At first glance, co-ownership of a Pacaso might not seem that different from a timeshare. After all, you don’t own the whole home yourself, so you can’t just show up on a whim anytime you feel like getting out of town. But, that’s where the similarities end. Start searching for information on timeshares, and you’ll find a lot of horror stories. Read what Pacaso owners are saying, on the other hand, and you’ll hear how much they love their second homes.And that’s because Pacaso is not a timeshare, it’s true real estate ownership (but without all the hassles). Here are five reasons buying a second home with Pacaso will fill you with joy, not regrets.
Each Pacaso is a one-of-a-kind second home
Not just any home can be a Pacaso. We seek out the best homes in the best locations — each one is different, and all of them 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 is a luxurious single-family 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. You might have neighbors on both sides, above and below — hopefully the soundproofing is good.
A small group of co-owners enjoy the home
Because Pacaso limits the number of shares per home to eight, you and just seven other owners, at most, 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. Pacaso vets 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 Pacaso. We conduct a thorough inspection and cleaning after each stay, so your home is pristine when you arrive. A timeshare unit 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.
You own real estate, not time
One of the biggest differences between Pacaso and a timeshare is what you actually own. With Pacaso, you own a true real estate asset. Your share is real property, not simply a block of time. And because it’s a real estate asset, its value will move with the market — which means that any equity realized 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. Because a timeshare 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.
You can use your home throughout the year
Each Pacaso share includes up to 44 stay nights per year — more than six weeks! You aren't locked into a specific week or weeks each year, and you don’t even have to schedule weeklong stays. You can enjoy a weekend getaway or a mid-week escape, and you have the flexibility to plan stays anywhere from 8 days to 24 months in advance. Short-notice stays can be booked just two days in advance! You’re also guaranteed one “special date” per year, which includes Independence Day, Christmas and other federal holidays; you may not get your first choice every year, but since you can book dates up to two years in advance, you’ll always have another opportunity to snag your favorite. You book time at your home using the Pacaso app, powered by our SmartStay™ scheduling system. It’s easy to use and equitable for owners, based on the number of shares you own. When you buy time at 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 which 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 it was already locked in by another owner.
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 your purchase experience. You set the list price you want, and you’ll work with a real estate agent who will market and list the home just 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. For timeshare owners, resale is one of the biggest sources of stress. There’s a supply and demand imbalance, with a glut of sellers trying to get rid of their units (and the accompanying resort fees) to a smaller pool of buyers. There is a resale market, to be sure, but most people end up selling at a huge loss — you’ll find sellers on Ebay asking just a few hundred dollars (or less!) for their timeshares. There’s also a whole 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. According to U.S. News & World Report, you should “buy for the memories,” not because you expect to turn a profit.
Experience the joy, not the regrets
Pacaso offers exceptional second homes in top locations. Our pricing and costs are transparent and equitable, and you’ll never be surprised by hidden fees or bound to a rigid schedule. Instead, you get to enjoy your own private, luxurious oasis throughout the year, while Pacaso takes care of maintenance and property management. View our listings to get started.
What is considered a second home for tax purposes?