offer free swatches so you can see what a fabric will look like in your space. 5. Interior Define Interior Define appeals to hands-on home decorators who want complete control over their purchase. The site offers the ultimate in customization, with over 20 collections of furniture pieces, over 125 fabrics and more than 20 leg choices. You can even customize the length and depth of your furniture and choose your seat cushions. Free design services and 3D visualizations are an added help when you’re not quite sure about your choices. 6. Lulu and Georgia Don’t let the cute name fool you — Lulu and Georgia is seriously sophisticated. Because they work with a wide range of designers and feature exclusive collaborations, they offer furnishings and one-of-a-kind vintage items for a wide range of design styles. Exclusively online, Lulu and Georgia has everything from wallpaper to outdoor furniture and sofas to barware. 7. 1st Dibs Go green with 1st Dibs. Less a traditional furniture brand and more an online marketplace for design lovers, the site allows trusted sellers to offer vintage, antique and one-of-a-kind pieces through direct purchase or auction scenarios. Because of the wide range of products and styles in the marketplace, 1st Dibs appeals to those who enjoy hunting for something specific or delight in discovering something unexpected. No matter what you find, you’ll love knowing that wonderful pieces are getting a second chance to be loved and used. 8. MasayaCo The town of Masaya, Nicaragua, has long been a hub for artisans and handicrafts vendors. It’s also the home of MasayaCo, a design company that offers a unique collection of furnishings handmade from renewable hardwoods and crafted in Nicaragua. Their best-known products are hardwood armchairs, featuring a variety of handwoven patterns on the back and seat. 9. Sunvilla Home When it comes time to furnish your outdoor space, check out Sunvilla Home. This California- and Florida-based furnishings company is dedicated to outdoor seating, dining tables, umbrellas and fire pits. To ensure every piece can stand up to the elements, they use materials like marine-grade rust-proof aluminum, handmade wicker and Italian-made performance fabrics that resist staining and fading. The brand also stands out for its 10-year warranty. 10. Arhaus In stark contrast with the “fast furniture” movement, Arhaus was founded in 1986 with the goal of creating heirloom-quality furniture that is sustainably sourced. Today, they continue that mission by partnering with artisans who use reclaimed and recycled materials whenever possible. At Arhaus, you’ll find furniture pieces for every room in the house, all with a clean, modern aesthetic, yet with enough classic styling to endure shifting trends. 11. Sundays As the name implies, the design aesthetic at Sundays is relaxed, warm and welcoming — think boucle loveseats, upholstered beds and solid reclaimed oak tables. The company is based in Vancouver, British Columbia, but ships to the United States and offers free swatches. Need to touch and feel before buying? They recently opened their first U.S. showroom in Seattle. 12. Knoll Since 1938, Knoll has been collaborating with some of the top modern furniture designers in the world. Today, you can shop these collections online, searching by room or designer — Mies van der Rohe or Eero Saarinen, anyone? In addition to the wide selection of mostly Mid-Century Modern home furnishings, Knoll has an impressive collection of work from home furniture pieces, including desks, work chairs, lighting, storage and accessories. 13. Kelly Wearstler Give your home the look and feel of your favorite high-end hotel with furnishings from Kelly Wearstler. This American designer has furnished everything from the Viceroy Hotels and Residences to the Four Seasons, and you can buy pieces from her collection online. Her furnishings are highly textural, feature geometric patterns and make ample use of stone. 14. Croft House For California-chic decor, look no further than Croft House. Designs are bright and airy, making use of woods like birch and alder, plus cream upholstery, to reflect natural light. Because every piece is handmade in the company’s Los Angeles workroom, there are endless opportunities for customization. Change the leather on an armchair. Reconfigure the drawers in an armoire. Extend the length of a sofa to perfectly fit your living room. 15. Tov Once you’ve decided on all your core furniture pieces, check out Tov for conversation-starting accessories. While the woman-owned brand does offer furniture, it’s the accessories that really stand out. Choose from lighting, mirrors, wall art, throw pillows, blankets, vases and bookends, many of which showcase an inventive use of metallics, beads and fabrics. 16. RH Formerly known as Restoration Hardware, RH offers high-quality designs and effortless style. Perhaps their most famous piece is the Cloud sofa, which they tout as the world’s most comfortable sofa. It has a relaxed silhouette with a low back and broad arms. Simply put, it’s designed so you’ll sink right in. They also offer stylish collections of bedroom furniture, plus enough outdoor furniture to outfit all of your al fresco space. 17. Perigold Instead of offering products from one designer or a singular in-house design team, Perigold is a platform where you can shop a wide selection of upscale design brands, including Soicher Marin, Lalique, Kartell, Flos and Theodore Alexander. In addition to furniture, Perigold has rugs, wallpaper, lighting and accessories. Expert design services are also available. 18. Maiden Home Maiden Home pairs the heritage techniques of North Carolina furniture artisans with a New York-based design studio. The outcome is chic, stylish furniture pieces with a meticulous attention to detail and long-lasting craftsmanship. From sofas and ottomans to dining tables and beds, every piece is made by hand with luxury materials. Design advice is available via email, phone or video call, and you can even take advantage of free services like design boards, floor plans and new home consultations. 19. Floyd Founded on Kickstarter in 2013, Floyd started by selling table legs that would allow customers to turn found surface material into a table. Today, they’re a full-fledged furniture company, but their philosophy has remained the same: Furniture should be well designed, long lasting, and evolving — for example, the Floyd Bed can adapt to fit multiple mattress sizes. Their sleek, modular sectional is endlessly configurable and comes in 19 colors, from muted to bold. 20. Eternity Modern A darling of design magazines, influencers and interior designers, Eternity Modern sells super-modern home furnishings that truly stand out. Their most well-known piece is the Mario Bellini sofa. It's a modular, bubble-shaped sofa that can be configured to fit any space — and it always stands out. Need to see it in person before you buy? They have an appointment-only showroom in Irvine, California. Leave it to the professionals instead If you’re feeling overwhelmed at the prospect of decorating a second home, yet you want to make sure your space feels stylish and complete, consider buying your luxury vacation home with Pacaso. Every home in our collection is expertly designed and furnished, with a focus on both beauty and function. Pacaso designers take design cues from the surrounding area, whether that’s Colorado mountains, Florida beaches or California Wine Country. Find your Pacaso second home and enjoy hassle-free ownership in a great destination, starting at ⅛ share.
Many people dream of owning a second home, but the thought of an extra set of taxes, utility bills and maintenance responsibilities snuffs out any hope of making that dream a reality. But what if you could share the financial load (and workload) of home ownership with someone else? Joint tenancy — or an ownership agreement between two or more entities that provides equal shares of a property — could be the solution. Read on to learn more about what joint tenancy is and how it can protect your rights as a homeowner. What is joint tenancy? Joint tenancy is a legal agreement between two or more parties on a piece of real estate, in which each party has an equal share of the property. Relatives, married couples, long-term partners and friends can all establish joint tenancies. Joint tenancies involve rights of survivorship. This means the ownership of the property passes straight to the surviving tenants upon the death of a deceased owner without going through the probate or court systems. Joint tenancy falls under the umbrella of joint ownership — when more than one person owns a share in a piece of real estate. In a second home, shares are usually divided by fractions or percentages based on the amount of money and/or sweat equity you invest in the home. The three main types of joint ownership are joint tenancy, tenancy in common and limited liability corporation (LLC). Most joint ownership agreements are drawn up by legal counsel to ensure all joint owners are on the same page. How does joint tenancy work? Any two people can form a joint tenancy; they don’t need to be married (though this is common). With joint tenancy, co-tenants have equal interest in property ownership, and each co-tenant has full access to the property. Tenants may occupy the property together or separately. What are the rights of survivorship? Rights of survivorship exist within a joint tenancy agreement. This means that if one of the co-tenants dies, the other co-tenant will immediately become the sole owner of the property. The validity of a person's will is decided by probate courts, which also decide how to distribute the deceased person's assets among their beneficiaries, with the exception of real estate in a joint tenancy agreement. What are ownership rights? Property ownership can look different depending on the legal conditions laid out in your agreement. Broadly speaking, ownership includes the rights to acquire, use and sell a property. Joint tenancy is by far the most common ownership structure, as many people who invest in properties tend to be either related or married and wish to pass down their property to their next heir. Benefits of joint tenancy Unlike a timeshare or membership in a fractional vacation club, a joint tenancy arrangement gives you all the rights and privileges that come with real estate ownership. This includes but is not limited to earned equity in the home, the right to sell (as long as it’s in keeping with the joint tenancy agreement) and free use of the property according to your share. Affordability The cost of a home doesn’t end with the purchase price. Insurance, taxes, maintenance, utilities and HOA fees stack up, and having one or more joint owners to share costs can significantly lighten your financial load. Plus, rather than shouldering the full cost of a home, joint tenancy of property lets you cut that cost in half — or even more. This can greatly increase your buying power and help you get more home for less money. Protection Joint tenancy lets you share the less-than-fun tasks of home ownership and maintenance with your co-owners. All co-tenants are responsible for property maintenance. So, if you’ve ever wished there were two of you so one of you could meet the plumber while the other is at work, joint tenancy of a property might be right for you. Plus, if the property is occupied regularly, it prevents maintenance issues that arise from neglect. Someone is more likely to be around to notice when there’s a leak or a crack, or a fallen branch that needs attention. Easier legal process Surviving co-tenants don’t have to deal with probate, the drawn-out legal procedure the court system utilizes to validate wills due to the right of survivorship. Regardless of whether the decedent made a will, the surviving co-tenant(s) have instant access to their part of the property without having to go through probate. Convenience Joint tenancy can also offer a consistent vacation experience. Rather than scrambling to find open dates in a rental with good reviews or stuffing yourself and your luggage into a questionable hotel room, joint tenancy in a second home gives you the freedom for last-minute trips and packing light. Cons of joint tenancy The strict regulations of joint tenancy can protect you if a co-tenant tries to profit from your investment, but those same conditions may make it difficult for you as well. Co-tenant relationship challenges Difficulties may develop if the relationship between co-tenants alters. Co-tenants must agree on decisions regarding the property, and this can be increasingly difficult if disputes arise. Without the expressed consent of all co-tenants, nobody can sell their portion or the entirety of the property. For example, if a married couple shares joint tenancy of a property and decides to divorce, they will still be held accountable for paying all debt until the person who receives the full stake of the property refinances. Increased responsibility If a co-tenant falls under financial hardship or loses employment, the other tenants must agree to continue keeping up with mortgage payments to avoid the property going into default. Joint tenancy vs. tenancy in common Joint tenancy Tenancy in common Property deed Co-tenants are added to the deed at the same time. Co-tenants are added to the deed at various times. Rights of survivorship The title is passed to the surviving owner. The title is passed to the individual’s estate. Termination of tenancy This occurs when a tenant sells or transfers interest to another tenant. This occurs when a tenant buys out the other, the property is sold or a partition action is filed. Joint tenancy and tenancy in common both involve property ownership and provide similar legal rights for co-owners. However, joint tenancy and tenancy in common have a few significant differences. Property deed: In joint tenancy, the co-tenants are added to the deed at the same time. With tenancy in common, the co-tenants are added at various times. Rights of survivorship: In joint tenancy, the property title is passed to the surviving owner(s) in the case of death. With tenancy in common, ownership is passed to the individual’s estate. Joint tenancy has rights of survivorship whereas tenancy in common doesn’t. Termination of tenancy: A joint tenancy can be terminated if one of the parties sells or transfers their interest to another party, therefore changing the original arrangement. Terminating tenancy in common occurs when a co-tenant buys out another, the property is sold or a partition action (which allows a recipient to sell their share) is filed. The most significant difference between joint tenancy and tenancy in common is that joint tenancy provides equal shares for all parties, whereas tenancy in common has unequal shares and various interests. Interested in a more hassle-free way of owning a second home? View Pacaso luxury listings and learn about second home LLC co-ownership.
Imagine this: You rent an apartment or a house in the heart of a city you love, but you can’t afford to purchase your own property there. Instead, you consider buying a second home in a different place — one where you can spend weekends or take much-needed vacations. This is the reality when your second home is the first one you buy. Buying a second home while continuing to rent your first home is a good option for some — and it’s made even easier with Pacaso. Read through this guide to identify the pros and cons of this type of second home ownership and what you should consider before buying. Buying a second home while renting the first Competitive prices and the decline in housing affordability are major housing market concerns. Many people are unable to buy a home where they currently live, especially in major U.S. cities because of: Inflation Increased interest rates Rising home prices A lack of supply in metropolitan areas So why are some people buying a second home before purchasing their first? In simple terms, buying a second home in a smaller market may mean lower prices, depending on the destination. Families and individuals with affordable rent payments may choose to pursue this type of home ownership while continuing to rent their current residence. In fact, 81% of first-time home buyers expressed an interest in buying their second home first in order to use its rental income and property value to eventually purchase a primary residence in their desired city or state. While this type of second home ownership is unconventional, it allows owners to finance their own property for personal enjoyment and gain instead of waiting for the market to settle. The pros and cons of buying a second home first Pros Cons Potential for additional income from renters The monthly outlay for a second home mortgage and primary home rent Personal property for vacations and remote work Home maintenance and management from afar Potential resale profits and property appreciation Property depreciation possibilities Certain tax breaks and advantages Unpredictable renter behavior Lifestyle flexibility Feeling obligated to vacation there Potential for larger indoor and outdoor areas Cost and reliability of utilities in some destinations There are plenty of benefits to second home ownership — especially professionally managed LLC co-ownership — but there are also a few challenges for people buying a second home first. Pros of buying your second home first Before deciding to purchase your second home while continuing to rent your first home, it’s important to identify the benefits of this type of home ownership. For example, second home ownership of this nature can afford certain benefits like: Potential for additional income from renters, which can help offset the expenses of a second home Personal property for vacations and weekend getaways Potential resale profits and property appreciation, which can be used in the future to purchase a primary residence Certain tax breaks and advantages when reporting secondary income and mortgage interest Larger indoor and outdoor property possibilities, including yard space and additional bedrooms, bathrooms or flex spaces Lifestyle flexibility for those wanting to split their time between different living environments Getaways for remote workers away from their primary home base While the benefits of second home ownership can be attractive, there are a few challenges to buying your second home first. Cons of buying your second home first The challenges of buying your second home first are also essential considerations to keep in mind when exploring second home ownership. Buyers should be aware of these second home ownership challenges: Multiple home payments can put a strain on finances if not budgeted correctly. Property depreciation (rather than appreciation) is possible due to changing real estate markets and property placement. Home maintenance and management from afar can be costly, especially if the repairs are unplanned or urgently needed. Unpredictable renter behavior can lead to costly repairs. Owners may feel obliged to vacation at their second home rather than go to another vacation destination. Costs and reliability of utilities vary in off-grid or remote destinations where homes can be hard to reach. These challenges may not be dealbreakers, but they are still important to consider. After identifying both the pros and cons of buying your second home first, there are a few major considerations to weigh before making a final decision. 6 elements to weigh before buying a second home first A smart first step is determining how much you can afford to spend on a second home. Then weigh six other major considerations before jumping into second home ownership. Intended use How do you intend to use your property? Will it be for personal use as a vacation home or do you intend to rent it out full- or part-time? How you intend to use your second home will affect mortgages, taxes and property management. Potential What is the long-term investment potential of your property, as either a vacation home or rental property? Buying a second home first can be an investment in property ownership. Of course, housing markets fluctuate, so equity gains and losses are dependent on where you buy. Taxes Before purchasing your second home, consider taxes — particularly vacation home taxes. If you choose to lease out your second home as a rental property, you may be required to report the income you make and deduct your home expenses on your taxes, depending on the classification of the property. However, there are also some major second home tax benefits to consider as well. Many filers can deduct mortgage interest and property taxes, while income earned from renting a property less than 14 days a year does not need to be reported. Before buying, you might want to consult with a tax professional. Mortgage rates Mortgages for vacation homes, investment properties and primary residences are all different, and mortgage loans for primary residences are usually easier to obtain than others. When your second home is the first one you buy, it’s important to consider how you will use the property before applying for a mortgage. Vacation home loans and investment properties also have higher interest rates than traditional loans — investment mortgage rates can climb as high as 0.75% higher than a general loan. If you plan to spend time in your second home throughout the year, registering your property as a vacation home is your best option to secure a mortgage rate that is usually about 0.5% higher than those for a primary residence. Home maintenance costs Owning a second home means taking care of the property and ground. On average, home maintenance costs for secondary and rental properties are estimated to be 1% of the home’s overall property value. For example, a home valued at $150,000 will likely need approximately $1,500 in maintenance each year. Maintenance costs will vary, of course, depending on the size of your home and where it is. In addition to the general maintenance of the home and yard, you may need to invest in specific siding or roofing materials to accommodate a homeowners association. Property management If your second home is a good distance from your primary residence, you will need to consider how to manage your property from afar. You may need to consider hiring a property manger to handle the day-to-day operations of your property. The property manager is responsible for things like collecting rent from tenants, setting rent prices to fit the market, seeking out and approving new tenants, coordinating leases and following up on maintenance requests.
Costs are rising all over the world, and that has hopeful travelers exploring their options. Many people save money and personal days all year for their one big vacation. If you expect your old travel budget to go as far as it did in past years, you may be in for a surprise. Surveys show that 28% of travelers plan to spend more than they budgeted for in 2019. The average vacation cost may be on the rise, but by identifying the key expenses in your trip, you may be able to make it more affordable. Average travel cost for a vacation Travel arrangements related to your vacation costs rack up fast. Not only do you have to figure out how you’re getting there, but you’ll need to know how you’ll be moving around once you’re there. A solo traveler is more likely to find a single seat on a plane and make due with public transit and rideshare services at their destination. That way, they’re able to avoid the added burden of looking after a car — as well as the added expenses that come with it. Traveling with two or more people can complicate things. Even if the price of airfare for a family of four is not outside of your vacation budget, the daily cost of a rental car or rideshare services for everyone may be too much to handle. Driving your own car to the destination — even with today’s gas prices — or using public transit may put the cost of a trip within reach. Average lodging cost for a vacation Getting to your relaxing destination is only part of the battle. Where you choose to stay will also play a huge role in your average vacation cost. Hotels have historically been the tried-and-true favorite, offering safety and dependability to travelers — but they do greatly increase the average cost of a vacation per day. Solo travelers can look to hostels for a cheaper alternative, so long as they’re willing to give up some of their privacy. Vacation rental services like Airbnb and VRBO offer alternatives to hotels for travelers with more demanding needs. These services can provide multiple rooms at a reduced rate per person than most hotels are able to offer. Average food cost for a vacation A big motivator for travelers is being able to experience local food. Unfortunately, restaurant bills can be three times the amount of making the same meal at home. To help keep your food expenses low — as well as the cost of a trip as a whole — try to limit the number of times you eat out during the day. Taking advantage of a hotel’s complimentary breakfast is one easy alternative. Booking lodging at a place with a kitchen means you can purchase local food and prepare it yourself. The money you save by substituting these meals can be used toward a special meal at a restaurant, or it can be used toward offsetting your other vacation costs. Average entertainment cost for a vacation While the other three categories are rather predictable factors in your average vacation cost, what you plan to do on your vacation is more of a wild card. Visiting family will likely keep entertainment costs low, but a multi-day trip to a luxury ski resort can quickly push trip costs out of your budget. Planning your activities in advance can help reduce costs. Similar to plane tickets and rental cars, buying in advance can help you take advantage of discounts that may not be available to people making purchases on the day of. If you’re traveling with your family, look for activities that have group rates, like national parks that charge by the vehicle. Tips for budgeting on vacation A good budget will help you save money during your vacation, making it possible to experience more throughout the year. Apply these tips while planning your budget and you might be able to come in lower than the average vacation cost. Make reservations far in advance. Travelers can save up to 38% by booking rental cars three months out. Travel to locations outside of their peak seasons for discounts on airfare and lodging. Use credit cards that have travel rewards or customer loyalty programs. Save money on food by preparing meals yourself or taking advantage of a complimentary hotel breakfast. This can make a $15 meal free or cost only $5. Due to inflation, it’s becoming more difficult for people to travel without going into debt. Learning about average vacation costs is a great starting point for planning your trip and keeping expenses under budget. If you travel to the same location regularly, buying a second home there can reduce your lodging expenses. If owning a second home feels like it’s out of budget, there’s also the option of co-ownership to further curb costs. Average vacation cost FAQ Here are answers to some common questions about budgeting for vacation. How much does the average vacation cost for one person? The average vacation cost for one person in the U.S. is about $1,919 per week. Individual costs will vary based on the traveler’s mode of transportation and lodging. How much should I budget for a vacation? Many people set aside 5-10% of their net yearly income for leisure travel, but this can vary greatly based on the type of vacations they’re planning. Another popular budgeting option is the 50/30/20 rule: 50% of net income is spent on things you need 30% of net income is spent on things you want 20% of net income is saved This approach requires the traveler to factor their vacations into their total leisure spending, but allows them to work with a greater sum of money. How much cash do you need on vacation? It is recommended you have roughly $50 to $100 per person in cash for every day of your trip. So, two people traveling together for a week should have between $700 and $1,400 between them, depending on the activities they plan to experience. Sources: US Travel | Hopper | Kayak | Zutobi | Budget Your Trip | Camper Report | All The Rooms | Consumer Affairs | Statista | Outside | Family Skier | Business Insider
If owning a million-dollar home is one of your life goals, you’re not alone. Let’s examine what it takes to afford a million-dollar home, including annual income, mortgage payments and other costs of ownership. What annual salary do you need to afford a million-dollar house? Experts suggest you might need an annual income between $100,000 to $225,000, depending on your financial profile, in order to afford a $1 million home. Your debt-to-income ratio (DTI), credit score, down payment and interest rate all factor into what you can afford. If you make a 20% down payment ($200,000), and have few monthly expenses, you can likely secure a mortgage with a good interest rate (say, a 30-year fixed-rate mortgage at 2.75%). This would bring your monthly mortgage payment to about $4,100, before things like property taxes and homeowners insurance are factored in. Even if you make $200,000 annually, that’s still a quarter of your income going just to principal and interest. If your credit is worse or your down payment isn’t as high, expect the monthly cost to be substantially more. With a 20% down payment, typical closing costs can be more than 2%, meaning an additional $16,000 on top of the $200,000 you’re already putting down. That initial payment, along with your DTI and credit score, will determine your monthly mortgage. Expected and unexpected expenses of owning a million-dollar home It’s important to plan for expenses beyond the mortgage. Here are a few things to factor in. If you put less than 20% down on a home, most lenders require private mortgage insurance (PMI). This can cost over 1% of the value of your loan. If you put $200k down, you would likely owe an extra $375 each month. If your neighborhood has a homeowners association, you’ll be charged HOA fees each month. HOAs have additional regulations and codes agreed upon by neighbors. You may also need to seek approval for certain projects or renovations. Property taxes are also a factor. The average national property tax rate is about 1%. That makes for an extra $10,000 per year, or $833 per month, for a million-dollar home. All homes, even million-dollar homes, require maintenance, insurance, and property management. It’s important to know exactly what to expect so you can factor those costs into your finance plan. Tax implications of a million-dollar home What you might not expect is how your new home will affect your income taxes. The mortgage interest tax deduction has a limit of $750,000, which means that if you put down less than $250,000, you will incur “lost” tax savings each year until your principal loan balance drops below $750,000. If you decide to rent out your second home, you won’t be able to claim the mortgage interest deduction, but you could end up with tax-free rental income, due to the various deductions entitled to landlords. However, this can be a complicated adjustment, and finding renters and managing a rental property can be a hassle. Simplified ownership of a million-dollar second home And what if your million-dollar dream home is for vacations, not your primary residence? Those are hefty expenses for a home that won’t be used year-round. This is why many second home buyers are opting for co-ownership. Pacaso offers a modern way to buy a million-dollar second home. Our LLC model lets you own a luxury second home for as little as one-eighth of the home’s price, increasing your buying power and giving you the chance to own more house for less money. Pacaso takes care of the home’s maintenance, bill payments and management. Peridot is a good example: The mountain contemporary home in Tahoe is valued at $1.25 million, with a 1/8 share available for $209,000. With a 50% down payment ($104,500), the monthly mortgage is $348, plus $1,186 per month for operating costs, including taxes, utilities, maintenance and insurance. Prospective second home owners are embracing Pacaso’s fully managed LLC co-ownership model. It offers the benefits of true real estate ownership at a lower price point than whole home ownership, and without the hassles of property maintenance and management. You won’t be surprised by added expenses, thanks to our transparent pricing model. And with our banking partners, Pacaso offers buyers access to a competitive-rate mortgage for up to 50% of the home’s purchase price. You can easily and equitably book time in your home two days to two years in advance. Pacaso homes are used exclusively by owners and their guests, and are never rented. And each owner has their own secure storage space in the home, so packing is minimal. Check out our listings, and learn more about how a co-ownership LLC can help you own the million-dollar home of your dreams.
Before buying a second home, it’s smart to know how owning a second property could impact your taxes. There are many second home tax benefits to consider, but they’ll vary based on how the IRS classifies the property — as a second home, an investment property, or a little of both. Here are the main differences: A second home: Is occupied by the owner at least 14 days out of the year Is rented to others 14 days or fewer out of the year An investment property: Is occupied by the owner fewer than 14 days out of the year Is rented to others more than 14 days out of the year A mixed-use property: Is occupied by the owner more than 14 days out of the year Is rented to others more than 14 days out of the year Second home tax benefits As long as you occupy your second home for more than 14 days a year, you may qualify for these second home tax breaks: Mortgage interest deduction Single filers and married couples filing jointly can deduct mortgage interest up to a total of $750,000 from all properties they own, including a principal residence and their second homes. This is subject to change in 2025, when the Tax Cuts and Jobs Act is scheduled to expire. At that time it is expected that the $1 million limit will return. Property tax deduction You can deduct property taxes on all the properties you own, with a maximum deduction of up to $10,000 per tax return, or $5,000 if married filing separately. Keep in mind that this is included in the deduction for state and local income taxes (SALT), so you might reach that $10,000 quickly with your principal residence and be unable to deduct property taxes from a second home. Tax-free rental income The IRS does not require you to report any rental income you receive from renting out your second home if you rent it out 14 or fewer days each year. Some second home owners choose to rent out their second home for two weeks each year so they can use the tax-free income to offset maintenance costs or property taxes on a second home. Home equity loan interest deduction If you take out a home equity loan or home equity line of credit (HELOC) on your second home and you use the money for home improvements on that property, you can deduct the amount in interest you paid on that loan from your taxable income for the year. Saving all your home maintenance receipts will provide evidence for this deduction if needed. What you can’t use as a tax deduction on a second home You may have heard about certain real estate tax deductions and wonder if they’ll apply to your second home. Here are a few tax breaks that don’t apply to vacation homes: Loss Operating expenses/repairs Rental expenses (for the 14 or fewer days rented) Investment (rental) property tax benefits The IRS requires you to report any income generated from a second home if you rented it out for more than 14 days out of the year. Its rental property status may qualify you for these investment property income tax benefits: Rental expense deduction Rental expenses include maintenance, property management fees, pest control, HOA fees, mortgage interest and property taxes. These are all considered operating expenses for you to maintain a rental property and, as such, they are deductible from the rental income you receive from the property. Mortgage interest can be deducted up to $750,000 if you are a single filer or married filing jointly, and up to $375,000 if you are married and filing separately. Depreciation deduction Owners of rental properties are allowed a depreciation deduction to help you recoup money lost in the building through normal wear and tear over time. The deduction is based on 80% of the value of the building alone (not the land that it sits on). Divide the building’s value by 27.5 years to approximate your annual depreciation deduction. Keep in mind that if you sell you may be charged a depreciation capture: You will be taxed on all depreciation deductions received over the years. To avoid this penalty, consider a 1031 exchange (see “Selling and capital gains tax” below for more information). Loss deduction If the annual income from your investment/rental property falls short of the amount you spent to maintain it during the year, you may be able to deduct the loss (up to $25,000) on your income taxes, depending on your adjusted gross income (AGI). If your AGI is less than $100,000 before deductions and exemptions, you may qualify for a loss deduction. Taxes for a mixed-use property If you’re occupying your home for part of the year and renting it out for another part of the year, the tax rules of both second homes and investment properties will apply to you, based on the ratio of time the home is used by you vs. the time it has been rented out. For example, let’s say you used your second home for 30 days out of the year, and you rented it out for 70 days. (The other 265 days it was unoccupied.) In that case, 30% of your financial activity related to the home would be subject to second home tax laws, while 70% would be subject to investment property tax laws. (It’s a lot like the difference between taking your family out to eat vs. taking a client out to eat — one would be considered a non-deductible personal expense, while the other could be considered a tax-deductible business expense.) Selling and capital gains tax Just like tax deductions, taxes on the sale of your second home will depend on how it is classified, whether it’s a vacation home, investment property, or a combination of a personal residence and rental property. Selling a vacation home When selling a vacation home, you will be responsible for paying the capital gains tax on the entire profit you make from the sale, unless you make it your primary residence for at least two of the five years before you sell it. However, if you use this capital gains deferment on another primary residence during the two-year period before the sale of your second home, you are not eligible to defer. Selling an investment/rental property You may defer the capital gains tax when selling a rental property using a tool called a 1031 exchange. If you have owned the property for at least two years and plan to purchase a similar property right away, then the 1031 exchange allows you to defer the payment of a capital gains tax on the profits received from the sale. However, the new property must be identified within 45 days of the sale of the old property and in your possession within 180 days. Selling a mixed-use property Using a 1031 exchange to defer capital gains tax on a mixed-use property depends on the ratio the property was used for personal enjoyment vs. the number of days it was rented out. If it was used for personal enjoyment less than 10% of the time it was rented, then you may qualify for the capital gains tax deferment strategy that applies to investment properties. The bottom line on second home taxes Many second home tax benefits are similar to those of a primary residence, but depending on how you use the property, you may be able to claim a few additional perks as well. Be sure to consult a licensed tax professional to better understand how second home tax laws might affect you come tax time.
Purchasing a single home can be a huge undertaking, but buying a second home ups the ante twofold with expenses and responsibilities. To make sure you get all you hope for out of your second home, it’s important to know what you’re looking for — and where you want to be looking for it. To that end, we’ve compiled 25 of the best places for a second home or vacation home in the U.S. — ordered by their median home prices — to help you find a location that suits your needs, lifestyle and budget. 1. Whitewater, Wisconsin Whitewater is close to the Kettle Moraine State Forest, giving nature-lovers all they could hope for in a retreat. It has biking trails, multiple lakes and dark night skies that are perfect for stargazing. The city is also only a one-hour drive from Milwaukee, providing convenient access to a major airport and big city entertainment. Median home price: $258,000 2. Savannah, Georgia Savannah makes the list as one of the best vacation home locations thanks to its riverfront properties and classic Southern charm. This is one of the more affordable towns to buy property in this list, allowing you to get plenty of bang for your buck. If cobblestone streets and Spanish moss-covered trees are missing from your primary home, moving near the Savannah Historic District may offer all you need. Median home price: $266,000 3. Hudson Valley, New York The Hudson Valley is home to some of the oldest vineyards in the country, making it one of the best vacation home locations for wine lovers. Being within five hours of the city only furthers the appeal of this country oasis. The area is one of the original leaders of the farm-to-table restaurant movement, giving the local diners here deliciously sustainable meals. Median home price: $329,000 4. Bay Harbor, Michigan Bay Harbor is nestled away in northern Michigan, stretching across five miles of the Lake Michigan shoreline. It’s one of the most popular vacation destinations for Midwestern residents due to its small town feel, resort-level accommodations and vacation rental property availability. Visitors and permanent residents alike are drawn to its spas, fishing charters and breathtaking scenery. Median home price: $332,000 5. Gulf Shores, Alabama Travelers to Gulf Shores will discover a city that’s true to its name. Situated on the Gulf of Mexico, this Alabama town offers year-round opportunities all along its white sand beaches. Eat as much fresh seafood as your stomach can handle or take a trip on a dolphin-spotting cruise. The nearby Gulf State Park provides more than 6,000 acres for outdoor adventures. Median home price: $430,000 6. Ludlow, Vermont Ludlow is a prized destination for winter lovers. The city has a mountain resort with ski routes for all skill levels, along with the amenities one would hope for on a luxury vacation. In the summer, guests can visit Ludlow’s waterfalls and cool off in one of the many swimming holes. Median home price: $442,000 7. Nashville, Tennessee Wondering where to buy a vacation home that has enough attractions to keep you entertained for years to come? Well, Nashville is one of the most popular places to visit for a reason. It has a vibrant music scene and is home to the Country Music Hall of Fame. It’s also part of the Tennessee Whiskey Trail and has great options for any foodies in your life. Median home price: $446,000 8. Dauphin Island, Alabama Looking for island energy that’s a bit closer to home? Dauphin Island can provide you with beautiful beaches to relax on as you watch the sunset on the Gulf of Mexico. Vacation homes on the island are elevated on stilts to avoid rogue waves, adding to the character of living here. This small island also has a 165-acre bird sanctuary that serves as a common resting place for birds on their way back from South America. Median home price: $458,000 9. St. Augustine, Florida St. Augustine was founded in 1565 by Spanish explorers and is among the oldest inhabited cities in the country. Those historic roots play an important role in its present-day culture. Visitors can still see the Spanish influence all over the buildings, with forts and cathedrals being preserved to this day. Its prime location near the ocean makes it a perfect escape for relaxation, and it’s just a short drive from Jacksonville. Median home price: $466,000 10. Lake Havasu City, Arizona Hoping to buy a vacation home in an area that’s close to the water but a bit drier than the tropics? Located in the Arizona desert, Lake Havasu lets its residents enjoy boat life without all the humidity and storms. The city is also home to the historic London Bridge, and was brought over stone by stone in 1968. Now it’s the second largest tourist attraction in the state behind the Grand Canyon. Median home price: $490,000 11. Charleston, South Carolina Charleston is a hot commodity thanks in part to its regular appearances on lists of the best places to live. The city even ranked in the top five on our own list of the most relaxing places to visit. This is one of the best places for a second home thanks to its subtropical climate and ocean access. It’s also a popular place to buy vacation rental properties. And if the hospitality isn’t enough to remind you that you’re in the South, the quaint architecture surely will. Median home price: $510,000 12. Big Sky, Montana If being surrounded by nature is a must for you when buying a second home, then look no further than Big Sky. This mountain town will have you on backcountry hikes through wildflower meadows, and rafting through whitewater rapids. In the winter, you have your pick between skiing down mountains or across Nordic trails. Median home price: $546,000 13. Gatlinburg, Tennessee The popularity of the Great Smoky Mountains has done wonders for the success of Gatlinburg. This town has seen its property value explode in recent years thanks to its close proximity to Dollywood, SkyLift Park and the Appalachian Trail. Chic cabins offer rustic luxury to visitors, with beautiful mountain views from the comfort of your own hot tub. Median home price: $583,000 14. Coeur d’Alene, Idaho Coeur d’Alene provides its residents with four seasons of fun activities, from ski slopes to water parks — all within close proximity to vacation homes. The area has over 55 glacial lakes that can have you venturing somewhere new for years to come. There’s no shortage of entertainment in this small city, with a casino and more live music venues than you’d be able to keep track of. Median home price: $603,000 15. Big Bear, California The best vacation home locations are versatile and can have you visiting at any time of year. Big Bear is one of those places. Well known for its four-season appeal, Big Bear may have you debating making a permanent move. Aside from its mountainous landscapes and lake shoreline, this great vacation destination also puts you within driving distance of Los Angeles, Las Vegas and San Diego. Median home price: $639,000 16. New Buffalo, Michigan New Buffalo sits just north of the Indiana border, making it a common destination for Chicago residents looking for a weekend getaway. The town has a 24-hour public boat launch for you to access as you please. The area is also known for a number of breweries, wineries and even a meadery. Median home price: $644,000 17. Palm Springs, California Palm Springs is a bucket list destination for people who’ve dreamt of rubbing shoulders with the old school Hollywood elite, like Frank Sinatra. Countless celebrities have called the city home over the years, leaving an unmistakable mark on its personality. Fans of Mid-Century Modern architecture will be hard pressed to find a better city to serve as their time capsule. Hikes through the desert bring spectacular views of the surrounding mountains and wildlife. Median home price: $717,000 18. Hilton Head Island, South Carolina Hilton Head Island is located between Charleston and Savannah, providing a less congested escape for people looking to unwind in a charming vacation home. The island is packed with wildlife, providing sights of sea turtles, manatees and dolphins. Visitors can shop at more than 60 specialty stores or hone their golf game at one of 32 courses. Median home price: $730,000 19. Grand Lake, Colorado Grand Lake is bordered by Rocky Mountain National Park on three sides and has a population of less than 500 people. If your idea of the best place to buy a vacation home includes privacy, this may be the spot. You can boat and fish in peace, or take your dog for a hike on 15 miles of trails. Median home price: $734,000 20. Bend, Oregon Craft beer enthusiasts may want to take a special interest in Bend when looking for their home away from home. The area has the highest concentration of microbreweries in the state and one of the largest beer trails in the West. However, there’s more to do in this vacation destination than just drink suds — the area also has over 50 miles of urban trails and plenty of summer festivals to keep you entertained. Median home price: $777,000 21. Scottsdale, Arizona Scottsdale is quickly becoming the mecca for snowbirds looking to skip winter weather and dodge the tropical storms of the Southeast. Here you’ll find year-round sunshine and zero humidity. You can watch 15 Major League Baseball teams conduct spring training or spend your days on a golf course or in a spa. You’ll also have easy access to everything nearby Phoenix has to offer. Median home price: $862,000 22. The Keys, Florida While Key West is probably the best known of this island chain, the others have too much to offer to be left out. With miles upon miles of sandy coastlines, you’re bound to find your perfect spot on the beach before hitting the southernmost point in the United States. These small islands are brimming with stories about shipwrecks and celebrities. It’s hard to think of a place more fitting of the word “paradise.” Median home price: $1.02 million 23. Maui, Hawaii Hawai’i and paradise are often spoken in the same breath, and there’s no better representation of that than Maui. The island is world-renowned for its beaches and sunsets, providing great views of humpback whales just off the shore. Buying a second home here means regularly dining on farm-to-table food and hiking on picturesque trails. Median home price: $1.05 million 24. Vail, Colorado Vail is a mountain town where residents live in luxury as they hit the slopes. It’s one of the best places for a second home due to the quality of life it provides. With a pedestrian street system and free shuttle, visitors can easily make their way from their vacation home to the many restaurants, spas and shops that fill the villages. Median home price: $1.59 million 25. Park City, Utah Park City gives hopeful buyers a healthy mix between the great outdoors and homebound elegance. Luxury homes, second homes and vacation rentals in this destination often have gourmet kitchens, so you can recover with a proper meal after a full day of skiing. There are more reasons to live in Park City than just for the winters. Buying a vacation home here means being close to the Sundance Film Festival, Grand Teton National Park and Olympic Park. Median home price: $1.72 million Factors to consider when buying a second home The real estate cliche about location, location, location is just as true for second homes as it is for primary residences. It’s all about where you’ll spend your time and build your memories. We’ve identified a few factors to consider when searching through the best places for your second home. Travel time No matter where you live, you're likely to use your second home more if you don’t have a spirit-breaking slog to get there. If you want the flexibility of driving to your destination, identify communities you love within a two-to-three-hour drive time from your primary home. It's the reason Palm Springs and Las Vegas have long appealed to Angelenos, and why Napa, Sonoma and Lake Tahoe are retreats of choice for many San Franciscans. If you don't mind hopping on a plane and plan to use your home less often but for longer stretches, you could buy a second home in another part of the country. This will make planning ahead important, so factor both time and cost of travel into your buying equation. Seasonal preferences Some vacation home locations cater to seasonal visitors — think ski towns or sunny snowbird destinations. These bustling communities may transform into quiet, locals-only spots in the off-season. If you are looking for a second home for seasonal use, like skiing in the winter or lake access for summertime fun, it's wise to research weather and real estate market conditions to get the full picture of when to come to your home. You’ll want to know if roads near your summer home get plowed in the winter, or if your ski chalet is plagued with mosquitoes come summer. If you plan to use your home year-round, the community will be a big factor in your buying decision. Are there recreational clubs, events, shops and services that meet your needs? The more you know about where you’re going to buy, the more confident you'll feel that you've picked the best location for your second home. Lifestyle Consider the kind of life you want to live in your second home. Does a remote home surrounded by nature appeal to you, or do you want to be within a stone's throw from urban amenities? Are you semi-retired and looking for new adventures, or are you in a young family seeking fun, family-friendly activities? Are you looking for a private vacation home to enjoy with your family and friends, or are you interested in a vacation rental property that can provide some annual gross rental revenue? No matter which you prefer, most of us expect modern conveniences and amenities in our vacation homes. As you shop for a second home, ask: What recreational activities are nearby? Explore area hiking and biking trails, and check out boating and fishing spots. Public parks will likely offer skateboard areas and basketball courts. If it's a ski hill you're after, see what it offers in both winter and summer. Are golf or tennis must-haves? Look into public and membership-only options. If you'd rather workout indoors, take a tour of local gyms or yoga studios. How close do you want to be to food markets and restaurants? Whether you love to cook or just eat well, proximity to good food can be a draw for many buyers. Explore your potential neighborhood and ask locals where they love to eat or grab a coffee. What services are essential to you? You may feel better knowing there's a hospital close by. Or, you may need to be near a train or airport. Some want access to a public library. Identify the services you can’t forego while spending time at your second home. Is the internet service suitable for both work and leisure? In addition to streaming Netflix, you may want the option of working remotely. That will require a reliable connection, powerful enough for video conferencing. Having these questions top of mind can help reassure you that you’re making the right decision. Our turnkey homes offer luxury features indoors and out, so you can enjoy your stay in your favorite destination no matter the season. For more inspiration concerning the best places for a second home, check out our other top markets.
Escaping the high prices and constricting environment of hotel rooms is a high priority for travelers, which has led to lucrative opportunities for vacation rentals. Two vacation rental platforms have risen to the top of this industry: Vrbo and Airbnb. But you might be wondering, as many travelers and property owners do, “Between Vrbo vs. Airbnb, which is better for me?” That’s where this comparison guide comes in, breaking down the strengths and weaknesses of each. It's time to find which option is right for you. Airbnb and Vrbo rental types The greatest distinction that can be made between Vrbo and Airbnb is the types of property each vacation rental company offers. Vrbo only allows the rental of private units — meaning Vrbo houses, cabins and apartments are only occupied by the renters. You won’t be seeing any shared spaces on the site, which makes it ideal for families and groups of people traveling together. Airbnb places no such restrictions on their listings. They allow the rental of entire homes, individual rooms in a shared house and even the sharing of a single room with other travelers. Airbnb vs. Vrbo user interface There isn’t much of a difference between the Vrbo and Airbnb user interfaces. Anyone experienced with booking travel accommodations online will find the platforms’ search functions familiar. They each have dozens of filter options to choose from, including: Pet-friendly Pool Internet Free cancellation Accessibility Vrbo has a leg up on Airbnb by allowing renters to specifically filter by highly rated locations and cleanliness. Airbnb has a similar feature which filters by Superhosts — the label Airbnb gives to experienced and highly rated hosts. Since this filter groups multiple criteria together, it isn’t as useful to renters who prioritize one above others. Airbnb vs. Vrbo selection Since Airbnb has options for shared rentals, its total selection is about triple that of Vrbo’s. So if you’re in need of a last-minute booking — or have tight budget constraints — in a Vrbo vs. Airbnb matchup, your best bet is Airbnb. Aside from the total number of listings, the styles of rental units are about the same. Both Airbnb and Vrbo have options for everything from mountaintop cabins to beachside bungalows. Airbnb and Vrbo prices and fees Both Airbnb and Vrbo have service fees tacked onto their prices, but the options they give hosts differ. Airbnb allows hosts to choose between host-only fees and split fees. Host-only fees mean the host is charged the entire service fee by Airbnb — usually around 14-16% of the booking cost. Airbnb’s split fee charges the renter the majority of the service fee. This can increase the cost to rent by about 14%, while charging hosts only around 3%. Hosts with strict cancellation policies can expect to pay even more in service fees. Vrbo fees charge guests 6-12% of the total reservation cost. This service fee does not include optional charges, like cleaning fees, that are determined by the host. Vrbo provides two options for hosts to pay fees. They can choose an annual subscription fee of $499 and bypass service fees on individual bookings. If a host has multiple properties, they’ll need a subscription plan for each listing. So if you expect to make more than $10,000 per year, this is the preferred choice. Vrbo also allows for individual booking fees of 5%. If your listing is seasonal and you expect to make less than $10,000 per year, this is likely the better option. Airbnb and Vrbo reviews Airbnb places a tight time constraint of 14 days on guests to leave their reviews. This means you’ll be getting the opinion of a previous renter when the experience is still fresh in their mind. Vrbo allows guests and hosts up to one year after the visit to leave a review. Vrbo then gives the other party 14 days from the time of submission to send in their own review. Vrbo lists the submissions of both guests and hosts in the review section, giving potential renters both sides of the story. Airbnb and Vrbo both use a five-star rating system. Airbnb vs. Vrbo customer service Since both Vrbo and Airbnb are the liaisons between guests and hosts, they need to make both parties happy. That places them in a difficult juggling act to keep people from using their competitors. Airbnb saw a tremendous amount of growth in a relatively short amount of time, which left them scrambling to keep up with their growing customer base. This led to lackluster reports about their customer service, with many struggling to get in touch with a real person. Vrbo, on the other hand, has a direct support line that is ready 24 hours a day to help guests and property owners alike resolve issues. Their customer support team can even help hosts rebook guests in the event a natural disaster makes the property untenable. It’s important to note that Airbnb handles way more rentals than Vrbo, so judging complaints based solely on the numbers may be misleading. Airbnb and Vrbo safety Airbnb offers a specialized safety feature for solo travelers. It allows them to share their reservation itinerary with family and friends. The feature also offers safety tips and provides questions to ask hosts. Vrbo has fewer complications regarding guest safety since they only offer private rentals. Still, Vrbo provides assistance to guests who feel unsafe in their rental unit by helping them rebook. They then investigate the claim to determine if the host is in violation of any policies. All hosts are also required to disclose if any monitoring devices are installed on the property. Other options for long-term stays The Vrbo vs. Airbnb matchup is an easy one to make given their popularity and similar business models. However, there is a third option for travelers who regularly visit the same property, one that can improve safety while saving money long term. Purchasing a second home at a location you regularly visit opens up options that are not available with services like Airbnb and Vrbo. Many cities have begun blocking vacation rental services due to their impact on local property values. By using a service like Pacaso where you are an owner of the property, you can stay in these restricted areas. Better yet, rather than losing money on rent, you’ll have the opportunity to build equity in the property through your mortgage. Plus, with a fully managed co-ownership model like Pacaso, you can co-own your second home for a fraction of the cost and enjoy easy hassle-free ownership. So who wins the Vrbo vs. Airbnb matchup? Well, it all depends on you. In general, a renter will have an easier time finding what they’re looking for by using Airbnb due to its greater number of options. If you’ll be traveling with multiple people, there’s no harm in browsing both sites to ensure you get the best deal on what’s available. But if you’ve fallen in love with a particular city and you’re tired of throwing money away on rentals, learn more about how we can help it become your second home.
For those who love to travel, do so frequently, and want more out of their accommodations than simply a hotel room, vacation clubs and fractional ownership programs can be very appealing. While timeshares are common and available through a wide range of companies, there’s another tier of vacation clubs designed for luxury-minded travelers. Two of the best known are Equity Estates and Inspirato. While they both offer their members access to incredible vacation homes and hotel properties around the world, the way they’re set up — and how much they’ll cost you — varies significantly. Here’s what you need to know about Equity Estates and Inspirato, and why Pacaso might be an even better option. How does Equity Estates work? A common gripe about timeshares is that you pay a lot of money into the program, yet you gain no equity in the properties you visit each year — you get only the right to use the property. Equity Estates offers an alternative. Instead of paying a membership fee, you contribute to an investment fund that buys you shares of the Equity Estates property portfolio. Down the road when your defined liquidity date arrives, the residences are sold and investors are paid back 100% of their initial capital contribution, plus 80% of the profits. Properties and destinations During the years between investment and disbursement, investors enjoy access to 60+ destinations across over 25 countries. The properties are private, luxury homes valued between $2 million and $5 million, with amenities like oceanfront views, ski-in/ski-out access, swimming pools and private club access. Access Depending on your level of investment, you’ll get a set number of nights per year. Equity Estates promises better availability than timeshares since homes are only available to investors. Cost In addition to your initial investment, which can start at $145,000 or more, investors pay annual fees to cover maintenance, daily housekeeping, a personal travel concierge, destination manager and local hosts. How does Inspirato work? Inspirato also promises luxury vacations at upscale private homes around the world, but the structure of the program is quite different from Equity Estates. Inspirato is set up as a subscription model featuring three tiers with varying levels of cost and benefits. The Inspirato Pass The Inspirato Pass is the company’s core offerings. For a $2,550 enrollment fee and a monthly subscription of $2,550, members can choose from over 1.5 million Pass Trips, with all nightly rates, taxes and fees included. And it’s not just homes. You can also stay at top hotels and resorts and choose from cruises, safaris and guided tours. The pass is designed for travelers with flexible schedules, as you have to complete a booked reservation before scheduling your next trip. It’s also ideal for those who want to travel frequently but want the planning to be simple and straightforward. Inspirato Select The second tier, Inspirato Select, comes with a higher price tag ($24,000 per year), but also offers three Select trips that you can use yourself or gift to others. Guests with the Select membership can make upfront reservations or book on a whim, and the cancellation policy is flexible. Inspirato Club The third option, the Inspirato Club, costs $650 per month. Travelers get access to the Inspirato Collection of properties and experiences, with members-only nightly rates and travel planning assistance. Inspirato luxury homes are owned by the company, but they have partnerships with hotel, resort and travel brands, ensuring you have access to stays and experiences all over the world. Which option is right for you? Whether you choose to go with Inspirato or Equity Estates depends on what you’re looking for out of a vacation club. The people who join Inspirato tend to be frequent travelers who spend a lot on travel each year and have a flexible enough schedule to work around some of the inherent booking limitations. Equity Estates appeals to people who spend significant amounts each year on travel, but want to see some return on their spend. Because of the potential for investment gains, the initial investment is higher than other options. Equity Estates pros and cons Pros Cons Actual investment with opportunity for gains, instead of simply a membership fee Initial investments often start at $145,000 or more 60+ destinations in 25 countries Limited number of nights available; competition with other members for availability Portfolio of luxury homes with upscale amenities Defined liquidity date that individual investors have no control over Inspirato pros and cons Pros Cons Three membership tiers with varying price points No ownership stake or equity; membership only 1,200+ accommodations 15,000+ members competing for availability Ability to use membership to access hotels, resorts and travel experiences Booking process works best for those with very flexible schedules Now get to know Pacaso Equity Estates and Inspirato aren’t the only innovators in the world of luxury travel. In fact, Pacaso takes the best of what these companies offer and delivers a smarter way to enjoy second home ownership. With Pacaso, you co-own a luxury second home in a top destination instead of paying for a membership or right to a certain number of nights. You’ll find Pacaso homes in Palm Springs, Aspen, Lake Tahoe, Park City, Miami Beach and many more incredible locations, so you can pick your favorite. Every Pacaso home is fully managed, professionally designed and ready for you to enjoy, with equitable scheduling among owners. Pacaso co-owners purchase shares in a property-specific LLC, and when you’re ready, you can sell your share to realize any returns on your property. Comparing Pacaso and Inspirato Pacaso has some key advantages over Inspirato: Real estate asset: With Inspirato, your money goes to a membership fee and nightly costs. Pacaso offers a better alternative, helping you to buy, own and enjoy a real estate asset — starting at ⅛ share of a luxury home. Scheduling: Inspirato has roughly 14,000 members, all vying for stays at the most crave-worthy residences. Pacaso homes have a maximum of eight owners, and the SmartStay technology ensures you get a fair share of time in your home. Predictability: How much you’ll pay for nights with Inspirato can fluctuate dramatically, especially during peak vacation times and major holidays. With Pacaso, you won’t have to worry about unexpected price fluctuations, and costs are always transparent. Familiarity: With Pacaso, you’re not bouncing through different hotels and homes when you vacation. You return to the same luxury home where you know all the amenities, details and features. You become residents of a community and know your favorite shops and restaurants. There’s value in having a consistent place to make memories with your family that you won’t find in a vacation club. An owner’s view of the differences Pacaso owner Mark also has an Inspirato membership. While he uses his Inspirato to “fill the gap” when he wants variety in destinations, he says he loves that his Pacaso gives him true ownership in a destination he loves. “We’re kind of creatures of habit,” Mark said. “We like to go back to the same place that we know. We know it’s going to be quality. We get to know people in the community … it’s a totally different animal, and we prefer having the house.” Pacaso Equity Estates Inspirato Cost/type Real estate ownership Investment fund Vacation subscription with tiers Opportunity for equity and gains Yes Yes No Scheduling Starting at 6-7 times a year on average Set nights per year (but offers more than a timeshare) Limited; Can only book after completing each stay Luxury home Yes Yes Yes Consistent experience every time Yes Varies Varies Best for Travelers interested in ownership and easy vacations in their favorite place Travelers who want to earn on their investment and stay in different places Frequent travelers with flexible schedules
Ready to fly in style? For the trip of a lifetime or to simply avoid the crowds and the chaos of flying commercial, you may want to consider flying private. A chartered flight is a lovely — if expensive — way to get from point A to point B. Here’s what you need to know about chartered flights and how much they cost. How do chartered flights work? When you fly on a domestic or international commercial carrier, you book a seat on a specific flight with a pre-set departure time. With a chartered flight, you book the entire plane and tell the airline and crew where you’d like to travel. Flights aren’t on a pre-published schedule. Rather, the time of your flight is determined by you and the availability at the airport you’ll be using. When you schedule your charter, you’ll choose an aircraft. Most private aviation companies have a roster of light, mid-size and heavy jets, and the one you choose will depend on your budget, how many people you’re traveling with and the distance of your flight. What are the benefits of chartered flights? There are many benefits to chartered flights and private aviation in general. First, you have more control of the schedule. You’ll no longer be at the mercy of commercial airline schedules, nor will you have to spend hours waiting in security lines and at large airport terminals before boarding. Instead, most chartered flights operate out of private terminals or fixed-base operators (FBOs). Because chartered flights depart and land at smaller or private airports, there are no long lines, big crowds or traffic to contend with. Instead, you can arrive 30 minutes or less before your flight. Valet parking is often available, too. If you’re the type of person who likes to plan out every detail of your travel, flying private might be right for you. Not only can you build your own itinerary, but you can choose the right aircraft to fit your needs. And chartered flight companies are known for world-class service, whether that’s custom meals, the latest in-flight movies, streaming-fast Wi-Fi or serious privacy. What is the cost of a chartered flight? Many variables determine the cost of a chartered flight: the aircraft you choose, your departure and arrival destinations, the length of flight, and the length of your stay. The average private flight costs between $4,000 and $8,000 per hour. A smaller, lighter plane may come in at a lower rate, but a heavy jet used for international flights may cost more. In addition to the per-hour price, you’ll also be responsible for fuel, de-icing, federal excise taxes, airport fees and any extra in-flight amenities. People who charter flights regularly may want to look into membership or fractional ownership with a private aviation company. There are many options available, with varying price points and membership structures. Are there more affordable options? If you don’t want to commit to the hefty price tag of flying private, an ever-growing number of semi-private airlines allow you to purchase a seat (or seats) on a private flight. You’ll enjoy many of the perks of a chartered flight — no lines, small groups and luxurious amenities — without shouldering all the costs. Get whisked away to your own personal paradise Is there anything more luxurious than landing in your favorite destination on a private plane, then settling into your beautiful second home? With homes in dozens of destinations, Pacaso offers all the benefits of home ownership without the maintenance and management — or the full price tag. Become a co-owner of a Pacaso second home today, then redirect your leftover vacation funds into a truly indulgent private flight.
For most travelers, the flight is a means to an end — a way to get to your destination but certainly not a highlight of the trip. With long security lines, limited leg room and inconvenient flight times, flying commercial is usually far from luxurious. Alternatively, an ever-growing list of private and semi-private aviation companies are ready to whisk you away on your next vacation. Here’s what you need to know about ditching commercial carriers and choosing a more comfortable, convenient flight. Private aviation vs. semi-private aviation You may hear the terms “private airlines” and “semi-private airlines” used interchangeably, but there are a few important differences between them. Private You charter an aircraft and crew to whisk you and your companions from point A to point B. Private aviation has plenty of perks. Since most operate from smaller airports or FBOs (fixed-base operators), you can arrive just a few minutes before takeoff or relax in a lounge before your flight. Inflight, the only other passengers will be your traveling companions, and you’ll have plenty of space to stretch your legs. The customer service is top notch, too. Of course, flying private doesn’t come cheap. Prices start at between $1,250 and $3,000 per hour of flight time for 4-6 passenger planes, and prices go up from there. Some private jet companies offer memberships, where you pay a flat yearly rate for access to flights with as little as 24 hours' notice (an hourly charge still applies). Semi-private This offers many of the same benefits of flying private, but without quite as much sticker shock. You’ll still enjoy a quick security screening and boarding process, great customer service, and the convenience of flying out of smaller or private terminals. You’ll fly on smaller, often more luxurious aircraft, but unlike private aviation, you’ll be sharing the space with passengers who are not in your party. Semi-private flights are most commonly available for flights of two or three hours or less. Costs vary based on duration and destination, but you can expect to pay more than a commercial flight and quite a bit less than true private air travel. Top private and semi-private aviation companies There are many choices when it comes to flying private or semi-private, and each company structures its offerings a little differently. Here’s what some of the most popular companies offer their travelers. 1. SurfAir Considered one of the more affordable options for semi-private travel, SurfAir operates in California and Texas, with scheduled flights to popular vacation destinations like Lake Tahoe and Santa Barbara. Memberships are available for as little as $199 per month, with pay-as-you-fly access. For frequent travelers, SurfAir offers an unlimited plan called the All-You-Can-Fly Freedom membership. You can book last minute, arrive just a few minutes before your flight and expect no more than seven other members on your flight. Private charters are also available through their On Demand program. The SurfAir fleet is made up of Pilatus PC-12 aircraft with business-class seating, and the program includes complimentary snacks and drinks. Best for Travelers within California and Texas who regularly drive or fly commercial to regional destinations and want to cut down on travel time 2. Aero Launched in February 2021, Aero is one of the newest companies on the scene. Similar to SurfAir, Aero offers semi-private charter travel between a small but growing list of U.S. and European destinations. As of early 2023, this includes Dallas, Los Angeles, San Francisco, Aspen, Sun Valley and Los Cabos, as well as the European hotspots of Malaga, Nice, Ibiza, Sion, Geneva and London. Travelers can book individual flights — no membership is required, and flights start at $1,000 one way. Aero offers personalized concierge service, luggage service, a curbside welcome, ground transportation coordination and pet-friendly flights. The planes themselves are works of art, with custom-designed interiors that feature dynamic lighting, professional sound systems and hand-stitched Italian leather seats. Best for Jetsetters who want a seamless travel experience with personalized service and all the little details taken care of for them. 3. FlyExclusive FlyExclusive owns a fleet of over 90 planes, including light jets, mid-size jets and super-mid jets available for both domestic and international trips. FlyExclusive offers strictly private flights, with multi-tiered membership options as well as fractional ownership opportunities. Members of their Jet Club enjoy highly competitive hourly and daily rates for all flights, plus a limited number of peak and high-demand days with no blackout dates. Membership tiers include a Platinum Jet Club option that offers locked hourly rates, with no peak or high-demand premiums. Initial investments range between $75,000 and $500,000. Best for Discerning private jet travelers who want a wide range of aircraft types and destinations 4. JSX JSX bills itself as a hassle-free, crowd-free travel experience with business-class amenities. Semi-private scheduled flights are available from multiple California cities along with Denver, Los Cabos, Orlando, Miami and Westchester County in New York. Seasonal flights connect travelers with ski and beach destinations. Flights start at $119 one way during non-peak times, and all flights include private terminal access, two checked bags, free snacks and drinks. JSX operates 30-seat jets with business-class legroom. Flights can be easily booked on the JSX app and you have to arrive at the airport only 20 minutes before your flight. Best for Jet-setters with flexible schedules who can take advantage of off-peak travel times with fares not much higher than commercial flights 5. Blade With a fleet that includes jets, turboprops, helicopters and seaplanes, Blade makes it easy for busy travelers to access destinations like the Hamptons, Nantucket and Palm Beach. They offer end-to-end travel — think taking a helicopter from Manhattan to John F. Kennedy Airport, flying from JFK to Miami, then enjoying Blade-coordinated ground transportation to your hotel. No membership is required, and there are multiple price points available thanks to a variety of scheduled semi-private and private chartered options. Best for Commuters and vacationers who want flexible options in the air and on the ground 6. NetJets NetJets is one of the best-known carriers in the semi-private and private aviation space, and for good reason. It’s the biggest and oldest private jet operator, founded in 1964, with 700 planes in its fleet from Embraer light jets to 14-seat Bombarbiers. Unlike carriers that pair membership fees with per-hour flight charges, NetJets offers a card program and fractional ownership opportunities. The card lets you pre-purchase a set number of flight hours and use them at your leisure — this offering is great for travelers who fly less than 50 hours each year and take mostly short-haul flights. Frequent or long-haul travelers are better suited to the fractional ownership program, which offers perks like included peak period days, aircraft interchanges and guaranteed flights with as little as four to six hours' notice. Best for Frequent and last-minute travelers who value convenience and customer service and are less worried about the price tag 7. XO With XO, it’s all about options. This carrier offers a range of membership options, plus on-demand flights and the ability to book instantly on their mobile app. XO members can charter an entire flight, and even sell extra seats to fellow XO flyers through the app. Alternatively, you can book a seat on an existing shared flight, or use the app to crowdfund a flight with other members. Membership costs vary significantly. For $595 a year, you can purchase individual seats on private jets. This option can be appealing to occasional fliers. Full membership is available with a minimum deposit of $100,000, which you can use to schedule flights and seats on XO’s fleet of over 360 aircraft. The highest tier of membership is available with a minimum deposit of $250,000. It boasts priority access to the fleet, no blackout dates and a price cap for non-peak days. Membership isn’t the only option. You can also fly on demand by searching on their website or the app and choosing from non-member rates. Best for Travelers who want the freedom to choose from a variety of membership options, pricing and aircraft. 8. Wheels Up Another big player in the private jet scene, Wheels Up operates primarily in the United States and offers three membership tiers: Core, Connect and Business. Private flights are the name of the game, but members can propose or join a shared flight and split the cost of the charter. Wheels Up takes care of the billing and logistics. Both Connect and Core memberships require an initiation fee: $2,995 for Connect and $17,500 for Core, followed by yearly dues and capped per-hour flight rates. All members have access to the company’s fleet of more than 1,500 aircraft, with Core members enjoying guaranteed access to almost all types of aircraft, which you can book with at least 24 hours' notice. Wheels Up members enjoy a myriad of on-the-ground perks, like invites to exclusive events, the ability to earn Delta miles and elite status, president’s circle status with Hertz, and more. Best for Frequent and discerning travelers who want access to additional lifestyle benefits as part of their private travel investment. Jet set to your dream second home With private or semi-private air travel access and a second home in your favorite destination, you’ll be the ultimate vacation pro. Pacaso offers co-ownership opportunities of luxury second homes in destinations across the United States and beyond. Up to eight owners split time in the home equitably, and Pacaso handles all the maintenance and property management. Just like fractional ownership in a private airline, Pacaso is making second home ownership more convenient, accessible and luxurious. Looking to fly to your second home in style? As a Pacaso owner, you can also enjoy complimentary SurfAir membership for one year.
In the age of Pinterest and HGTV, it’s tempting to believe you are just a few DIY YouTube tutorials away from being a design expert. But more often than not, those dabbles in home improvement end up costing more than if you’d just hired a pro in the first place. Whether you’re trying to turn your new house into a home or give your current home a facelift, deciding whether you want to hire a professional interior designer is often the first step. However, how much an interior designer costs varies by how they set their rates and other factors. We’ve pulled everything you need to know about hiring an interior designer so you can make an informed decision for your next home project. Average cost for an interior designer The average cost for an interior designer ranges from $2,000 to $12,000. This cost only covers the rate of the interior designer, and may not include any furnishings (like furniture, artwork, paint, etc.) — check with prospective designers to be sure. Interior designer rates Interior designers set their rates in varying ways. When first meeting with an interior designer, ask how they’ll charge for their services so you can budget accordingly. 1. Hourly Residential interior designers commonly charge by the hour. You can expect to pay anywhere from $50 to $500 per hour based on the designer’s credential level and years of experience. Your interior designer will bill you per hour for: Site visits Communication with you and any contractors, tradespeople, etc. Shopping for furnishings Travel time (from their office to the site, for example) Any other time they devote specifically to your project This rate does not include the cost of any furnishings, which an interior designer will bill you for separately. Depending on their policy, your interior designer may charge you at cost for furnishings or charge a commission fee (see below). Hourly rates allow you to have more control over how much you pay, but if the job does not go according to plan or you need multiple revisions, going over budget is a risk. 2. Flat rate by room/square footage Designers at an interior design firm frequently charge a flat rate by room or square footage. The flat rate will include a set number of revisions but not furnishings, which would be added on at cost or on commission. If the designer charges by square footage, expect to pay anywhere from $5 to $12 per square foot with a minimum square footage requirement. This method is ideal for basic projects, but if your job requires any structural or custom elements, you’ll probably pay more in add-ons than you would if your designer billed you hourly or by percentage of project cost. However, this rate is the easiest to budget since you’ll know exactly what you’ll pay for the project upfront. 3. Percentage of project cost Some interior designers may set their rates as a percentage of the project cost. They’ll add up all the construction costs and then charge you an additional 10% to 30% as their design rate. This does not include the cost of furnishings. Others may also opt to use the cost-plus method to determine their rate. They’ll total the cost to complete the entire project, factoring in construction costs, permit fees, furnishings, etc., and then charge an additional 10% to 45% as their rate. 4. Commission Most interior designers can purchase furnishings at wholesale price, but they will charge you the retail cost, keeping the difference as commission. Others may buy furnishings at cost and bill you an extra 15% to 30%. Either way, expect to pay a commission fee on top of the hourly, flat rate or percentage of project cost rate. To verify the prices of your furnishings, ask your interior designer to keep receipts for all furnishing purchases. Factors that impact interior design cost Regardless of how your interior designer sets their rates, several factors can impact how much you’ll pay for a design project: Project scope: In general, the larger the square footage of your project, the more it’ll cost. A larger space will require more time and furnishings than a smaller one. If the project includes architectural or structural work, that can substantially increase how much your interior designer will charge. Materials: The number and quality of materials for the job will also directly impact your project costs. Availability of items and supply chain issues can also negatively affect your budget since waiting on a specific material can lead to costly delays. The way your designer charges for furnishings will also impact the cost. Room type: Some rooms are more expensive to renovate by nature. Kitchens require the purchase of expensive appliances that can drive up your costs, as can bathroom renovations that require plumbing. Location: Where you live also impacts how much you’ll pay for an interior designer. Interior designers in urban areas tend to charge more, as do those who travel long distances to get to you. Designer’s level of experience and reputation: The more experience an interior designer has, the higher the rate they’ll likely charge. However, a self-employed designer will probably charge less than a designer at a firm since their rates have to cover the overhead of the entire firm. Labor and additional fees: Labor fees vary by region and specific trade, impacting how much you’ll pay for an interior designer. Consultation fee: Before you agree to the project, designers will commonly charge anywhere from $150 to $500 for an initial consultation that includes a discussion of your design style and possibly a site visit. Design or mockup fee: Once the initial consultation is complete, some interior designers may charge an additional fee for any design images or mockups they create. Other designers may choose to include this service in their consultation fee. Management fee: If the project requires a contractor or tradespeople, an interior designer may charge a management fee of up to 25%. What does an interior designer do? Interior design refers to the technical and artistic process of designing a space that meets a client’s needs and style. Many people mistakenly refer to an interior designer as an interior decorator, but they are very different. An interior designer undergoes extensive training and holds a credential or license. An interior decorator does not. Additionally, interior designers focus on the functionality of a space, so they are involved from start to finish, even for structural changes. In contrast, interior decorators are only concerned with a space’s aesthetics, so they aren’t involved until the space is nearly completed. An easy way to remember the difference is that an interior designer may decide where walls will go, while an interior decorator will decide the paint color of an existing wall. It varies by interior designer, but in general, you can expect them to do any of the following: Identify your design style if you don’t know it. Create one to three different design ideas based on your design style for you to choose from. Manage others involved in the project, from contractors to tradespeople. Find, order and arrange furnishings for the space. Organize deliveries and installations. Create a space that matches your style and lifestyle. Benefits of hiring an interior designer If it fits within your budget, hiring an interior designer offers many benefits. More experience and training Thanks to their training, interior designers understand the functionality of space more than the average person. They also view design as an art form, so they know how to use lighting, texture, color theory and negative space to create the perfect room and home. Access to tools and deals Perhaps the biggest benefit of an interior designer is their access to tools that simplify the design process, especially at the start of a project. In theory, anyone can pick a color scheme or a design aesthetic, but the end result is often not what they envisioned. Interior designers have tools that help them visualize a space before moving a wall or adding a coat of paint, saving you from making an expensive design mistake. In addition, interior designers can purchase from wholesalers you may not have access to. Increased resale value An interior designer knows exactly what changes to make to a space for maximum return on investment. A professionally designed space often has a bigger wow factor than a DIY space, which can impress potential buyers. This is why so many realtors recommend homeowners get their homes professionally staged before putting them on the market. If you use an experienced interior designer, that can be a selling point for your home. Less stress and more time Managing a home renovation can be a full-time job, especially if your project includes construction work. While any home improvement project comes with a certain amount of stress, hiring an interior designer will take that management off your plate, saving you time and stress throughout the project. How to pick the right interior designer for you The key to a successful interior design experience is hiring the right interior designer for your style and project. To ensure you hire the right interior designer, follow these steps: Determine the scope of the project. Decide exactly what you want and put together a wish list. Are you tackling the entire home or just focusing on a single room? Do you want a complete remodel or to just update the decor? Identify your style. Do some research on Pinterest and in home magazines. What do you like? Even if you can’t name the specific type of interior design, put together a Pinterest board or mood board to give the interior designer an idea of what you’re looking for. Set your budget. Think about how much you have to spend on the entire project — not just on the interior designer. This will help you narrow down your interior designer search. Ask for recommendations and read online reviews. Ask your friends, family and neighbors about local interior designers they’ve worked with. Check out those designers online and explore their social media to see their work. Choose an interior designer who matches your communication style and personality. While not a requirement, having a designer with a similar communication style as you can eliminate a lot of stress during the project. If working with someone who touches base with you frequently will help you trust the process, choose a designer who over-communicates. If you want a more hands-off approach to the project, opt for a designer who is OK with making decisions independently. Questions to ask potential interior designers Once you’ve narrowed your search, set up consultations with potential interior designer candidates. If you can cover the consultation fees, meet with several interior designers to explore your options. Otherwise, based on your research, schedule a consultation with the designer you like best. The point of the consultation is twofold: first, to determine if the interior designer is the right fit for your job, and second, to give the designer an idea of what you’re looking for and allow them to see the specific space. During the consultation, ask the following questions: Experience questions Can I see your portfolio? What certifications do you hold? Do you have any references I can contact? What styles do you prefer designing for? Do you specialize in any room, style or type of project? Project process questions What interior design services do you offer? How will you share design ideas with me? What is your design process? How frequently will we meet throughout the project? What brands or supplies do you use? Budget and payment questions Are you insured? What is your insurance coverage? How do you determine a budget for a project? Do you require a down payment or a retainer fee? If so, how much is it? What is the budget for this project? What is the timeline for this project? What is your pricing structure? What fees do you charge? What is your payment process? How to save money on an interior designer If you want the expertise of an interior designer but money is tight, consider the following strategies to make it more affordable: Use an online design service to design the space and then implement the design yourself. Purchase the furnishings for the space directly to avoid paying a commission fee. If you have the necessary skills, help with the labor to lower labor fees. Instead of custom design elements, opt for mass-produced furnishings that are more readily available. Get the designs from a consultation with an interior designer and then manage the project yourself. Reuse or repurpose old furnishings instead of buying new ones. Focus on one space in your home at a time. Whether designing a home office or a zen room, renovating your primary residence or your vacation home, hiring an interior designer can ensure you get a picture-perfect space without going over budget. And if you're looking for a second home, consider a fully managed co-ownership model like Pacaso. Pacaso's team professionally designs and fully furnishes each home, so you can find a modern luxury home that fits your preferred design style without having to hire an interior designer. Your second home is ready to enjoy, and the design cost is included in your cost of ownership. Browse our luxury listings and find your dream home today.
Open houses are a great opportunity for home buyers to not only see a property first-hand, but also ask questions. The more you know, the better your decisions can be. Here are the top 14 questions to ask at an open house, during a virtual home tour or if you meet with the seller. 1. What renovations have been done? Knowing about home renovations and improvements can give you insight into how well the current owner has taken care of the property. Ask about recent updates like kitchen appliances, heating systems and insulation. 2. What repairs are needed? Sellers are usually required to disclose information about the property's condition. It's important to know what, if any, repairs are needed. If the fixes are big-ticket items (a new furnace, for example), you may decide the house isn't right for you. Ask questions so you can do more research and make an informed decision. 3. What ongoing maintenance is required? Home upkeep is another essential question to ask at an open house. Ask questions about special maintenance requirements, pest control and landscaping costs. Knowing this information will help you better understand what kind of costs or responsibilities come with owning this particular home — especially if you will be maintaining the home from afar. 4. Has there been any water damage? Water damage can cause serious structural problems and should not be overlooked when buying a home. If there has been damage, you'll want a qualified home inspector to provide an estimate of how much money you may need to spend to repair it. 5. Are there any safety concerns? Look carefully for safety hazards (faulty stair treads or broken pavement, for example) and ask about any of your concerns. A qualified home inspection should turn up issues around wiring or plumbing, but you can ask about any potential problems. 6. What are the heating and cooling options? The home's heating and cooling options are essential for maintaining comfortable temperatures throughout the year. Ask about HVAC systems, maintenance and annual costs to give you peace of mind. 7. Is this a good community to live in? When shopping for a home, remember you're also "buying" the neighborhood. So ask questions at an open house about neighborhood organizations, nearby stores and businesses, and local events to get a sense of whether it's a place you'll feel comfortable. 8. Is this a safe neighborhood? The area surrounding your potential new home matters just as much as its interior features — so ask about crime rates and schools. You'll want a neighborhood that feels safe and enjoyable for everyone in the long term. 9. What kind of taxes will I pay? Taxes vary greatly by state and county, so don't forget to ask about taxes that come along with owning this property so that they don't surprise you down the line! Knowing the amount of property tax and other fees can help determine if homeownership is right for your budget. 10. How long has it been on the market? A home's time on the market can be an indicator of whether you might be getting into a bidding war — or a tipoff that other home shoppers have spotted reasons for not buying. You should ask why the current owner is selling their home and get a history of the home, possibly even names of previous owners and the home builder. Having this knowledge allows you more time to strategize your offer accordingly. 11. Has the list price changed? You should also find out how many times the price has changed since the home was first listed. Info like this might tell you if the list price is flexible, which you can use to your advantage. 12. What financing is available for this home? If financing is part of your purchase process, it's important to ask questions about available options during an open house visit. Questions about potential down payment assistance, types of mortgage rates from lenders and tax credits and deductions will give you a better understanding of what kind of financial commitment is required when purchasing a new home. 13. Is there room for expansion? If you're loving the home but you need more space, you can ask what kind of expansion options might be available. The homeowner may have already explored the idea and the agent may be able to offer ideas of how to increase the size and value of the home. 14. Which appliances are included? Ask about which appliances come with the house, how old they are and about their condition. Find out what kinds of warranties exist so that you can get an idea of when they might need to be replaced. Get the information you need at an open house Buying a home means asking lots of questions so you're confident that you're making an informed decision — whether you're buying your primary home or your second home.
No matter your profession, it can be easy to forget to take care of yourself. This can lead to burnout, a serious issue that impacts nearly 90% of employees in the U.S. The good news is there are ways for doctors to cope. In this article, we discuss how professionals can prevent burnout and achieve more happiness in their workplace. What is burnout? Burnout is an extended state of emotional and physical exhaustion due to work-related stress. More than just being tired from a long day at work, burnout is when you feel constantly overwhelmed, stressed and anxious in your workplace. This recurring feeling can lead to job dissatisfaction, decreased work performance, anxiety, depression and other health problems. Burnout is caused by a number of factors in day-to-day life, including: Long working hours. Long hours, overnight shifts, and weekends can impact your ability to rest. Administrative tasks. The amount of time spent on administrative tasks like paperwork, billing, and electronic health records causes stress for many professionals. High-stakes, heavy workload. Many employees, especially knowledge workers, have to deal with the emotional and mental toll of their jobs. Lack of control. Feelings of helplessness and frustration over their work environment can also cause burnout. How to treat burnout Burnout is a serious concern for any doctor. To ensure you maintain productivity, and satisfaction in your workspace no matter your career, here are some proven tips for treating professional burnout. 1. Start your day with mindfulness Mindfulness meditation can be an effective strategy to reduce daily stress and anxiety. Take a few minutes each morning to create a zen space, focus on your breathing and let go of any negative thoughts or feelings. Taking this crucial moment daily can help you to stay calm and focused even during long days. Studies show that mindfulness can even help improve performance, especially for healthcare workers. 2. Prioritize self-care Self-care is essential for maintaining your physical and mental health. Make time for regular exercise, healthy eating, adequate sleep and any personal activities that you enjoy. In a 2021 survey, doctors rated balanced nutrition and “me time” as the most effective forms of self-care. When you take care of yourself and your needs, you set yourself up to thrive and to take care of others. 3. Set boundaries with yourself While you might have plenty of things going on during your day, it’s important to not try to accomplish everything all at once. Prioritize your tasks and set achievable goals for yourself. This means saying ‘’no” to unnecessary demands that consume your time and energy. Setting boundaries helps you to maintain control over your schedule, which has been shown to go a long way toward reducing burnout. 4. Fuel your hobbies The demands of being a physician can be all-consuming, leaving little time to do things for yourself. A hobby, however, can provide a much-needed outlet for you to recharge and find purpose outside of work. Hobbies can range from physical activities like hiking or yoga to creative pursuits like painting or playing an instrument. In particular, sports and hobbies that include family and friends have been rated by doctors as effective strategies for coping with burnout. 6. Make a flexible schedule A more flexible schedule is a proven part of any burnout prevention plan. By tailoring your schedule, you can prioritize self-care, quality time with loved ones and a better work-life balance. Alternative work arrangements like part-time, job-sharing, remote work or adjusting your hours are all ways to make your calendar work for you. 7. Streamline tasks in your office Depending on your job, routine administrative duties like electronic paperwork, billing, documentation, and computer software take up a majority of your work day. This work can cut into your ability to do the things you truly care about. Consider taking steps to lower the pressure of these tasks. Determine how much of your day is focused on administrative activities, and see if any can be delegated to your team or automated for greater efficiency. By streamlining operations, you’ll be able to increase teamwork, improve workflow, and decrease chaos — all factors proven to reduce burnout. 8. Rediscover your passion for your career There are many times when you might lose your enthusiasm for work or even question your career. During these moments, it’s important to take a step back and ask yourself what really inspired you to enter this field. Do you still find fulfillment at work? Are there new opportunities you want to explore, or different areas that you want to branch out to? Studies conducted on physicians show that spending time on meaningful work (like mentorships and support programs) can foster more happiness. 9. Have a strong support network No matter which stage you are at in your career, you’ll always need a strong support group. Surround yourself with friends, family or significant others who can support you during times when your work life becomes too much. If you don’t have these close connections, consider speaking to colleagues, professional coaches or even a mental health professional. These individuals can give you the resources you need to overcome exhaustion and build resilience in your career. 10. Take time off It’s no surprise that vacations provide immediate benefits for your health and your quality of life. Failure to take time off when you need it will only accelerate the effects of professional burnout. Take the time you need to rest and recharge, so you can return to work with renewed purpose and energy. A second home can be the perfect place for you to relax with your loved ones. Rather than wasting time and money on planning and booking hotels, you return throughout the year to a home that you own and enjoy time off in a consistent and familiar place. And with Pacaso's co-ownership model, you can own a luxury second home for less cost and hassles. Here’s how Pacaso makes it easy: Tailored ownership. Choose the amount of ownership that fits into your lifestyle and budget, from 1/8 to 1/2. Fully managed. Leave the work to us — we maintain your home year-round and take care of the things you don’t have time for. Turnkey luxury experience. Your home comes fully furnished, professionally decorated and equipped with all the amenities you need, so you can just show up and enjoy. Stress-free scheduling. Book stays within the Pacaso app with ease. Our scheduling technology makes things fair and equitable for all owners.
Just as there's no one destination that's right for every traveler, there’s no single vacation rental site that every traveler should use. Your specific goals, tastes and budget all influence your vacation planning, and the site you use should cater to them. That's why we've curated an in-no-particular-order rundown of the best vacation rental sites to help you identify which resource is right for your plans, including: Let’s get booking, shall we? 1. Vrbo Best rental site for group travelers Vrbo was the first website to bring vacation rentals by owners to the public — that's actually what "Vrbo" stands for. Its rental offerings focus on the United States, with hosts managing private properties. Further, Vrbo only lists private units, so travelers won't be able to book shared spaces. Due to its limited listings, Vrbo makes it easy for families to sift through options to find the perfect rental that can house everyone. Pros Cons Easy for groups to find accommodations Straightforward booking costs Lack of international options Inconsistent quality control 2. Airbnb Best rental site for variety Airbnb followed Vrbo's lead by giving private owners a platform to rent their properties directly to travelers. Airbnb set itself apart from its competitors by allowing hosts to list everything from single-family houses to spare rooms. The variety in listings has no doubt aided the company's success, making them one of the largest vacation rental companies in the world. They operate internationally, with over 6 million listings. They also let hosts list properties for free, only taking a percentage of the booking price. Pros Cons Affordable for solo travelers Millions of rental listings International presence Inconsistent quality control Scam listings 3. FlipKey Best rental site for destination guidance FlipKey makes this list of the best vacation rental sites due to its balanced approach to vacation rentals. It takes the middle ground between Airbnb and Vrbo, offering only private vacation rentals, while expanding its reach overseas to nearly 200 countries. Its total number of listings is still a far cry from competing with Airbnb, but it does have one competitive edge: Flipkey is owned by Tripadvisor, giving it deep insights into travelers' experiences. Guests who book on FlipKey get more than just a rental — they get actionable tips to make planning their trips easier. Pros Cons User reviews from Tripadvisor International presence Inconsistent quality control Only rents whole properties 4. Booking.com Best rental site for hotel loyalists Booking.com began as a site to find deals exclusively on stays at hotels. Seeing the rise in demand for short-term vacation rentals, they threw their hat into the ring and now have more than 28 million properties listed. By specializing in hotel rooms and vacation rentals, travelers can easily compare the available options in the area to ensure they;re getting the best deal for their money. Even if hotels aren't right for your vacation plans, the site provides the search feature to find only vacation rental options. Pros Cons International presence Millions of rental listings Includes hotel options Inconsistent quality control 5. Agoda Best rental site for travel throughout Asia Agoda, the largest online travel agency in Asia, is owned by Booking Holdings, the parent company of Booking.com and other brands (Priceline and Kayak, for example), giving it a boost in credibility and benefiting from its deep resources. While it specializes in Asian travel, Agoda also operates in Europe and North America. It offers a range of accommodations, from hotels to private residences, making it a viable option for nearly every traveler. While most travelers looking for vacation rentals are focused on the short term, Agoda also has options for long stays exceeding seven days. Pros Cons International presence Millions of rental listings Frequent booking discounts Inconsistent quality control 6. Plum Guide Best rental site for quality assurance Many vacation rental sites focus on giving their users the most options possible to increase their chances of finding a rental. Plum Guide takes the opposite approach by putting quality above quantity. Plum Guide uses extremely selective criteria in their approval process, with their team individually judging every property. Only around 3% of rentals pass. On top of this attention to detail, their team is available around the clock to assist their guests, so you won't be stuck waiting for a resolution in the rare event that an issue arises. Pros Cons High quality standards Price matching Low inventory High prices 7. HomeToGo Best rental site for centralizing searches If you're tired of jumping around to multiple rental platforms in search of the best deal, you might want to start using HomeToGo. This platform acts similarly to a search engine, collecting millions of listings from the best vacation rental sites to save you time and, in the end, money. Its search functions operate similarly to what you'll find on sites like Vrbo and Airbnb. Travelers can filter results based on prices, amenities, ratings and more. Whether you're looking to stay in a houseboat or a castle, HomeToGo might be your best bet for success. Pros Cons Searches multiple rental sites Appeals to all types of travelers Reliant on third-party rental sites 8. Casamundo Best rental site for privacy-conscious travelers Casamundo specializes in providing holiday rentals across the United States and Europe. It lists over 700,000 properties, including traditional apartments and unique accommodations such as windmills and treehouses. Casamundo has positioned itself as an online travel agency by recruiting prominent vacation home providers and centralizing their listings for the benefit of Casamundo users. What makes it one of the best vacation rental sites is their transparent privacy policy regarding all customer data. Casamundo is open about how they collect user data, how long they save it and what they use it for. Furthermore, users can opt to book over the phone and speak to a Casamundo representative directly. Pros Cons Best price guarantee International presence Transparent privacy policy Inconsistent quality control 9. Tripadvisor Vacation Rentals Best rental site for refunded travel Tripadvisor is a vacation planning powerhouse that originally provided user reviews of businesses, attractions and accommodations. Tripadvisor has now branched out into being a vacation rental website as well. The platform operates in over 200 countries and promises a full refund if the rental property was falsely advertised or if the guest was prevented from accessing it. In addition to their broad variety of listings, Tripadvisor also allows for some accommodations to be booked directly with the owner. There's a payment protection guarantee for added peace of mind. Pros Cons Large database of user reviews International presence Payment protection Inconsistent quality control 10. HolidayLettings Best rental site for unique lodging HolidayLettings is another website that solely offers privately owned vacation rentals. Still, they offer a variety of options including mountain cabins, apartments and villas. This variety ensures travelers can find a space with the right balance of amenities and affordability. Just like FlipKey, it's also owned by Tripadvisor, so it benefits from the platform's large amount of customer reviews and travel guidance. They have a slightly larger inventory of listings than their sister site, with 700,000 rentals located around the world. Pros Cons User reviews from Tripadvisor International presence Inconsistent quality control 11. Tripping.com Best rental site for price comparisons Tripping.com is another vacation rental website that serves as a search engine for listings across different platforms. Visitors to the site benefit from a range of properties, so it’s great if you're undecided on whether to book a hotel or a private space. Its precise filtering makes it easy to find the perfect rental from over 12 million listings. Since it pulls results from other platforms, you can easily compare prices to get the best deal. Pros Cons Searches multiple rental sites Appeals to all types of travelers Reliant on third-party rental sites 12. Homestay.com Best rental site for house swaps Homestay.com makes the list of best vacation rental sites thanks to their unique approach to offering vacation experiences. Users have the option to rent private accommodations, but they can also choose to swap homes with a host. The house exchange can take place at the same time, or the host can stay at the guest's property at a later date. Some hosts even operate on a barter basis, allowing guests to stay in exchange for work performed around the property. Homestay.com has over 63,000 rooms in over 176 countries. Pros Cons Affordable travel accommodations Private room options Must let other travelers into your home Relies on cooperation with other travelers 13. Atraveo Best rental site for trusted customer reviews Atraveo is a vacation rental site that primarily operates in Europe. It has more than 300,000 holiday homes and apartments. Atraveo provides verified customer reviews, so you can trust the information you're getting is honest and accurate. Atraveo also offers secure booking, where the renter pays Atraveo, who then settles with the host. This added security cuts out the scam listings found on less reputable sites. Pros Cons Secure booking Verified customer reviews Mostly isolated to Europe 14. Onefinestay Best rental site for luxury stays Onefinestay sets itself apart from other platforms on this list by placing its focus on luxury vacation rentals. It has a reported 5,000 listings in 50 global destinations. Staying true to its luxury goals, every property is professionally managed so visitors can avoid unreliable hosts. Onefinestay is owned by hospitality company Accor, who also owns Fairmont and Raffles. This expertise adds to the experience with features like professional housekeeping, round-the-clock service and being welcomed in person upon arrival. There's even the option to personalize your stay with perks like a private driver or chef. Pros Cons High quality standards Luxury experience Limited inventory Expensive rates 15. Sonder Best rental site for app-based services Sonder is another platform that's trying to improve the vacation rental experience. It boasts hotel-quality amenities in personalized environments. Guests can control the details of their stay via a convenient app, requesting things like late checkouts or fresh towels. The app also provides information about the rental, complete with a guide to the surrounding area. Sonder operates in 40 cities around North America and Europe, although its primary focus is in the United States. An added benefit of the service is that it offers both short- and long-term stays. Pros Cons Optional long-term stays Professional management High quality standards Limited international listings 16. 9flats Best rental site for affordable European travel 9flats has listings in over 6 million locations collected from other travel sites, although its primary focus is Europe. Like Airbnb, it also gives the option to rent a private room in an apartment. The properties are all privately managed, leading to more affordable rates. While 9flats isn't on the same tier as some of the luxury brands, it does offer some great perks. Guests can enlist the help of their hosts for tips on local entertainment, with some even being willing to act as unofficial tour guides. All hosts are carefully evaluated for added safety. Pros Cons Lists shared spaces Assistance from hosts Mostly isolated to Europe 17. Love Home Swap Best rental site for family-friendly vacations As the name implies, Love Home Swap is another platform that gives homeowners the opportunity to trade places with others in over 100 countries. Like Homestay.com, homeowners can swap homes at the same time, or opt to receive points that can be used on a future vacation. The service offers a free trial, after which homeowners will need to pay a membership fee. Before the house swap takes place, both owners can agree to certain terms, like cleaning and pet sitting, to ensure each person's space is respected. Pros Cons Affordable travel accommodations Membership fees Must let other travelers into your home Relies on cooperation with other travelers 18. Getaway Best rental site for travelers seeking rest and relaxation Getaway targets the type of traveler who prioritizes rest and relaxation over sightseeing during their vacations. Getaway is an expanding platform that provides tiny cabins in the Eastern and Central regions of the United States, although there are some locations on the West Coast. The cabins are fitted for bare essentials, with a mini kitchen, fire pit and grill grate. The service intentionally spurns technology, providing no Wi-Fi to guests. There is a landline in every cabin to compensate for spotty cell reception in case of emergencies. Pros Cons Safe glamping experience Driveable from major cities Regional presence Minimal luxuries 19. Interhome Best rental site for in-person service Interhome was founded in 1965, and they successfully leverage their decades of experience to remain one of the best vacation rental websites around today. The business takes pride in its customer service, being available 24/7 to the guests that stay in their approximately 40,000 holiday homes and apartments. Interhome and its partners maintain a local presence, executing key handovers and resolving issues on-site. Their team even performs a quality check of every property prior to the guests' arrival so that nothing's left to chance. Pros Cons High quality standards In-person service Limited inventory 20. Homes and Villas by Marriott Bonvoy Best rental site for hotel-tier experiences Rounding out our list of the best vacation rental sites is another household name that has extended their services to the rental industry. Homes and Villas by Marriott Bonvoy offers the same premium level of hospitality guests have come to expect from their hotels, only now in the comfort of a home. Marriott enlists the help of professional property managers to ensure the rental is held to their high standards. Rooms come with the premium linens, Wi-Fi and bathroom amenities that are standard in hotel rooms. By renting through Homes and Villas, guests receive increased privacy and living space. Pros Cons High quality standards Rewards program Limited inventory How to ditch vacation rental sites altogether The sites on this list each have their strengths in contributing to vacation planning, but they're all limited to single trips. You'll need to start over from square one for your next vacation. If you have a destination you return to year after year, or multiple times a year, it might be time to buy property there. Vacation home ownership has multiple benefits over repeated rentals: Gaining equity in the property Avoiding the rising costs of rentals Enabling more frequent vacations Simplifying vacation planning Owning a vacation home does come with added responsibilities, so you'll want to thoroughly research your options before making a decision. Guests have more options now than ever before in where they can book their accommodations. This list is a collection of the best vacation rental sites on the internet to help make your search a little easier. Now that you have a better understanding of your options, you can proceed with your plans with more confidence and, hopefully, more fulfillment.
As you scroll through Pacaso’s listings, we hope you’re wowed by the beautiful homes, their amazing locations, and the way they spark your imagination. We select remarkable second homes in sought-after destinations across the country. So just what makes a home Pacaso-worthy? Pacaso home selection criteria Every Pacaso is different, but these are some of the features we look for: High-end. We see the most buyer demand for homes two to three times higher than the area’s median home value. Turnkey. The home shouldn’t need major renovation or repairs. We will restyle the home with a professional designer, but it should be in move-in ready condition. Desirable destinations. Our homes are in or near popular second home destinations. Most are within driving distance of major metropolitan areas or accessible from nearby airports. Similar to area homes. We buy homes in neighborhoods with other top-tier vacation properties and a vibrant community of second homes. Premium amenities. Think hot tubs, chef’s kitchens, pools, roof decks or outdoor kitchens, depending on the region and climate. “Wow” factor. The home should look great in photos and even better in person. Luxurious but livable. The home should feel special without sacrificing comfort or ease. Owners should be excited to show off their home, but equally comfortable just enjoying time there with family and friends. Modern. Styles can range from industrial to mountain lodge, depending on the location, but homes should be newer, with modern conveniences, or recently updated. If you currently own a spectacular second home you’re underusing, we’d love to hear from you! Here’s how to reach us.
When you’re designing your dream home, every detail matters — and the exterior features are just as important as the interior touches. Whether you’re designing a primary residence or a second home, here are eight dream home exterior features you won’t want to overlook, plus a few helpful tips for turning them into reality. 1. Wraparound porch Your home’s front exterior makes a powerful first impression, and nothing is quite as welcoming as a large front porch. Statement front porches work on homes with a wide range of architectural styles, and they are the perfect blank canvas for adding your own style to the home. Maybe that’s statement-making light fixtures, a classic porch swing or pots of colorful flowers — or all three. Your porch becomes the perfect place to entertain, curl up with a good book or sip a cocktail at the end of the day. 2. Outdoor kitchen Enjoy true indoor-outdoor living with a gourmet outdoor kitchen. Especially well suited for warm weather destinations like the beach and the desert, outdoor kitchens give you everything you need to whip up a gorgeous meal, then enjoy it al fresco. The best outdoor kitchens are located near your home’s recreation amenities (like a swimming pool, putting green or fire pit) and feature gas grills, drink refrigerators, pizza ovens and plenty of prep space. 3. Swimming pool Speaking of outdoor recreation, a pool in the backyard makes every day feels like vacation. If a pool is on your wish list, you have a lot of options. You might want a pool with space for the whole family to splash around, a lap pool for exercise, a sleek infinity-edge pool for aesthetic appeal or a plunge pool for quick dips on hot days. No room for a full-sized swimming pool? A hot tub is a nice alternative. 4. Lush landscaping Mature landscaping does so much for a home. It adds visual interest, gives a polished and upscale look, provides shade and gives a sense of place. The type of landscaping you’ll want depends on where your home is located. A desert home might call for drought-friendly landscaping with succulents and cacti, while a Wine Country retreat is well-suited for grape vines and fruit trees. 5. Sport court Calling all active homeowners! Sport courts can be purpose-built for a single sport, like a basketball court or a tennis court, or they can be designed to accommodate a variety of sports. Use your court for pickleball one day and volleyball the next. 6. Acreage Room to roam is a popular feature of many luxury primary and second homes. Having a home on a large parcel of land offers privacy, space to enjoy your favorite activities, and the flexibility to add on to your home over time. And while extra acreage can often mean more maintenance, it doesn’t have to. Consider keeping some of your land natural so the maintenance is minimized. For example, retain the natural forested landscape surrounding your mountain home instead of installing and maintaining a pristine grass lawn. 7. Water views Epic water views are a sure sign of a dream home. Whether that means being able to see (and hear!) the waves crashing from a beachfront abode, taking in the beauty of a peaceful mountain lake or living canal-side in a home with a private dock, waterfront living is ideal for many people. 8. Separate guest space Having separate guest quarters can be ideal for those who entertain out-of-town guests regularly. A mother-in-law suite, separate guest cottage or pool house on property is a win-win for both parties. You maintain your everyday routine in your home and your guests have the privacy and comfort that come with having dedicated space. Best of all, when nobody is visiting, this separate structure can double as a home office or studio space. Tips for designing your dream home exterior Designing your dream home is no small undertaking, and the exterior features play an important role in both the look and feel of the property. Here are a few tips that will help you during your design process. Gather inspiration The first step to designing a beautiful home exterior is deciding what you like. This starts at a high level: What is your preferred architectural style? A lot of the decisions you make later depend on your answer. For example, if you love traditional design, everything from fencing material to tilework will work to complement your overall style. A Mid-Century Modern home will call for different materials from a traditional home, and the layout and of the home itself will need to take into consideration the architectural style. If you’re not sure where to start, both in-person and online research are great options. Hop in the car and drive around your desired area and jot down notes about exterior features and styles you like. Or set aside some time to browse and bookmark things you like online. Instagram and Pinterest are great places to collect your digital inspiration. Another great strategy for the initial research and inspiration phase is to ask yourself a few key questions: What features make me feel at home? What kind of feelings do I want my home design to evoke? How can my home reflect my hobbies, passions and priorities? How do I see myself enjoying this home? Where will I spend the most time? How does the weather and location affect my exterior wish list? Build your criteria … and budget Once you’ve got a handle on your overall architectural style and your pie-in-the-sky wish list, prioritize your must-haves. Everyone has a budget, even on a dream home build. Would you rather have the privacy of ample acreage and have a smaller budget left for the home itself? Or is a large home with all the bells and whistles more important than the location? Ask for help Crafting your dream home is complex, so don’t go it alone. Assemble a team of experts — a real estate agent, real estate attorney, architect, general contractor, interior designer or decorator — to guide the process. It can also be helpful to have a couple of friends who are willing to offer their opinion on your design choices and help you narrow your options. Or buy a move-in ready home If you know what you want and don’t want to wait, consider buying a move-in ready luxury home. And if you're dreaming of a second home, check out Pacaso. Our co-ownership model makes it easy to enjoy all the perks of owning a professionally designed and managed property in crave-worthy destinations.
Whether your second home is just a dream at this point or if you’re starting to make it a reality, there are so many options when it comes to home interiors. Here are eight of the most popular features to help inspire you and your dream second home wish list. 1. Chef’s kitchen For those who love to cook and entertain, a large, well-equipped kitchen is an absolute must. Key features of true dream kitchens include professional-grade appliances, ample work space, custom cabinets, a butler’s pantry and plenty of storage. If you consider the kitchen the heart of the home, it’s important to design it in a way that showcases your design aesthetic. Whether your home is modern, traditional, Mid-Century Modern, Victorian or something else, your kitchen is the perfect place to show it off. Focus on design touches like cabinet fronts, countertops and light fixtures. 2. Open concept floor plan In a primary residence, an open floor plan isn’t everyone’s cup of tea. But it can be a nice element in a second home, giving you space to entertain friends and family and enjoy a relaxed time together. And there’s more than one kind of open floor plan, so choose the layout that works best for your lifestyle. For example, if you love to cook but don’t want to miss out on socializing, a great room concept where the kitchen leads directly into the living space might be ideal. 3. Indoor-outdoor living If your dream second home is in a warm-weather destination, indoor-outdoor living is as good as it gets. Imagine a seamless transition from your home’s main living area to an expansive deck, complete with an outdoor kitchen and a swimming pool. Or enjoy private outdoor spaces with a secluded patio off of the primary bedroom. Upscale design touches include glass accordion doors, outdoor fireplaces and shade structures like pergolas. 4. Spa-worthy bathroom Why go to the spa when the spa can come to you? Treat yourself to some serious pampering with a primary bathroom that takes design cues from the finest spas. Must-haves include rain showers, deep soaking tubs, heated floors and gorgeous views. Then layer on the small details that make all the difference: Think soothing color palettes, houseplants, plush towels and dimmable lighting. 5. Ample storage While you’re unlikely to need quite as much storage in your second home as you do in your primary residence, having enough storage is still key to a peaceful and uncluttered experience. And it’s not just about having enough storage — it’s about having the right kind of storage. Think about how the home will be used. Is it a gathering place for a large group of friends and family? Make sure there’s plenty of pantry space in the kitchen and closet space in each bedroom. Is it a home base for outdoor adventures like skiing or mountain biking? A mudroom with gear storage is a must. 6. Fitness room Your vacation is the perfect time to focus on wellness, as you may have a bit more free time than in your everyday life. And if your fitness room — complete with bike, treadmill, weights or a rowing machine — is just steps away, even better. Remember, the location of your home also makes a difference in your exercise routine. Take your workout outdoors with a mountain hike, ocean swim, Wine Country bike ride or ski day. 7. Wine storage Say cheers to the good life with a bottle of wine retrieved from your private wine cellar. A dedicated wine room is a true bucket list item for wine lovers, but it’s not the only way to go. Even if you don’t have a dedicated room, you can show off your collection with a glass-enclosed wine wall or built-in wine refrigerator. 8. Home theater Fancy a family movie night? Or a dedicated space in which to watch the big game? Then you need a home theater in your second home. The best home theaters are built with the latest entertainment technology, accompanied by plush seating and dramatic lighting. Add a wet bar for snacks and beverages, and you just might want to stay forever. Find your turnkey luxury second home Ready to get everything on your wishlist? Check out Pacaso second homes. Just a ⅛ share makes you a co-owner of your dream vacation property, and every home comes move-in ready: professionally designed, expertly decorated and fully furnished. Best of all, you’ll find these crave-worthy interior features and many more in dream destinations.
Staying in a rental home can be a great way to spend a vacation. You aren’t confined to a single hotel room, and you have access to creature comforts like a kitchen, laundry and outdoor space. Vacation rentals also offer the opportunity to enjoy more local flavor, as you aren’t confined to a hotel’s location which is often in the most tourist-heavy areas. When it comes time to book a vacation home for an upcoming trip, it can be hard to know where to start. It seems like there are about a million different websites and apps you can use to book, but what are the real differences? Does it really matter where you book your trip? Here are the differences between Airbnb and Vacasa, two of the most popular vacation home booking sites, plus an alternative that offers a true home away from home. But first, there’s one structural difference it’s important to understand about Vacasa vs. Airbnb: Vacasa is a full-service property management company, whereas Airbnb is a listing platform. This fact may seem more important to homeowners, but understanding this distinction when deciding which service to use to book your vacation. Read on to see why. Where you find listings Airbnb listings are found on the Airbnb. You can use their full website or app to book, but the listings are the same. Homeowners have chosen to list their home (or room) for rent on the Airbnb platform specifically. Since Vacasa is a full-service property management company, they list their clients’ homes on multiple platforms, including their own website, Booking.com, Vrbo and yes, even Airbnb. Their goal is to showcase listings in as many places as possible to increase bookings for homeowners. Available destinations and listings As of August 2022, there are roughly six million active listings on Airbnb and more than four million hosts. That means you can find an Airbnb to rent in almost every corner of the world. Vacasa takes a different approach. They focus on what they call “drive-to” vacation destinations, with roughly 35,000 listings concentrated in the most popular vacation hubs in the United States. (One reason is their use of local, on-the-ground property management teams.) Choose from beach destinations like Hawaii, San Diego, Myrtle Beach, Miami, Cape Cod and the Florida Keys. They have a big presence in ski areas, too: Park City, Lake Tahoe, Stowe, Sun Valley and Vail. You can also find Vacasa-managed homes in Belize, Canada, Costa Rica and Mexico. Types of rental properties Vacasa focuses on whole-home rentals, including condominiums, townhomes and single-family properties. You’ll find homes with a wide variety of amenities, including pools, hot tubs, boat docks and accessibility features. Many are also pet-friendly. Homes range from one-bedroom cabins to large vacation properties that will fit the whole extended family. If you’re looking for a more unique experience, Airbnb is a great place to search. You can choose from shared rooms, private rooms in a home or full home rentals. In addition, Airbnb offers a range of property types. Ever wanted to stay in a castle? What about trying out a tiny house? Or fancy a weekend in a treehouse? Airbnb is well known for its truly unique listings, from converted airplanes to hobbit houses. 3D walkthrough You can’t always believe what you see in rental property listings, and it can put a damper on your vacation to arrive at a home that looks dramatically different from the pictures. Vacasa tackles this problem by providing virtual 3D tours for many of its properties, allowing you to get a better feel for the layout, views and size of the home you’re thinking about renting. Currently, Airbnb doesn’t allow hosts to upload videos or 3D tours to their listings, so you’ll only find still photography on their platform. However, many hosts include links to videos of their homes on external websites. Fees Vacasa charges renters a booking fee, cleaning fee and damage waiver. Additionally, you may be subject to extra fees, like a pet fee, hot tub fee or early or late check out fees. Be sure to click on “pricing details” to see what you’ll be required to pay in addition to the nightly fee. Similarly, if you rent a home through Airbnb, you’ll pay a cleaning fee and a service fee. You also may be subject to a security deposit, extra guest fee or local taxes. Regardless of the platform you use to book, it’s important to take a close look at the required fees and any cancellation penalties, as these line items can add up quickly. As of November 2022, Airbnb added a feature to its search results page called “Total price display,” which allows you to see available homes with the fees included. Level of customer support Because Vacasa is a full-service property management company, renters staying in Vacasa-managed homes enjoy 24/7 customer service via phone or their app. There are also local management teams in case you need in-person support during your stay. And because property managers are nearby, it’s easy to get issues resolved, whether you get locked out, run out of the pre-stocked amenities or experience a maintenance emergency. If you experience an issue while staying in an Airbnb rental, your first course of action will be to reach out to your host. This could be the owner of the property or a property manager working on their behalf. That means that the speed and quality of the response can vary. If you can’t reach your host, you can contact Airbnb customer service and request help via AirCover, their included travel protection program. Technology Vacasa has a well-earned reputation for in-property technology solutions that help ensure a smooth vacation for renters. This includes things like smart locks and Wi-Fi. The Vacasa app serves as your primary resource for every rental, with home access instructions, directions, parking details and a complete home guide. Airbnb leaves the smart home technology up to the individual property owner, but renters can access a lot of helpful booking information in the Airbnb app, which is also how you can contact your host. Go from renter to owner with Pacaso If you find yourself regularly renting vacation homes in your favorite destination, it might be time to consider buying your own second home. Pacaso puts ownership in reach thanks to a co-ownership structure that lets you purchase ⅛ of a luxury vacation home. Pacaso homes are professionally designed and decorated, and stocked with everything you need to simply arrive and start enjoying. And, our SmartStay™ system ensures scheduling is easy and equitable for all owners.
There’s no getting around it: Remote work is here to stay. In fact, an estimated one in four Americans are remote workers. The flexibility of working wherever and whenever you want means it’s finally practical for families to take extended workcations away from their primary residence — whether that be on an extended cruise, road trip or even a vacation home. By learning to balance work and play within your home — or second home — you can have a more fulfilling career as well as a more rewarding lifestyle. Follow this step-by-step workcation guide to do just that. What is a workcation? A workcation, or a working vacation, differs from a traditional vacation in that you aren’t necessarily taking any personal time away from work. You have the option, of course, but you could choose to clock in and out as usual, all while reaping the benefits of your beach house or favorite ski resort. A workcation does not require you to clear a solid block of time out of your schedule — you only need the ability to perform your tasks via the internet. You will still meet all your deadlines and answer your emails, but instead of doing them in the office, you can do them from the comfort of your second home or vacation rental. And your precious vacation days can still be used when desired. Which jobs and roles are a good fit for a workcation? Unfortunately, not every kind of job is well suited for remote work. If you work in a role that requires frequent in-person interaction with customers or colleagues, you may not be able to swing it. Similarly, work-from-home roles that require a lot of equipment may not be particularly suited for a workcation, simply due to how much packing and setup is required. Generally, people with office work, self-employed roles and those who already work remotely from home are the best candidates for a successful workcation. Should you take a workcation? If you’ve never experienced the benefits of working on the road before, it can be difficult to finally take the plunge. A lot can be at stake if something goes wrong. Evaluate your workload to figure out if a workcation is right for you. Questions to ask yourself Do you have too few vacation days to make a long trip worth it? Will someone cover your work responsibilities while you are away? Does your work have flexible conditions? Do you have a destination in mind that provides a reliable internet connection? Will you be able to perform all of your typical work functions from this destination? If you answered yes to those questions, then a workcation might be just the thing you need to squeeze more travel into your life. How to plan a workcation in 7 steps If you want to take advantage of all the benefits a workcation has to offer, then there are several steps you can take to maintain productivity. Establishing a routine and defining boundaries will go a long way toward keeping your days focused and your nights free. 1. Schedule it in advance Your boss is the first potential obstacle to making your workcation dream come true. Before you approach your boss, prepare your answers to any likely objections. Reassuring them that you will still meet important deadlines and be reachable during core hours during your workcation is crucial. When raising the topic, be direct. Tell them exactly what you want. “I was wondering if I could work remote the week of ____?” Tell them why you think it would be beneficial. “I’ve been having a hard time concentrating in the office with so much going on. Getting away for a week would really help me get things done.” Let them know you’re a team player. “I don’t want to burden my team with my absence, so I’d rather continue working on [your big project].” Tell them you've thought through the technology requirements. “I’ve already used my work laptop to access our platforms from home without issue. And the house I’ll be in has dependable internet access.” Explain that you’ll still be reachable when needed, even if you’ll be in another time zone. “I intend to be online during our normal working hours.” Even if you already work remotely full time, it is still a good idea to communicate your travel plans to your manager and co-workers. Letting them know in advance that you will be traveling is a good way to prepare them for any mishaps that may arise, such as a flight delay that strands you in an airport or a connectivity issue. 2. Set a routine If you’ve never worked remotely before or are only used to working in a specific location, a new environment can really throw you off. Reinstating a familiar routine can help you regain your bearings. The temptation to work in your pajamas may be strong at first, but try to avoid it. It’s important to change into day clothes to remind yourself that there is work to do. Save the vacation mindset until after you’ve clocked out for the day. Similarly, try to stay in a place that has a dedicated home office or a guest house. This ensures you have a quiet place to focus, and also lets you separate work and play time at the end of your work day. It can also be helpful to incorporate parts of your normal routine to your destination. If a cup of coffee or a big breakfast was a pre-work staple before, keep it going for your workcation. If a morning gym session helped energize you to go into work, keep exercising. You can even adapt your typical routine to this new location. For example, substitute your normal gym class for a run on the beach or a walk through town. 3. Declutter physically and digitally Space can be limited at a vacation property, but carving out somewhere for you to focus should be a priority even if you can’t track down a fully separate work space. Even setting up a corner of your bedroom with your work equipment can be beneficial. Wherever that space is, start by clearing out anything that is not conducive to a working environment. Remove the clutter that only serves as a distraction in your vacation rental. Once you’ve isolated yourself from physical distractions, focus on the digital distractions. Clean up your desktop from all of the loose files you have no intention of using. Delete emails that are no longer relevant so that you can quickly locate the information you need to do your job. 4. Define boundaries with colleagues The demands of every position are different, but it is important for everyone to draw lines for when work does and does not happen. Well-defined boundaries can make for more productive workdays and help you avoid burnout — at home and during a workcation. Communicate to your coworkers when you will be online and when you’ll be at lunch, and resist the urge to answer messages outside of that window. An added complication of remote work is that it becomes mentally harder to take sick days. This applies to workcations, too. Often, remote workers will rationalize working through illnesses since they will still be home anyway. But taking breaks from work are important aspects of the recovery process. This goes for mental health days as well. If taking a day off can improve your wellbeing and future performance, you owe it to yourself to do so. 5. Define family boundaries Family boundaries are just as important as co-worker boundaries. In fact, 38% of remote workers have trouble maintaining work-life balance. Working in a vacation home where families and friends have unlimited access to your attention is a temptation many people are unprepared for. That’s why it’s best to set these boundaries before you go on the trip. Tell them when you will be working and have a set plan for when you’ll be available. A separate room is ideal for family boundaries. Having a door to close and cut yourself off from distractions will send a clear message to your companions and help you focus on the work at hand. Save your socializing after you clock out for the day. 6. Schedule your free time A workcation can quickly spiral out of control when you’re trying to please both your boss and family. Use a schedule to keep all of your commitments in order. But don’t forget to commit some time to yourself. This is your workcation. Making time for your hobbies and the activities that interest you helps make these trips worth it and makes you more likely to do them in the future. Doing what you enjoy isn’t selfish, as leisure activities are positively linked to mental health benefits. Get up early for a pre-work activity, visit a local spot for lunch or plan an activity at the very end of your day so that you can have a hard stop time. You might even consider tacking on a few days of PTO onto your workcation so you have more time to explore away from your desk. 7. Stay productive Since one of the main reasons for your workcation is to experience what a new location has to offer, you’ll want to work efficiently so you can maximize your free time. Otherwise, you might as well have stayed at home. Aside from having a dedicated workspace, there are other ways to maintain productivity on a workcation. Implement the pomodoro time management technique. It avoids multitasking in favor of a single task and implements timed intervals. Check your email at dedicated times. Block websites that only serve as distractions. Set up templates for tasks that are performed regularly. Think about emails, briefs and spreadsheets that could be duplicated in advance and customized when needed. If your work doesn’t need to be done at a specific time, try waking up early when the rest of your family is asleep. Best workcation destinations The ideal workcation destination will provide enough space and serenity for you to get your job done while also offering plenty of activities to make the workcation worth it. Here are four top destinations that make it easy to combine business and personal travel. Aspen, Colorado Nature lovers will have their hands full taking advantage of all that Aspen, Colorado has to offer. Known for world-renowned ski trails, this is more than just a winter destination. It also has hiking trails, mountain biking, a mountain gondola and more. Some of the hotels have workcation deals and special accommodations, such as extra computer monitors and internet connection boosters. Jackson, Wyoming Another city known for its amazing natural surroundings is Jackson, Wyoming. Surrounded by world-class ski resorts and national parks, there are activities year-round to be enjoyed after work. Even with these attractions, the city of Jackson still doesn’t betray its small town roots. But just because it’s small doesn’t mean it is behind the times. It still has all of the amenities a professional needs to get their job done, like office space packages and reliable internet. Miami Beach, Florida Miami Beach has a surplus of sand and sun for those looking to bypass the four-season year. Take advantage of the ocean access by chartering a fishing boat, take an architecture tour of the distinct art deco buildings, or experience the nightlife by visiting the many vibrant dance clubs. Sunny work-from-home rentals will bring fresh energy to your normal day-to-day routine. Sonoma, California Looking for a middle ground between mountains and beach life? Take a tour through Sonoma to experience one (or more) of its many vineyards. Start the day off with a morning hot-air balloon ride and fill your evenings with a trolley, limo or bike tour. Sea lovers can take comfort knowing Sonoma has access to California’s beautiful coast. There are a number of travel packages available that make this location a great affordable option. A workcation can open up new avenues for finding a work-life balance that was previously unattainable. Tailoring the destination and activities to your needs will ultimately help you decide how beneficial it can be. Explore your options for upgrading your vacations from rare to regular by purchasing a second home in your dream location. Ready to become a workcation pro? If you end up loving the remote work trip life, consider making it a regular occurance. As a co-owner of a Pacaso second home, you’ll have ample time to enjoy your favorite destination each year, without having to stay somewhere new every time the workcation life calls you.
There are many reasons why real estate agents host open houses for their listings. First, open houses can be an efficient way to get multiple buyers through the door without the back and forth of scheduling private showings. Second, they’re a good way for agents to pick up new clients — many casual attendees of open houses may not yet have an agent representing them. And open houses can be worthwhile for those who attend them, whether you’re serious about buying a home, just casually browsing or even if you’re just curious to see the inside of a house you’ve been swooning over. Can anyone go to an open house? The short answer: Yes. Open houses are open to the public, which means anyone can attend during the dates and times advertised. At an open house, you’ll likely encounter several types of attendees: Serious buyers. These people are on the hunt for their perfect home, and they’re likely stopping at multiple open houses that weekend. Casual browsers. Open houses can be valuable to people just starting their home search, as they can help narrow in on preferences related to layout, architectural style, decor and budget. Lookie-loos. These attendees aren’t really in the market for a home, but they’re curious about what the interior of a specific home looks like. This could include neighbors with similar floor plans who are looking for renovation ideas, people with an interest in architecture and design, or even people who previously lived in the home and want to wax nostalgic for a few minutes. Buyers agents. Real estate agents often drop in to open houses to get a feel for what’s on the market in a specific area or to pre-screen a house they’re thinking about showing to a client. No matter which category you fall into, it’s important to know that there’s more to attending an open house than just waltzing through the door and taking a look around. Here are some important do’s and don’ts to keep in mind. Must do’s at an open house 1. Greet the host Hosting open houses requires a good deal of effort. Be sure to start your visit by greeting the hosting agent and providing your name. Most agents ask that attendees log their name and contact information on a sign-in sheet. Yes, this is for follow-up purposes, but it’s also a safety precaution for the seller and the agent. 2. Follow the house rules Remember that the house you’re touring is currently someone’s home. It’s important to act with respect and common courtesy. This includes following any posted rules and signs. Common rules include removing your shoes and/or wearing disposable booties that are provided, not taking photos or videos, or staying out of off-limits areas. 3. Be honest Not all people who attend an open house are actively searching for a new home, and that’s okay. But it is important to be honest and upfront with the agent who is hosting. It’s totally fine — and often appreciated — to tell the agent you’re just browsing, looking for design ideas or touring on behalf of a friend. It saves them follow-up time later and allows them to focus their attention on prospective buyers. Similarly, be upfront in telling the host if you’re already working with another real estate agent. 4. Keep your hands to yourself Open houses are designed to help give prospective buyers a better feel for a home than they can get from listing photos or videos. But they’re not an opportunity for attendees to go through a seller’s belongings. While it’s perfectly fine to walk through the home’s interior and exterior spaces, as long as doors are open, there’s no need to open closet doors, look in kitchen cabinets, or open bathroom cupboards. If you’re a serious buyer who wants a more in-depth look at the property, that can be accomplished with a private showing. Major don’ts at an open house 1. Broadcast your opinions There will likely be other attendees at an open house, and you don’t want your opinions to affect what they think about the home. Everyone’s tastes are different, so keep any negative observations to yourself. If you’re a serious buyer, bring a notebook and pen with you to jot down your thoughts. This can be especially helpful if you’re touring multiple homes in one day or one weekend. 2. Show your hand If you find yourself in love with the home you’re touring, it’s best to keep quiet. Here’s why: Let’s say you find the perfect home during an open house. If you decide to make an offer, your agent will be negotiating with the seller’s agent who likely hosted the open house. If they heard you gushing over how much you love the home, that may affect how tough they push back during the negotiation process. Simply put, they may think you’re willing to pay any amount to make the home yours. (Plus, others at the open house may be spurred to act on the home if they think you’re ready to make an offer.) 3. Let your kids run around It’s completely understandable if you need to bring your children with you to an open house. But be sure to keep them within sight the whole time. Not only are kids not often good at the “look, don’t touch” rule, but they could be distracting to other potential buyers touring at the same time. 4. Overstay your welcome Open houses are usually only scheduled for a few hours, and there may be a lot of attendees, especially in competitive seller's markets or if a home has just come onto the market. By all means, take the time you need to tour the home, but don’t stay longer than you need to. An open house isn’t meant to be your only opportunity to see a home. Rather, it’s a starting point. If you find yourself interested in a home after the open house, ask your agent to set up a private showing so you can have a more in-depth look. Tour your dream second home Pacaso offers unique co-ownership opportunities for luxury second homes in over 40 top vacation destinations. Take a peek at your favorite available homes with a virtual or in-person private tour. Book a live session or schedule a guided tour right from our listings page.
Much like the perfect holiday meal, putting a bit of extra thought into your holiday hosting can make all the difference. So we asked Jenni Kayne, creator of the ultimate California lifestyle brand, for simple tips to make your dinner table extra special. Plus, Jenni shares a recipe for an easy and delicious side dish your guests are sure to love. Secure the essentials Functionality is at the core of a stellar tablescape and it starts with neutral plates and bowls, plenty of flatware and attractive glasses. “Effortless hosting comes down to preparation,” says Jenni. “My advice is to curate a set of essentials that work year-round: ceramic or stoneware dinnerware, nice glassware, and cutlery and serving pieces that elevate any setting.” Pacaso favorites from Jenni Kayne: Bistro Vintage Finish Cutlery Set Pacific Dinner Plate and Soup Bowls Oval Glass Less is more When in doubt, keep it simple. Go for table decor that makes you feel festive but can easily be updated throughout the season. Stick to neutral hues. "You don't want your tabletop to overpower the event,” says Jenni. “Aim to have it reflect the season and the overall feeling you want to evoke.” Pacaso favorites from Jenni Kayne: Frayed Linen Napkins Look outside No matter what other trends are circling around, greenery is alway at the epicenter of winter decor. Using greenery on the mantel is a must but consider using it in other places as well. It can even give your existing decor a seasonal boost. For example, you might consider clipping flowers for a vase in the summer and then turning to eucalyptus branches in winter to create a nature-inspired vibe. Create arrangements or bouquets for the table using what you have in your own yard. Use jute twine or stems themselves to tie off bunches of what you find for sustainable, easy and fun-to-make decor. “I like to draw from my surroundings and focus on earthy tones with slight notes of color that reflect the season,” says Jenni. “I’ll add personalized touches that bring it all together and make the table feel special, like hand-written place cards or thoughtful parting gifts.” Faux greenery is a great option to be hassle-free while keeping in the spirit of the season! Pacaso favorites from Jenni Kayne: Small Leather Rivet Vase Bonus: Recipe for a delicious side dish Every host and home cook worth their salt knows there are things they can’t live without. And every Pacaso kitchen has all the tools you need to whip up that new recipe you’ve been dying to try or a classic handed down from grandma. We asked Jenni to share a favorite holiday recipe to help us savor the season. Sweet Laurel Butternut Squash Mash (Serves 4-6 people) Ingredients 1 butternut squash (3-4 pounds), peeled and cut into 2-inch pieces 2 tablespoons kosher salt 6 tablespoons unsalted ghee or melted coconut oil, divided, plus more for greasing 1/4 teaspoon grated nutmeg 2 tablespoons finely chopped fresh sage, divided Freshly ground pepper 1 tablespoon arrowroot powder ½ cup almond milk ¼ cup grain-free bread crumbs ¼ cup grated dairy-free parmesan 3 egg yolks Directions Bring a large pot of water to a boil over medium-high heat. Add squash and 2 tablespoons of salt and cook until tender, about 15-20 minutes. Drain and pass through a potato ricer into a medium bowl. Return squash to a small pot over low heat. Add 4 tablespoons of ghee and using a wooden spoon, stir until smooth. Season with nutmeg, 1 tablespoon of sage and salt and pepper to taste. Cook, stirring, until the mixture is a bit dry, about 1 minute more. Preheat the oven to 300 degrees and lightly grease an 8-inch casserole dish with ghee. Meanwhile, in a small bowl, combine the arrowroot and almond milk and stir to dissolve. Add mixture to the squash and cook, stirring until thickened, about 2 minutes. Remove squash from heat and let cool to room temperature, about 30 minutes. In a small bowl mix the bread crumbs, parmesan, 2 tablespoons of ghee, and 1 tablespoon of sage. Add the egg yolks to the cooled squash and stir to combine. Spoon the mixture into the prepared dish and top with bread crumb mixture. Bake until lightly browned, about 40 minutes. Remove from the oven and serve immediately.
While it’s no small feat, designing your dream home is an incredible opportunity to create a home that fits your needs, design style and wish list. Here’s what you need to know as you start down the path toward designing your unique dream home. 1. Set a realistic budget Every home build has a budget — regardless of how many zeroes are in it. Setting a budget for your custom home build may not be the most exciting part of the process, but it’s an important first step. How much you’ll spend on a custom home depends a lot on where you live. The cost of land varies dramatically across the country, as does the cost of labor. Materials costs fluctuate based on market conditions, too. How big a home you plan to build will, of course, impact your costs, as will the quality level of interior finishes. It can be helpful to reach out to a few custom home builders in your area to get a feel for building costs (you’ll find more about assembling your team in the next section). Builders will usually provide an average cost per square foot, allowing you to estimate your costs based on the size of the home. They may also provide a range depending on the level of interior and exterior finishes. Across the country, typical homes cost an average of $150 per square foot, while luxury homes can reach $500 per square foot (according to Forbes Home as of January 2023). These numbers don’t include the cost of the lot. As you set your budget, it’s important to include some padding. It’s not uncommon for custom home projects to go over budget, either because you decide to make on-the-fly upgrades along the way or you run into unforeseen issues. It’s also fairly common for builds to take longer than expected, which can mean carrying costs like interest payments and extra housing expenses. 2. Assemble your team You’ll rely on several types of professionals when you set out to build a custom home — the most important being your home builder. If you don’t already have a builder in mind, ask around for references. If you already have a real estate agent lined up for help purchasing a lot, they can usually help you with referrals for reputable builders. It’s important to interview a few builders before choosing one. In addition to making sure they fit within your budget, confirm that they’re licensed, bonded and insured. You’ll also want to ask about their process, timelines, experience and communication. Finally, be sure the style of the homes they build aligns with your tastes. Depending on how the builder you choose approaches the build, you may also need to hire an architect. A real estate agent, real estate attorney and landscape architect will round out your team. 3. Line up financing Unless you’re paying for your custom home in cash, you’ll need to line up financing to help bring your plans to life. Getting financing for a custom home build can be trickier than just getting approved for your typical mortgage on an existing home. You'll come across two different types of loans: land loans and construction loans. Land loans obviously help you pay for your lot, while construction loans are a short-term financing option that covers your build costs. You can pay for your lot with a construction loan as needed. With a construction loan, once your build is finished, you’ll apply for a traditional mortgage. Some construction loans have a feature that allows them to convert into a mortgage when your home is complete. These are called construction-to-permanent loans. One important thing to know about both land loans and construction loans is that lenders consider them riskier than traditional mortgage loans. This is because there’s no finished home to use as collateral. You’ll need an excellent credit history and a sizable down payment to get approved. You also may need to shop around with multiple lenders to find the right loan product. A mortgage broker can be a helpful resource during this process. 4. Make your wish list Make a list of all the things you’d love to have in your new home — it’s your dream home, after all! Start with a pie-in-the-sky list that includes not only the basics like square footage and number of beds and baths, but also specific features that fit your lifestyle. Maybe that’s an outdoor kitchen for weekend family barbecues. If you’re a movie lover, it could be a state-of-the-art home theater. Food lovers might be dreaming of the ultimate chef’s kitchen. Some items on your wish list might be convenience-focused, like an upstairs laundry, a three-car garage or an in-ground sprinkler system. For most people, the wish list gets long pretty quickly. Your next step should be prioritizing needs versus wants, then rank your list. If you’re building a home with a partner or family members, make this a collaborative process. In every home build, concessions will have to be made as the build progresses, so it’s nice to have a cheat sheet with what matters most to you. An example of a need would be a main floor primary suite if you have accessibility needs. However, a want might be a kitchen with enough space for a double island. It would be great to have, but may not end up fitting within your budget or floor plan. 5. Gather inspiration It’s time to start gathering design inspiration for your dream home. First things first: What architectural style appeals to you? Some of the most common home styles include Colonial, Modern, Mid-Century Modern, Craftsman, Tudor, Ranch and Farmhouse. After you’ve decided on an overall architecture type, start honing in on your style. There are a lot of ways to do this. You can create Pinterest boards, perhaps making a different board for each major area of the home. Or, you can take photos of design elements you like as you’re out and about: paint colors, landscape elements, and decor items in stores or in the homes of friends and family. Digging through a stack of design and architecture magazines may spark some ideas as well. No matter your method, having visual examples is incredibly valuable for your builder and architect as they can more easily see the aesthetic you gravitate towards and make recommendations on materials and layouts. 6. Pick out the perfect lot You might think picking out a lot should come earlier in the process, but it’s helpful to have your contractor picked out and a wish list made before selecting a lot. There are a couple of reasons why. First, your contractor will be able to spot challenges in potential lots that may not be immediately apparent to the average homebuyer. Perhaps the topography would make excavation costs exorbitant, or your plans for a basement not feasible. Second, it’s best to have an idea of the style and size of the home you’re interested in, so you can get a big enough lot. 7. Make a timeline It can take between six and nine months (or longer) or a builder to complete a custom home, assuming everything goes smoothly and there are no delays in permitting, materials or inspections — plus, the weather cooperates. While your builder will be responsible for managing the construction timeline, it can be helpful to make your own timeline for related tasks you’ll be responsible for. This can include things like financing milestones, moving schedules and anything related to selling your previous home, if that applies to you. 8. Focus on communication It’s important to choose a builder with solid communication skills. Although the build process can be long, you should receive regular updates from your contractor about how the project is progressing. Communication is a two-way street, so you should also do your best to respond quickly when your builder reaches out with questions or needs you to make a decision. Keeping the lines of communication open and acting decisively can help keep your project on track. The same goes for communicating with your architect, lender, real estate agent and any other vendors working on your project. 9. Be patient Dream homes aren’t built overnight, and quality craftsmanship takes time, so it’s important to be patient. This is especially true as you get closer to completion. The finishing touches are key to being satisfied with your new home. You’ll do several walk-throughs with your builder and create a punch list of items that need to be repaired or issues that need to be resolved before the project is considered complete. Don’t rush these steps — they’re important to ensuring you get the full value of your build. 10. Move in! It’s a long journey from deciding you want to build a custom home to unlocking the front door for the first time, but good things are worth waiting for. Take some time to savor the feeling of wandering through your new construction dream home. Don’t forget to take pictures and videos! Then, get to work moving in and making your house a home. Congratulations! Your dream second home is ready for you Thanks to Pacaso, you don’t need to wait for a luxury second home. Pacaso co-ownership offers professionally managed and designed retreats with crave-worthy amenities like chef’s kitchens, infinity-edge pools, wine cellars and plenty of entertaining space. Browse our listings today and find your dream getaway today.
Moving into a new home is one of life’s biggest milestones. Whether you’re picking out your first home, relocating to a new neighborhood or city, or buying a second home in your favorite vacation destination, it’s an exciting (and sometimes nerve-wracking) time. When shopping for a home, you’ll face a myriad of questions. Single-family home, townhouse or condominium? City, suburbs or rural? Big backyard with room to roam or low-maintenance patio? While the answers to all of these questions are important, there’s one question that you should answer first: Do you want to buy an existing home or build a brand-new home? If you’re having trouble weighing the pros and cons of buying vs. building your next home, consider these 10 factors. 1. Where you want to live Your target neighborhood can play a big role in your buy vs. build discussion. For example, if you’re looking to live in a densely populated city or in an historic district, land may be hard to come by or be very expensive. But in sparsely populated areas, you may be able to find an affordable lot on which to build your dream home. Of course, in urban areas, there’s always the opportunity to tear down and rebuild, but that can be a costly proposition. 2. Your budget Speaking of expenses, your financial situation and home budget are always important factors. In general, buying an existing home is more affordable than building a home, but it depends on your target real estate market. It can also vary based on the cost of building materials, labor prices and the level of finishes you want. If you’ll be financing your home, consider that traditional home loans, like a 30-year mortgage, are easier to obtain and often have lower interest rates than land loans or construction loans. This is because lenders consider land and construction loans riskier. You may also be asked to make a larger down payment on a land loan. Finally, if you are considering building, you’ll need the financial flexibility to both pay the land loan and cover the construction costs, while also paying for housing until your new home is finished. 3. The local real estate market Sometimes, there are factors outside your control that can affect your buy vs. build decision. Let’s say you’re buying a home in a competitive real estate market, one where the demand outweighs the supply of homes for sale. This is called a seller's market. In a seller's market, buyers can expect higher prices, limited homes to choose from and stiffer competition. Buyers often have to compete against each other, which means that sellers have their pick of multiple offers. It’s common in a seller's market for people to turn to new construction to avoid some of the stress of trying to buy in an ultra-competitive landscape. 4. Your moving timeline Buying an existing home is undoubtedly faster than building a home. Once you’ve found a home you love and are under contract, you can expect to close and move in within 30 to 60 days if there are no home inspection, appraisal or financing challenges. Building a home takes, on average, six to nine months, and this does not include the planning, permitting and inspection phases nor account for any delays that pop up along the way. 5. Tolerance for maintenance and repairs One of the best things about a brand-new home is that it should be blissfully free of major repairs and maintenance — at least for a good long while. In a brand-new home, all the big-ticket items are new: HVAC system, roof, windows and appliances. This can be especially appealing to people who don’t enjoy home repair and maintenance projects, or those who want to avoid unexpected expenses. In fact, many builders offer home warranties that are valid for a set period of time after closing. And your new appliances should all come with warranties. When you buy a home that’s had previous owners, be sure to ask about the age of the home’s major systems. Before closing on a home, it’s smart to pay for a professional home inspection that should uncover any problems in time for you to negotiate repair costs with the seller. Sellers are required to disclose major issues that they know about, but there’s always a risk that something unknown is waiting in the wings. 6. Layout criteria If you have very specific layout needs, building a home could be preferable to searching far and wide for a home that meets your specific needs — things like mother-in-law or rental suites, home office space, barns or outbuildings. While you could always buy an existing home and renovate it later, large structural changes are often expensive and time-consuming to complete. If your home wish list is more traditional, you may more easily be able to find an existing property that works for you. 7. Design aesthetic Even in a buyer's market (when there are plenty of homes on offer), it can be hard to find one that checks all the boxes for your preferred home style. If you have a specific design aesthetic in mind — Modern, Contemporary, Mid-Century Modern, Craftsman, Tudor or something even more unique — you immediately narrow your choices. That’s why building a home can be ideal for someone who wants to achieve a very specific look. Building your own home ensures you can get the style you want, from the architecture all the way down to the interior finishes. This is especially appealing for design-minded people who want to be involved in designing and decorating every aspect of their new home. 8. Energy efficiency If having an earth-friendly home is important to you, new construction might be the way to go. Today’s homes are built with energy efficiency in mind, which can mean lower energy costs and a lessened environmental impact. It also means that you’ll be able to pick out materials and equipment that are energy efficient and sustainable, like tankless water heaters, heat pumps, double-pane windows and salvaged wood. 9. Landscaping type A new home lot is a blank canvas and, depending on how much land clearing has been done, may be void of mature landscaping like trees and bushes. If you’re looking for a home with lots of mature landscaping — large trees, lush foliage and an established lawn — you might want to consider buying an existing home. This can save you money, as it can be very expensive to landscape around your new home, given the cost of hardscapes, fencing, plants and sod. Building a house is no small feat. It’s time consuming and complex, and can be stressful. You’ll have to hire a general contractor or manage multiple contractors and vendors, juggle timelines, review contracts and make a lot of decisions along the way. You’ll also have to be comfortable with changing plans, delays that crop up and other unexpected hurdles. Ending up with your dream home is often worth the effort, but if you don’t have the time or patience for a new build, choosing an existing home might be the right path. The best of both worlds If you’re trying to decide whether to buy or build a second home in a vacation destination, consider a Pacaso. Pacaso second homes are luxury turnkey second homes available for co-ownership in popular destinations across the United States and beyond. Buying a Pacaso is a win-win. Every home is already built — some are new construction, others recently renovated — and all are professionally designed, fully furnished and maintained, and ready for you to enjoy. Best of all, you can become a co-owner of a Pacaso second home starting with a ⅛ share, putting your dream vacation home within reach now.
At Pacaso, we take family fun seriously — so seriously that we outfit each home with amenities to help you create special moments as a family. Our promise to deliver Family-Friendly Second Homes™ means you have the space, entertainment and environment to make the most of your time together. “There’s going to be amazing memories made in our home,” said Rita, an owner of a Lake Tahoe Pacaso. “As a grandmother, that is my main job. And I think it’s going to be quite easy.” Here’s how we make our second homes easy for families, plus more stories from Pacaso owners and partners. All the fun and games “My kids are at a critical point in their lives,” said George, an owner of a Lake Tahoe Pacaso. “To have a place that we can call our home and where we can separate ourselves from living and breathing the frenetic pace of Silicon Valley — that's huge.” Entertaining the family is a piece of cake in a Pacaso. Each home contains classic games like Jenga, backgammon and playing cards. (Select properties even have ping-pong and pool tables.) And all Pacaso homes include smart TVs and streaming services for popcorn-filled movie nights with the kids. The high-end touches make it easy for families to plan quality time and create positive lifelong memories in their second home. “There’s a lot less screen time when we’re there because there’s so much other stuff to do, like playing family games,” said Susan, a Napa Pacaso owner. Outdoor living, unlimited Each Pacaso home is designed to reduce stress and encourage family time. If your Pacaso has an outdoor space, you’ll find gas grills and patio furniture to kickstart relaxation. And if you have a pool, you can unplug with floaties, lounge chairs and umbrellas. “We live in a city, so having all this space, a pool, playing bocce ball, making s’mores — it’s great, and the kids don’t want to leave,” said Susan. Another big plus of every Pacaso is location — mountain homes with direct access to ski lifts, desert homes with year-round sunshine and coastal retreats just minutes from the beach. “Being able to say, ‘Let’s go to the beach’ and have that be a 20-second journey down the stairs is amazing,” said owners Nkem and Angela. “There’s no rush … we can just go about our day, living our lives without stress or schedules.” Comfort for kids Rest assured: Your second home will be ready when you and your family arrive. Beds are fitted with fresh linens and pillows, bathrooms are supplied with essential toiletries, and your Pacaso has been thoroughly cleaned and inspected. “One of the great things about Pacaso is you really feel like you’re at home,” said Landon Clements, a Malibu real estate advisor with Engel & Völkers. “Everything is fresh and new.” And if you have little ones, no need to bring a bunch of baby gear: Each home has an extendable baby gate, outlet covers, baby monitor and a Pack ‘n Play. Select homes have bunk beds for kids to hang out together. Every kitchen is stocked with high-end pots, pans, pizza stones, measuring sets and bakeware — essentials for creating kid-approved meals. Countertop appliances like multicookers, stand mixers and blenders make it easy to whip up favorite treats. Invite the little ones to dinner with dinnerware, cutlery, high chairs and booster seats designed for kids. Beyond the bare necessities With Family-Friendly Second Homes, we’ve got the needs of you and your children covered, from amenities in your home to services while you’re away from home. Pacaso has partnered with UrbanSitter, a trusted online babysitter and nanny services company, to make scheduling your child care plans easy and worry-free. Owners receive a credit that can be used toward UrbanSitter membership and paying sitters when booking directly on the UrbanSitter website. “We wanted to have the experience of a multi-generational property but we wanted it to be turnkey,” said Joe, owner of a Park City Pacaso. “Family time, skiing, recreation, family meals — and with the Pacaso offering, we are able to do that … that just brings so much joy.” For more details, see the list of 200+ home amenities in every Pacaso and the inventory of home goods we restock before each stay.
Many people, across age groups, mention travel as a top priority and desire when asked about their preferred activities. This led us to wonder, why do people travel, and do those motivations change over time? We surveyed 1,000 Americans from every adult generation to find the answers. We rounded out our survey results with 25 travel facts to get a fuller understanding of people’s habits, which revealed some surprising discoveries. Key findings: More than half of travelers aged 65 years or older prioritize trips to visit family or friends. Around1 in 4 travelers under 30 years of age make international travel a high priority. 44% of travelers under 30 and 37% of people 65 or older prioritize traveling out of state. Almost half of travelers under 30 wish their trips were a little longer. Read on for a further breakdown of our findings. Older travelers prioritize visiting family and friends Priorities change as we get older, and our travel habits seem to be no exception. 38% of all respondents named visiting family and friends as their primary reason to travel, but older respondents were most likely to travel for this reason. Respondents in the 18–29 age group slightly favored relaxing vacations (29%) over visiting family and friends (27%). People between the ages of 30–44 saw an increase in this divide, with 41% prioritizing relaxation and 26% visiting family or friends. People between the ages of 45–64 saw a flip in these options, with 37% prioritizing trips to visit family and friends over the 30% wanting to relax. This gap further widens for people 65+ with a whopping 53% of respondents prioritizing trips to family and friends as their primary reason to travel. The least likely reasons why people are traveling are just as enlightening as the most likely reasons. Business travel is still struggling to return to pre-pandemic levels despite many travel restrictions being lifted. Only 4% of respondents cite business trips playing a key role in their recent travels. While medical tourism is a growing industry — where travelers go abroad to take advantage of more affordable medical treatments — it’s the primary motivation of only 3% of travelers. Rounding out the bottom of our travel motivations are those celebrating an achievement. Only 2% of respondents cited this as their reason for planning a trip. People are less likely to travel internationally as they get older While backpacking through Europe or taking a gap year abroad may be quintessential milestones for some people in their late teens or 20s, wanderlust appears to wane as we age. 87% of respondents prefer traveling domestically over going abroad in 2022, but the numbers varied across generations, with the youngest respondents showing the highest preference for international travel. 26% of people between the ages of 18–29 said traveling to another country was a high priority. This sentiment dipped significantly to just 15% for those between the ages of 30–44, perhaps because that age group is more likely to have children, making international travel more expensive or complicated. Additionally, travelers between the ages of 45–64 and 65+ were the least motivated to visit other countries. Interestingly, while the 18–29 age group was most likely to cite traveling out of state as a motivator at 44%, people aged 65+ were the second-most likely at 37%. The older age group might be more likely to have children or grandchildren living out of state, and given their preference for visiting family and friends, this could be a motivating factor in their travel. This preference stands in contrast to the middle age groups, where just over 30% of respondents want to leave their state. Most travelers wish they vacationed longer If you wish you had “just one more day” to enjoy your vacation, you’re not alone. We found that 60% of survey respondents wished their vacations had been longer to some degree. The generational differences are where things get interesting. People between the ages of 18–29 were the least likely to be happy with the length of their trip. Surprisingly, 16% wished their trip had been a lot shorter, while all of the other age groups remained below 5% in this category. This age group was also the most likely to wish their trip had been a little longer, with almost half feeling this way. 45% of respondents at retirement age felt their trips were just the right length, and they were the least likely to wish their trip had been a lot shorter. This makes sense since they are not as limited by outside factors such as paid time off. If you’re among those who wish they had a couple more days to devote to their trip, you may be overestimating how much more happiness you stand to gain. Research suggests that our happiness reaches its peak on the eighth vacation day. By keeping vacations close to this length and taking multiple vacations throughout the year, travelers can maintain their happiness for longer periods of time. 25 more travel facts on why people travel We’ve collected some travel statistics to get a better perspective of why people travel and their habits when they do. Two common barriers for travel-loving Americans are the cost of the trip and having time available to take it. Due to these factors, solo trips have been trending upward thanks to flexibility with travel arrangements. Take a look at these interesting travel facts to learn more about people’s travel habits. People who skip annual vacations have a 30% greater chance of suffering a heart attack. (Psychopharmacology and Substance Abuse) In 2019, 70% of travelers favor eco-friendly accommodations even if they weren’t originally looking for one. (Booking.com) 63% of couples claim traveling has helped them stay together. (U.S. Travel Association) 26% of solo travelers are interested in international travel. (Solo Traveler) Walt Disney World’s Magic Kingdom was the most visited theme park in the world in 2020. (AECOM) 35% of travelers plan to travel more this summer than they did last summer. (U.S. Travel Association) 90% of Generation Z’s travel decisions are influenced by social media. (Expedia) The Americas saw 12 million more international tourist arrivals in 2021 than in 2020. (Statista) In 2018, 52% of respondents cited cost as the biggest reason they don’t travel more. (U.S. Travel Association) In 2019, 51% of U.S. travelers spent less than one week conducting travel research for their flights. (Facebook IQ) 41% of solo travelers see it as an opportunity for personal growth. (Solo Traveler) Domestic business travel spending is just 44% of what it was in 2019. (U.S. Travel Association) In 2021, the number of people planning solo trips increased by 82% over pre-pandemic levels. (Booking.com) Leisure travel spending decreased by 49.4% from 2019 to 2020. (WTTC) In 2019, 66% of U.S. leisure travelers found their flights online. (Facebook IQ) Travel spending in March of 2022 was 5% lower than in 2019. (U.S. Travel Association) Travelers spend almost half of their travel budget on flights and hotels. (Expedia) 73% of business travelers believe traveling for business helps them become more successful. (Savvy Sleeper) In 2021, 70% of survey respondents said they were ready to travel internationally. (Solo Traveler) 80% of U.S. flight shoppers said their decision was influenced by loyalty programs. (Facebook IQ) In 2018, people who used 13 vacation days were the most likely to feel they took “the right amount of time off.” (Insider) 69% of travelers are more loyal to travel companies that personalize online and offline experiences. (Think with Google) 92% of millennials are motivated to find the best travel deals. (Expedia) 66% of solo travelers do so because they don’t want to wait for others. (Solo Traveler) 63% of Gen Xers use vacation travel to avoid burnout, while only 55% of baby boomers and millennials do so. (U.S. Travel Association) These travel facts are meant to help answer the question of why people travel. While our priorities may shift as we age, the underlying need for a temporary change of scenery remains. If you’re struggling to travel as much as you’d like throughout the year, look into how owning a second home can create more travel and staycation opportunities. Methodology behind this survey This survey was conducted on YouGov Direct for Pacaso on May 4, 2022. 1,000 adults across the U.S. ages 18 and up were surveyed. The data is weighted based on age, gender, education level, political affiliation and ethnicity to be nationally representative of the U.S. The margin of error is approximately 3.1% for each question.
Working from home is a dream for many, but making the move from the office can require adjustments to your normal routine. Your home office setup plays a big role in your overall performance, so getting it just right should be a priority. Two key factors when setting up your space are having the right equipment and understanding your work style. To help you get started, we’ve put together this guide to home office setups for every work style. Discover your ideal setup, and you can be even more productive at home than on-site, whether you’re at your primary home, second home or combining work and fun on a workcation. Now, let’s clock in, shall we? Essentials for a home office setup Having the right equipment is the first step toward making the best home office setup for your work style. Check out the essentials to improve your productivity from the comfort of your home. Spoiler alert: It all begins with — you guessed it — a committed workspace. A committed workspace Having a dedicated office area in your home can help you get into work mode more quickly. You save time by not needing to tear it down and set it back up each day, and through routine, you’ll associate the area with work instead of leisure. An ideal workspace will have the following qualities: Privacy: Pick an area in your home that is away from household activity. Quiet: You can soundproof the room by installing acoustic panels on walls, adding window inserts or hanging soundproof curtains over doors. Adequate lighting: Swap out dim light bulbs for ones labeled “6500K” or “daylight.” Have an adjustable desk lamp to spotlight certain areas. Use a ring light for video calls. Suitable electrical outlets: Use multi-outlet adaptors with surge protection to connect all of your devices. If you can’t dedicate a whole room as your personal office space, setting up a multi-functional space is also an option. You can designate a corner of your basement or zen room as your permanent office or even jump on the “cloffice” trend (closets outfitted as an office). No matter your preference, consider using a room divider to improve privacy and try to angle your webcam so that the background is professional for video calls. Ergonomic furniture Having furniture that properly fits your body can improve your productivity while also keeping you healthy. Sitting in awkward positions for hours every day can lead to spinal pain, poor circulation and breathing issues. To improve your posture and comfort, get furniture like this: Desk: Your desk height should allow your elbows and knees to bend between 90-110 degrees while sitting. Consider using a desk height calculator to estimate proper heights. A sit-stand desk can provide even more options for comfort. Chair: Your chair should also rest at a comfortable height that doesn’t inhibit circulation. Try using a chair that provides adequate lumbar support, or use a lumbar chair insert for improved comfort. Correct monitor height: Your monitor should be positioned so you’re looking at the top third of the screen. You can purchase specialized stands to increase the height or even place your monitor on sturdy books to get a few more inches. Once your furniture is in a perfect position, fill your desk with the equipment you’ll need to get the job done. Necessary equipment If your company’s office had a one-size-fits-all layout, now is your chance to customize the small things to your liking. Make your job easier by getting equipment like this: Monitors: Get a second monitor to make working in multiple browser windows easier to manage. Alternatively, get an extra-wide monitor if you find it difficult to keep track of two screens. AV equipment: Most computers these days have built-in webcams and microphones, but if you have a lot of video calls, it might be worth investing in ones with better quality to maintain professionalism. Multi-port hubs: If you’re working from a single computer at home, you’ll likely need some adaptors to make sure there’s room for everything to connect. Mouse and keyboard: Similar to the ergonomics of your furniture, having a mouse and keyboard that are the right size for your body can increase your comfort throughout the day and help you avoid carpal tunnel syndrome. Printer: Investing in a quality printer can help you maintain professionalism at home while avoiding the need for trips to the office or library. After acquiring all of your must-have equipment, look into getting some extra tools that can make your days go by a little bit easier. Productivity tools Here are some additional productivity aids you may find beneficial: VPN: A virtual private network (VPN) offers increased security and privacy while using a public network. Your company may have its own VPN for accessing company files. If it doesn’t, consider investing in one for more cyber protection. Password manager: This is another tool your company may provide for you. A password manager makes it easy to access needed websites from any device while keeping the passwords safe. Noise-canceling headphones: If your home is noisy, a quality pair of headphones can drown out ambient noise and help you focus. Daily planner: This can be a journal, whiteboard or app. Choose the best option to keep you on task and meet your deadlines. Now that you have an idea of all the equipment you’ll need to do your work from home, learn how you can outfit your office to maximize productivity. How to set up your home office based on your work style Everyone’s work style is a little different, but most of us fall into an established category. Identifying your work style is the first step toward knowing how to set up a home office and increase your comfort and productivity. Here are the four types of work styles we’ll be covering: Logical workers prefer a space to do their own thing and see projects through to the end. They like to solve their own problems with well-thought-out solutions. Proximity workers value a careful balance between independent and collaborative work. They’re capable of being autonomous while still benefiting from the feedback of co-workers. Detail-oriented workers value order and accuracy. They tend to be perfectionists and want to make sure small issues are resolved before they can worsen. Idea-oriented workers are big-picture thinkers who don't settle for the status quo. They’re unstructured in their work habits and might need outside accountability to see things through to the end. After identifying your preferred work style, optimize your office space with our suggestions for a custom setup. If your office is lacking the professional appearance you want to promote to others, download our Zoom backgrounds to take it to the next level. Home office setups for the logical work style Since this work style means you’ll likely be carrying the brunt of the workload for your projects, find an area in your home that offers the most solitude while providing enough space to work. Add soundproofing to the room as an alternative way to mute distractions if physical isolation isn’t possible. Invest in multiple monitors to make it easier to juggle all of your different responsibilities. Use a wall or desk mount, and choose a wireless keyboard and mouse to save space on your home office desk setup. Home office setups for the proximity work style The perfect home office setup for the proximity work style is one that lets you collaborate when needed. If you live with another person, consider sharing an office area with them when you work from home. That makes it convenient to springboard ideas off of them when remote co-workers are unavailable. Invest in a quality webcam and microphone if you’ll be hopping on a lot of meetings. Be conscious of the location of your office setup at home. Put your desk in a spot that gets lots of natural light so that your appearance on video calls is professional. If you don’t have control over the state of your background, use an artificial background to improve the appearance. Home office setups for the detail-oriented work style Easily keep track of all the little details by working from a desk with a large tabletop. Having a designated place for all of your things will help you stay organized. Use shelves or a desk with drawers to keep unnecessary items out of mind until it’s time to focus on them. Since the best way for you to be productive at work is through order, hang a whiteboard on the wall to serve as a daily planner. Use it for checklists or quick reminders and get the satisfaction of wiping the board clean after a job well done. Home office setups for the idea-oriented work style Mobility is key to the success of this type of working style. Get a sit-stand desk with a monitor mount that can fully rotate. Being able to move freely without interrupting your workflow is a huge plus. If possible, work from a laptop instead of a desktop computer and think about placing a small sofa or extra chair nearby for more seating options within your office. A generic daily planner may not be enough to keep you on task day to day. You may even consider getting a personal assistant app that can sync with your devices and hold you accountable to deadlines. Embracing your unique work style and catering to your strengths is the not-so-hidden secret to accomplishing your tasks. Whether you need inspiration for your primary or second home, these home office setup tips can help you stay productive wherever you are.
You may not be able to treat yourself to spa treatments every day, but adding spa-inspired touches to your home can make your daily routine feel a bit more indulgent, and a lot more relaxing. Best of all, it doesn’t require a renovation — just small design elements in bathrooms big or small. These 14 design ideas can transform your bathroom into a tranquil retreat. After all, you deserve it. 1. Repaint with a soothing palette Your bathroom should be a calming oasis, and the best place to start is with a gallon of paint. Give your bathroom a simple facelift with a new coat of paint, ideally in a soothing tone. Soft blues and greens are always a great choice, but if you’re looking for a bolder look, take a monochromatic approach to avoid visual clutter — for example, pairing a bold wall color like burgundy or emerald green with complementary wallpaper or accent tile. 2. Go all white Think about your favorite spa. It probably features a lot of white and neutral tones, from the robes to the towels to the steam room tile. An all-white or neutral-toned bathroom immediately gives you that spa-inspired feel, while making the space look airy and bright (and it’s easy to clean). Plus, a white backdrop makes little design touches stand out, whether you choose an ornate mirror, framed artwork or a bronze bathtub tray. 3. Invite in some natural light There’s nothing worse than a dark, cave-like bathroom. Natural light can turn even the smallest bathrooms into inviting spaces. Whenever possible, let in natural light through windows or skylights, and reflect it back with mirrors. Concerned about privacy? Add some lightweight, flowy curtains or have your windows frosted — you’ll keep the neighbors from peeking in, while still allowing the light to shine in. 4. Use nature-inspired colors and textures Real wood and natural stone can add a feeling of zen to your bathroom. Cedar and teak are both good options, as they’re less susceptible to moisture damage than other types of wood. Go big with a wood soaking tub or pebble-shaped floor tiles. Or, simply add a bamboo tray, marble storage containers or woven baskets for holding towels. 5. Add some houseplants Another way to bring a spa-like feel is to add some houseplants. Tropical houseplants are a great choice, as they love the humidity your shower and tub produce. Hanging or trailing plants add a verdant, jungle feel, while low-light plants like ferns, ZZ plants and pothos are ideal for bathrooms without a lot of natural light. 6. Accessorize with a bathtub tray Stylish bathtub trays come in a variety of materials, including bamboo, marble and metal. Accessorize your tray with a small candle, tiny potted succulent, container of bath salts or handmade soaps. You can even find trays designed to hold a book, a teacup or a glass of wine. Just measure to make sure the tray (sometimes called a bath caddy) will fit the width of the your tub. 7. Ditch the packaging Invest in coordinated dispensers to hold your shampoos, conditioners, hand soap and body wash. You’ll simply refill the containers when you’re running low (this strategy also allows you to buy larger-size refill containers, cutting down on single-use plastic waste). With this quick swap, your shower shelf and countertops will look more like a high-end spa, and less like the shampoo aisle at the grocery store. 8. Invest in plush towels Fancy towels are the perfect example of a small, everyday luxury that can change your daily routine for the better. Replace worn, dingy or mismatched bath towels with new, plush towels that coordinate with the colors of your revitalized space. They’ll look great on the rack and feel great after a shower. Be sure to buy a couple sets — that way you’ll have enough, and you can display the extras rolled in a floor basket or folded neatly on an open shelf. 9. Hide your personal care products Make a habit of stashing your personal care products like razors, cotton balls and clippers in avanity drawer or cabinet between uses. A clear countertop creates the feeling of a spacious retreat, even in a small bathroom. Drawer and cabinet storage solutions are a great way to ensure that every item has a designated space and can help you stay organized even on busy mornings. 10. Swap out your shower head Changing your standard shower head to a rain shower head is one of the easiest and most affordable ways to add some pampering to your bathroom. Many can be installed on your own in minutes, and optional features include multiple spray settings, LED lights, handheld units and water pressure-boosting functionality. 11. Add high-tech touches You might not think of your bathroom as a particularly high-tech space, but there are quite a few additions that can increase convenience, comfort and smart-home functionality. Water-resistant Bluetooth speakers add some soothing music to your space and a wall-mounted towel warmer is great for cold winter mornings. Or set the mood with app-enabled ambient lighting. 12. Upgrade the lighting Speaking of lighting, if you want a truly spa-inspired bathroom, builder-grade overhead or vanity lighting simply won’t do. There are so many ways to upgrade your bathroom lighting. For example, swap traditional vanity lighting for a sleek backlit mirror. Or install an eye-catching chandelier over a freestanding bathtub. Perhaps the easiest upgrade is installing a dimmer switch for your overhead lights. That way, you can lower the lights and rely mostly on candlelight during a relaxing bath. 13. Try aromatherapy Creating a relaxing spa environment isn’t just about visual cues. Scents also play a huge role in relaxation and stress relief. Consider using essential oils in an aromatherapy diffuser or on a heated towel. Scented candles are another great option. 14. Hang interesting artwork Your bathroom might not be the first place you think of when it comes to hanging artwork, but a few nicely framed pieces can give the space a polished, finished look. Black and white prints, nature-inspired paintings and architectural pieces add a nice touch. Find your dream spa bathroom with Pacaso Pacaso second homes are professionally designed and packed with luxurious touches, including spa-like bathrooms. With homes available for co-ownership in crave-worthy destinations across the United States and beyond, you’re sure to find a property with the spa bathroom you deserve. Check out our listings and discover homes with massive soaking tubs, high-tech steam showers, heated floors and incredible views.
At Pacaso, we want you to enjoy your second home for years to come. But if you realize you prefer a different location or amenities, you can take advantage of the Pacaso Home Transfer Benefit™. An alternative to reselling your Pacaso, the transfer benefit allows owners to transfer ownership to another available Pacaso home. Flexibility when you need it We believe that flexibility is core to an outstanding owner experience — especially if your needs or preferences change. The Pacaso Home Transfer Benefit is a one-time benefit offered to you during your first 12 months of ownership. If you decide your Pacaso isn’t the perfect fit for you, you can transfer ownership to another Pacaso. “When we went to our house for the first time, I loved it. Everything was great, but it wasn't exactly what we were looking for,” said Michele, an owner in Florida who transferred ownership from her Pacaso in Islamorada to one in Key Colony. “We're looking for something with more of a community feel. Islamorada is great for certain things, but I like the community feel in Key Colony — I’ve already made friends. It has a very nice neighborhoody feel.” With this ownership perk, there’s no buyer’s remorse or second thoughts — you can buy your second home with confidence. Hassle-free benefits We make it easy for you to transfer ownership should you decide to do so. There is no closing period or transfer fee, and you can select an available home that's not an owner resale listing. The transaction is also tax free and does not impact your taxes (we recommend consulting with a tax professional regarding any real estate purchases or transactions). If you are transferring ownership to a more expensive home, you pay the difference in price. Eligible owners can use our financing partner to finance the difference. When transferring to a less expensive home, you will receive a credit toward your new home’s monthly operating expenses. Ownership transfers take effect immediately, so you can start booking time in your new home right away. After completing a transfer, your stay nights will reset, and the transfer date will be your new ownership anniversary date. “One minute, I'm in the home and we’re filling out some paperwork, and then the next minute I'm in the next home,” Michele said about the transfer process. “It was super easy. I loved that I was able to make a change after spending a little time in one house and then deciding I wanted something a little bit different, a little bit bigger — I am happy with the new home.” Own with peace of mind The Pacaso Home Transfer Benefit empowers you to start making memories in your second home right away. Don’t worry about missing out or fearing something better will come along — you have peace of mind knowing you can find the right second home for you if your initial purchase isn’t a perfect fit. Michele described how the transfer benefit played into her decision to buy a Pacaso. “It played a big part, knowing that we were going to invest in a property, and, if I didn't like it, we could easily transfer within the first year. We felt like we weren't committed to the one house, and it was easier to go for it and not feel stuck.” Have questions about transferring or reselling your home? Check out our seller and transfer FAQs.
Decorating a home from scratch can be daunting. But with a little research — and an understanding of some basic interior design principles — you might be impressed with how well you can pull off your dream room, dream home or dream second home. Use this guide to understand the seven elements of interior design, and discover the types of interior design that are trending in 2022, including: And because decorating should be fun, we’ve even created a game to test your knowledge of interior design basics. Now, let’s go nail your personal style from floor to ceiling. The 7 elements of interior design explained If you understand the elements of interior design, you can craft any space to make it your own. Here are seven key elements to bear in mind as you build a cohesive space. Texture refers to how something feels. You can use texture in your design through textiles like rugs or wall hangings. Space refers to the layout of the objects in a room. Generally, you can aim for a 50/50 balance of furnishings and empty space to avoid clutter. Pattern refers to patterned materials like floral wallpaper as well as repeating elements among a room's objects. Light is controlled with tools such as drapery and lighting fixtures so you can properly illuminate your space. Form is the shape of a room or any objects in it. It can range from sharp geometric shapes to curved organic shapes. Line is an element that adds structure to a room. For example, an accent chair or a bookcase adds horizontal lines. Color is everywhere in a room. Most spaces stick to neutrals and use features such as an accent wall or statement furniture to add color to their interior. Keep these elements in mind as we discuss what makes each interior design style unique, then test your knowledge in our game below. 5 trending interior design styles for 2022 With so many interior design styles to choose from, it might seem hard to know what’s on trend. But there are certainly some types of interior design that have their moments. Here are the top trending styles we’re seeing in 2022. 1. Bohemian Bohemian style, often shortened as “boho,” pulls together a variety of textures and patterns to create an effortless look. While boho interiors mix bold patterns, they’re grounded by key neutrals with simple pops of color. There’s a lot of texture in boho style, often using materials like rattan which adds a unique look that doesn’t clash with bold patterns. Interior design origin: 19th-century France Interior design history: This interior style was started by French artists — also known as bohemians — who valued creativity over luxury. Key interior design elements: Texture, pattern Style tip: Choose a large neutral feature, like a simple couch or table, and build your boho room around it. 2. Maximalist After years of minimalism and hygge reigning supreme, it should be no surprise that homeowners are now embracing the opposite end of the interior design spectrum: Maximalism. These interiors are typically full of statement pieces that are tied together with a broad theme or motif. It can be tricky to pull together so many different colors and contrasts, but the result creates an incredibly interesting space. Interior design origin: 2020s, international Interior design history: Pushing back against minimalism, maximalism gained traction on social media. Key interior design elements: Pattern, texture, color, form Style tip: Choose a theme to tie all your statement pieces together, like showing off all your favorite plants with a greenery theme or displaying all your favorite books with an academic vibe. 3. Cottage Cottage interiors combine classic and rustic features to evoke a simpler time, making this style perfect for a second home. Features like wood furnishings and natural stone help pull cottage spaces together, but you can transform any space into a cottage with details like handmade textiles or vintage furniture. Interior design origin: 18th-century Germany Interior design history: This style is very traditional and calls back to historic German farmland, appealing to anyone who wants a traditional-feeling space. Key interior design elements: Light, texture Style tip: Scout out unique vintage pieces to make this style feel like home. 4. Mid-Century Modern Mid-Century Modern design is characterized by its mix of lines and soft forms. It shows what people thought the future would look like, making this a timeless choice. Choose bold Mid-Century Modern furniture and blend another type of interior design into your decor to keep the perfect balance of old and new. Interior design origin: 1950s United States Interior design history: Although this style has been around since the 50s, Cara Greenberg was the first to name it Mid-Century Modern in her 1984 book, “Mid-Century Modern: Furniture of the 1950's.” Key interior design elements: Form, pattern, line Style tip: Use smart pops of color and trendy bronze accents to keep your Mid-Century Design from looking outdated. 5. Organic Organic interior design is very dependent on form. It’s characterized by a light neutral color palette, natural decor and soft edges. These spaces use these elements to create an open and airy space. Though organic rooms are often bright, they’re not overwhelming. This is because beige and cream tones are favored over bright white colors. Working in lots of plants via biophilic design is another way organic design can be more grounded. Interior design origin: 1930s United States Interior design history: Organic design’s popularity is often credited to architect Frank Lloyd Wright, whose signature style integrated natural elements into his structures. Key interior design elements: Form, space, light, color Style tip: Decorate with dried flowers to bring both texture and color into your organic interior. More types of interior design Trends come and go, but finding an interior design style that suits your personal taste is key to feeling comfortable in your space. Here are some other styles to consider in your home or second home. 6. Coastal Coastal style is a popular choice for, well, coastal or waterfront properties, as it brings the beachy atmosphere inside. Use features like sheer curtains and pops of light blue to keep your space feeling light and flowy. The key here is to lean into aquatic-themed decor so you always feel the same peace of lounging by the waves, even if the sand’s not right on your doorstep. Interior design origin: Unknown Interior design history: Coastal design is one of the oldest interior design styles. Its origin is hard to pin down, as it’s developed from many sub-styles of worldwide coastal regions. Key interior design elements: Space, color, light Style tip: Integrate natural elements like driftwood and sea glass to bring a bit of the beach home with you. 7. Art deco Art deco is characterized by its use of geometric patterns, jewel tones and accentuating lines. It’s common to fill the space with many statement pieces by using their similar patterns to tie an interior together. Another distinctive feature is interesting lighting like geometric chandeliers or floor lamps. While many interiors are colorful, they’ll usually stick to just one contrasting color to keep the color from overwhelming the space. Interior design origin: 1910s France Interior design history: Though art deco design reached its popularity peak in the United States in the 1930s, it originated in France a little earlier. Key Interior design elements: Pattern, line, color Style tip: Choose one simple shape to repeat in different patterns. 8. Minimalist This type of interior design is characterized by bright spaces, simple decor and open concept interiors. Usually, these interiors are mostly white to maintain a clean look. The minimalist style is about keeping things simple, so less is truly more. Your space doesn’t need to be completely devoid of decor, but it shouldn’t feel cluttered. Focus on creating clean lines so there’s nothing to distract you from your peace. Interior design origin: 1950s Germany and United States Interior design history: Many consider minimalism to have evolved from the utility of Bauhaus design but with pared-down decoration. Key interior design elements: Space, line, light Style tip: Use stylish storage solutions like hidden drawers or a simple storage ottoman to keep your space clutter-free. 9. Modern Modern interior design has a lot of similarities to minimalism, but it typically features more decor and pops of color. It still has the clean, bright feel of a minimalist space, but the inclusion of some more decor can help it feel more like home for people who aren't ready to commit to a minimalist lifestyle. Still, modern design focuses on clean lines, and your decor should be carefully selected to create interest without overwhelming your interior. Interior design origin: 1950s United States Interior design history: Modern design evolved at the same time as Mid-Century Modern but it takes inspiration from minimalism instead of art deco. Key interior design elements: Line, space, color Style tip: Choose an accent color to integrate into your modern space and make it feel more inviting. 10. Traditional Traditional home design has remained popular for centuries. It draws inspiration from European elements such as rich textiles and carved wood. Many home design elements that come from traditional interior design — like crown molding — are desirable for any homeowner. These interiors feature an array of textures, from grand window furnishings to detailed woodwork. Choose furniture that showcases wood grain in rich tones to keep this style feeling cozy and personal. Interior design origin: 18th-century England Interior design history: Traditional interiors descend from 18th-century home design and have clear influences from colonial design as well. This design style is highly stylized and showcases natural materials and craftsmanship. Key interior design elements: Texture, form Style tip: Invest in some classic wood carved furniture to make a traditional space feel more authentic. 11. Transitional Transitional interior design warms up modern design with its traditional influences. Spaces like this typically feature traditional style furniture. Then, the style is elevated with modern touches like geometric lamps or a gallery wall. Transitional interiors often use neutral tones and muted color palettes. Interior design origin: 1950s Germany and Scandinavia Interior design history: Transitional style developed around the same time as modern and Mid-Century Modern styles as another interpretation of contemporary design. Key interior design elements: Texture, line Style tip: Transitional design usually calls for a neutral palette with limited color like navy, so use lots of textured textiles to keep your space interesting. 12. French country French country combines rococo and rustic design, which were the two most popular styles from 17th- and 18th-century France. Rococo design features pastels for a lighthearted extravagance, while rustic design features lots of dark wood and rich furnishings like furs. As a result, French country is known for its mix of dark wood furnishings and pastel textiles. You’ll often see delicate patterns, such as florals contrasted against darker furnished features. Interior design origin: 18th-century France Interior design history: French country combines rococo and rustic styles to create an elegant interior style that still feels cozy. Key interior design elements: Color, texture Style tip: Accent traditional furniture with modern decor or geometric patterns to bring this centuries-old style into the new millennium. 13. Scandinavian Scandinavian style has its roots throughout Scandinavia but is usually attributed to the Danish Selskabet for Dekorativ Kunst — or the Danish Company for Decorative Arts. Scandinavian style is a twist on modern design that adds some organic elements. This interior type departs from the elements that can make the modern style feel sterile to some people. Liven up your Scandinavian space by integrating natural materials like rattan and rich textures like a faux fur throw. Another key feature of Scandinavian design is its use of color; muted colors like mauves and olive greens are common. Interior design origin: 1910s Denmark Interior design history: What’s now known as Scandinavian design was first featured in the 1914 Danish magazine titled “Skønvirke,” which translates to “graceful work.” Key interior design elements: Color, texture, line Style tip: Use greenery to bring color and liveliness to any Scandinavian style room. 14. Industrial Industrial design is characterized by exposed wood, brick and metal elements with little color. It works well in open or lofted spaces with large windows and lots of natural light. Industrial design mixes a vintage and modern feel. Its furniture typically has modern shapes but vintage-feeling materials like unpolished metal or raw wood. Interior design origin: 1920s Germany Interior design history: Industrial interior design also has its roots in the Bauhaus movement, but it was solidified as its own style later in 1944 with the founding of the Society of Industrial Designers. Key interior design elements: Line, texture Style tip: Let color or pattern take the backseat here and instead rely on mixing textures like metal and wood to create contrast. 15. Eclectic Eclectic design refers to spaces that take influence from multiple design styles. While it originally referred to combining more traditional styles, many people add modern touches to their eclectic designs. Eclectic interior design is all about building your ideal space, so feel free to play around and choose your favorite characteristics of multiple styles to decorate your interior. Interior design origin: 19th-century France Interior design history: While eclectic design doesn't have a clear origin, it became popular at the end of the 19th century because of the widespread appeal of combining traditional interior design styles. Key interior design elements: Texture, pattern, color Style tip: Choose one design style for your furniture and complement it with decor from two to three other design styles for the perfect balance. 16. Modern farmhouse As the name suggests, modern farmhouse style combines elements from both the cottage and modern styles. It brings all of the traditional comfort and coziness while integrating elevated modern lines. This style bridges the gap for people who find modern design too clinical and farmhouse design too traditional for their tastes. Interior design origin: 2010s United States Interior design history: While versions of modern farmhouse style have been around since the 2000s, one of the first mentions of this style is from a 2016 New York Times article. After this was published, the modern farmhouse style shot to popularity and it remains popular today. Key interior design elements: Texture, form, line Style tip: Choose furniture that has a classic modern shape with farmhouse textures and materials for a perfect mix of old and new. Whether you’re styling your primary or secondary home, it’s important to have a space where you can relax and enjoy yourself. Exploring the different types of interior design and discovering what resonates with you is just one way to make your house a home.
There are many factors to consider when it comes to finding the best family vacation spots. Not only do you need to find a place that has activities and attractions that everyone can enjoy, but it also needs to fit within your budget. That’s why we’ve identified 40 vacation ideas around the United States that are so good you might even decide to make one your second home. We’ve also put together a kids packing list to make your planning a little easier. Best family vacation spots on the water It’s hard to beat a vacation as relaxing as lounging at a beach house soaking up vitamin D. To that end, the best family vacation spots on the water all have excellent coastal access along with a variety of family-friendly activities. 1. Outer Banks, North Carolina If you’re looking for a good mix of simplicity and entertainment in your family vacation, you’ll find it in the Outer Banks of North Carolina. The Outer Banks has over 100 miles of beaches without the congestion of most seaside destinations. Experience the thrill of seeing wild horses while driving on Corolla Beach or fly a kite at Kitty Hawk near where the Wright Brothers first flew. Although the beaches are the primary attraction, there are plenty of other activities to explore. The North Carolina Aquarium offers interactive exhibits with its animals, like manta rays and horseshoe crabs. Since the Outer Banks was home to the lost colony of Roanoke, it has plenty of historical sites to make your visit an educational one as well. Your kids can participate in a scavenger hunt at the Graveyard of the Atlantic Museum or experience what life was like in the 1850s at the Island Farm. 2. Miami Beach, Florida Miami Beach is as rich in culture as it is in entertainment, making it one of the best family vacation spots. Experience scenic views along the 40-block boardwalk while you look for a beach spot to set up for the day. Miami Beach has many parks with different amenities, such as playgrounds, splash parks, volleyball courts or water activities like paddleboarding. If your family gets their fill of sand, you won’t spend too much time trying to come up with other activities. Miami Beach is home to Jungle Island, the Bass Museum of Art and a botanical garden — each offering unique learning opportunities for children of all ages. 3. Hilton Head Island, South Carolina This lively island offers ways to explore by land, air and sea. Take a guided helicopter tour, or rent a bicycle to discover hidden gems on your own. You can also take the family on the water to find the Hilton Head dolphins and sea turtles. Kids of all ages can experience the fun of Adventure Cove, offering mini-golf and arcade games. No trip to Hilton Head is complete without trying the locally sourced seafood, so make sure to sample the catch of the day at one of the island’s many restaurants. 4. Maui, Hawai’i Whether you are looking for adventure or relaxation, Maui can meet you wherever you please. Take a family zip line trip or go snorkeling in the Molokini Crater. End your day with an authentic luau experience while you eat a delicious family-style meal. Just because you’ll be on an island does not mean there aren’t options for a road trip. The Road to Hana is a day-long epic sightseeing tour that takes you through legendary moments in Hawai'i’s history. Along the drive, you can share a view from “Jurassic Park” at Keopuka Rock, make a pit stop for shaved ice and walk through a bamboo forest at Pipiwai Trail. 5. San Diego, California San Diego has long been known for its amazing year-round weather, consistently putting it near the top of the list for vacation ideas. Take advantage of the temperate climate by filling your days with outdoor activities. Visit LEGOLAND or Belmont Park for amusement park attractions right on the beach. There are over 17 museums to choose from around Balboa Park, as well as theaters where the whole family can catch a show and multiple gardens to lounge in with a picnic. Beyond Balboa Park, you also can head to the Birch Aquarium, SeaWorld or the world-renowned San Diego Zoo, all great options for the animal lovers in the family. And what family vacation wouldn’t be complete without a trip to sea on a whale-watching cruise? 6. Branson, Missouri Branson is the family-friendly alternative to Las Vegas you’ve been looking for. Billed as the Live Entertainment Capital of the World, you could spend every hour of the day jumping from comedy to magic to dance performances. Visit Silver Dollar City for over a hundred acres of roller coasters, water rides and campgrounds. Get a one-of-a-kind view of the Ozark mountains by taking the family on a 150-foot-high ride on the Branson Ferris Wheel. To make this 15-minute ride even more appealing, children under 3 ride for free. 7. Mackinac Island, Michigan Mackinac Island is stubbornly resistant to change, and that’s exactly what makes it one of the top places to go on vacation. This small island off the tip of Northern Michigan boasts no cars and no chain hotels, but just because it is small doesn’t mean it doesn’t have a lot to offer. Access the island by ferry and travel around it by bicycle or horse-drawn carriage. Stay at the historic Grand Hotel that is consistently rated as one of the greatest hotels in the world. Treat your kids to Mackinac Island’s famous fudge before visiting Fort Mackinac to learn its history and see soldiers in period-appropriate uniforms firing live cannons. 8. Wisconsin Dells, Wisconsin The Water Park Capital of the World offers plenty of thrills for all ages — both indoors and out. Book a stay in a resort with an attached waterpark for added convenience, or visit the largest outdoor waterpark in the country at Noah’s Ark. After your fingers have pruned, take a river tour on the amphibious WWII Duck boats or enjoy an amazing water skiing show. Don’t forget to stay energized with a hearty all-you-can-eat breakfast at Paul Bunyan’s Cook Shanty. 9. Lake Tahoe, California Sometimes overshadowed by its winter mountain activities, Lake Tahoe has just as much to offer its water-loving summer visitors. A two-mile hike to Cascade Falls will give your family a breathtaking view of a 200-foot waterfall. Adventure seekers can climb across treetops using rope courses or zip lines. For a more leisurely excursion, spend your day on the lake and appreciate its stunningly blue water. Rent a boat, kayak or paddleboard for different levels of activity and experience. You’ll also have the option to take the whole family into the air with a hot air balloon ride over the lake. 10. Sandusky, Ohio Sandusky is synonymous with its main attraction — Cedar Point — and they both sit right on the Lake Erie waterfront. Roller coaster enthusiasts travel from around the globe to experience the thrills of the Roller Coaster Capital of the World, which includes the oldest operating coaster in the world. If your family members aren’t crazy about roller coasters, it doesn’t mean they’ll have a lack of activities to enjoy while in Sandusky. There is also the option to go on a Lake Erie cruise, visit the merry-go-round museum or spend the day at one of Sandusky’s waterparks. 11. Finger Lakes, New York The Finger Lakes are known for pristine landscapes that afford visitors all the water activities one could hope for. The area is surrounded by multiple state parks with dozens of waterfalls. Many are accessible by trails that are easy to walk with your family. Outside of its own water and amusement parks, the Finger Lakes also has a number of museums that are sure to keep your kids entertained. The Strong National Museum of Play is one of the largest history museums in the country and is home to the National Toy Hall of Fame and the World Video Game Hall of Fame. 12. Chicago, Illinois As the third-largest city in the U.S., Chicago is a hard spot to overlook when considering the best family vacation spots. With its size comes many options for entertainment, including on its waterfront. It has ample beaches along Lake Michigan and multiple river tours to learn about different aspects of the city’s history. Millennium Park boasts nearly 25 acres of easily accessible gardens, public art pieces and event spaces. There is the world-class Art Institute, Field Museum, Shedd Aquarium and Adler Planetarium — each offering unique opportunities for your children to learn about the world (and space) around them. Best family vacation spots in the desert If you are looking to avoid crowded beach towns while still getting as much sun as possible, the desert might be up your family’s alley. It has wide-open spaces, picturesque photo opportunities and activities to please everyone. Just be sure to include plenty of sun protection on your kids packing list. 13. Grand Canyon, Arizona The Grand Canyon is more than just a photo opportunity. Grand Canyon activities include hikes of varying difficulties, attending a Native American dance performance, horseback riding to remote waterfalls and riding the Grand Canyon Railway. Securing accommodations around the canyon is highly competitive. It’s recommended to make reservations more than a year in advance for camping and waterfall excursions. 14. Joshua Tree National Park, California Joshua Tree is known around the world for its unique rock formations — making it a must-visit destination for rock climbing and hiking enthusiasts. There are trails for all skill levels, so there are few barriers to entry. Cell phone service is limited, which creates the opportunity to disconnect from the outside world and connect with one another. Camping within the park is possible with a reservation, but there are also campsites nearby that are quality options. Stargazing in the middle of the desert is an experience your kids will never forget — especially if they are only familiar with bright city skies. 15. Sedona, Arizona The best family vacation spots provide experiences that can’t be replicated anywhere else, and Sedona sets that bar. Get breathtaking views of Sedona’s famous red rocks from the comfort of a classic train car. There are multiple options to choose from based on your preferred level of comfort — one option even includes a Wild West reenactment. Aside from its natural beauty, Sedona also features an African wildlife park where your family can safely experience a safari right here in the States. Other options include zip-lining over the exotic animals or feeding a tiger up-close. 16. Scottsdale, Arizona Scottsdale has the best of both worlds when it comes to city life and desert landscapes. You can take your family for a morning hike or jump in a jeep to take a tour through the Sonoran Desert. When the afternoon heat sets in, cool off at one of Scottsdale’s fantastic waterparks. Scottsdale’s Old Town district is also home to a number of art galleries. Every Thursday night, they hold ArtWalk, where the galleries stay open late and treat guests to several complementary activities. Since Scottsdale is conveniently located near Phoenix, it also has easy access to all of the state capital’s attractions. These include a zoo, aquarium and botanical garden. 17. Palm Springs, California Architecture enthusiasts will have their fill in Palm Springs, where Mid-Century Modern buildings fill the neighborhoods. Take a Rat Pack tour to learn why Hollywood’s greatest artists were drawn to this idyllic desert location. Unlike some of the other desert locations on this list, Palm Springs offers all the modern luxuries visitors can hope for on their family vacation. Take your kids on a ride into the mountains on the Aerial Tramway. Shop the boutiques to score retro collectibles and vintage clothing, ride the waterslides at HyTides water park or head out into the wilderness on a jeep, bicycle or horseback tour. 18. Albuquerque, New Mexico Every October, hundreds of hot air balloons gather in Albuquerque for its International Balloon Fiesta. Day and night, the colorful balloons fill the sky, making for an enchanting experience unmatched anywhere else. That’s not all — this city has lots to offer year-round. Albuquerque’s passion for dancing and food is always center stage. Dine on the richest New Mexican cuisine and discover your preference for green or red chiles. Attend a flamenco show or, better yet, take a flamenco workshop. Be sure to stop by the ABQ BioPark Aquarium and Botanic Garden so that your kids can get their fix of all sorts of wildlife. 19. Moab, Utah If any of your kids are in their dinosaur phase, Moab is one of the must-visit places to go on vacation. Mill Canyon has easily identifiable dinosaur tracks and bones. The Moab Giants museum has indoor and outdoor interactive exhibits that bring the prehistoric creatures to life. After you’ve explored on your own, jump into a Hummer for an offroad tour of Moab’s awe-inspiring backcountry. Experience another adventure by rafting through a canyon on the Colorado River. 20. Glen Rose, Texas Dinosaurs can’t be mentioned without including Glen Rose in the list. This small town is home to Dinosaur Valley State Park, where visitors can walk in the tracks dinosaurs left behind millions of years ago. There are options to hike, camp, mountain bike and swim within the park. At Dinosaur World, visitors can walk among more than 100 life-size dinosaurs, participate in a dinosaur dig and see natural fossils. If you’d prefer to see some modern-day creatures, visit the Fossil Rim Wildlife Center, which features multiple endangered species. Your family can get up close and personal as you drive through the park, feeding and photographing the exotic animals. 21. Big Bend National Park, Texas Whether you’re seeking adventure or relaxation, Big Bend has you covered. Take your pick of its many tour options by jumping in a raft, kayak or jeep. Ride into the Lajitas Canyons on a zip line tour. Give your children the opportunity to experience ancient plant and animal life in Big Bend’s own fossil discovery exhibit. After you’ve quenched your thirst for adventure, take a dip in Big Bend’s hot springs. The water is naturally 105 degrees Fahrenheit and has long been thought to have therapeutic value. 22. Santa Fe, New Mexico Santa Fe is brimming with culture and activities, making it one of the best family vacation spots. Spend the day at the Museum of International Folk Art — the largest collection of folk art in the world. Visit the Museum of Indian Arts & Culture to learn about the history of Southwest Native American people through contemporary art. Fans of the psychedelic will love the child-friendly interactive art installation, “Meow Wolf’s House of the Eternal Return.” Older family members will enjoy solving the story’s mystery, while younger children can appreciate the stimulating surroundings. Best family vacation spots in the mountains Some destinations are best experienced during a certain time of year. Mountain destinations, on the other hand, offer unique activities for every season. While many people love the mountains for their winter ski resorts, the summer months create new opportunities to connect with the terrain. 23. Jackson Hole, Wyoming Jackson Hole’s main attraction is its world-class ski slopes that make for a magical family vacation. There are ski routes and programs available for all skill levels, so there’s something for everyone. There are also snowmobiles available for rental and sleigh rides that take you through Jackson’s blankets of snow. In the summer, ski routes turn into mountain bike trails. Wildlife expeditions bring encounters with bears and bison. The Snake River rapids provide a great opportunity for whitewater rafting. 24. Aspen, Colorado Like Jackson Hole, Aspen turns into a verifiable wonderland when its winter snow returns. Gondolas can take you to the mountaintops in comfort. Its Nordic Trail System provides more than 60 miles of cross-country ski trails. In warmer months, you can hit hiking trails with a dog borrowed from the local animal shelter. Aspen also has some of the best fly fishing conditions in North America. Appreciate the scenery of every season by putting on your waders and trying to catch a prized trout. 25. Gatlinburg, Tennessee Gatlinburg pairs southern charm with major attractions. If your family vacation ideas include shopping, hiking and amusements, look no further than this Smoky Mountains gem. Take advantage of Gatlinburg’s close proximity to the Appalachian Trail by hiking a short stretch of it. Visit the top-rated Ripley’s Aquarium of the Smokies to see a stunning collection of sea creatures. Attend Anakeesta, a mountaintop theme park with one-of-a-kind gifts. Or stroll across the longest pedestrian suspension bridge in North America at SkyLift Park. 26. Park City, Utah If you’re wondering where to go on vacation, Park City is one of the most versatile cities on the planet. When snow covers the ground, you can fill your days skiing, dog sledding and snow biking. When summer comes around, you can golf, paddleboard and ride the Alpine Coaster. Visit the Utah Olympic Park to see the 2002 Olympic Games museum, among many other activities. If you’re feeling adventurous, play on the high ropes course or take a trip down the Comet bobsled. 27. Yellowstone, Wyoming Yellowstone was the first national park in the U.S. — and it’s easy to see why the country was so quick to preserve its natural beauty. There are over 1,000 miles of backcountry trails waiting to be explored. The park sits on a volcanic caldera that produces hot springs your family can walk over and hundreds of geyser eruptions you can witness. Since Yellowstone encompasses more than 2 million acres, you can find a diverse range of wildlife. Bears, bison, wolves and elk all roam freely. Bird watchers can see more than 300 species of birds. 28. Yosemite, California Yosemite is another national park that is too good to pass up. While Yellowstone has geysers and a larger variety of wildlife, Yosemite has breathtaking cliffs and a giant sequoia forest. See the famed El Capitan or Half Dome rock formations in person to get the true sense of their magnitude. Yosemite has an abundance of waterfalls to explore, and some have paved trails to provide easy access. Horseback riding provides another option to hit the trails without relying on your own two feet to carry you. 29. White Mountains, New Hampshire The White Mountains offer another sprawling landscape that is as enjoyable in the summer as it is in the winter. The area offers golf, zip lines, waterfall hikes and old-fashioned train rides. Explore the polar caves where you can touch ice even in the middle of summer. In the winter, enjoy one of its many ski resorts. Visit the Ice Castles that artists craft out of hundreds of thousands of icicles. These caverns, tunnels and slides are designed to make you feel like you’re in a fairytale. 30. Glacier National Park, Montana There are few opportunities in the world to hike to an actual glacier — and Glacier National Park has 25 of them. It also has the perfect mix of mountains, meadows, waterfalls and lakes. Your kids can attend the junior ranger program and receive a badge after completing certain activities. The Going-to-the-Sun Road is a 50-mile road that bisects the park and provides scenic views that are hard to beat anywhere else. There are ample opportunities for rafting, kayaking, and horseback riding. When your day’s activities are over, there are comfortable accommodations, both inside and outside the park. 31. Catskill Mountains, New York The Catskill Mountains have been one of the best family vacation spots for city dwellers for over 100 years. Looking for a break from the hustle of the city, families sought leisure in the natural beauty of this historic area. Your family can explore caves going 156 feet into the earth, raft down the Delaware River, visit the Saugerties Lighthouse and cool off with a visit to one of the Catskills waterparks. In the winter, your family can stay at a ski resort, visit the Mountain Top Arboretum and shop for art in local downtowns. 32. Black Hills, South Dakota The Mount Rushmore National Monument is probably the biggest attraction in this area. Just because the icon steals the spotlight doesn’t mean there aren’t plenty of other reasons to visit. The Crazy Horse Memorial has been under construction since 1948 and will become the world’s second-tallest statue after completion. The Badlands are a sight to behold, consisting of 244,000 acres of rugged spires and mixed-grass prairie. Visit Custer State Park to encounter some of its 1,400 free-roaming bison and learn the history of the area. Explore some of the longest caves in the world at Jewel or Wind Cave. Take the kids for a ride down the 2,000-foot alpine slide at Rushmore Tramway Adventures. Best family vacation spots in the city If long road trips don’t agree with your family, checking a major city off your to-do list may be your best alternative. Cities are jam-packed with options for everyone’s taste. There’s education, amusement and activity that are all quick walks or car rides away. 33. New York City, New York The city may never sleep, but your family surely will after a day packed with some of these family vacation ideas. Get amazing views from iconic structures like the Empire State Building and Statue of Liberty. See a collection of the world’s greatest artwork at the Metropolitan Museum of Art. Visit the American Museum of Natural History for an educational and entertaining experience. Lounge in Central Park when your legs are ready for a break. Then see an official Broadway show. 34. San Francisco, California If the chaos of Disneyland seems a little too much for your family vacation, take a trip to San Francisco. The Walt Disney Family Museum can provide your family’s fix of Mickey and friends. While parents browse memorabilia, children can attend storytime among other activities. The Exploratorium is an art exhibit that enables kids to interact with more than 600 installations. Pier 39 is home to wild sea lions, a variety of street performers, a carousel and even features an aquarium. Walk around the largest Chinatown outside of Asia before having a picnic at Golden Gate Park. 35. Austin, Texas Proud to be weird, Austin has all the oddities and entertainment someone could hope for their family vacation to have. The Cathedral of Junk shows kids how a little imagination can turn trash into a work of art. The Salt Lick has mouthwatering barbeque with a side of live music. Kayak to Congress Avenue Bridge to watch more than a million bats fly at sunset. Take your kids for a dip in the naturally spring-fed pool at Barton Springs. Pick your own produce at Boggy Creek Farm. Visit the animals at the Austin Zoo, where each one is a rescue and receiving rehabilitation. 36. Seattle, Washington Seattle is one of the most accommodating cities in the country to families. Take a trip up the Space Needle at the Seattle Center. Then visit the Pacific Science Center where kids of all ages can enjoy the butterfly garden and IMAX theater. If you’re looking to squeeze a little nature into your trip, head to Mount Rainier for hiking or hop on a boat for a whale-watching excursion. The Chihuly Garden and Glass is a kid-friendly museum of brightly colored sculptures of varying shapes and sizes. Shop at the historic Pike Market and watch as the fishmongers throw customers’ purchases into the air. 37. Nashville, Tennessee Nashville has long been the hot spot for country music aficionados, but it has recently been growing in popularity for the general public too. The Gaylord Opryland Resort features an indoor river with boat rides, a waterfall and garden conservatory. Take a tour at the Grand Ole Opry and get treated to a live radio concert. Stop by Centennial Park to see a replica of Greece’s Parthenon. Then drop by the Musician’s Corner to watch live music while you feast on delicious street food. Stroll down the Honky Tonk Highway and take your pick of its many restaurants and music venues. 38. New Orleans, Louisiana Mardis Gras might be the first thing you think of when you hear New Orleans, but this southern gem has plenty to offer families too. Rich in music, food and activities, New Orleans easily makes the list of best family vacation spots. Introduce your children to jazz at Preservation Hall where you can watch live musicians and learn about its history. Have your pick between sweet and savory food like beignets and jambalaya. Attend the Carousel Gardens Amusement Park or take a tour of a swamp to get up-close looks at the native alligators. 39. Denver, Colorado Denver is great to visit at any time thanks to its more than 300 days of sunshine a year. Elitch Gardens has both butterfly-inducing roller coasters and water slides. The children’s museum is perfect for younger children to learn about nature and test their creativity in the featured art studio. The Downtown Aquarium provides the unique experience to have a meal while being surrounded by floor-to-ceiling aquariums. No trip to Denver can be considered complete without visiting Red Rocks Park and Amphitheater. Witnessing a live performance is unlike any other but even if you don’t get tickets for a show, even wandering the park is worth the trip. 40. Minneapolis, Minnesota Minnesota has big city recognition paired with a small city feel. The Children’s Theatre Company puts on interactive performances that are great for all ages. The Minnesota Zoo has a nature-based play area and seasonal shows. The Mall of America brings outdoor activities inside for year-round fun. Ride the roller coasters at Nickelodeon Universe, get a personalized crayon at Crayola Experience or visit the touch tank at the Sea Life Aquarium. This stop alone could take up multiple days. Ultimately, the best family vacation spot is going to be decided by your children’s ages and your individual preferences. Find the location with accommodations that suit your needs best, and you’ll quickly be making memories that will last a lifetime. Who knows — this location could even turn into a permanent part of your family’s life. You may even think of it as a second home.
It’s important to emotionally connect with your living space. If you don’t, it can be a struggle to feel happy in your home, be it your primary residence or second home. Considering almost 60% of people see their home as a reflection of their personalities, moving into a new house can make anyone feel out of place. So, how do you make a house a home? Here, we’re combining expert guidance with the five elements of happiness to help you create a happier home. Tying the 5 elements of happiness to homeownership Reaching higher levels of happiness in your house sometimes requires thinking outside the box of conventional home design. The tenets of positive psychology, surprisingly enough, can help you answer the question: What makes a house a home? To do that, look to the five elements of happiness positive psychology has identified as keys to satisfaction: Positive emotions: Bring out feelings of optimism from your decor. Engagement: Find activities you enjoy performing around your property. Positive relationships: Spend time with people who bring out your best. Meaning: Find purpose in home ownership. Accomplishments: Achieve something that makes you proud. Psychologists assert that the more these elements are present in your life, the happier you can be. On the flip side, if any of these elements are missing from your life, the more unhappy you might find yourself. By incorporating this philosophy into how you design and interact with your house, you will learn how to make a house a home. Instead of simply identifying it as a place to sleep and store your belongings, you can turn it into a home to grow in. Make your home elicit positive emotions It should come as no surprise that positive emotions are synonymous with happiness. It is why we surround ourselves with pictures of family and friends. Periodically triggering happy memories leads to happy emotions filling our day-to-day lives — and that’s how you make a house a home. But it is not only pictures that can bring about these feelings. The colors, furniture and smells that surround us are also important influences on our emotions. “The home is a reflection of the people who live there. Personality, style and taste are conveyed through the choice of furniture and decorative items,” says Zac Houghton, CEO of Loftera. “A piece of furniture can make a room look more modern or traditional; a collection of objects such as vases or books can make the room feel cozy or impersonal. Designing and decorating your home should not be a matter of just buying whatever furniture you like — it should be a process that enables you to infuse your home with what really matters to you.” 1. Re-paint the rooms Color preference varies greatly from person to person. If your walls were painted by the previous homeowner, they may clash with your decor when you move in. If they were painted or wallpapered years ago, they may also be embarrassingly outdated. Updating room colors to match your favorite interior design trend is a great starting point to take ownership of your property. Choosing a color that flatters your taste can bring immediate feelings of positivity when you enter the room. 2. Get new furniture Moving into a new home or second home can be a great opportunity to replace articles of furniture you previously had a hard time emotionally disposing of. A hand-me-down chair can be a great frugal way to furnish a room, but an entire room of mismatched furniture can lead to everything feeling out of place, including yourself. By buying furniture to fill a specific place and purpose, the harmony of the space can be improved and elicit happier home feelings. This doesn’t mean you need to break the bank by completely replacing every item. Sometimes smaller accent pieces can transform a room and improve its flow. 3. Make it smell like home One of the simplest ways to make your house a home is to fill it with familiar smells. Are there certain flowers that remind you of your childhood home? Fill a vase with them in your living room. If they’re out of season, try to find a candle of that same scent. Is there a particular food dish your parents used to make you? Find the recipe and cook it yourself. Scents are strongly tied to memory, so bringing in smells that will bring out positive emotions can help you feel comfortable and safe. Engage with your property How to make a home an active living space instead of a passive place in which you simply exist is a question many homeowners struggle with. Think about the activities that can be done on your property. Are there neglected spaces you could be making better use of? If you’re short on space, can you turn any rooms into multifunctional areas? Marco Bizzley, certified interior designer at House Grail, says: “Gardening is one of the best ways to engage with your yard. You can also create a relaxing space to read in your backyard or relax. In your home, you can create your own unique spaces to do your hobbies. If you love to paint, have a small area where all your paints and easel are kept. If you're an avid reader, create a nook for your books with a comfortable chair and lamp to read by.” 4. Make space for your hobbies Being able to enjoy the activities you love on your property is a strong factor in how to make a new house feel like a home. Fitness enthusiasts can clear a space on the floor for their yoga mat or set up a volleyball net in the yard. Artists can dedicate an area to be a studio. DIY experts can set up a workshop and display their projects. Regardless of your hobby, integrating it into your home or second home can add to the overall sense of comfort you receive from being there. 5. Use your kitchen Cooking in your house can do more than just fill it with great smells. Constantly ordering food can make you feel like a guest in your own home or second home. Fill your shelves with food and plates so that you subconsciously remind yourself this isn’t a hotel. Utilizing your kitchen to cook meals for yourself and your loved ones makes you actively engage with your belongings and overall leads to a happier home. 6. Plant a garden Whether it’s a vegetable or flower garden, growing something on your land can be one of the most fulfilling experiences a homeowner can have. If you have the space and the time for it, find out how green your thumb is by giving it a try. Look into what plants thrive best in your area to make it easier on yourself and the environment. If outdoor space is limited, bring potted plants indoors. Use your house to build relationships Moving into a new home can sometimes lead to feelings of alienation. The same could be said for those spending time at a vacation property or second home. If you are a social person, it is important to stay stimulated with meaningful relationships. Entertaining friends with dinner parties and other events can fulfill this need. “Hosting something as simple as a game night can help build a stronger bond with the relationships around you,” says Stefan Bucur, founder of Rhythm of the Home. “Opening your home to others symbolically shows that you are open to sharing experiences and building a relationship with others. Your home will soon become a safe place for others to turn to when in need.” 7. Meet your neighbors Making new friendships can be a difficult task, but being surrounded by people you trust is important for feeling comfortable in your home or second home. Meeting your neighbors helps fill the void of the relationships you may have left behind or put on hold at your old home or primary residence. Taking the time to introduce yourself can also be a great way to learn about the area and improve security while you are away. 8. Play games with your family A necessary step in how to make a house a home is to start playing games with your family and friends. Creating new memories will prevent you from dwelling too much on the memories of your old, or primary, home. Play a board game, a videogame or put together a puzzle. Do something that can bring you all together in the same place. 9. Host a cookout Finding ways to make the most of your new property will help you feel more connected to it. Having old friends and new neighbors over for a cookout and yard games can help bridge the gap from dwelling on your old memories to making new ones. Taking charge of planning an event will reinforce the idea that you are indeed home. Give your house — and property location — meaning Everyone has their reasons for choosing the house they own. Remembering those reasons and putting them into action will help in making a happy home. Ask yourself: What does the new location allow you to do? How do you make that happen? “The best way to give your house meaning is by making memories in it with your loved ones,” says Benjamin Stenson, interior designer at Norsemen. “I don’t believe a house can ever have meaning unless you spend quality time in it with your friends and families. If you do that regularly, you will begin to associate your house with all the good moments you’ve had, and your bond with it will undoubtedly become stronger.” 10. Follow through on goals Sometimes, people make lofty goals regarding everything they’ll do at their new home, but once they move in, they stick to their natural routine. Taking advantage of new opportunities makes these big life changes worth it. Your home’s location can make it easier to perform many activities, such as: Hiking in the nearby national parks or forest preserves. Swimming in your new pool. Boating in the local lake. Riding your bike around your new neighborhood or town. Going skiing. 11. Visit local businesses Get to know your new town by visiting its shops and restaurants. Is there something they are known for or take pride in? Experiencing it for yourself will take you one step closer to feeling like a local. The perks of your location and home go hand in hand. Sometimes, simply wandering the streets and learning your way around can help you build that connection. 12. Spend more time with family Maybe it wasn’t the local attractions that drew you to this particular location — maybe it was the lack of distractions. Saying you’ll spend more time with your loved ones is one thing. Following through on it is another. Avoid falling into old cycles by incorporating new customs into your routine. Make it a point to have sit-down family meals, explore the town together and find hobbies that you can share. Proactively looking for ways to grow closer together can keep unwanted distractions at bay in your new home. Find something to accomplish Buying a dream home can be very different from buying your dream home. It is unlikely the previous owner built everything the way you would have done it. Taking the time to customize it to your tastes is what makes a house a home. Accomplishing home improvement projects can help you take pride in a new or second home being, well, yours. “Since more and more of us now spend time outdoors, a structured garden shade in your yard is a great improvement idea,” says Benjamin Stenson. “You can add a roof over the yard and fill it with chairs, sofas, and tables to give it a more homely feel. It will surely give you the best of all worlds — shelter, shade and privacy.” 13. Build a fire pit Building a fire pit can be a great starting point when looking for something to accomplish. Although the scope of the project can vary greatly, even a simple fire pit can satisfy that need without breaking the bank. When you are done, you will have a communal place to spend time with family and friends. 14. Reorganize the closet A well-organized closet is one thing every house should have. With a busy day-to-day life, organization can be hard to maintain. Closets can quickly become the default place to conveniently hide odd items. Reorganizing one can be a quick task that leaves you with a feeling of fulfillment. Moving to a new location can be a bittersweet experience, but applying these tips can make you feel at home wherever you are. And if the fear of added burdens is keeping you from moving into your dream home or dream second home, remember there are many options to simplify property ownership — and find happiness.
Imagine waking up each day to a view of the water, sparkling in the morning sun. Imagine afternoons spent on the beach, and sunsets that reflect on the waves. That’s what you get when you buy a beach house. If you already think “beach” every time you want to get away from it all, a beach house might be the perfect second home for you. Here are a few of the pros and cons of buying a beach house. Pros Convenience: If you feel like heading to the beach on a moment’s notice, your place is waiting — no planning or reservations required. And you know you’ll be comfortable since your beach house is just the way you like it. Perspective: Getting away to your beach house can help you shift your outlook and provide a welcome change of pace. The beach offers peace of mind and a relaxed lifestyle. Familiarity: When you own a beach house, you’ll likely see many of the same people on your morning strolls and in nearby shops, and develop a sense of belonging that will grow with every visit. Cons Cost: Waterfront properties are among the priciest homes in any market. Beachfront property is in such high demand that, in many places, you could spend more on a beach house than you would for a house twice as big a few miles inland. But for many people, it’s well worth it to have easy access to the water all day, every day. Upkeep: Owning a second home brings its share of work, just like a primary home. But waterfront homes, especially those near salt water, often need to be painted more often, thanks to the wind and salt air. Insurance: It costs more to insure a home near the water due to wind exposure and possible storm surge. Beach houses can have higher insurance rates and sometimes higher deductibles on average. How to choose the perfect beach location Here are four questions to ask yourself before buying a beach house. 1. Is it easy to get to? You don’t want to fight gridlock to reach your beach house. Try to find a spot where you can manage the daily traffic. 2. What is there to do? A house right on the water is nice. But don’t buy a home up on a cliff if you want to spend all your time in the sand. Will you be surfing, sailing or collecting shells? Find a place that offers you the chance to do what you love. 3. Does it match your lifestyle? Make sure you’re in the right spot to maximize your experiences, whether that means on a boardwalk, near the marina, or on a quiet stretch of shoreline. Decide if it’s important to have easy access to cafes, supermarkets and restaurants, and if you want to be near nightlife and entertainment. 4. What size house do you need? Living on the beach is incredible, but you don’t want to sacrifice comfort to lock down that location. Don’t settle for a house that’s too small for your family and friends. A beachy alternative If you long for a beach house but your budget doesn’t stretch that far, Pacaso might be your answer. Pacaso’s LLC co-ownership model brings together buyers to co-own luxurious single-family second homes in top locations, including oceanfront, lakefront and creekside properties. Book time in your Pacaso as little as two days in advance, and enjoy the beach. When you’re not there, Pacaso professionally manages and maintains your home. Check out our listings today.
The word “mansion” conjures images of a grand home from an era when only the rich could live well. Some of the most famous U.S. mansions include the so-called Gilded Age mansions, built by some of the country’s wealthiest families in the late 1800s. Mansion derives from the Latin word mansio, meaning “dwelling, abode, habitation or home.” In modern England and many parts of Asia, mansion refers to a multi-unit apartment complex or condominium. But most people in the U.S. define it as a large, impressive home. Of course, we also have a related term — McMansion — that refers to those large, often similar looking estates sometimes scattered among affluent suburban neighborhoods. While they boast an impressive number of square feet, they don’t offer the amenities of a true luxury mansion. What makes a house a mansion? Although some characteristics are debatable when defining a mansion, size definitely comes into play. In cities with smaller lots, a home with 5,000 square feet might make the cut, while elsewhere the minimum size for a mansion may be 8,000 square feet or more. Some California buyers say a house isn’t a mansion unless it’s at least 20,000 square feet. Gilded Age mansions certainly went big. The Leland Stanford Mansion in Sacramento, built in 1856, grew to over 19,000 square feet; it now serves as the reception center for California state officials. On the opposite coast, The Breakers in Newport, R.I., is a 125,000- square-foot mansion built in 1895 as a 70-room summer home for Cornelius Vanderbilt II. The largest house in the U.S. is Biltmore in Asheville, N.C., coming in at just under 179,000 square feet. Completed the same year at The Breakers, Biltmore was built for George Washington Vanderbilt II and is still owned by his descendants. Luxury amenities Does a mansion need 10-plus bedrooms? More than one kitchen? What about swimming pools or fountains? A mansion’s features might change with the times, but it’s sure to have something that will take your breath away. Mansions built in the first half of the 20th century have plenty of ballrooms, billiard rooms, lounges and salons. A “great room” or hunting lodge might be a showcase feature for some, or a game room with a specialty bar — or maybe even a hidden room or wing! When it comes to modern mansions, size isn’t the only thing that matters. Today’s mansions have everything you need to live and entertain in luxury, are built with the finest materials and include cutting-edge technology. Leisure space is important for any mansion, and it isn’t limited to inside the house. Mansions of the past featured large greenhouses, conservatories or libraries. Today, many have upgraded those features to in-home saunas, home theaters, gyms and media rooms. And don’t forget security. A safe room, or “panic room,” is sometimes a key feature, along with high-tech security and an in-house communication system. The grounds and gardens of modern mansions are extensive and elaborate, often featuring sculptures, sports facilities, multiple garages, hiking trails and, of course, guesthouses. There are even personal baseball fields and shooting ranges. What are your options? Most of us will never own a mansion. Building a custom or luxury home starts at $200-$500 per square foot, with 60% of the costs going to materials, permits and design, and labor taking up 40% of the total. But you can stretch your dollars when it comes to buying a luxurious vacation home. Pacaso’s co-ownership model is the modern way to afford a million-dollar second home. Pacaso increases your buying power and gives you the chance to own more house for less money. Plus we handle the maintenance and manage the home so it’s ready whenever you are. Check out our listings today and get ready to live the good life.
Having a luxury home built is a dream come true for many homeowners. When you’re ready to see your second home come to life before your eyes, the first thing you’ll need to do is to choose a great builder. Here is our list of six top luxury home builders. Belle Maison Specializing in luxury construction and remodels in and around Napa, California, Belle Maison considers itself an art studio that builds houses. It brings together master builders, designers and craftspeople to create luxurious, one-of-a-kind homes in California wine country. On every project, the company focuses on the environmental impact of the building process, with the goal of minimizing waste, producing more energy than they consume, and building homes that will last. Hollub Homes South Florida-based Hollub Homes is a family-run business that has been building custom new construction homes and completing innovative remodels since 1954. With over 1,000 homes under its belt, the company builds luxury residences in all kinds of architectural styles, from contemporary and modern estates to Mediterranean villas. In 2021, it was named to Houzz’ Best of Design list. The previous year, Hollub was named the #1 custom home builder in Miami by both Home Builder Digest and General Contractor Magazine. Marrone & Marrone With a focus on high-end residential construction in the greater San Francisco Bay Area, Marrone & Marrone takes a highly collaborative approach to building new construction homes and completing large-scale remodeling projects. Recent projects include a historical renovation of a 1931 Hillsborough Spanish colonial home that was featured in Luxe magazine and a new nature-inspired hideaway tucked into the hillside of Woodside. The latter was showcased in Silicon Valley Magazine and lauded for its significant ecological preservation plan. Jaffa Group Discerning homeowners in Park City, Utah, turn to the Jaffa Group for start-to-finish home building services, from custom architectural design to construction and finally to interiors. Over the last 20 years and 100+ homes, the company has taken a hands-on, detail-oriented approach. Today, Jaffa Group is known for its commitment to green building practices and is certified in green building and advanced green building. Jaffa Group has won multiple awards at both the local and regional level. IND Construction Southern California’s IND Construction provides luxury new construction and remodeling services across Los Angeles and the San Fernando Valley. This award-winning, family-owned firm leverages an expert team of architects, engineers and decorators to create functional and elegant spaces. It also offers full-service solar panel installations for homes, helping homeowners create long-lasting, high-performance solar energy systems that take advantage of that Southern California sunshine to lower home energy costs. Haley Custom Homes Founded in 1998 in Colorado, Haley Custom Homes is a high-end residential builder that serves the Denver metro area, Boulder and the mountain communities of Aspen and Vail. This award-winning builder has been featured in Luxe magazine, Builder Magazine, and 5280 Magazine, recognized for homes ranging from new ultra-modern estates to East Coast traditional remodels. Move in sooner with Pacaso Custom second homes take time to build, from finding land to designing the floor plan to picking out finishes. If you’re craving a luxury retreat but don’t want to wait, consider Pacaso. Our upscale second homes are located in popular destinations across the United States and come professionally designed and decorated with all the latest amenities. Check out homes that are available now for co-ownership.
If you’ve bought a home before, you may mistakenly assume that it’s no different when buying a vacation home. Spoiler: While the process is similar, there are some differences in your approach and getting approved that you need to take into account. Read through these tips for buying a vacation home so that you’re prepared at every stage. Step 1: Decide if buying a vacation home is right for you Putting your money into another property is a big commitment. It’s important to fully understand everything you stand to gain and lose when buying a vacation home vs. renting. Pros of buying a vacation home Buying a vacation home has the potential to greatly increase your quality of life. Some of the major benefits include: You’ll save money on vacations since you won’t need a rental or hotel room. Having affordable vacations can lead to more frequent and longer trips throughout the year. Property is a stable investment that will likely be worth more in the future. Vacation properties can qualify for lucrative tax breaks, offsetting some of the costs of ownership. The house can be rented out to create a passive income source. The house can become your primary home when you retire, and you’ll have a head start on the mortgage. But all of these benefits can come with some drawbacks. Cons of buying a vacation home Home ownership is a large responsibility in itself, and adding a vacation property into the mix can increase that responsibility greatly. Make sure you consider some of the downsides that follow vacation home purchases: All of the expenses associated with your primary home will recur with your vacation property. Think about the cost of utilities, property taxes, HOA fees and insurance. Maintenance costs for a home that is vacant for extended periods are different from a permanent residence. Pests can infest the building, pipes can burst in winter or people can rob or vandalize it. If you plan to rent the place out, you may need to hire a property manager to handle the brunt of the workload. If you have a lifelong case of wanderlust, you might grow tired of visiting the same location year after year. While you do earn equity in your second home, the large upfront purchase and maintenance costs mean you may have less cash on hand in case of emergencies. If you’re prepared for all of that, then it’s time to find the vacation home that’s right for you. Step 2: Determine what you want in a vacation home Perfect is a subjective term when it comes to property ownership. What is right for you and your family will largely depend on the purpose behind buying a vacation home. Location You should be well acquainted with any location where you plan to have your vacation home. Since real estate is a long-term investment, you’ll want your new home to have long-term appeal. Do you want it to be within driving distance so you can visit regularly on weekends? Or will it require plane travel so you can experience a different climate? Activities Do you have specific ideas in mind for what you want to do at your vacation property? Are you longing to be steps from the slopes, with a roaring fire after a day of skiing? Maybe you want to spend time in a larger backyard lounging by the pool, or biking to wineries on backcountry roads. Whatever you choose, make sure you have enough bedrooms and bathrooms to accommodate your guests in style and comfort. Intended use Many people are looking to turn their second home into a money-maker, and the success of services like Airbnb and Vrbo make it easy. Once you turn the home into an investment property, the terms of your vacation home loan will change. A rental property is seen as a business, and it qualifies for different interest rates and taxes than vacation home financing. Make sure you understand the full implications if you plan to pursue this route, and discuss it with your lender. Style The style of a house can often take a back seat to the more important factors on this list, but it is an important one nonetheless. When it comes to architecture and interior design, are you drawn to contemporary or rustic chic? Mid-Century Modern or mountain chalet? Open concept plan with a great room or more traditional defined rooms? Having a home that you’re in love with visually can keep you happy with the purchase for years to come. Step 3: Begin your process of buying a vacation home If your mind’s made up that it’s time to own another property, the next step is learning how to buy a vacation home. It should feel familiar if you own your primary home. For instance: Determine if you can afford the vacation home. Track your monthly income and deduct your regular expenses. Do you have enough leftover each month to cover another mortgage payment plus utilities and maintenance? Get pre-approved for a second home mortgage. Talk to lenders to see if you qualify for a loan and how much that might be. They’ll look at things like your credit score, debt-to-income ratio and how much you’ll need for a down payment. Find your new vacation home. Apply the advice in step two to ensure you’re putting your money where it will have the best return on investment and add value to your vacation goals. Have the feeling you’re missing something? Look into the areas where vacation house hunters go wrong. Common mistakes when buying a vacation home Enough people have been in your shoes before that some reliable rules for buying a vacation home have been established. Here’s how to avoid their mistakes when buying your second home. Letting emotions guide decisions Having a house you love in a destination you love is a great goal to have, but letting that passion cloud your judgment can lead to long-term problems. Deciding to buy a vacation home while your emotions are high after a recent visit may feel like the right move, but you might get buyer’s remorse when those feelings fade. Approach buying a vacation home from a calm, rational perspective to successfully manage expectations. Exceeding your budget Once you’re attached to the idea of purchasing a vacation home, it can be easy to increase spending to reach your goal. Always remember that your budget is there to help guide your decisions and keep you out of financial trouble. Exceeding your budget will only increase your chances of biting off more than you can chew. Miscalculating expenses There are many additional costs associated with vacation home purchases aside from the sticker price. Understanding that you’ll be paying throughout the year for your vacation property — not just when you use it — is important to keep in mind. Remember that you’ll need to furnish the house, pay for lawn care when you’re away and make repairs as needed. That’s all on top of property taxes, insurance and HOA fees. Underestimating property management If you live far away from your vacation home, you’re going to need help keeping the place in a livable condition throughout the year. For that, you’ll need a property manager. This is especially necessary if you plan to rent it out. While the service is well worth the expense, it will eat into your projected revenue. When executed properly, buying a vacation home can be a fulfilling experience and financially rewarding. Following the advice in this guide can help make that happen. If being the sole owner of a second home feels out of reach, look into options for co-ownership. And with a fully managed ownership model like Pacaso, you can still reap the benefits of a second home while lowering the financial and property management burdens.
Your second home should be a place to relax and unwind — without having to worry about nagging homeowner chores like mowing the lawn, paying the bills or finding a repair person to fix a broken dishwasher. To that end, Pacaso offers fully managed co-ownership. But what does that really mean? We simplify the experience of owning a second home so you can enjoy all the benefits of ownership without all the hassles. These are four of the ways we make it easier and more enjoyable to own and use a second home. Stylish interior design and furnishings Outfitting a second home can be time-consuming and costly, so we make sure your home is ready for comfortable living from day one. Our goal is to provide you with a second home that is both beautiful and functional. Our team of interior designers gives each home a thorough makeover, selecting custom furnishings, artwork and accessories that complement the home’s architectural style and layout. We balance modern design with comfort to create livable luxury. Pacaso owners should feel as comfortable — or more comfortable — in their second home as they do in their primary residence. In addition to furnishings, homes are fully equipped with all the essentials and more. We select high-quality linens, cookware and home electronics, and fun extras like books, board games and outdoor recreation items. Preparing for a stay at your second home should be as easy as packing a few clothes and toiletries, because everything else you need is already there. Impeccable cleaning and maintenance Maintaining a second home from afar can be a challenge, and once you’re there, you don’t want to spend all your time on pesky homeowner tasks — so Pacaso takes care of them for you. After each owner’s stay, the home is thoroughly inspected and cleaned, and any maintenance issues are logged and resolved. We schedule preventive maintenance to head off problems, and set aside reserves for long-term and unexpected (but inevitable) issues that arise at any home, such as replacing an appliance that stops working. We supply items like light bulbs and batteries so owners can easily take care of minor issues without needing to run to the store. We also make sure the property looks great year-round, with regular landscaping and region-specific upkeep like snow removal. Streamlined bill management When you co-own a home, you need a fair and centralized system of billing. Pacaso makes this aspect of ownership simple. For each home, we create an annual budget that includes all the operating expenses, such as utilities, maintenance, repair reserves, property taxes and management. We then divide the total into 12 monthly payments which owners pay pro rata, based on the number of shares owned. Those funds go into the home’s LLC account, and Pacaso then pays all the bills. You can find the estimated monthly expenses for any available Pacaso through the home’s listing page. Ongoing dedicated support Your relationship with Pacaso doesn’t end with your purchase. You’ll have a dedicated Home Manager to support you before, during or after your stays. We provide direct property management in most areas, and partner with experienced local companies in some regions. Your Home Manager or after-hours Virtual Home Manager handle any maintenance issues, so Pacaso owners don’t have to worry about finding service providers or scheduling repairs. We also check in with owners to see if their needs are being met and provide an opportunity for feedback. Our number one priority is ensuring Pacaso owners have a delightful experience at their second homes. Maximize quality time at your second home and forget the hassles. Learn more about Pacaso and fully managed co-ownership, and take the next step toward second home bliss.
When you’re in the market for a vacation home, you’re probably looking for a change of scenery – maybe the beach, wine country, or the mountains. But no matter your dream destination, there’s one thing future second home owners need to consider: the complexities of maintaining a vacation home from afar. Whether your vacation home is across the state or halfway around the world, it can be tricky to keep your property in prime condition when you’re not living in it full-time. Here are five tips for easier care and maintenance of a vacation home. 1. Choose a low-maintenance place When it comes to maintenance, not all second homes are created equal. Location and individual home characteristics can make a home either more or less work to maintain. For example, homes in moderate or temperate climates likely require less maintenance than homes in areas that get a lot of snow or experience huge seasonal shifts in weather. And newer homes typically won’t require as much maintenance as older or period homes. The type of home matters, too. Single-family homes can require a larger effort than condominiums, where exterior maintenance is usually taken care of by the homeowners association. 2. Get local help Many owners of vacation homes employ a local property management company to maintain their second home when they’re away, whether they rent it out or not. Property management companies can do everything from securing renters to arranging landscaping and housekeeping services, but keep in mind that they can charge a pretty penny to be your local boots on the ground. If a full-fledged property manager isn’t in your budget, consider having a monthly housekeeper clean the home and do a basic operational checklist. 3. Take a proactive approach “An ounce of prevention is worth a pound of cure,” the old saying goes. While it was probably referring to your health, that adage applies to homes as well. Staying on top of regular, preventative maintenance can help extend the life of the home’s major systems, plus give you early warning about potential issues. Whether servicing your heating and air conditioning system or doing regular maintenance on your appliances, prioritizing preventative maintenance is key to avoiding costly headaches down the road. 4. Use it as often as possible Just like cars, homes stay in tip-top shape when they’re used regularly. When homes sit vacant for long periods of time, unexpected problems can arise. Regular use of heating, cooling and water systems, along with occasional use of appliances, can help keep everything operating smoothly. After all, the last thing you want is to arrive at your second home for a relaxing weekend, only to find you need to do repairs and maintenance. 5. Add smart home technology Technology helps keep an eye on your vacation property, no matter how far away you are. If you plan on being away from your second home for an extended period of time, consider adding some smart home gadgets. Security cameras with Wi-Fi let you keep an eye on your property, while smart lighting apps program your lights to come on at various intervals, making it seem like you’re home even when you’re not. And a variety of smart home gadgets can alert you to potential maintenance issues, from failing HVAC systems to water leaks. An easier option Time spent at your second home should be relaxing, not checking off a to-do list. When you co-own a Pacaso second home, you focus on enjoyment while we take care of the furnishings, maintenance and property management. All you have to do is slip into full-on vacation mode.
Shared ownership of real estate is nothing new, though it’s not always planned or formal. In some cases, co-ownership is an outcome of a joint inheritance where the beneficiaries agree to share the property as a family vacation home. Other times, it’s intentional — friends or family members might pool their resources to purchase a second home as a more affordable alternative to buying a whole vacation home. In either case, “DIY” co-ownership can be challenging. Families change, friendships wane, people move and priorities shift, adding complications and stress to co-ownership arrangements, especially when personal relationships are at stake. Disagreements over expenses, usage or even decor can lead to more serious rifts over time. If you’re interested in co-ownership but worried about the potential pitfalls, you need to plan ahead. The Escape Home spoke with Williamstown, Massachusetts, real estate attorney Jonathan Sabin about the do’s and don'ts of property co-ownership, and he offered these recommendations. Don’t put your names on the deed Instead, says Sabin, co-buyers should create a vacation home LLC. The buyers are the owners of the LLC, while the LLC is the legal owner of the property. Each buyer owns a portion of the LLC, based on their financial contribution. The benefit of an LLC is that it acts as a separate legal entity. The only asset of the LLC is the property, so you don’t risk losing your personal assets in the case of an owner default, dispute, or even a liability claim related to an injury on the property. Do create a comprehensive operating agreement Sabin describes the LLC operating agreement as “a prenup for real estate.” It should cover any issues you could possibly anticipate when buying real estate with other people. The operating agreement should include all the rules and guidelines for ownership, such as: Who pays for maintenance and repairs (be specific — do you go with the lowest bid or the least expensive replacement appliance? If there’s discretion, how much?) Consequences for non-payment of agreed-upon fees The redistribution of ownership if a co-owner dies, or if a member wants to sell or gift their ownership Usage rights and limitations Anything else that’s important to you and your co-owners Don’t assume things won’t change If you go into co-ownership intentionally, you’ll probably be selective about your co-buyers. Even if everyone has good relationships and is financially stable when you buy the property, however, that may not always be the case, cautions Sabin. People lose their jobs, get divorced or face other unexpected challenges, and they may no longer want to commit to a co-ownership agreement. If you opted for an informal arrangement “because you’re all friends,” you might find yourself in a difficult financial or legal situation later on. Sabin’s point of view? “It’s a really really bad idea not to have an LLC.” Do form an LLC for a family property Sabin said it’s not uncommon to see “unintentional” co-ownership among family members who’ve inherited a share of property from a relative who passed away. If the new co-owners don’t take any action, they are typically in an ownership structure called a tenancy in common. That means they all have equal access to the property regardless of their amount of ownership. Co-owners could show up at the same time or potentially stay at the shared property as long as they want, and they may disagree about financial responsibilities. Resolving issues in a tenancy in common can involve costly legal fees. The best solution? Form an LLC. It may initially seem unnecessary to have such a formal arrangement among family members, but family disputes over property are all too common. Creating an LLC with a clear operating agreement can alleviate many of the gray areas that cause those disagreements. Do ask these key questions Before you consider co-ownership, these are some of the top questions to discuss with your potential co-buyers and an attorney: Will you have the right to sell in the future? Are there any restrictions around selling or potential buyers? What happens if someone dies? Who will inherit, and what’s the process? What if a co-owner can’t pay their expenses? Will you allow rentals? If so, who will oversee rental management? How will you manage access to the home? Professionally managed co-ownership LLC co-ownership can help you avoid many of the legal, financial and emotional pitfalls associated with other types of shared ownership. But the process of forming and managing a property LLC on your own can still be challenging. When it comes to second home ownership in particular, finding a group of people to commit to a real estate purchase can be quite an undertaking. Think of how hard it is to get a group of friends to agree on a restaurant or movie, much less a home purchase! That’s where Pacaso can help. We find and bring together qualified buyers, handle all the sales and LLC formation details, act as the corporate guarantor of the loan, and provide ongoing management. You get to do the fun stuff, like browse amazing listings, choose a home you love, then start enjoying time in your new luxury second home. We make co-ownership simple — learn how it works.
If you’ve ever asked yourself, “Can I afford a second home?” you may have fallen victim to the myth that second homes are only for the rich. The truth is, with careful planning and financial savvy, a second home may be within reach. Read on to learn more. How much will your second home cost? Knowing whether or not you can afford a second home means crunching the numbers. Real estate prices vary widely based on the home’s size, quality and location, but don’t let the price tag mislead you. Smart second home shoppers know there are other expenses on top of the monthly mortgage payment. Here are all the expenses to factor into your second home budget: Down payment Mortgage principal payment + interest Property taxes Homeowners insurance HOA dues, if applicable Utilities (water, electricity, gas, phone, cable, security) Property management Maintenance Furniture Repairs This list may look intimidating, but don’t despair. There are financial upsides to a second home. Factor in the savings from your second home When weighing a second home purchase, factor these savings into your budget along with the costs. Save on vacation expenses. When you have a getaway of your own to return to again and again, you won’t spend thousands on resorts or short term rentals. Instead, you build equity in an asset – one that may even increase in value. Add deductions. You can deduct mortgage interest payments on principal mortgage amounts of up to $750,000. If you choose to rent out your second home for more than 14 days out of the year, you can deduct rental-related expenses. Earn rental income. Many second home owners rent out their properties when they’re not using them, and use the income to offset expenses. (Note: Before you bank on using your property as a rental, check local ordinances to make sure it’s allowed.) Stretch your dollar Once you know how much your home will cost, and you know how much money it’s going to save you, it’s time to learn how to increase your buying power. Here are a few tips: Buy in an up-and-coming area. Hot vacation spots are always expanding. Buying a property just outside of the “hot zone” can give you access to the perks of a vacation town without the high price tag. Buy closer to home. Having a second home within driving distance not only makes it more likely that you’ll visit often, but it also slashes the expense of travel. Having a second home close by can also make it easier to manage and maintain the property. Avoid HOAs. Weigh the pros and cons of an HOA before committing to living with one. Sometimes the extra amenities just aren’t worth the extra expense. Consider co-ownership. Co-ownership of property means more than one person has an ownership interest. There are different types of co-ownership, including tenancy in common, joint ownership, community property and tenancy by the entirety. Secure financing for your second home When it comes to financing a second home, most people think of a mortgage first. But with tougher application requirements and higher interest rates, mortgages for second homes aren’t always the wisest financing option. Here are a few more funding sources that can be used alone or as a down payment to make financing a little easier: Bank account funds Investment account funds Proceeds from sale of an asset Retirement account funds Home equity loan or HELOC Combination of any of the above Can I afford a second home? Now that you’ve done your research and learned some smart financial strategies, you might be surprised that you can answer the question, “Can I afford a second home?” with a resounding “Yes!” Another great surprise is Pacaso’s fully managed LLC co-ownership of a luxury second home. The costs of co-owning a Pacaso are straightforward and transparent. You own 1/8 to 1/2 of your Pacaso, with maintenance, management and day-to-day updates handled by our Crew. Our innovative Pacaso app lets owners book stays from 2 days to 24 months out in real-time, with no fixed selection periods. View our residential listings and see the benefits of owning a second home with Pacaso.
If you’ve ever lugged suitcases through a hotel lobby or anxiously scanned a resort rental’s online calendar for available dates, you have probably dreamt of buying a vacation home. And you’re not alone: Sales of second homes are outpacing primary residences in the U.S. But before you join the ranks of vacation home owners, read on. While there are plenty of great reasons to own a second home, buying a vacation home also has its drawbacks. Here are some advantages and disadvantages to consider before you jump into a buying a second home. Advantages to buying a vacation home Vacation like a local. Buying a vacation home in a place you love allows you to experience it in a whole new way and truly become a member of the community. Spend less time packing. You can keep all the comforts and necessities you usually bring on vacation – clothes, toiletries, outdoor gear and more – at your vacation home so you can get away from it all at a moment’s notice. No suitcase required! Enjoy guaranteed accommodations. One of the most stressful parts of vacation planning is availability. When you own your own accommodations, you always have a great place to stay (even if it’s a holiday weekend). Know what to expect. Unlike relying on reviews to choose a hotel room or short-term rental, you always know exactly what to expect when you arrive at your own vacation home, and there are no noisy neighbors in the room next door (unless your kids snore). Invest and own. Rather than spending thousands of dollars and having only memories to show for it, buying a vacation home is an investment in property ownership. Of course, housing markets fluctuate, so how much equity you build is dependent on where you buy. Earn potential rental income. If you don’t want your vacation home to sit vacant when you’re not using it, you may be able to rent it out to others and use the money toward the mortgage and maintenance expenses. Take advantage of tax deductions. You can deduct any mortgage interest paid on up to $750,000 of principal mortgage debt, including your vacation home. Other tax benefits may include deducting property taxes and interest paid on home equity loans. Enjoy home exchange opportunities. Owning a second home in a great vacation spot makes you a prime candidate for home exchange programs. Trade a week in your home for a week in someone else’s home in another city and enjoy traveling somewhere new. Create family memories. One of the most popular reasons to buy a vacation home is to have a special place to bring extended family together for vacations and special events. You can also pass down your vacation home to your heirs. Prepare for retirement. Why not retire somewhere you love? Your vacation home can become your primary residence once you retire, but you can start enjoying it and building equity in it long before it’s time to turn in your employee badge. Disadvantages to buying a vacation home It’s expensive. No matter what kind of vacation home you buy, a home is a significant expense, and adding one into your budget requires serious consideration. Financing is tough. When buying a vacation home, you’ll find that mortgage requirements are stricter. You’ll need a higher credit score and a larger down payment, and you can expect to face higher interest rates than for a primary residence. Utilities and maintenance are costly. Your vacation home expenses don’t end with the mortgage payment – you’ll also need to budget for utilities, insurance, property taxes, maintenance and possible HOA fees. Rental options may be limited. Many towns are passing stricter ordinances prohibiting short-term rentals or requiring homeowners to pay hefty fees to list a home as a rental. Be sure to check local laws before banking on your ability to rent out your vacation home when you’re not using it. Management is a pain. Since your second home likely won’t be close enough to your primary residence for you to stop by frequently, things like home repairs and regular maintenance (lawn mowing, snow removal, etc.) can become a hassle that can eat up precious vacation time. And if you’re renting it out, you need to deal with reservations, clean up and more. Travel is limited. Once you invest in buying a vacation home, you’ll probably want to use it to the fullest. That means you’ll be tied to just one vacation spot and you may not have as many opportunities to travel to new places. Out of sight, out of mind? Just like a gym membership you never use or a new dress that still has the tags on it in the back of the closet, a distant vacation home can easily turn from a dream come true into a neglected money pit if you’re not committed to using it regularly. The bottom line While there are many tempting reasons to buy a vacation home, it’s clear that sole ownership of a vacation home comes with steep downsides, including a heavy financial responsibility and time commitment. But there are options outside of traditional vacation home ownership that mitigate some of those issues. Pacaso’s LLC co-ownership model increases your buying power, and makes buying a second home more attainable. Pacaso offers true property ownership of private, luxurious single-family homes in choice locations. Buyers decide how much home they want to own, from ⅛ to ½. Pacaso handles all maintenance and management, and offers easy and equitable scheduling on the Pacaso app. Pacasos cannot be rented out, so owners and their guests can kick back, relax and make memories.
This is the perfect time to enjoy your second home – long winter nights, cozy fires, and special time with family. So why would you sell part of your second home to Pacaso? Because our co-ownership model empowers you to “right size” ownership, keeping up to half of your home, while gaining liquidity and distributing costs with vetted co-owners. Here are four great reasons to list a share of your second home. ’Tis a record season for second homes Our new Second Home Sentiment Report shows more people are interested in second homes than ever. More than half of those surveyed (55.7%) say they want to own a second home, up from 46.4% the previous year. Interest is turning into action across the country. Increased demand for second homes outpaced the demand for primary homes by 50% — an impressive statistic given the hot market for primary homes. Pair a hot market with colder weather, and you can see the temperature is right for selling shares of your second home. The process is simple: Pacaso purchases your home outright and retitles it into a property-specific LLC with eight equal ownership interests. You can retain the amount of ownership that meets your needs, up to 50%, and Pacaso will find buyers for the rest. Costs are shared, fees are low, and all Pacasos are professionally managed. Your home is on someone’s wishlist Second-home dreams know exactly what they want, and your home could be it. Our Second Home Sentiment Report found they prefer modern (27.9%) and rustic (26.8%) designs. And when it comes to location, homes near a beach or lake top of their list Mountain homes ranked third, followed by country and ranch locations. With Pacaso’s co-ownership model, you can give buyers exactly what they’re looking for while keeping the home you love. 2021 resolution: de-stress Second home ownership can be a source of great joy, but it also comes with some pretty big stressors: the cost of maintaining the property, the pressure to use it whenever possible, and the responsibility of dealing with things that go wrong. Enter Pacaso’s modern co-ownership structure. We offer turnkey second homes that are professionally designed, maintained and managed. You can just sit back, relax, and enjoy your second home without the stress. Give yourself a present: a second Pacaso! What’s better than co-owning one second home? Co-owning two Pacasos! With all the money you save by right-sizing your current second home and cutting down on costs, you can share another beautiful Pacaso in a different location. Check out our current listings to see what could be in store for you. Ready to take the next step? Find out more about what we look for in a Pacaso.
Remote work has become an everyday experience for many, and more companies are giving employees the option to work completely or occasionally from home. As a result, some workers are taking the opportunity to untether themselves from downtown offices and even their nearby, commuter-friendly homes, instead choosing to work from second home offices. Does your current home office have a view of ... the alley? Or, if your “office” is the kitchen table, a view of the dishes your kids left on the counter? Imagine how much more you could enjoy the 9-to-5 from a poolside patio or a picture window overlooking a vineyard. If a change of scenery sounds like the perfect productivity booster, consider working from a second home. Maybe that sounds too good to be true. But let’s say you have the flexibility to work from anywhere — how might that change your perspective on where you want to be? Here are a few questions to ask yourself: If I don’t need to commute to the office from my primary home, where and how do I really want to spend my time? What are work-friendly alternatives to short-term rentals and hotels? How can I find a place where my family can enjoy time together, but that also provides space to work comfortably? Many people don’t have the means to purchase the kind of second home they’ve daydreamed about, or they don’t want the responsibility and unpredictable costs of whole home ownership. But that doesn’t mean a second home office is out of reach. Pacaso offers a modern approach to owning a second home: co-ownership. It’s an ideal option for people who want to make their second home budget go further while maximizing the flexibility that remote work can offer. With co-ownership, you can own an amazing home for ⅛ the cost. Each home is owned by a maximum of eight vetted owners, and on average, owners of a ⅛ share stay at their homes six or seven times per year, for about a week at time. Scheduling your stay is easy and equitable, and Pacaso takes care of all the homeownership responsibilities, so you just show up and relax, or plug in your laptop so you don’t miss a beat at work. All Pacaso homes receive a design and technology upgrade and offer reliable Wi-Fi throughout the home. Enjoy your second home during the work week while keeping up to date with your projects, or bring your family for an extended stay knowing you’ll have time and space for work and recreation. Take advantage of the freedom remote work affords — no commute, more family time, and a second home office view that makes “going to work” one of the best parts of your day.
Owning a second home comes with all kinds of perks: a go-to getaway, a place to unwind, maybe even a great view.. But one of the biggest benefits of owning additional real estate happens behind the scenes: second home tax deductions. Purchasing a vacation property can be a pricey consideration. Thankfully, the net cost of owning a second home can be reduced by knowing how to manage mortgage interest, property taxes, rental expenses and more. As you weigh the benefits of a second home, you’ll want to understand how to maximize your tax deductions. They vary, depending on how you use your home and whether you rent it to others. Let’s find out more. Mortgage interest The main thing to consider when looking at mortgage interest deductions is how you are defining your second home: Is it a personal residence, an investment strategy, or a combination of the two? If your second home is exclusively for the enjoyment of you and your family (including your spouse, siblings, parents, grandparents, children and grandchildren), you can follow the same rules you would for your primary residence — mortgage interest can be deducted come tax time. The even better news for second home owners looking to make a little income is that you may be allowed to rent your property and still abide by the personal residence tax rules, all without having to pay taxes on the rental income. Just don’t go overboard — you can get the benefit only if you stay in your second home for more than 14 days, or more than 10% of the number of days you rent it out, whichever is longer. What’s more, as long as you follow the 14-day rule, you won’t be taxed on rental income no matter how high your rate is. Whether you rent it for $100 or $10,000 a night, that money can be excluded from your gross income. Investment property deductions A different set of rules apply if you never use, or only rent out, your second home. A home is considered a rental property rather than a personal residence if it is rented for more than 14 days per year and your personal use is 14 days or fewer per year (or 10% of the number of days the home was rented). In that case, your house is deemed an investment property and falls under a different set of second-home tax deductions. Investment properties don’t qualify for the mortgage interest deduction mentioned above, but special tax tactics can be applied, like an annual depreciation deduction. With the depreciation dedication, if a second home owner buys a property solely for investment or rental purposes, the IRS assumes the asset has a finite useful lifespan. That means the cost of the home can be deducted incrementally over a period of 27.5 years. Property taxes Unlike the mortgage interest rule, you can deduct property taxes paid on your second home or, for that matter, as many homes as you own. However, the total of state and local taxes eligible for a deduction — including property and income taxes — is limited to $10,000 per tax return ($5,000 if you're married and filing separately). Many people who buy a second home may already exceed that limit with their first home, and so will not see additional tax savings from their second home. Rental expenses If your second home is exclusively a rental property, you can deduct a number of other expenses in addition to property taxes: utilities, insurance, housekeeping and property manager fees, repair costs, other rental expenses, and purchases like towels and sheets. Individually, these may not be costly, but they add up quickly and could be a substantial deduction. It’s worth noting two things: If you also use your second home yourself, you must apportion these costs between your personal use of the property and the time it was rented. The days spent fixing and improving your second home do not count as personal use, so keep all maintenance receipts. Second home tax deductions can be complex, so consult a tax adviser before making any big financial decisions. Note: Rental of a Pacaso home to any third party is prohibited.
Home co-ownership has been around for a long time, and it comes in many forms. It can be as simple as a married couple owning a property together or it can be more complex, legally or financially. Spouses and family members often choose joint ownership of a primary or second home so when one owner dies the property’s title passes to the surviving owner or owners. Other types of co-ownership, like joint tenancy and tenancy in common, are more typical options for unrelated owners, such as those who hold title in an investment property. Joint tenancy allows you to leave your share of the property to anyone you wish, while tenancy in common divides your share among the other tenants in common when you pass on. Co-ownership benefits The benefits of home co-ownership start with the opportunity to buy a more expensive home than you could afford on your own. That means less money for a down payment and a lower monthly mortgage, plus shared costs for the home’s maintenance. Co-ownership downsides DIY co-ownership can get messy. Buying a home has its own set of complexities without adding in family dynamics and business relationships. It’s a good idea to hire a real estate attorney to draw up a sound legal agreement to make sure you are protected. A smarter option Pacaso has developed a fresh take on co-ownership, offering luxurious single-family second homes in sought-after destinations. Unlike DIY co-ownership, Pacaso sets up a property-specific LLC which details the management, operation and voting procedures for each home. Buyers purchase ownership interest, ranging from 1/8 to 1/2, in a fully managed Pacaso. This is true real estate ownership in a property whose value tracks the surrounding single-family home market. Pacaso co-ownership is more flexible than a timeshare, more private than a fractional resort property, and costs dramatically less than whole home ownership. Pacaso owners enjoy equitable access to their home and none of the maintenance and management hassles commonly associated with owning a second home — all at a fraction of the cost of whole home ownership. Definitely not a timeshare “Timeshare” is a broad term that refers to any type of real estate owned and used by multiple people. However, it is commonly associated with buying the right to use a condo unit or hotel room in a resort community for vacation purposes. They work best for people seeking 1-2 weeks a year in the same resort, but come with many downsides. Timeshares have proven to be poor investments. Most lose 30-50% of their value and are notoriously illiquid, according to the 2020 Sherpa Report. Use rights are often rigid, and “owners” may feel (and act) more like renters.By contrast, co-ownership in a second home gives you true ownership in a place you can call your own. All owners agree to a Pacaso code of conduct and share an owner mentality. Definitely not a fractional A less common ownership model is “fractional” or shared resort ownership. You may see these marketed as “residence clubs.” Fractional resort ownership works for people seeking a hybrid hotel/resort/second home experience. These fractionals differ from timeshares in that they offer fewer shares, so owners get more use time. They are also costlier than timeshares, averaging $161,500 per share in 2019, according to Ragatz Associates. Additionally, members must pay costly annual membership dues. Fractionals often offer hotel-like services and amenities, but do not guarantee use of a specific space. Owners buy access to a type of unit at a club or resort, not a home. Pacaso’s LLC co-ownership model builds on the fractional model, as both offer true property ownership. But a Pacaso is more personal and private in a prime residential location, not a hotel. Each home is a professionally furnished, one-of-a-kind private retreat accessible only to owners and their guests. Pacaso co-ownership delivers the benefits of whole second home ownership without the downsides. Check out our listings to get started.
Britain’s departure from the European Union has involved some radical changes to British citizens’ rights within the EU. As citizens of a non-member or “third” country, British nationals no longer have the right to live and work freely within the EU. But how does this affect property ownership for British people in Spain? Here we attempt to address some of the most common concerns. Can I still buy property in Spain? Yes. Anyone can buy property in Spain, not just EU citizens — and Brexit has not changed this. Will it cost more to buy property in Spain? No. The cost of buying a Spanish property is the same, whether you are a citizen of Spain or another EU country, Great Britain or any other nation. In addition to the purchase price, the costs of buying a property in Spain include a purchase tax, notary’s fee, property registry fee and some other small miscellaneous charges. These apply to all buyers and have not been affected by Brexit. Does Brexit affect my rights as a homeowner? No. Property rights are not linked to residency status or citizenship. All property owners in Spain have exactly the same rights and obligations, regardless of where they come from. Can I still rent my property out? Absolutely. Property rights — including the right to rent — are not affected by Brexit, as long as you follow the rules specified by each autonomous community and local government. The only change is to taxation on rental income. EU and European Economic Area (EEA) citizens pay tax on rental income in Spain at the rate of 19%. Brexit means that UK residents are obliged to pay tax at the same rate as non-EU citizens, which is currently 24%. Also, before Brexit, you could reduce the total tax bill by deducting allowable expenses. Now, you pay tax on the gross rental income with no deductions permitted. How long will I be able to stay at my new property? Before Brexit, UK nationals benefitted from freedom of movement, with the right to live and work anywhere within the European Union, and millions took advantage of this right, including to retire to the famous “place in the sun.” This is no longer the case. British nationals are now only entitled to spend a maximum of 90 days in every 180 days in an EU country — “three months on, three months off.” What if I want to stay longer? Unfortunately, you can’t just combine your two permitted 90-day periods for a longer stay in one year. If you wish to stay for a longer period, you will have to apply for a visa or residency. However, you can split up the 90 days into different chunks (for example, three blocks of 30 days) — just don’t exceed 90 days total in the preceding 180. How would this impact my ownership of a Pacaso? Pacaso makes things simpler for you in a couple of ways. Firstly, since you co-own property that is managed by Pacaso, you are unlikely to exceed the 90-day limit. Plus, there is no need for you to return periodically your home and conduct repairs as things are all handled for you. Secondly, Pacaso handles all the management, regulations, maintenance and ongoing taxation, and we organise everything together into one simple and transparent monthly fee. With Pacaso's fully-managed ownership model, you can own a property in Spain with confidence, ease and peace of mind.
Inflation has reached its highest level since 1981 as the latest Consumer Price Index (CPI) increased 9.1% in June. In addition, mortgage rates in April surpassed 5% for the first time in over a decade and have remained elevated since. Why does this matter? This is the first time in recent history that inflation is meaningfully higher than mortgage rates. As the cost of consumer goods in the U.S. rises faster than mortgage rates, there are financial decisions consumers should consider to hedge against inflation. Many advocate putting money into long-term assets such as real estate, including second homes, as a way to hedge against inflation. What about the high mortgage rates? Although mortgage rates have nearly doubled since the start of 2021, it is important to remember that rates are still well below historical norms. For the past 50 years, 30-year fixed mortgage rates have averaged approximately 8%, even crossing above a staggering 18% in the early 1980s. Will inflation continue to rise? Inflation has reached levels we have not seen in over 40 years. Many economists believe that the CPI will remain elevated for the rest of this year and may hold up into 2024. What’s the takeaway? As inflation rises, the cost of everything goes up, including real estate. However, when the CPI growth rate is higher than the current 30-year fixed mortgage rates, homeowners’ will be spending the same monthly amount but with inflated dollars. As a result, smart home shoppers tend to be less concerned about the current levels of mortgage rates when inflation is high. This could provide home buyers with a rare opportunity to make a stable-value investment and take advantage of the growing rate of depreciation of money. In an inflationary environment, consumers want to park their money somewhere that will lose the least amount of value. For that reason, real estate is often considered one of the best ways to hedge against — or beat — inflation. Disclaimer: This content is published solely for informational purposes and it is not intended to be investment advice.
We’ve rounded up some of the most important amenities and features to look out for when choosing a second home. After all, a second home should offer not only the things you use every day but also the luxuries that allow you to fully enjoy your time away. Each Pacaso is fully equipped with practical things like pots, pans and pantry basics, plus carefully curated amenities like designer interior furnishing and accessories. Every detail is chosen for the comfort of you and your guests. Here are some of the most sought-after elements of a second home. Location, location, location One of the major factors when choosing a second home is its location. Fancy a round of golf or a sunrise swim on the beach? The location of your holiday home is just as important as what’s inside. Take this into consideration to ensure you’re never far from the things that matter to you. A pool In most vacation destinations, a pool is a staple that shouldn’t be overlooked, and one that will surely delight everyone. After all, what is better than slipping into cool waters on a balmy afternoon? A dream kitchen Kitchens are at the heart of any home, so look for a second home kitchen that’s well designed and well stocked — whether you like to cook or be cooked for. You’ll want a kitchen that has room to not only cook but space for gathering with family and friends. Pacaso kitchens have three different coffee machines, Le Creuset pots and pans, a full range of serving and tableware, plus everything you need to bake, fry, simmer and grill. A view to inspire Everyone’s dream home is different, but high on everybody’s wish list is a great view, be it beach, mountain or vineyard. Inspiring views are a defining feature in many Pacaso homes, accentuated by broad balconies, lush terraces and large windows. Idyllic interiors Your holiday home is your sanctuary away from the real world. To help you fully unwind, opt for a home with a calming atmosphere and thoughtful interiors. Every Pacaso home is curated by an interior designer, using a colour scheme, artwork and furnishings that suit the surroundings. Dedicated workspace There’s no denying that Covid has changed the way we work. In many cases, office days are no longer viable, so it’s important to have a dedicated space even while on holiday. Many Pacaso homes have an allocated office area equipped with a desk, good lighting and fast Wi-Fi connection (that is available throughout the whole house). Games room Vacations are for relaxing and blowing off steam, so it’s important for a holiday home to have a comfortable space to enjoy with family and friends. Whether it’s a competitive game of ping-pong, a card game and a cold beer, or place where children can watch TV whilst you enjoy the sunset, don’t overlook this key feature. Fitness suite Enjoying your second home shouldn’t mean you have to compromise on your fitness. That’s why every Pacaso home has a fantastic range of workout equipment and machines to ensure you feel your absolute best while you’re away. Dogs are welcome The only thing better than going on vacation is going with your pup. With so many holiday rentals saying no to pets, it’s reassuring to know that Pacaso lets owners bring up to two dogs. Certified assistance animals are also allowed. Our essentials Every Pacaso home is stocked with 200+ essential items, from pantry supplies to luxurious cotton linen bedding and towels. Each home also has the less glamorous but important bits like a tool kit, first-aid kit, spare light bulbs and an iron. The ideal home away from home includes the big things and the small details, and we’ve got them all covered. Find a Pacaso holiday home that’s right for you.
Fractional ownership is splitting the cost of an asset – typically more expensive, big-ticket items like a house, boat, aeroplane or piece of art — with other people while retaining a portion of ownership and use of the asset. Simply put, a group of people get together to pool their resources and buy something between them. They are issued a deed confirming their share of the asset. Risk and reward The co-owners are entitled to the risk and reward that come with the ownership of the property asset. If it rises in value, their share’s value rises correspondingly. They also take responsibility for the care and maintenance of the asset: repair, upkeep, improvements, taxes or fees. Different models Fractional ownership is a relatively new concept, especially in Europe, and there are a few different models for how to achieve it. One of the simplest and least problematic is for a property to be owned by a limited partnership, with the shares owned proportionately by all the co-owners. Other models include private residence clubs, destination clubs and exchange programmes. How is this different to a timeshare? With a timeshare, you pay for access during a specific period of time, and that time period is your opportunity to enjoy the property. When you no longer want it, you can sell that specific time on. Fractional ownership is different. Each co-owner owns a share of the property, and has a stake in its upkeep, repair and improvement. What are the pros and cons? Pros Each owner has express ownership of part of the property The value of your share in the property increases or decreases in line with the property's market value. Any increase in value is divided equally and becomes gained equity for all fractional owners. Your capital goes further as a part of a collective buying power You have the opportunity to own a portion of a high-end property in a prime location that would otherwise be outside of your budget. You have greater control over when and how you stay … than a timeshare. With a fractional ownership property, you own actual property, giving you the right to use the vacation home according to your share. For example, if you own a quarter share in a property, you hold the right to use the property 3 months of the year. Shared upkeep and maintenance costs Fractional ownership means you’re only responsible for a fraction of the upkeep and maintenance. Cons Fewer financing options Not many banks provide mortgages for those looking to buy properties fractionally. You may need to shop around and consider other ways to finance your purchase. Less flexibility and freedom All decisions about maintenance, repairs and decor must go through all ownership partners, and this can be a hassle. If you want to sell a fractional property, the sale will also have to be approved by the other fractional owners. Most fractional ownership clubs also require you to maintain an agreement with the club or property management company associated with the home, with no option for self-management or management outside the company. Limited travel opportunities While it’s possible to own shares in multiple fractional ownership properties in different locations, each one is a significant financial investment. Unlike the more traditional hotel stays or short-term rental properties, fractional ownership can limit your travel options to just a couple of favourite spots, and you'll likely be staying in a resort condo, not a private, detached single-family home. Novelty and unfamiliarity Fractional ownership is a relatively new concept in Europe. It’s better known in the United States and Canada where it is recognised and well regulated. An alternative to fractional ownership As we’ve just seen, fractional ownership has its pros and cons. Where fractional ownership falls short, Pacaso fills in the gaps in co-ownership of a second home. Pacaso’s professionally managed limited partnership co-ownership model gives you all the perks and lower costs of co-ownership, but with key differences that set it apart from fractional ownership resort clubs. What’s different? True ownership Pacaso offers true property ownership of private, luxurious homes in choice locations. You’re in charge Buyers decide how much of the property they want to own, from ⅛ to ½. We take care of it Pacaso handles all maintenance and management, and offers easy and equitable scheduling on the Pacaso app. You’re in control The homes cannot be rented out, so you have peace of mind knowing the property is only being used by a small owner group and their registered guests. It’s up to you Because the co-owner group collectively owns 100% of the home, owners can vote to remove Pacaso as programme manager if they decide they’d rather self-manage. We’re confident enough in our concept and delivery that we feel no need to tie you in. Check out co-ownership opportunities for homes in more than 40 destinations worldwide.
When you’ve found a vacation destination you love and you’re spending a lot of time visiting, it can make sense to buy a place of your own — after all, those hotel nights get expensive, and it’s nice to have a second home where you can set down (part-time) roots. Before you buy a home out of state, here are five key considerations you should work through as you search for your dream second home. 1. Cost of living differences How much everyday items cost can vary significantly in different parts of the country, and it’s important to factor those differences into your second home budget. Whether it’s the cost of consumables like groceries and gas during your visits, or utilities and home services, it all adds up. You’ll also want to research property tax rates in your desired second home location, home insurance rates, HOA requirements and any other recurring out-of-pocket expenses. 2. Climate-related challenges Many popular vacation destinations are places where the climate varies widely from one season to the next — think ski towns like Park City, Lake Tahoe and Aspen. Homes with climate extremes can require extra maintenance due to big temperature swings and harsh winters. For example, you’ll want to factor in the cost of heating a mountain home in the colder months and the expense of having your driveway plowed. In warm-weather destinations, factor in the cost of air conditioning (hello, Palm Springs desert!) or the toll that salty sea air takes on a beachfront home. 3. Seasonal subtleties Before buying a second home in a popular tourist destination, plan to visit during various times of the year. Stay during the peak vacation season, observing things like how crowded restaurants and parks are and how bad traffic gets. You’ll also want to spend some time there in the low season to see if there are enough amenities and activities to keep you and your family entertained. Before putting down roots, you’ll want to make sure you love the destination, no matter the season. Another great way to get a feel for seasonal shifts is to connect with year-round locals and ask for their impressions. 4. Management and maintenance A big challenge of owning a second home far from your primary residence is handling property management and maintenance. Finding a local property manager you can trust is extremely important. The same goes for a maintenance person, landscaper and other home service providers. They don’t come cheap, but having trustworthy people to check on your home after a storm or deal with a leak will save you time, money and many unnecessary trips between your two homes. 5. Accessibility and location A beautiful second home isn’t worth having if you don’t use it. Choose a location that will be easily accessible for you, given where you live and work, your schedule and your travel budget. Many second home owners find that they get much more use out of a second home that’s driving distance away, or at least a direct flight. The cost or hassle of multiple flights and the burden of long travel days can make spending time in a second home a lot less likely. An easier way to own a second home Owning a second home in your dream destination doesn’t have to be complicated. When you co-own a Pacaso, the logistics are taken care of. While we can’t magically lower the cost of living or change the weather, we do handle many of the headaches that come with second home ownership. Pacaso takes care of management and maintenance, so you can spend every minute of your hard-earned vacation time enjoying your second home.
Pacaso Second Home Market Analysis Q3 2022: Key takeaways Luxury second home mortgage rate locks declined 28% from Q2 to Q3 in 2022, however they remain 152% above their pre-pandemic level in Q3 2019. While many pandemic boomtowns began to see price declines in Q3, those still have not extended to luxury second homes in destination communities. The data suggest buyers are adjusting their second home purchases to account for deteriorating market conditions by opting for less expensive destinations closer to home. The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come. Q3 2022 marked the end of the pandemic real estate boom for luxury second homes with a 28% quarter-over-quarter decline in mortgage rate locks across the country, according to luxury second home mortgage data analyzed by Pacaso’s research team. Luxury second homes are defined as homes sold for $1 million or more that are designated for seasonal and/or recreational use. “The pandemic unleashed unprecedented, unsustainable demand for luxury second homes,” said Austin Allison, Co-Founder and CEO of Pacaso. “While market conditions deterred many buyers from making purchases in Q3, mortgage rate locks are still flowing at double the pace from before the pandemic. Remote work has become so prevalent that it has created a new normal for luxury second homes, and we should continue to see elevated demand in historical terms even as market conditions take the froth off.” All-cash buyers play a particularly important role in the luxury second home market and, unlike the buyers driving the mortgage rate lock figures, their buying power is not directly affected by the steep rate hikes of recent months. That said, all-cash buyers are generally more exposed to the ups and downs of the stock market, which has lost considerable ground since the beginning of the year. The pandemic’s effect on luxury second homes Luxury second home rate locks were 152% higher in Q3 2022 than they were in Q3 2019, the last reading for the same season before the pandemic. In fact, every quarter from Q3 2020 to Q3 2022 saw rate locks on luxury second homes clock in at more than double the level in the corresponding quarter of 2019. In 2018, according to the U.S. Census, just 8 million people in the U.S. worked from home, or 5.3% of workers. Today, a recent McKinsey survey found that “58% of employed respondents…equivalent to 92 million [workers]…report having the option to work from home for all or part of the week.” Granted, that’s not a perfect apples-to-apples comparison, but it amounts to a whopping ten-fold increase. And now that about half of the workforce has shed a key obstacle to getting away—probably permanently--second homes remain superbly poised to benefit from that newfound geographic freedom. “Market conditions are temporary, but remote work and the desire to spend time with your people in amazing places are here to stay. That’s why I remain bullish on second homes in the long-run, especially in the luxury tier and despite the short-term challenges,” continued Allison. Impact of market conditions Mortgage rate hikes, a weak stock market and general economic concerns, particularly regarding the housing market, combined to deter many buyers from purchasing a luxury second home in Q3. The relationship between mortgage rate hikes and second home rate locks is stark. Another important factor is the stock market. According to the National Association of Realtors, about half of second home buyers pay all-cash, and their role in the market isn’t captured by rate lock data. Luxury second home buyers tend to be affluent and hold much of their wealth in equities. Analysts suggest that stock market declines this year have erased $9 trillion in U.S. household wealth, and as losses mount it becomes harder to fund or at least justify a major discretionary purchase. Despite all that, rate locks were historically high—double their pre-pandemic level—so what is the story here? It turns out that rate locks varied throughout the country. Reviewing regional data, we observe a steeper decline in rate locks in premium destination communities, and an increase in more affordable locales. This is consistent with a trend we identified in our Q2 analysis, where buyers began to flock to locally-relevant destinations which can be more affordable and convenient. Taken together, these findings suggest that buyers are adjusting their second home purchases to account for market conditions by opting for less expensive destinations closer to home. Resilience in purchase price and appreciations Despite the decline in rate locks, luxury second homes maintained their value in Q3. Prices have held up due to low inventory, as sellers who are also seeking to buy want to avoid trading a low mortgage rate for a high one, and as demand remains well above pre-pandemic levels. Some parts of the housing market began to see price declines in Q3, particularly the middle and lower tiers in pandemic boomtowns. While that may extend to luxury second homes in destination communities down the line, second home prices in those communities did not lose ground in Q3. Methodology Pacaso identified the nation’s top second home markets by compiling census data on counties with a percentage of seasonal homes and median home values at or above the top 20th percentile, and by excluding those below the bottom 10th percentile of counties with the fewest households. Pacaso then analyzed real estate activity in the top second home markets by observing mortgage rate lock data, a leading indicator of second home buying activity. When applying for a mortgage rate lock, a home buyer must specify whether they are securing a mortgage rate for a primary home, secondary home or an investment property. Approximately 80% of mortgage rate locks result in home purchases. Mortgage rate lock data was provided by real estate analytics firm Optimal Blue and includes a sizable share of the market that is taken to be representative of the whole. For this analysis Pacaso’s research team looked at mortgage rate lock volume for both second homes and investment properties for Q3 2022 with a purchase price of greater than $1 million to focus on the luxury end of the second home and investment property category. Rate lock transactions and median purchase price data were sourced at the county level for counties that had a minimum of 5 second home transactions and aggregated quarterly, with Q3 representing the months of July through September 2022.
Making your property work for you — and not the other way around — is a lofty goal. When executed properly, a property can put extra money in your wallet and have you on your way to an early retirement. But before you make such a big investment, you’ll want to make sure your dreams are on equal footing with reality. Unlike traditional investment products like mutual funds and stocks, buying a second home for investment purposes comes with costs like maintenance, insurance and property taxes. If you’re considering investing in a second home, conducting a simple cost/benefit analysis can help put things into perspective. Any investment comes with a measure of risk, but it might not be the best choice if your financial risks outweigh the benefits. However, if the opposite is true, you could enjoy the benefits of your investment for years to come. How much do second homes really cost? The sales price of your second home is just the first expense in your “business” as a second home owner. To truly understand the financial responsibilities of second home ownership, be sure to budget for: Property taxes Utilities Repairs Homeowners insurance Property maintenance HOA fees (if required) Furnishings/household necessities Property management (if needed) Without even taking into account the cost of a mortgage or needed repairs, it’s estimated that a second home will cost about $700 per month. It’s also important to consider the non-monetary costs. It takes considerable time and energy to maintain a second home and/or be a landlord if you choose to rent it out. But remember: Both the sweat equity and cash you put into a second home could increase your return on investment. How will you use the property? Most people invest in second homes for one of three investment purposes: A personal vacation asset to hold for later resale A short-term rental property for a variable income stream A long-term rental property for a sustained income stream Each reason has pros and cons as an investment tool, and it’s important to understand the differences between a rental home and a second home before making an investment. 1. Personal vacation asset for later resale If you’re buying a home as an investment but have no intention of renting it out, your purchase falls under this category. Buying a second home to rent is a different story. 2. Short-term rental Renting out a second home to short-term tenants has been growing in popularity. Here’s what you need to know about doing the same with your property. The other way to convert a second home to an investment property is to find long-term tenants. 3. Long-term rental Long-term rentals are like the “set it and forget it” option of the real estate world, but you still need to be prepared for the investment. The second home investment type you decide to go with will also come with specific differences in taxes. What are the mortgage and tax differences between types of properties? When buying second homes or considering real estate investing, it’s important to know how mortgage lenders determine whether a home is considered a second home or an investment property. Expect higher interest rates, down payments and credit score requirements on a mortgage for investment properties compared to second homes. The criteria lenders use to determine taxable rental income and tax benefits for second homes are often similar to those used by the IRS and tax professionals. Tax benefits for investment properties include deductions for rental expenses, depreciation and losses. The following general rules apply: A second home Must be occupied by the owner 14 days each year or more Cannot be used as a rental property more than 180 days each year Must be located at least 50 miles from the owner’s primary home An investment property Is used by the owner(s) fewer than 14 days each year May be used as a rental property for any period of time May be within 50 miles of your primary residence Use these differences in lending terms and taxes to help inform your decision about how to use the property. Will I get a good return on my investment? To determine how much you’ll make from renting out a second home — and when you can expect a return on your investment — you will want to research rents, occupancy rates and real estate appreciation in the area where you’re looking to buy. Factor all the above in, along with an emergency fund to pay for unexpected maintenance and mortgage payments (for months with no renters) and a budget for property management, if needed. If you’re aiming for future resale, create a timeline and budget for property improvements to increase the home’s resale value. Once you’ve calculated the costs, weighed all the pros and cons, and decided on the best way to use your property, you should have a clear picture if your second home “business” is a smart investment for you. If you’re looking to own a second home for personal use and enjoyment, Pacaso offers an attractive alternative. Pacaso's co-ownership model provides true property ownership, with owners realizing any equity gains. The home’s value moves along with the whole real estate market. Many of the cons of solely owning a second home are eliminated with Pacaso’s fully managed LLC co-ownership model. Pacaso also handles all the ongoing homeownership responsibilities, like property maintenance, taxes, bill payment and budgeting. Find out more in our Buyer FAQ. This content is published solely for informational purposes and it is not intended to be investment advice. You should consult with an appropriate professional for specific advice tailored to your situation. FAQs about buying a second home for investment Read on for more insight into investment property ownership. Which is better for taxes: A second home or investment property? Since an investment home is considered a business, it is eligible for many tax breaks, like deducting operating expenses. A second home is also eligible for certain tax breaks, but the owner must meet specific usage criteria, like renting it out for less than 180 days per year. What is the 2% rule in real estate? The 2% rule is used to help landlords determine how much they should charge for rent. The rule states that the monthly rent for the property should equal 2% of the purchase price at the very least. What is the 70% rule in house flipping? The 70% rule in house flipping, also known as the golden rule, helps buyers decide how much they should pay. The rule says that a house flipper should not offer more than 70% of the home’s after-repair value to buy the house. This figure should take into account the estimated cost of repairs.
Buying a second home is an exciting milestone — and the process is simple once you understand a few key steps and answer some basic questions. This guide offers everything you need to know so you can purchase a second home in 2023. How to buy a second home While every home buyer’s journey is different, there are some common steps to hit that will help get you on your way. 1. Secure financing Getting pre-approved for a second home is a simple process, with many lenders allowing you to apply online. They look at your financial history, including your current income and debts, to give a rough number regarding what you can afford. At this stage, you're free to consult multiple lenders to find the best interest rates available. Having a pre-approval letter from a lender can give you a leg up when it’s time to make an offer on your dream second home. Be aware, however, that since lenders see financing a second home as higher risk, the loan you’re approved for may be lower than you’re expecting. 2. Find a real estate agent Finding a knowledgeable agent in your target market can significantly decrease your workload in your second home search. You can use their insider knowledge of the area to make an informed decision while letting them coordinate efforts that you don’t have time for. Research local agents online, cross-referencing reviews, and ask for recommendations from locals when possible. The going rate of a real estate agent is 5-6% of the second home’s sale price. So if you’re working with a buyer’s agent and the homeowner has a seller’s agent, each earns about 3%. Commissions are negotiable, so if you find a real estate agent with a rate that’s higher than average, you may be able to talk them down. 3. Make an offer Purchasing a second house will be a familiar process if you’re already a homeowner: You make an offer, negotiate, come to an agreement and prepare for closing. Prior to closing, you will: Have a professional home inspector walk through the house. They’ll look for any issues that weren’t previously disclosed so you can make an informed decision regarding your purchase. If the inspection reveals anything major, you can negotiate with the seller or walk away. Have a professional home appraisal conducted. Your lender will arrange for an appraisal, which determines the real value of the home to compare it to the listing price. If the appraisal is equal to or higher than the listing, you can proceed with the sale. If the appraisal comes in lower, then you should try negotiating for a fairer price. Purchase homeowners insurance. You’ll need proof of insurance before you can close on the second house sale. Compare rates from different insurance providers to find the best rate. Remember to account for local risks, like flooding or fires, that may need to be added on. Conduct a final walkthrough. Even though you’ve (likely) already toured the home, you’ll want to ensure it’s move-in ready. The final walkthrough is your fail-safe for avoiding buyer’s remorse. Now that you know what to expect, here are some questions to help guide your decision-making process. 6 questions to answer when buying a second home 1. Can you afford a second home? Buying a second home is a significant financial commitment, and accounting for all the associated expenses in advance can help ensure your enjoyment of the home for years to come. First, you’ll need a down payment, unless you’re paying cash for your second home. Typically, the down payment on a second home is 10-20% of the purchase price, depending on your credit score, debt-to-income ratio (DTI), and type and cost of the property. This will be applied to the purchase price of your new home. In addition to the purchase price, be sure to plan for these expenses: Interest: On top of your mortgage payment, expect the interest rates for your second home loan to be between 0.5% and 1% higher than the going rate for a primary home. Property taxes: How much you pay in property taxes will depend on your location. The bank usually estimates your property taxes in your monthly mortgage payment, but if the real amount ends up being higher, you’ll need to be ready to pay the difference at the end of the year. Homeowners insurance: The insurance for your second home is also usually more than your primary home, and it will vary depending on if it’s a rental or rarely occupied. HOA fees: If your second home has a homeowners association, you’ll need to account for the added monthly expense. HOA fees vary widely, depending on the amenities offered. Utilities: Whether you’re using the second home yourself or are planning to rent it out to short-term tenants, you’ll need to budget for monthly expenses. If you plan to have long-term tenants, you might have them pay the utility bills, but otherwise you’ll need to cover these expenses yourself. Maintenance: Prepare to pay for lawn care, snow shoveling and the random repairs associated with home ownership. Broken washers and dryers, roof repairs and painting may be rare, but they can throw your budget into turmoil if you don’t have funds set aside. Property management expenses: If you live far from your second home, it might not be feasible to handle property management yourself. In that case, you’ll need to hire a property manager to coordinate regular maintenance and handle tenant issues. As you’re crunching the numbers, it’s also important to remember that your second home can be a source of income and tax breaks as well. With a second home, you can: Deduct mortgage interest payments on principal amounts up to $750,000. Earn short-term or long-term rental income, depending on local regulations. Deduct rental-related expenses if you rent out your home more than 14 days of the year. These are great ways to make purchasing a second home more affordable. But second home tax deductions can be complex, so consult a tax adviser before many any big financial decisions. 2. How will you use your second home? Do you want to buy a second home because you want a summer place to enjoy while the kids are out of school? Are you planning on being a snowbird to escape harsh winters? Or do you want a second home you can visit frequently throughout the year? Your answers will help you choose the second home that’s right for you. If rental income is a primary motivator, now is the time to decide if — and how often — you might want to rent out your second home. You’ll need to verify rental laws in the area where you’re looking to ensure short-term rentals aren’t banned. Even if these considerations have not been on your radar, determining your goals early on can make second home ownership much smoother in the long run. 3. Where do you want it to be located? Once you decide on how you’ll use your second home, you can hone in on the perfect location. It’s tempting to go with your favorite vacation spot, but there are other important factors to consider before you start house hunting. First, how often will you be there? If your second home will be a frequent weekend getaway, you’ll want something within driving distance of your primary residence. If you’re only planning to use it for longer stays a few times a year, then something farther away could work well. Second, budget is a factor in the location you choose — and not just because of real estate prices. The farther away your second home is, the more challenging it will be to manage it, so you might need to rely on a property manager. Distant locations will also require higher travel costs, and locations that are prone to natural disasters — like beachfront property vulnerable to hurricanes — will cost more to insure. Lastly, a second home in a desirable destination with warm weather like Palm Springs or year-round adventures like Lake Tahoe is likely to stay rented and sell more quickly than one in a more remote location. It will cost more to buy a second house in desirable locations, but they are also usually easier to sell down the road. 4. What type of home do you want? Single-family detached homes are usually what comes to mind when talking about a second home, but townhomes, condos and co-ops are also popular choices. These alternatives might be smaller, but they usually cost less, offer more amenities and are less expensive to maintain. Think about the value a pool, exercise room or nearby resort would add to the property. While any one of these home amenities can be enough to push a detached home outside your budget, all of them can be attained in a multi-unit building. 5. Do you want to be the sole owner? Buying a second home doesn’t have to be a solo endeavor. Joint ownership can increase your buying power and reduce the maintenance and management burden of a second home. Since you’ll only be using the property at set times throughout the year, co-ownership isn’t the inconvenience that some make it out to be. You can choose to invite one or more friends or family members to share ownership with you and use a lawyer to draw up an agreement. 6. What is your budget? Lenders see second homes as higher risk, so second home loans have a few key differences from first mortgages. Some financial notes to be aware of about buying a second home: There are fewer options for financing a second home. You won’t be able to use a Veterans Affairs (VA) loan or Federal Housing Administration (FHA) loan to make your purchase. You need to pay that larger down payment. If you don’t have at least 10% of the second home’s cost on hand, you’ll struggle to find a lender. If that wipes out your savings, you’ll be at a disadvantage when repairs need to be made. There are higher credit score requirements. The lowest credit score lenders will typically approve is around 725. Be mindful of your debt-to-income (DTI) ratio. Your DTI ratio includes all of your current debts, plus added debt of the second home. So if you’re still making payments on your primary home’s mortgage, your DTI can easily exceed the 43% limit most lenders have for applicants. Prepare for higher interest rates. Adding an extra 0.5% to a normal mortgage may seem small, but it adds up over a 30-year period. It’s important to note that classifying your second home as an investment property indicates it has the potential to generate income, and a lender may factor that potential income into their lending decision, but not always. Whether you’re buying a second home through Pacaso or independently, the steps laid out in this guide can serve as a useful road map on your buying journey. Before you know it, you’ll be relaxing at your new retreat, experiencing the good life you’ve worked so hard for.
Second home ownership is a dream for many. Whether it’s a place for you to get away, an asset to pass to your children or a rental investment, the idea has a lot of appeal. But don’t forget that you are required to pay a tax called stamp duty on every house purchase in the UK. The supply of second homes — especially in the more desirable areas of the UK — has been constrained by complex planning rules, a desire to leave more housing stock for people buying their main residence, and efforts to rein in a booming buy-to-let market. Here’s a guide to the stamp duty surcharge, introduced in 2015. What is stamp duty? Stamp duty is a tax payable as a percentage of the purchase price of a property. You’ll also see it referred to as Stamp Duty Land Tax (SDLT). The current rates are as follows: *The SDLT rates changed as of 23/9/2022 and may also change in the future, according to the government’s tax policy. As you can see from the table, the rates for second homes are different — 3% higher, unfortunately. It’s graded and tied to the value of the property, so the more expensive the home, the more you pay. It’s also banded, meaning you pay the different grades only on the amount above the threshold. How it works To illustrate: You buy your dream second home for £2M. How much stamp duty do you pay? You do not owe 15% of £2M (which would be £300,000). Instead, you pay 3% on the first £250K (£7,500), 8% on the part between £250K and £925K (£54,000), 13% on the part between £925K and £1.5M (£74,950), and then on the final £500K, the SDLT would be £75,000. This gives a grand total of £211,450. You don’t have to do these laborious calculations – there are online calculators that will crunch the numbers for you: Stamp duty calculator on Gov.uk website Tool to calculate stamp duty on second homes from John Charcol There are exceptions to second home stamp duty. If the property is worth less than £40,000 or is a caravan, mobile home or houseboat, you are not liable to pay for stamp duty. Non-UK residents, beware Since April 2021, buyers who are not residents of the United Kingdom have had to pay an additional 2% on top of the standard and additional home stamp duty rates — taking the scale as shown on the table above from a minimum of 5% and topping out at 17%. Just a reminder that UK residency is distinct from being a UK citizen or British National Overseas passport holder. Even if you are a citizen, you still have to have been resident in the UK for 183 out of the last 365 days to avoid paying the surcharge. Owning property abroad UK residents are liable for the 3% additional stamp duty even if the only other property they own is abroad. So, a holiday home in France or a timeshare in Tenerife will mean you pay the stamp duty for second homes rate, even if you are buying your first home in the UK. Properties in Scotland and Wales Properties in these two countries of the United Kingdom have different rules and rates of stamp duty, typically 1% more across the board, with even higher levels in Wales. Married couples and civil partnerships Married couples are treated as one unit by HM Revenue and Customs. You can’t avoid the surcharge by putting the second property in your spouse or civil partner’s name. Rates with Pacaso’s model With shared ownership, you will be liable for a share of the total stamp duty which is payable on the total value of the property. Taking the above example of a £2M property with eight shares of £250,000 each, each owner would pay £26,431.25 — considerably less than you would have to pay if you bought the whole property! One final recommendation: We suggest that you consult with your own tax advisor to fully understand the implications of these taxes.
With mortgage interest rates at near-historic lows, it’s no wonder homeowners across the country are refinancing their primary homes at lightning speed. After all, who wouldn’t want to pay less every month for the money they borrow? But, what if you’ve recently refinanced your primary home and then come across that can’t-live-without-it second home? Or maybe you did a cash-out refinance to pull equity out of your primary home in order to make the down payment for a second home purchase. Can you really apply for a mortgage immediately after refinancing? There are two key factors to consider related to timing. Waiting until your refinance closes If you’re refinancing your primary home to take cash out for a down payment on a second home, you’ll need to wait until the refinance closes to access your funds. Typically, a cash-out refinance takes between 35-45 days to complete, depending on factors like how busy your lender is and whether an inspection or appraisal requirement slows things down. Once you have cash in hand, you can move forward with purchasing your second home, but there’s one other factor at play: your credit score. Waiting so you can protect your credit score While the long-term benefits of refinancing include a lower interest rate, more manageable monthly payments and access to the cash you need to purchase a second home, your credit score may take a temporary hit during and after the refinancing process. Here’s why: In order to obtain a refinance for an existing loan, your prospective lender(s) will run a credit check. The check they run is known as a hard inquiry and it can cause your credit score to drop temporarily. Once your refinance has closed, your previous mortgage lender will close out your old account — after all, your account is paid off! But some credit scoring models will penalize you for closing longstanding accounts. Don’t worry, though. It’s only a short-term issue. As you begin making on-time monthly payments on your new mortgage, your score should recoup. If you’re concerned about the effect your credit score will have on your interest rate and want to ensure you get the best rate possible on your second home loan, it can be wise to wait a few months after your refinance to give your credit score time to bounce back. Buying a vacation home after a refinance Homeowners with at least 20% equity in their primary residence, a credit score of 620 or higher, and a debt-to-income ratio of 50% or less will likely find they have an easy path to completing their refinance. And with cash in hand, that vacation home may finally be within reach! But if you’re debating whether the financial burden of owning a second home will be too high, or if your budget won’t allow you to purchase the luxury home you’ve been dreaming of, consider Pacaso co-ownership. Pacaso buyers enjoy all the benefits of owning a second home without all the financial burden. With Pacaso, you buy a ⅛ to ½ share with just a 30% down payment, which may allow you to avoid taking out a loan. If you do need to finance your co-ownership share, Pacaso allows qualified buyers to finance up to 70%.
Coordinating vacation plans as a pet owner can make you feel as stressed as a dog with a missing bone. Leaving your pet behind can be stressful for you and your critter, plus kennel fees can quickly add up. But bringing your pet on vacation poses its own challenges, like finding pet-friendly accommodations, restaurants and entertainment. Selecting the right destination can provide you and your pet with the carefree escape you’re hoping for — with the potential to make it a permanent second home. Browse these top pet-friendly vacation spots (listed in no particular order) to get ideas for your next trip. Ready, set, go fetch your next pet-friendly vacation destination! 1. Block Island, Rhode Island With scenic walks and water taxis, Block Island is one pet-friendly vacation destination you won’t want to miss. Brenton Point State Park offers beautiful views of the bay, with kite fliers taking advantage of the gusty ocean winds. Have a picnic at Point Judith Lighthouse or bodysurf at Mansion Beach. (The mansion burned down decades ago, but the sand and surf still remain.) Grab a bite to eat at Windjammer Surf Bar, where your dog can order food from its own menu and you can both enjoy the sight and sound of crashing waves. 2. Nantucket, Massachusetts The City of Brotherly Love extends its hospitality to four-legged friends. Visit Philadelphia’s Magic Gardens, where you and your dog can view large mosaic artwork and a sculpture garden. For a break from the concrete jungle, head to the Wissahickon Valley Park to traverse the hiking trails that span the forest and meadows. Stop by Wedge+Fig, where you and your dog can get a bite to eat in their enclosed gravel patio. This Northeast pet-friendly vacation spot has beaches, brewskies and bogs to entertain you and your dog. Surfside, Brant Point and Cisco Beaches all provide sandy ocean fun. Take a ride on the Steamship Authority ferry, where your pet can ride free of charge, to visit nearby Martha’s Vineyard and soak in the sights. The Milestone Cranberry Bogs give your dog a chance to burn off some energy, playing fetch on its dirt paths. When it’s time to rehydrate and replenish your calories, head to Easy Street Cantina or the Sandbar at Jetties Beach for fresh food and refreshing drinks. 3. Philadelphia, Pennsylvania This Northeast pet-friendly vacation spot has beaches, brewskies and bogs to entertain you and your dog. Surfside, Brant Point and Cisco Beaches all provide sandy ocean fun. Take a ride on the Steamship Authority ferry, where your pet can ride free of charge, to visit nearby Martha’s Vineyard and soak in the sights. The Milestone Cranberry Bogs give your dog a chance to burn off some energy, playing fetch on its dirt paths. When it’s time to rehydrate and replenish your calories, head to Easy Street Cantina or the Sandbar at Jetties Beach for fresh food and refreshing drinks. The City of Brotherly Love extends its hospitality to four-legged friends. Visit Philadelphia’s Magic Gardens, where you and your dog can view large mosaic artwork and a sculpture garden. For a break from the concrete jungle, head to the Wissahickon Valley Park to traverse the hiking trails that span the forest and meadows. Stop by Wedge+Fig, where you and your dog can get a bite to eat in their enclosed gravel patio. 4. Jim Thorpe, Pennsylvania What may at first seem like a sleepy town in the Poconos is a must-see place to go with your dog. Fido is welcome on the vintage Lehigh Gorge Scenic Railway for a trip through the state park and breathtaking views of the mountains. Country Junction general store is billed as the world’s largest of its kind, with a petting zoo and restaurant to boot. The Retriever Brewing Compound has five acres of entertainment, with a beer hall, pool deck and rotating food trucks to explore with your leashed friend. 5. Long Island, New York The largest island in the country offers pet-friendly beaches, hiking trails and more. Take your dog walks up a notch by strolling around Gold Coast and marveling at the historic mansions. De-stress with a doggy yoga session, where your pal can accompany you. Long Island has plenty of dog-friendly breweries, and there’s even a tour that takes you to all of the best neighborhood taprooms. American Brass is a dog-friendly waterfront restaurant that uses local ingredients to deliver creative dishes. 6. Lake Placid, New York There’s so much to experience in Lake Placid. Enjoy a convenient stay at the pet-friendly Town House Lodge, just a stone's throw away from the lake and a short walk from Main Street. Rent a boat from Captain Marney’s to go fishing, tubing or water skiing — with your pet as first mate. The business takes its name from a golden retriever whose descendants still stroll their dock. The Peninsula Nature Trails and John Brown Farm are sources of peaceful entertainment with pets. And when it’s time for food, Tail O’ The Pup serves delicious smoked BBQ and has an outdoor seating area for dogs. Plus, the Rivermede Farm Market sells locally sourced produce, gifts and animal treats. 7. Stowe, Vermont Stowe has no shortage of pet-friendly vacation ideas. The gondolas at Mount Mansfield let your canine ride at your side, while the Stowe Mountain Auto Toll Road offers scenic views of the Adirondacks while giving your feet and paws a rest. The Alchemist brewery allows leashed dogs to accompany patrons on a tour of the facilities, and your furry friend can stay by your side while you finish with a beer tasting. To stretch all six of your legs, head to Hubbard Park for off-leash fun. 8. Bar Harbor, Maine If you and your furry friend share a love for the ocean, the seaside town of Bar Harbor has everything you need. This quiet town of 5,000 provides nature cruises for leashed pets, so you both can try spotting a variety of sea creatures, like porpoises and seals. Take a picturesque walk around dog-friendly Acadia National Park with over 158 miles of hiking trails to choose from and multiple campgrounds. Then go for a wine tasting at Bar Harbor Cellars, or treat your pet to something special at Bark Harbor pet boutique. 9. Chicago, Illinois Bring your pet to this lakeside city for fun on and off the water. Multiple tour boats provide dog-friendly services, so everyone can enjoy the sights of the city from Lake Michigan or the Chicago River. Montrose Dog Beach allows your pet to dip their paws in the lake and even provides free waste bags and a dog wash area. The pet-friendly Gangsters and Ghosts Tours give visitors the opportunity to learn about the city’s sordid past by walking through the old vice district. 10. Madison, Wisconsin Sitting on an isthmus between two lakes, Madison has a whole lot of green space perfect for traveling dogs, including nine fenced off-leash city parks. For two-legged visitors, The Boneyard has a biergarten with 16 beers on tap, plus an outdoor play area for dogs to socialize. There’s even an on-site groomer if your dog is overdue for a trim. The BarleyPop Tap and Shop provides another dog-friendly taproom with an extensive craft beer selection. If spirits are more your thing, the State Line Distillery welcomes dogs inside the cocktail lounge. The seasonal Hilldale Farmers Market provides a healthy alternative to the bar scene, with fresh food and baked treats. 11. Milwaukee, Wisconsin Stroll Milwaukee’s winding RiverWalk with your dog in tow, stopping at the pet-friendly brewpubs and shops along the way. The RiverSculpture is an outdoor art gallery with permanent and rotating installations celebrating artists from across the nation. Treat your good dog to a spa day at Community Bark pet groomers. Or chill at their Barker Lounge where your dog can make furry friends while you drink coffee and stock up on planet-friendly pet supplies. 12. Grand Haven, Michigan This cozy western Michigan town offers plenty of fun for you and your pup while avoiding the overwhelming crowds of some better-known dog-friendly getaways. Take your time as you stroll down the boardwalk, window shopping and gazing at boats in the harbor. Rent your own pontoon for a relaxing cruise or a water skiing excursion. Then step back into a time capsule at Ray’s Drive-In restaurant for a classic burger and root beer shake with your dog riding shotgun. 13. Cleveland, Ohio This Lake Erie city blends freshwater fun with urban attractions. The downtown dog park offers 3,500 square feet of off-leash play space. The Ohio & Erie Canal Towpath Trail provides multi-use paths for you and your dog to explore amidst a plethora of greenery. Then head to the Taps & Tails Dog Bar, known for its indoor and outdoor play areas, with food and drinks for both dogs and owners. They even offer a daycare service if you want a day to yourself. 14. Indianapolis, Indiana This dog-friendly getaway blends city entertainment with natural attractions. The Virginia B. Fairbanks Art & Nature Park can be visited from sunrise to sunset, with contemporary art installations scattered throughout its 100 acres. Enjoy the Downtown Canal Walk’s 3-mile loop, or rent a pedal boat for a unique view of the city. Treat your pup to a movie at the Tibbs Drive-In theater and experience the feel of a bygone era. Visit the 16-Bit Bar + Arcade where you can wet your whistle and play free video games with your dog by your side. 15. St. Augustine, Florida St. Augustine, the oldest continuously inhabited city in the U.S., is brimming with history for you and your pet to experience together. Ponce de Leon’s Fountain of Youth Archaeological Park includes a planetarium, Timucua Native American village and observation deck. Wild peacocks roam the park, so be sure to keep your dog leashed. In town, you can take your dog on a wine-tasting tour in a horse-drawn carriage or ride on Red Train Tours (so long as your dog weighs 20 pounds or less). For an out-of-the-ordinary stop, visit the Perky Pelican, a shop selling handcrafted Christmas baubles year-round. 16. Key West, Florida Key West is renowned for its wild six-toed cats, so prepare you pooch. If your dog is willing to extend the olive branch, they can join you on snorkeling trips, dolphin charters and walks through the botanical garden. Your leashed dog can stay by your side as you tour the local aquarium and witness shark feeding and alligator exhibits. You won’t want to miss your chance to dine on fresh seafood like fish tacos at Geiger Key Marina Fish Camp Restaurant. (They’ll even cook fish you’ve caught that day!) 17. Asheville, North Carolina If the Southeast is more your style, grab the leash and head to Asheville, North Carolina. Take a stroll through Grovewood Village where art and history converge with beautiful sculpture gardens and tales of the city’s history. Asheville has trolley tours of its own for dogs up to 25 pounds, or you can scratch nature’s itch with a walk through Craggy Gardens’ rhododendron tunnel. Afterward, quench your thirst at Catawba Brewing Company or grab a bite to eat at Brixx Wood Fired Pizza. 18. Charleston, South Carolina Charleston is well-known for charming city streets lined with live oak trees and colorful buildings. Take a pet-friendly carriage tour to learn about the city in old-timey style. Fans of the macabre won’t want to miss the city’s ghost tours that allow leashed pets on both family-friendly and adults-only offerings. Rest and replenish your calories at the covered patio of the Lowdown Oven and Bar or enjoy the outdoor seating of Queology Barbecue. 19. Hilton Head, South Carolina You can stick to living on island time at pet-friendly Hilton Head. This East Coast attraction will provide you and your canine with ocean fun and dog-friendly beaches galore. The Audubon Newhall Preserve provides the opportunity for you and your leashed friend to observe alligators, birds and turtles. Stop by the Island Winery to taste grapes off the local vines — the proprietors will even give your dog its own water bowl so it won’t feel left out. (And remember: Grapes aren’t good for dogs.) 20. Shenandoah Valley, Virginia Virginia may be for lovers, but it’s also great for your fur baby. Shenandoah Valley has dog-friendly wineries, nature trails and other activities. The Staunton Farmers’ Market offers aisles of fresh produce, live music and freshly roasted coffee. The restaurant Table 44 has a special patio for pets (the doggio) and will even provide a water bowl and a special menu for your extra guest. 21. Birmingham, Alabama Red Mountain Park in Birmingham has plenty of fun to offer you and your pet. There’s 20 miles of hiking trails, treehouse views and the six-acre off-leash Remy’s Dog Park. Or maybe the trails of Ruffner Mountain are calling your (dog’s) name. The park provides weekend activities and educational programs, with beautiful views of the city. Get a taste of Southern comfort food at Crazy Cajuns’ Boiling Pot, the punk rock-friendly Black Market Bar and Grill or Back Forty Beer Company. 22. Austin, Texas Prepare for sensory overload at the Zilker Botanical Garden, where you can walk your leashed pet through the themed exhibits, viewing (and probably smelling) exotic plants. When you need a little extra energy to make it through the day, or maybe just to burn some of your pet’s energy, head to the Neighbors Dog Park & Coffee Shop for some off-leash fun. When you’re ready for a taste of BBQ, you and your best bud can dine at Terry Black’s BBQ, Rudy’s Country Store & Bar-B-Q or Green Mesquite. 23. Sedona, Arizona Sedona’s striking vistas of red sandstone attract visitors from all over the world. There are a number of dog-friendly options to see the area, with guided and self-guided jeep tours. You can also take a Red Rock Magic Trolley tour if your dog is small enough to sit on your lap. Mesa Grill offers a dog-friendly outdoor eating area, where you can view the scenery as well as watch planes at the nearby airport. Sedona Beer Company serves small-batch craft beer and food, accommodating dogs on the patio. 24. Albuquerque, New Mexico This Southwest city is well-known for its delicious food and lively festivals, but its reputation as a pet-friendly destination is also noteworthy. Your leashed dog can join you on an outdoor adventure along the La Luz Trail, much of Petroglyph National Monument and Rinconada Canyon Trail. If you need to give your paws a break, hitch a ride on the open-air ABQ Trolley and observe the sights in comfort. Please be aware, the ABQ Trolley X (the luxury option) does not allow pets. Pet-friendly restaurants include the Ponderosa Brewing Company and Flying Star Cafe Paseo for cold beers and hot tacos. 25. San Francisco, California San Francisco makes our list of best pet-friendly vacation spots thanks to its gorgeous scenery and dog-friendly accessibility. Your dog can splash in salt water at Crissy Field while you take pictures of the Golden Gate Bridge from the beach. Golden Gate Park’s off-leash section is a viable alternative for dogs wanting to keep sand out of their fur. For an added activity, try the modern treasure hunt known as geocaching, which is great for dogs and children alike. 26. South Lake Tahoe, California South Lake Tahoe sits on one of the largest freshwater lakes in the country with the Sierra Nevada mountains as a backdrop. Bring your dog with you as you try your hand at sport fishing, kayaking or paddleboarding. Lake Tahoe’s dog-friendly beaches also provide the option for a restful day soaking up the sun. Stop at the Sprouts Cafe for fresh, mostly organic food to replenish your energy or MacDuff’s Pub offering English pub food, both with dog-friendly outdoor dining areas. 27. Huntington Beach, California Huntington Beach — aka Surf City, with its 10 miles of coastline — is an evergreen pet-friendly vacation destination, thanks to its sunny Southern California weather. Huntington Dog Beach provides grassy picnic areas and water fountains for humans and dogs alike. After a day of frolicking on the beach, try some fresh seafood at Wahoo’s Fish Taco, or experience the California classic In-N-Out Burger. The Kimpton Shorebreak Resort accommodates cats and dogs of any size for no extra charge, going so far as to provide pet beds and bowls. 28. San Diego, California Make your dog’s ocean dreams a reality by taking a pet-friendly vacation to San Diego. Take a private paddleboard lesson at SUP Pups to learn the basics before heading out on your own. For a more sure-footed activity, spend the afternoon at the Original Dog Beach, where your dog can run off-leash with other canines. When you’re done, there’s a dog wash station just two blocks away. After you’re both cleaned up, head to Original Paw Pleasers Dog Bakery for a sweet treat. 29. Napa, California Napa is practically synonymous with wine, and while your dog can’t partake, there’s no reason they shouldn’t join you on a dog-friendly getaway. Walk or jog along the Napa Valley Vine Trail to get your daily dose of exercise, while historic Silverado Trail is a scenic driving route with valley views. Stock up on necessities or treats for you and your dog at the Napa General Store Restaurant, or grab a hearty meal with a micro-brewed beer at pet-friendly Downtown Joe’s American Brewery. 30. Colorado Springs, Colorado Get away from big city vibes and get back to nature in Colorado Springs. The impressively named Garden of the Gods is a free national landmark with hiking trails through the red rock formations. For the less adventurous, Colorado Springs has plenty of places to go with a dog. Pub Dog Colorado has a pet-friendly indoor area to eat and drink, and a fenced-in off-leash area for the dogs to socialize. 31. Kanab, Utah You have to see Kanab to believe it. Known colloquially as “Little Hollywood,” dozens of movies and television series are filmed in and around the area’s national parks due to the striking scenery. Your dog can join you as you walk remote trails, or you can both jump in a 4x4 for a guided desert safari. Be sure to stop by the Best Friends Animal Sanctuary where nearly 2,000 animals are ready for adoption. It’s the largest no-kill shelter in the country, and visitors can volunteer to clean kennels and socialize with the animals there including bunnies, farm animals and injured wild animals. The shelter’s on-site lodging provides specialized pet amenities like pull-out beds, a pet washing station and splash zone. 32. Boise, Idaho If you and your hound are tired of being confined indoors, Boise is a perfect pet-friendly escape. Tree-lined paths link the Boise River Greenbelt so you and your dog can enjoy miles of scenery and wildlife. Winstead Park offers designated off-leash hours throughout its 11 acres of green space. The Spacebar Arcade lets you drink and game with your dog by your side. And your pup is welcome at the Freak Alley Gallery, the largest open-air gallery in the Northwest. 33. Seattle, Washington Beat the heat with a pet-friendly vacation to the Pacific Northwest. Visit the city’s largest downtown green space at Olympic Sculpture Park. You can walk with your dog and observe works from renowned artists, then stroll along Elliott Bay in Myrtle Edwards Park. If you’re heading to Seattle Center, leashed dogs are welcome on the grounds but not in the buildings, and the monorail to downtown allows dogs if they’re carried by their owner. Along the shores of Lake Washington, you’ll find the 230-acre Washington Park Arboretum, where leashed dogs are always welcome. Round out your visit with a Seattle Water Tours Ice Cream Cruise to enjoy a cold treat while learning about the city. 34. Bend, Oregon The city of Bend has dog-friendly kayak and canoe rentals, so Fido can join in the fun on the Deschutes River. If your dog hasn’t quite found their sea legs, you can stick to land and walk the river trail, taking in the sites from the shore. The Riverbend Beach Dog Park is a fenced oasis for your furry friend to socialize in and out of the water. Drink in Bend’s craft beer scene by walking the Bend Ale Trail, getting a stamp on your “passport” from every participating dog-friendly brewery. Complete a designated territory (or all seven!) and you’ll receive a special prize. Tips for a pet-friendly vacation The key to a successful pet-friendly vacation is preparation. Keep these tips in mind before hitting the road or taking to the air. Test your pet’s travel tolerance Before you go on a vacation with pets, see how they respond to being cooped up or in a car for long periods. You may discover they get motion sickness or need more frequent breaks than you were prepared for. Double-check all pet-friendly accommodations Before you leave, it’s smart to verify that you can bring your furry friend along. Businesses can change their policies at any time. Pad your travel itinerary Even a well-trained dog can act out of character in unknown environments. Allow for extra time so you don’t miss out on sought-after activities or reservations. Update your pet’s identification and vaccinations Make sure their collar or chip has your current contact information. This way if you get separated while on vacation, they can be identified and reunited with you. On top of that, doublecheck that all of your pet’s vaccinations are up to date. Many businesses, including airlines, will require documentation for your pet to accompany you. Bring extra supplies Pack more waste bags, medications and other necessities than you think you’ll need, just in case. It should come as no surprise that man’s best friend can also make a great companion on your travels, but pet-friendly vacations require a special type of planning to make them enjoyable. Use the destinations on this list as a jumping-off point for planning your next vacation. You may even like the destination enough to make it a second home.
One of the biggest benefits of Pacaso second home ownership is the ease of spending time away from it all, with people you care about, in a familiar place you own and love. To address some of the most common misconceptions about booking a stay in your second home, we asked current Pacaso owners to share their experiences with scheduling, and Pacaso CEO Austin Allison offered up insights into how owners plan their stays. Myth: Co-ownership makes scheduling complicated Pacaso’s app, powered by our SmartStay™ system, makes scheduling easy, flexible and equitable. With two types of stays to choose from — general and short-notice — owners can see availability in real time and book their stay with just a few taps. SmartStay was created to streamline scheduling behind the scenes so owners have more control. Gayle, owner: “The app is so ridiculously easy. You can do your scheduling, you can cancel and change — it’s really flexible, and if there are extra nights you can just book it on the spot.” Myth: Getting holidays is hard Owners of a one-eighth share can hold four general stays, including a “special date” holiday, and can enjoy unlimited short-notice stays throughout the year. Each owner is guaranteed one special date per share. If you don’t get your first choice of a special date in a given year, the 24-month stay calendar gives you the opportunity to request the date in the future. Austin’s take: “Almost every single person who hears about Pacaso for the first time asks, ‘Isn’t everybody going to want to use the home on the 4th of July?’ But because co-owners all have different travel preferences and life situations, and not everyone can or wants to travel at the same time, we haven’t seen that happen.” Myth: It’s scheduled like a timeshare Pacaso’s scheduling system is responsive and real-time, enabling owners to enjoy their second home multiple times throughout the year. Timeshares often have fixed weeks or other scheduling limitations, relying on a draft process or priority ranking to secure a week in a hotel room or condo just once a year. Elizabeth, owner: “I think the app is super easy to use, and I can just look and see what’s available and we plan our trips around it.” Dan, owner: “The rolling scheduling gives me the flexibility and opportunity to book ahead.” Myth: The dates you want are hard to get We limit the number of co-owners to a maximum of eight, and owners can use their home in proportion to their ownership amount. Owners of a one-eighth share stay at their homes, on average, six to seven times per year, for about a week at a time. A diversified co-ownership group means people naturally gravitate towards different date preferences, and SmartStay makes it easy to book dates you want. Plus, SmartStay accounts for peak seasons, giving all owners an opportunity to book at least one peak season stay before any owner can book a second peak season stay. This ensures that the most desirable dates are not fully booked by just one or two owners. George, owner: “One of the most positive aspects is how well Pacaso thought about the app — when owners can get access, how much time they can schedule, how equitable it is. We look at the calendar and know what we can plan, and it's been pretty awesome.” Austin’s take: “SmartStay’s equitable system means everyone gets a fair bite of the apple. Layer that on top of the really dynamic and sophisticated software we’ve built, and scheduling is a breeze.” Myth: Scheduling can’t be spontaneous Sometimes you just want to get away from it all, which is why the app shows availability in real time — if the home is free to use, you’re free to book it as little as two days in advance. It’s flexibility at your fingertips, using SmartStay on the Pacaso app. Dan, owner: “I think the ability to look far to the future but also have the flexibility for last-minute stays is really awesome with the app, because it enables you to make the most of the time you have and really enjoy the property.” Pacaso’s SmartStay system makes scheduling easy, flexible and equitable. Have more scheduling questions? Read our FAQs.
You may have purchased your first home using an FHA loan, and now you’re looking into financing a second home. But because FHA loans are designed for first-time homebuyers, this time around you’ll be looking at a second home mortgage rather than an FHA loan. It’s important to understand the differences between the two products so you’ll know what to expect from the process. What is an FHA loan? If it’s been awhile since you applied for your FHA loan, here’s a refresher on some of the distinguishing characteristics between an FHA loan for a primary home and a conventional loan for a primary home. An FHA loan: Is backed by the Federal Housing Administration (FHA) which will pay your lender if you default on your loan Allows for a lower credit score than a conventional loan because of the added protection to lenders Has a lower loan amount limit compared to other conventional loans offered in the same geographical area Requires you to pay a mortgage insurance fee of 1.75% of the home’s value if your down payment is less than 20% of the loan value Second home mortgages vs. FHA loans The biggest difference between FHA loans and second home mortgages is that lenders consider second home mortgages to be higher risk. They know that in a financial crisis you’re more likely to make mortgage payments on the loan for your primary residence than you are on a vacation home. For that reason, the qualifications for a second home mortgage are stricter than those for an FHA loan. Here are the similarities and differences between a FHA loan and a second home mortgage. Credit score Because an FHA loan is designed to help first-time buyers achieve home ownership, the credit score requirements for an FHA-backed loan are lower than they are for a second home mortgage. FHA loans typically require a minimum credit score of 620, while a second home mortgage is usually 680 or higher. Debt-to-income ratio Your debt-to-income ratio (DTI) is calculated by comparing the amount of debt you’re carrying to your income. With an FHA loan, your DTI maximum is 57%. But your DTI cannot exceed 45% for a second home mortgage. Down payment A second home mortgage will have a higher down payment than your FHA loan, usually a 10% minimum compared to 3% with the FHA. However, one benefit of your second home loan is that you can take advantage of your first home’s equity and use a home equity line of credit (HELOC) or cash-out refinance to pay for all or part of the down payment for your second home. Interest rates As you may have guessed, a second home mortgage will have a higher interest rate than an FHA loan. It will also be higher if your second home is classified as an investment property rather than a vacation home (see “Investment properties vs. vacation homes” below). Keep in mind that interest rates vary by lender, so it’s a good idea to shop around. Type of home FHA loans allow for duplexes and other multi-family dwellings, but second home mortgages are for single-unit homes only, unless it’s classified as an investment property. Closing costs Both FHA loans and second home mortgages require closing costs, but these can vary from lender to lender. Property taxes Many second home mortgages will roll property taxes into your monthly payment, similar to an FHA loan. Lenders Most lenders that offer FHA loans and conventional mortgages for primary residences also have second home mortgages. Investment properties vs. vacation homes Loan requirements will vary depending on how your second home is classified, with a vacation home having more lenient terms than an investment property. But how does a lender differentiate between an investment property and a vacation home? A vacation home: Cannot be rented out more than 180 days out of the year Must be occupied by you (the owner) more than 14 days out of the year Must be 50 miles or more from your primary home If you fail to meet any of these criteria, your second home will be considered an investment property and you could be subject to income taxes and higher interest rates on your second home mortgage. But having your second home classified as an investment property isn’t all bad news– lenders may also take into account potential rental income when calculating your DTI for an investment property, so in some cases, classifying your second home as an income property could be to your advantage. While it’s true that second home mortgages have tougher restrictions than FHA loans, many mortgage lenders will be flexible if you have financial strengths that compensate for your weaknesses. For example, if your credit score is a bit on the low side, but you can provide a higher down payment, a lender will be more likely to work with you. Financing your Pacaso Pacaso’s LLC co-ownership model includes flexible financing options that can be used alone or combined with other financing. With our banking partners, we offer buyers access to a competitive-rate mortgage for up to 50% of the Pacaso’s purchase price. FAQs How do mortgage lenders and the IRS define a primary residence? Your primary home or primary residence is the property where you live for the majority of the year. Mortgage lenders and the IRS expect this home to be within reasonable driving distance to your place of employment, and they may require you to show proof of residency with the address listed on your driver’s license or voter registration card. How might buying a second home as a rental property affect my mortgage application? Unlike when you’re buying a vacation home, when purchasing a second home to use as a rental property, mortgage lenders may take into account potential rental income from your rental property and use it to adjust your debt to income ratio. This could mean a better interest rate and a lower monthly payment. What are some other options for financing a vacation home without a mortgage? Your three best options for buying a second home without a mortgage are to utilize your savings, sell assets and pay with cash, or tap into your primary home’s equity. Remember, even if you can’t pay for the second home in full using these methods, any of these options gives you a hefty down payment and reduces the mortgage amount of your vacation home.
Buying a second home can open up a whole new world of possibilities, but those possibilities may be limited depending on how that home is categorized by your mortgage lender. It’s essential to know the key factors lenders use to differentiate between a second home vs. an investment property. Understanding how lenders determine your mortgage terms and requirements may play a role in deciding how you’ll use your property: as a personal vacation home, a rental or a mix of both. Second home vs. investment property: What’s the difference? The way mortgage lenders classify vacation homes and investment properties varies from lender to lender, but here are a few rules of thumb: A second home Must be lived in/used by the owner (you) at least 14 days of the year Cannot be rented out more than 180 days of the year Must be a minimum of 50 miles from your primary residence An investment property Is occupied by you fewer than 14 days of the year May generate income through long-term rental, short-term rental or “flipping” Can be within 50 miles of your primary residence The criteria lenders use are often based on the definitions the IRS uses to differentiate between a second home and an investment property for tax purposes, but they’re not necessarily the same as the IRS criteria. For real estate and rental income tax info, be sure to check with the IRS. What do mortgages for both second homes and investment properties have in common? Mortgages for investment properties and vacation homes both carry a higher risk for lenders than mortgages for principal residences because when finances are tight, lenders expect you are more likely to pay for the roof over your head than a home you’re not living in. Lenders make up for this higher risk with stricter requirements and higher interest rates. Unlike the mortgage products you may have used for your primary residence (FHA loans, VA loans, etc.), both second home and investment property mortgages will require a down payment, plus cash reserves and good credit. What are the key mortgage differences between a second home vs. investment property? Number of units: For a second home, you are only allowed a mortgage on a single-unit property, whereas with an investment property or rental property, you can get a mortgage on a property of up to four units. Interest rates: Even with the same amount of money down and the same home loan length, a mortgage for an investment property will almost always carry a higher mortgage interest rate than a loan for a second home. Down payments: Like a mortgage for a primary home, the higher your credit score, the less money you’ll need for a down payment. However, a second home loan will require a minimum down payment of 10%, while an investment property minimum down payment starts at 15% and can be as high as 25%, according to the Fannie Mae Eligibility Matrix. Credit score: If your debt-to-income ratio (DTI) is less than or equal to 36%, your minimum required credit score will be the same – 640 – for both a second home mortgage and an investment property mortgage. But if it’s between 37% and 45% (the maximum allowed), you’ll need a minimum score of 660 for a second home and 680 for an investment property. Cash reserves: A mortgage for a second home will require you to have a minimum of two months of cash reserves on hand. For an investment property, you will need a minimum of six months’ cash reserves. Income reporting: Because an investment property has the potential to earn you additional income through rental or resale, mortgage lenders will often include potential future profits when calculating your DTI for a rental property. You won’t have that perk with a second home mortgage. Origination fees: Lenders often charge higher origination fees (the fees charged for mortgage processing at closing) for investment properties than for second homes. Can I start out using a home as a second home and then change my mind and use it as an investment property? Yes, but you’ll have to notify your mortgage lender and the IRS, and you may face penalties. It’s important to be as upfront as possible about your intentions for your second home or you could face serious legal consequences, including mortgage fraud. Mortgage lenders can (and will) use information from your credit report, tax records and more to ensure you’re using your property the way you agreed to in the first place. If they discover that you did not report rental income, you could be accused of occupancy fraud. How can I get the best rates and terms for my second home or investment property mortgage? You’ll find that mortgage rates and terms vary from lender to lender. It’s important to shop around and talk to several lenders to find the best deal on a mortgage for your second home or investment property. You can also put yourself in a better position for a second home mortgage by considering a co-ownership LLC like those offered by Pacaso. You’ll enjoy all the benefits of second home ownership for dramatically less cost, plus integrated financing through Pacaso’s financing partner.
Owning a second home is more attainable than ever, thanks to a variety of financing options, moderate interest rates and the new model of LLC co-ownership. But before you take the leap, it's important to know what you're getting into when it comes to financing a second home. From budgeting for the unexpected to differences between loan requirements, doing your research helps you make the right financing decisions so you can enjoy your second home with no regrets. What are the hidden expenses in a second home? When shopping for your ideal second home, it can be tempting to focus only on a property's list price and monthly mortgage payments. However, owning a second home comes with other financial responsibilities. Crunch those numbers, too, before you look into financing. Budget for: Home furnishings and essentials: Essentials like furniture, towels, bedding, dishes and other items make your new house feel like a home. Homeowners insurance: Most mortgage companies will roll your homeowners insurance into your mortgage, but if you're choosing to finance a second home with a product other than a traditional mortgage, you'll have to plan for insurance costs in addition to your monthly loan payment. Property taxes: Just like homeowners insurance, a mortgage often rolls taxes into your monthly payment. If you go a different financing route, you may need to pay property taxes separately. Utilities: Estimate the cost of heat, electricity, internet service and water for your second home. Maintenance and upkeep: You will need enough cash reserves to cover the costs of repairs and home maintenance. Don't forget about lawn care and snow removal as well. HOA dues: Community amenities can be a big plus for a second home, but you may need to pay a monthly homeowners association fee to access them. What's different about Pacaso's LLC co-ownership model With Pacaso, these hassles and costs are greatly reduced. Your home is turnkey, meaning it's ready to use whenever you want — fully furnished with designer touches, cleaned to our exacting standards and maintained by local professionals who are just a call away. Fees are low — just $99 per month per 1/8 ownership — and cover LLC oversight and property management. Home operating expenses, like maintenance, taxes, insurance and utilities, are passed through to owners at cost, with no markup. And, since multiple owners are sharing ownership costs on the home, you can enjoy a luxury home that might otherwise be out of reach. What do I need to know about financing a second home? If you own your primary residence, you're probably familiar with the process of financing a home. While many of the steps are the same, there are a few important things that are different when getting a home mortgage on a second home. Here's what you need to know. Financing options for second homes The good news is there are multiple ways to pay for a second home, including combining more than one strategy, including these: Take out a conventional mortgage loan. This is a good choice if you have limited assets and you don't want to take equity out of your primary residence. However, home mortgage loans for second homes typically have more limitations than a home loan on your primary residence. Use cash or cryptocurrency to buy all or part of your second home. Paying cash allows you to enjoy your second home mortgage-free. Or, you can use cash to make a sizable down payment and lower the amount you have to finance, thereby reducing your monthly payment and giving you instant equity in your new home. Take out a home equity line of credit (HELOC). Use the equity you have in your current home to open a revolving line of credit to pay for part — or all — of your second home. Because a HELOC uses your primary residence as security, it typically carries a lower variable interest rate. Keep in mind that your credit score might be lowered by accessing large amounts of equity. Take out a home equity loan. Like a HELOC, a home equity loan draws on the equity in your primary home to finance your second home. Unlike a HELOC, you'll get a fixed interest rate and then you receive the whole amount in one payout. You'll repay the loan in monthly installments just like a conventional mortgage. Do a cash-out refinance. This also taps the equity in your primary residence by refinancing your mortgage for more than the remaining principal amount, and using the extra cash to finance your second home. This is a good option if interest rates are lower than what you're currently paying on your mortgage. Keep in mind that your mortgage payments will be for the higher loan amount and you'll be starting your payoff journey over. How is taking out a mortgage on a second home different? Once you've calculated the costs and you know how much you're ready to spend for your second home, it's time to think about financing. Your first thought might be a traditional mortgage — after all, that's probably how you financed your first home. However, while a mortgage for a second home has all the same elements as a traditional first mortgage — a down payment, credit score checks, debt to income ratio calculations — the qualification criteria isn't quite the same when it comes to financing a second home. Here are a few things to know about financing your second home with a mortgage: Loan limitations: FHA and VA loans are great for first home mortgages, but these products are only for primary residences and can't be used to purchase a second home. You'll need a conventional loan for a second home purchase. Larger down payment: Many first mortgages only require a minimum of 3% down, but a minimum down payment on a second home generally starts at 10%, depending on your credit score, and is typically 25% or more. Higher credit score requirements: Expect to see a minimum credit score requirement of 640 or more when looking at qualifications for second home borrowers. But remember: The higher your down payment, the lower your credit score can be. Higher interest rates: Lending institutions consider second home loans higher risk because if you experience financial difficulties, you're more likely to prioritize payment of your primary home's mortgage. Expect higher interest rates on a second home loan. Note: How you define your second home can make a big difference in the loan requirements you'll encounter. Calling your second home a “vacation home” will result in more relaxed requirements than calling it an "investment property.” How long it takes to get a second home mortgage Once you've found the perfect second home, you'll begin the pre-approval and financing process. Gaining pre-approval can take some time, as the qualification criteria is stricter than on a primary home mortgage. However, once you have your pre-approval, the process takes about the same amount of time. Expect it to take roughly 30 to 45 days from the time your offer is accepted to closing. Differences between a second home and an investment property People often use the phrases "second home" and "investment property" interchangeably, but practically speaking, they're very different, especially when it comes to getting a mortgage and paying taxes. To qualify as a second home, it must be used by you at least 14 days each year. And, you can't earn rental income on it more than 180 days of the year. The home also must be at least 50 miles away from your primary residence. Alternatively, an investment property is occupied by you fewer than 14 days each year. It may generate short-term or long-term rental income, and it can be within 50 miles of your primary residence. These distinctions can make a big difference in affording a second home. A home mortgage for an investment property often requires a higher down payment, better debt to income ratio and a higher interest rate than a second home, as it's seen as a riskier investment. Pacaso's integrated financing options In addition to the cash and credit options discussed above, Pacaso works with partner banks to offer competitive-rate second home mortgages, with multiple financing options available. You may qualify to finance up to 70% of your purchase of a Pacaso, and we serve as the corporate guarantor of the loan.
Many people dream about owning a vacation home or a second home. That’s the easy part. What comes next is more challenging. Start by considering these six aspects of second homes: Location: How close do you want to be from your primary residence? Cost: What is your income and comfort level for spending? Space: What is your desired home type, size and configuration? Household: How many people are you trying to accommodate? Usage: How much time can you really spend at your second home? Pets: Do you have a four-legged companion joining you? It’s helpful, too, for second home buyers to understand the real estate market conditions in their dream location. Other financial factors include the cost of furnishings, taxes, insurance, utilities and general maintenance. The all-in cost of whole home ownership can sorely detract from what’s supposed to be a relaxing and pleasurable experience. These pressures prompt people longing for vacation homes to consider other options, including: Short-term weekly, monthly or seasonal rentals: Home-sharing through rental platforms such as Airbnb and VRBO have been very popular. But these vacation home rentals can come at a steep price, especially during peak seasons, because property owners ask premium rents. Renters may also be disappointed if the property doesn’t live up to the expectations set by listing photos or descriptions. The property’s condition and cleanliness may vary widely from home to home. And with concerns over health and hygiene, the high volume of people coming and going makes these kinds of rentals less appealing to some people. Timeshares: These “right-to-use” purchases can work for buyers who have identified a vacation spot in a resort community they want to return to regularly. But the expense of buying into a hotel or condo timeshare can be daunting, annual fees can be high, and use restrictions can be a turnoff. Another downside: It’s notoriously difficult to recoup your purchase costs. Timeshares don't appreciate like real property, and according to the respected Sherpa Report, a timeshare owner can lose as much as 30-50% of the value once the time comes to sell. DIY co-ownership: This is where family members or friends own property together, often as a result of an inheritance. This arrangement can be a cost-effective way to share ownership of a property, but if not set up and managed correctly, it can lead to legal or personal disputes. Fortunately, an updated version of the co-ownership model offers the cost and usage benefits without the pitfalls of the DIY approach: fully managed LLC co-ownership. LLC co-ownership is an innovative way to own a second home. With Pacaso's co-ownership model, buyers purchase an ownership interest in the home, from 1/8 to 1/2, as part of a small, vetted group of owners, and have access to their home for up to six weeks each year. On average, Pacaso owners stay in their second homes six or seven times each year for about a week at a time. Whether a buyer decides to buy one share or several, co-owners have true property ownership of a modern luxury home plus ongoing access throughout the year. There are flexible financing options available, and owners split monthly operating expenses (such as utilities, taxes and maintenance) proportionally. Owners pay a monthly fee of $99 per share for Pacaso's program management services, and they can sell at any time if their the other ownership interests in their home are sold. Pacaso also makes it easier to enjoy your second home by alleviating the typical ownership headaches. Some benefits include: An innovative Smart Stay™ system that is easy to use, equitable for owners based on the number of shares owned, and reflective of real-time home availability. Freedom from management hassles, care and upkeep of the property. It’s completely handled. Your home is cleaned and sanitized to our high standards, ready for you and your loved ones. A seasoned and technologically advanced leadership team, which gives owners peace of mind and confidence in their purchase decision. Pups welcome! Buyers are looking for smarter ways to get the vacation home they want, without high risks and overhead. Pacaso's co-ownership model helps make second home ownership possible for more people.