Whether you’re buying a primary residence, an investment property or a vacation home, it can be advantageous to share the financial burden with a family member. Purchasing a home with a relative can make home ownership more affordable, giving owners someone to share the cost and effort of maintenance and upkeep with. It can also help buyers with less-than-perfect credit scores to get access to better interest rates and loan terms. Buying with a relative is especially common with second homes, where each party may not want to shoulder the entire cost of a second monthly mortgage payment on a place where they won’t live in full time. While buying a house with a family member can often make smart financial sense, there are quite a few things to consider before signing on the dotted line. What to look for in a house with multiple owners Anytime you’re shopping for a home, it’s important to make a list of your needs and wants — and be sure to differentiate the two. For example, a need for a family with mobility challenges might be a one-story home while a want might be a home with a swimming pool. When you’re buying with a family member, you have more needs and wants to consider, which can make it take longer to find a house that fits the group’s criteria. Start by defining key must-haves for location, property size and amenities. In the case of a second home, decide if you need enough space for everyone to use the property at the same time, or if you’ll be trading off visits. Pros and cons of owning a property with family members The biggest upsides to owning a home with relatives are mostly financial. With a co-owner, you’ll split big-ticket expenses like the down payment, monthly mortgage payment, property taxes and insurance. Down the road when the inevitable home repairs pop up, you won’t have to foot the entire bill yourself. It’s also worth noting that a 50-50 ownership split isn’t required. It’s up to the co-owners to decide what’s fair in their unique situation. Another benefit of having a co-owner is having a stronger financial position with your lender. You may qualify for a better interest rate and loan terms based on having a higher combined monthly income and strong credit scores. However, there are a few drawbacks to owning a home with a family member that you should keep in mind before moving forward. A home is one of the biggest purchases you make in a lifetime, and with a co-owner, you are counting on the other person’s dedication and ability to keep up with payments. If you and your co-owner are listed as co-borrowers on a mortgage and they either can’t or don’t keep up with payments, your credit score will be affected and your home could go through foreclosure if you aren’t able to pay the full amount every month. Another downside is that it can be difficult to ensure that you and your co-owner will be on the same page in terms of how to care for the home during ownership. When does an issue require a repair? When is the right time to upgrade appliances? If something needs to be replaced, is it a DIY project or do you hire a professional? To navigate these challenges, savvy co-owners can put a property ownership agreement into place from the date of purchase. This legally binding document can outline how financial responsibility is split, the approach to repairs. and what happens if one owner wants to sell and the other doesn’t. A real estate attorney can help you draft this type of agreement. Types of ownership structures When you buy a home with a family member, you can choose from a few different types of legal ownership structures. Tenancy in common Tenancy in common is the most common type for two individuals who want to purchase a property together. The two will be allocated shares of the home based on how much money each person contributes to the purchase. This provides room for multiple owners and different percentages of ownership. If one party wants to sell the home, all must agree. Then, proceeds from the sale are divided based on ownership share. If a co-owner passes away, their share of the property can be left to whomever they choose. Joint tenancy Joint tenancy gives equal ownership to two parties, regardless of how much they’ve invested in the home. A joint tenancy agreement has what’s called a right of survivorship, which means if one owner passes away, their interest in the property is automatically transferred to the surviving owner. This ownership structure is popular with parents and their adult children who own a property together, since it ensures full ownership for the child when the parent passes away. Another option for co-ownership While it’s common for people to purchase primary residences with co-owners, it’s especially popular when buying a vacation home. After all, it gives you the opportunity to make family memories in your favorite destination without the big price tag. Spending less is a key benefit to splitting a vacation property with a relative, but the effort to make it a reality can still be quite large. You’ll have to find a home that everybody agrees on, take the time to set up the required legal protections, and come up with an equitable way to split time. Consider this alternative. Pacaso puts second home ownership within reach by bringing owners together to buy a home, offering ⅛ shares of luxury properties in top vacation destinations But unlike a timeshare, Pacaso offers real estate ownership. Co-owning with Pacaso helps you stretch your budget further and achieve a more affordable second home experience. Plus, we take care of all of the details, including setting up a multi-member LLC, creating owner operating agreements, ensuring equitable scheduling and fully managing all the maintenance and upkeep of the home Take a look at Pacaso homes currently available. From California wine country to the Florida Keys and Colorado mountain towns to sunny Los Cabos, we have something for every second home buyer.
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.
Imagine waking up in a charming Parisian apartment and eating croissants on your balcony. Or perhaps a rustic cabin nestled amidst towering Redwoods sounds more your speed. Everyone has different travel preferences and budgets, and the best vacation rental sites will cater to yours. To help you find the ideal accommodations for your trip, we've compiled a list (ranked in no particular order) of the top vacation rental sites: Let’s get booking, shall we? 1. Airbnb Best rental site for variety Airbnb gives private owners a platform to rent their properties directly to travelers. Airbnb sets itself apart from competitors by allowing hosts to list everything from single-family houses to spare rooms. The variety in listings has undoubtedly aided the company’s success, making it one of the largest vacation rental companies in the world. Airbnb operates internationally, with over 6 million listings. It also lets hosts list properties for free, taking a percentage of the booking price. Pros Cons Affordable for solo travelers Potential for host cancellations Millions of rental listings Scam listings 2. 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 Lack of international options Straightforward booking costs Less emphasis on unique experiences 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. Although its total number of listings is still a far cry from those on Airbnb, FlipKey does have one competitive edge: It is owned by Tripadvisor, which provides insights into travelers’ experiences. Guests who book on FlipKey get more than just a rental — they get actionable user tips to make planning easier. Pros Cons User reviews from Tripadvisor Smaller selection of listings International presence Only rents whole properties 4. Booking.com Best rental site for hotel loyalists Booking.com began as a site to find deals exclusively on hotel stays. Seeing the rise in demand for short-term vacation rentals, Booking.com threw its hat into the ring and now has more than 28 million properties listed. By specializing in hotel rooms and vacation rentals, the site allows travelers to 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 a search feature to find only vacation rentals. Pros Cons International presence Fees can vary Includes hotel options Focus on larger properties only 5. Agoda Best rental site for travel throughout Asia Agoda is owned by Booking Holdings, the parent company of Booking.com and other brands (Priceline and Kayak, for example). It's the largest online travel agency in Asia, benefiting from its parent company's credibility and 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 focus on the short term, Agoda also has options for long stays exceeding seven days. Pros Cons Strong presence in Asia Limited customer service Frequent booking discounts May only offer basic amenities 6. Plum Guide Best rental site for quality assurance While many vacation rental sites focus on giving users the most options, Plum Guide takes the opposite approach by putting quality above quantity. Plum Guide uses extremely selective criteria in its approval process, with its team individually judging every property. Only around 3% of rentals pass. In addition to this attention to detail, its team is available around the clock to assist guests, so you won’t be stuck waiting for a resolution if an issue arises. Pros Cons Higher quality standards Lower inventory Price matching Higher prices 7. HomeToGo Best rental site for centralizing searches If you’re tired of jumping around to multiple rental platforms, 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 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 Reliant on third-party rental sites Extensive search filters Less user-friendly interface 8. Casamundo Best rental site for privacy-conscious travelers Casamundo specializes in providing vacation rentals across the United States and Europe. It lists over 700,000 properties, including traditional apartments and unique accommodations like windmills and treehouses. Casamundo has positioned itself as an online travel agency by recruiting prominent vacation home providers and centralizing their listings to benefit Casamundo users. Their transparent privacy policy regarding all customer data makes it one of the best vacation rental sites. Casamundo is open about how it collects, saves and makes use of user data. Users can opt to book over the phone and speak to a Casamundo representative. Pros Cons Best price guarantee Fewer reviews available Transparent privacy policy Not easy to navigate 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 a vacation rental website as well. The platform operates in over 200 countries and promises a full refund if the rental property is falsely advertised or if the guest can’t access it. In addition to its robust listings, Tripadvisor allows vacationers to book some accommodations directly with the owner. There’s a payment protection guarantee for added peace of mind. Pros Cons Large database of user reviews Potential for booking conflicts Payment protection Fewer unique listings 10. HolidayLettings Best rental site for unique lodging Holiday Lettings is another website offering only privately owned vacation rentals, 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 is owned by Tripadvisor, so it benefits from the platform’s extensive customer reviews and travel guidance. Holiday Lettings has a slightly larger inventory of listings than FlipKey, with 700,000 rentals worldwide. Pros Cons User reviews from Tripadvisor Limited availability outside Europe Focus on self-catering Potential language barriers 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 about booking 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 Fewer amenities filters Instant confirmation often Limited non-urban options 12. Homestay.com Best rental site for house swaps Homestay.com makes the list of the best vacation rental sites thanks to its unique approach to offering vacation experiences. Users can rent private accommodations but 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 around the property. Homestay.com has over 63,000 rooms in over 176 countries. Pros Cons Cultural immersion options Shared living spaces Private room options Potential privacy concerns 13. Atraveo Best rental site for trusted customer reviews Operating primarily in Europe, atraveo has listings for more than 300,000 vacation home and apartment rentals.. Along with verified customer reviews, atraveo offers secure booking, where the renter pays atraveo and then settles with the host. This added security eliminates the scam listings found on less reputable sites. Pros Cons Eco-friendly listings Primarily listings in Europe Verified customer reviews May lack mainstream amenities 14. Onefinestay Best rental site for luxury stays Focused on luxury vacation rentals, onefinestay has 5,000 listings in 50 global destinations. The company stays true to its luxury goals by professionally managing every property so visitors can avoid unreliable hosts. Accor, a hospitality company that owns Fairmont and Raffles, manages onefinestay. 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 Designer apartments Very limited inventory High-end experiences 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 Limited international listings Professional management Only in urban areas 16. 9flats Best rental site for affordable European travel 9flats.com has listings in over 6 million locations collected from other travel sites, although its primary focus is Europe. Like Airbnb, it also allows vacationers to rent a private room in a home. The properties are all privately managed, leading to more affordable rates. While 9flats.com isn’t on the same tier as some luxury brands, it does offer some great perks. Guests can enlist the help of their hosts for tips on local entertainment, with some even willing to act as unofficial tour guides. The company carefully evaluates all hosts for added guest safety. Pros Cons Student-friendly options Mostly only Europe Assistance from hosts Potential language barriers 17. Love Home Swap Best rental site for family-friendly vacations As the name implies, Love Home Swap allows homeowners 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 must pay a membership fee. Before the house swap, both owners can agree to certain terms — like cleaning and pet sitting — to ensure each person’s space is respected. Pros Cons Free house exchange Membership fees Unique locations Limited flexibility on dates 18. Getaway Best rental site for travelers seeking rest and relaxation Getaway House targets travelers who prioritize rest and relaxation over sightseeing. It provides tiny cabins in the Eastern and Central regions of the United States, although there are some locations on the West Coast. The cabins include a mini kitchen, plus an outdoor fire pit and grill grate. The service intentionally spurns technology, providing no Wi-Fi to guests. A landline in every cabin compensates for spotty cell reception in case of emergencies. Pros Cons Safe glamping experience Regional presence Driveable from major cities Minimal luxuries 19. Interhome Best rental site for in-person service Interhome, founded in 1965, successfully leverages its decades of experience to remain one of the best vacation rental websites around. The company offers 24/7 customer service to the guests who stay in its approximately 40,000 holiday homes and apartments. Interhome and its partners maintain a local presence, executing key handovers and resolving issues on-site. The team even performs a quality check of every property before the guests’ arrival. Pros Cons Popular in ski destinations Limited inventory In-person service Less variety year-round 20. Homes and Villas by Marriott Bonvoy Best rental site for hotel-tier experiences Homes & 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 that its rental homes and villas are held to the company’s high standards. Rooms come with premium linens, Wi-Fi and bathroom amenities that are standard in hotel rooms. By renting through Homes & Villas, guests receive increased privacy and living space. Pros Cons High-quality standards Limited inventory Rewards program Potentially higher service fees 21. Paris Perfect Best rental site for trips to Paris Paris Perfect caters to travelers who who crave a luxurious and authentic Parisian experience. It offers a curated selection of chic apartments throughout the city. These aren't your average rentals — they are beautifully decorated and include a modern twist on classic Parisian style. They also come equipped with top-of-the-line amenities that rival a luxury hotel. Plus, with prime locations throughout Paris, you'll be perfectly situated to explore all that the City of Light has to offer. Pros Cons Chic Parisian decor Only caters to Paris vacationers Local insider tips Not budget-friendly 22. Expedia Best rental site for pre-vetted listings Expedia is the perfect vacation rental site for travelers who crave a getaway with a touch of home. Whether you're seeking a romantic cabin in the mountains or a spacious condo for a family reunion, Expedia offers a vast selection. You can filter your search by location, price, amenities and even property type — making it easy to find vacation rentals that tick all your boxes. Plus, with the site’s commitment to finding the best deals, you can relax knowing you secured a comfortable and affordable home-away-from-home. Pros Cons Extensive selection Potential for hidden fees Integrates with other travel options Fewer unique rentals 23. Welcome Beyond Best rental site for eco-conscious travelers Welcome Beyond offers a unique selection of vacation rentals that cater to families, nature lovers and those who want to go off the beaten path. Welcome Beyond chooses each property for its remarkable architecture and captivating design. The site caters to the adventurous traveler who seeks a place to stay that reflects the destination's character. Welcome Beyond properties go beyond the standard apartment or house, often featuring treehouses, glamping sites and historic properties accompanied by spectacular views. Pros Cons Unique properties Limited availability Personalized experiences Hotel-like amenities may be unavailable Another option: Owning a vacation home The vacation rental sites on this list each have their strengths, but they’re all limited to single trips. If you love a vacation destination, you have an alternative for a lifetime of luxurious stays. 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 potential 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 deciding. Tired of vacation rentals? Try Pacaso If you're seeking an alternative to traditional vacation rentals, Pacaso might be the answer. Our fractional ownership model allows you to co-own a luxury vacation home, enjoying the perks of ownership without the full financial burden and maintenance hassles. With listings starting at $200,000 in prime vacation destinations, Pacaso lets you pick the right amount of ownership, from ⅛ to ½, of a fully managed vacation home.
Florida has a lot to offer vacationers: year-round sunshine, gorgeous beaches, fun-filled attractions and more. According to Visit Florida, over 140 million visitors spent some time in the Sunshine State in 2023, making it the most popular state in the country for travelers. Sun-worshiping vacationers flock to Florida during every month of the year, but if you’re hoping to ensure a great travel experience — and avoid crowds, hurricanes and high prices — here are a few things to consider. What to expect each season in Florida Winter December, January and February are great months to visit Florida. While much of the country is battling cold weather and winter storms, the Sunshine State boasts temperatures in the 60s and low 70s in the northern region, and 70s and low 80s in South Florida. Rainy days are rare this time of year, making it a great time to explore. You’ll enjoy fewer crowds than other times of the year, but keep in mind that Florida has roughly one million seasonal residents (aptly named “snowbirds” who flock to Florida during the colder months) so you’re not likely to have the beach all to yourself. Spring Weather-wise, March, April and May are some of the best months in Florida. Sunny days abound and rain levels are minimal. Unsurprisingly, it’s also a busy time of year for tourists, so be prepared for higher-than-average hotel costs and plenty of people in and around popular tourist attractions. If you plan to visit beach towns like Panama Beach and Daytona Beach but don’t want to relive your college years, avoid March and April. These towns, and a few others on the Florida Panhandle, turn into spring break hotspots for young revelers from around the country. Summer Some like it hot, and if that’s you, visit Florida in June, July and August. Temperatures are regularly in the 80s and 90s, with high humidity and frequent afternoon storms. Temperatures can be even hotter inland, where you won’t have ocean breezes to cool you off. Speaking of storms, it’s important to note that the Atlantic hurricane season traditionally begins in June, so be sure to pay attention to the weather forecast before and during your trip. Despite the soaring temperatures and hurricane risk, summer is still a popular time for visitors, especially families. Fall Autumn brings slightly lower temperatures and smaller crowds, making it a great time to visit. Across the state, you’ll find fall festivals, from the Epcot International Food & Wine Festival in Orlando to the raucous Fantasy Fest in Key West. Hotel rates start to drop after Labor Day, making the fall a more affordable time to visit. It’s important to remember that the Atlantic hurricane season runs through the end of October, with the most activity occurring between August and October. If you’re traveling to Florida during any part of hurricane season, it’s smart to buy travel insurance. The best time to visit Florida theme parks The Orlando area, the epicenter of American theme parks, is home to Walt Disney World Resort, Universal Orlando Resort and LEGOLAND Florida, among others. You’ll also find no fewer than seven water parks to cool off on hot days. Any Disney aficionado will tell you there is no crowd-free day at Disney World or other area parks. However, you will find Florida theme parks to be less crowded right after the holiday season (January and February) and in September, once schools are back in session. Regardless of the season, your best bet is always a weekday trip. The best time to visit Miami Miami is an action-packed South Florida destination every month of the year, but the best time to visit depends on your preferences. Winter offers the mildest weather, without the sky-high temperatures or sticky humidity. Yet you’ll have to contend with crowds and high hotel prices. In summer, the temperature is hot but the deals are next level. Miami Spice Restaurant Month, Hotel Month and Spa Month all happen over the summer, making it a more affordable way to plan a luxury vacation. The best time to visit the Florida Keys A 125-mile-long archipelago off the coast of South Florida, the Florida Keys are a unique destination. With island vibes and incredible natural beauty, the Keys are a bucket-list destination for many. But when should you visit? The Keys have distinct rainy and dry seasons. The rainy season runs from May to October, during which time the islands get the majority of their yearly rainfall — not to mention hurricane risk. The dry season is the most popular time to visit, as you’ll enjoy average temperatures in the 70s with very little rain. As with much of the state, prices and crowds are lower in the summer, but the weather can be unpredictable. Find your year-round Florida getaway with Pacaso If Florida is your favorite vacation destination, perhaps it’s time to make it official! As a second home owner in the Sunshine State, you’ll enjoy a place to call home, without the unpredictability of hotel costs. Pacaso has luxury vacation homes available now for co-ownership, whether you want to live in chic Miami Beach, idyllic Marco Island or stately Alys Beach. Have a property in mind? Reach out to Pacaso and we’ll help you turn a listing you love into a luxury co-ownership property in your favorite Florida location.
Getting the best prices on your vacation can be tricky, and there’s nothing worse than booking non-refundable travel only to discover that the price has since gone down. While this can be unfortunately common when booking air travel, it can also happen on Airbnb, since many listings use dynamic pricing. Read on to get all your questions answered about when to book your Airbnb for the best prices. Is there a best time to book? Finding the best price on an Airbnb is an art and a science. Many factors go into pricing (more on that below), but according to recent NerdWallet research, the sweet spot seems to be about four weeks in advance of your travel date. Using data from 10 cities, NerdWallet found that, when compared to booking far in advance (almost a year ahead of travel) and last minute (three days before travel), median prices were 10-15% less four weeks out. Here’s one exception: If you’re planning a longer-term rental, it’s better to book as early as possible for the best availability. What factors affect Airbnb prices? According to the same NerdWallet research, 84% of properties listed on Airbnb use dynamic pricing, where an algorithm automatically changes per-night pricing based on a variety of factors. Many things affect the price of a specific Airbnb property, including: Seasonality: Visiting the beach in the summer or a ski area in the winter will undoubtedly cost you more than visiting in the destination’s off season. Days of the week: You’ll typically pay more for a weekend stay than a weeknight stay, depending on the destination. Overall demand: Like anything else, prices go up when availability is limited. If you’re looking for a vacation rental over a holiday weekend, during a concert or sporting event or in a location where rental options are limited, expect to pay more. Location: Even within a single city, you’ll find that prices vary dramatically based on neighborhood amenities, the popularity of the neighborhood and proximity to area attractions. Property features: Bigger properties with more bedrooms and better amenities can and will charge more. Reviews: An Airbnb rental with many five-star reviews can charge a premium. Properties with not-so-great reviews — or those that have not been on the market long enough to garner many reviews — often charge a little less. Do Airbnb prices get cheaper closer to my trip? It is possible to score last-minute deals on Airbnb listings, as both dynamically priced and statically priced homes may drop prices a few days ahead of time to prevent a property from sitting empty. However, this tactic is best employed by flexible travelers. When you book last minute, you may find yourself with limited options and end up in a home or part of town that isn’t your first choice. If you’re okay with that, you might be able to save quite a bit. What do I need to know about cancellation policies? How early you’re comfortable booking often comes down to the cancellation policy, and on Airbnb, property owners have their choice of multiple options. As a traveler, be sure to review the cancellation policy for the property before booking to make sure it works for your travel plans. While there are many cancellation policy types at Airbnb, here are a few of the most common you’ll encounter. Be sure to read the full policy before booking, as there are some rules regarding partial payments: Flexible: You can cancel up to 24 hours before check-in for a full refund. Moderate: You can cancel until 5 days before check-in for a full refund. Firm: You must cancel at least 30 days before check-in for a full refund Strict: You must cancel within 48 hours of booking, and at least 14 days before check-in for a full refund Tips for getting the best price Ready to seek out the best possible price for the Airbnb you’re eyeing? Here are a few tips for getting the best price: Consider staying at off-peak times, like low season or weeknights. Use an online tool to track Airbnb pricing changes. AirDNA and PriceofTravel are popular options. Attempt to negotiate with the host. This often works best for last-minute bookings. Book longer stays. Many listings offer significant discounts for stays of a week or more. Look for static-priced properties to find good deals during peak periods. Choose a new listing. If a property doesn’t have many reviews yet, it’s probably new to the platform. The property owner may accept a lower price in hopes of you leaving a good review. Keep an eye on fees. The fee structure at Airbnb is complicated and based on multiple factors, but fees can make a big difference in your overall cost. Skip the stress of short-term rentals with a place of your own Airbnb prices are always changing, which can make it hard to feel like you’ve gotten a good deal. If you want to avoid the headaches of booking short-term rentals and prefer a vacation home over a hotel, consider Pacaso. As the co-owner of a luxury second home, you’ll have a place to call home in your favorite destination, without the booking hassles. Scheduling stays among co-owners is easy and equitable, and Pacaso takes care of all the details, so you can just arrive and enjoy. Interested in a Pacaso but aren’t ready for full ownership? Give us a try with our PacasoNow program. You can enjoy a second home for 12 months with one low upfront payment — often for less than the cost of a luxury vacation rental. After a year, either make a down payment and transition to long-term ownership or return the home to us, with no penalty for the price paid.
There’s nothing better than a vacation. But the planning part? That can be stressful. Between airline tickets, hotel accommodations, rental cars and more, there’s a lot to coordinate. And it can be hard to know if you’re getting a good deal. Many travel companies use dynamic pricing, where pricing for a specific flight, room category or rental car type changes automatically based on demand. This demand can fluctuate due to several factors, including seasonality, day of the week, large events nearby and how far in advance you book. For most travelers, getting a great deal is important, and a lot of it comes down to timing. Here’s what you need to know about when to book specific types of travel for the best chance of getting a great deal. The best time to book a flight Airfare is often the most expensive part of a vacation budget. And timing your ticket purchase correctly is complicated. Book too early and you may pay too much. Wait too long and you may have limited options for flight times, connections and seats. According to Expedia’s 2024 Air Travel Hacks Report, the sweet spot for booking is 28 days before a domestic flight. The report notes that travelers can save up to 24% compared to booking last minute. If you’re planning an international trip, the report recommends booking about 60 days out, but not more than four months before your trip. You may want to book a bit farther out if you need a very specific flight time or are traveling to a destination with few options for flights and routes. Interestingly, the report found that domestic economy tickets are about 5% cheaper when you book (not fly!) on a Sunday. Traveler tip: If your schedule is flexible, try to fly on less popular days of the week. For example, you can often save by traveling on Thursdays or Saturdays, avoiding Fridays and Sundays. The best time to book hotels Like airfare, hotel rates are always fluctuating due to demand. Yet unlike airfare, there are often last-minute deals to be had. According to a NerdWallet report, hotels are cheaper when you book 15 days before your arrival compared to booking four months before. The report also found that the biggest last-minute savings can be found in luxury hotels. Traveler tip: Most hotels have flexible cancellation policies. Unless you pre-pay, you can often cancel up to 48 hours before your arrival date. This means you can book a room early and watch to see if prices drop. Then, simply cancel and re-book. The best time to book vacation rentals Unlike hotels, many vacation rentals have strict cancellation policies, so you should expect to be locked into a rate once you book. On sites like Airbnb, it’s recommended to book about four weeks in advance. However, it is possible to find great last-minute deals, either because a property had a cancellation, they’re new to the rental platform or demand for those dates has been lower than expected. Traveler tip: Most rental platforms and vacation management companies offer discounts for stays of a week or longer. The discounts can be significant — 15-30%. The best time to book vacation packages Vacation packages are a popular choice for deal-seeking travelers. Usually including some combination of flight, hotel and car rental, they can be cheaper than booking each portion of the trip independently. Because the components of a vacation package vary, there are no guidelines about how far in advance to book. However, you can sometimes find great last-minute package deals on unsold inventory. Traveler tip: Online travel sites and travel email newsletters are great places to find vacation packages, last-minute or not. Expedia, Priceline, Travelzoo and Costco Travel are all good options. The best time to book cruises Planning to take a cruise this year or next? It’s important to note that cruise prices can vary significantly. The best advice is to plan far enough in advance to wait for a sale. Overall, the best time to book a cruise is between January and March. Known in the industry as “wave season,” this is the time of year when you’ll find the very best discounts and promotions, as cruise lines are looking to load up their ships for the coming year. If you miss the wave season window, though, you can still find great deals. Keep an eye out for promotions that help your budget go further. Popular promotions include free stateroom upgrades, complimentary or discounted airfare, discounted beverage packages or free kids’ fares. Traveler tip: Cruise lines often incentivize travelers to book early — the earlier you book, the sooner they get your deposit. Cruise lines will sometimes offer deep discounts when you book a cruise more than a year in advance. The best time to book car rentals When it comes to rental cars, booking in advance doesn’t always pay off. A 2022 NerdWallet analysis showed that customers who book just a weeklong rental week in advance pay an average of $75 less than customers who book three months in advance. If you are planning to rent a car in a destination with plenty of rental car availability — near an international airport with a large rental car center — you’re probably safe to wait until you’re very close to your trip. However, if you’re traveling to a high-demand destination at a popular time or if you need a very specific vehicle type, it may be prudent to plan ahead. Traveler tip: Like hotels, many car rental reservations can be canceled up until a few days without penalty (specific policies vary by company). That means you can always book in advance and then price compare as your travel dates approach. A headache-free way to book travel Pacaso owners benefit from a stress-free, no-hassle way to book stays at their vacation home. With our SmartStay™ system, each co-owner has equitable access to their home throughout the year, with multiple opportunities to book holiday and peak season stays. It’s flexible, too. You can book as far as two years in advance or as few as two days before a last-minute vacation. And unlike an Airbnb or timeshare, Pacaso offers real estate ownership of your home. As a co-owner, you enjoy all the benefits of ownership, including a place to call home, familiarity and the ability to resell.
Ah, retirement. Forget about taking an annual trip that maximizes your time off work. Retirement opens up a world of opportunities, including time for carefully planned or more spontaneous travel. And you won’t be alone: According to a survey by AARP, among the U.S. population ages 50 and older who planned to travel during 2023, the average number of trips they planned to take was 3.7. And 85% of those surveyed ranked travel in their top three priorities for discretionary spending. Many travel lovers go into their retirement years with a wish list of destinations, but it can be a bit overwhelming with so many options. Check out our list of top retirement trip options, including domestic and international destinations, as well as a few special ideas. Domestic retirement trips According to the AARP survey, 61% of travelers focus solely on domestic travel. There are so many places to visit, yet travel tends to be more accessible and easier to plan. 1. San Diego California’s southernmost major city, San Diego is so much more than just year-round sunshine and moderate temperatures. “America’s Finest City” offers something for everyone: gorgeous beaches, a delicious local food scene, a rich history dating back to the 1500s and a myriad of cultural activities. 2. Napa Valley Toast your retirement in California Wine Country. Bucolic Napa Valley boasts more than 400 wineries, 90 tasting rooms and 14 Michelin-starred restaurants. Multiple charming towns dot the fertile valley, each with its own look and feel. Above and beyond the food and wine scene, Napa Valley is known for its spa and wellness activities, art galleries and outdoor recreation. 3. Miami For an action-packed vacation, head to vibrant Miami. A true melting pot of cultures, this South Florida metropolis offers incredible experiences, day and night. Spend sun-drenched days lounging on picturesque beaches or exploring nearby wildlife areas and evenings indulging in outdoor dining, art, theater and more. 4. Florida Keys The ideal destination for travelers who feel like they’ve “been there, done that,” the Florida Keys are blissfully unique. Connected by a 125-mile-long highway with 42 bridges, each major island in the Keys offers something different. Explore colorful Key West, which is the southernmost point in the United States. Take the plunge for some world-class snorkeling in the Middle Keys. Try your luck at sport fishing off Islamorada. 5. Chicago You could visit Chicago every year and never finish exploring. A vibrant city located on the banks of sprawling Lake Michigan, the Windy City is known for its colorful history, incredible architecture, and, yes, deep-dish pizza. Museums are an absolute must here, with the Art Institute of Chicago and the Field Museum of Natural History leading the charge. 6. Palm Springs Channel your inner Rat Pack member or silver screen queen in Palm Springs. Located in the undeniably gorgeous Coachella Valley just two hours from Los Angeles, Palm Springs is a popular vacation spot for retirees and anyone fleeing winter weather. In town, enjoy great restaurants, quirky shops and Mid-Century Modern architecture. Venture out a bit and you’ll find endless golf courses, Joshua Tree National Park and some great outlet shopping. 7. Jackson Hole If you spent most of your working years in bustling cities or sprawling suburbs, you may enjoy a little more space to roam. Wyoming’s Jackson Hole is simply bursting with natural beauty, no matter the time of year. It’s the perfect gateway to both Yellowstone National Park and Grand Teton National Park. Return in the winter months for world-class winter sports — or simply curl up with a good book. 8. Aspen A Colorado town of 7,200 nestled in the White River National Forest, Aspen offers four seasons of fun. In winter there’s world-class skiing and snowboarding, while spring delivers ample opportunities for outdoor recreation. In the warm summer months, the renowned Aspen Ideas Festival is a must-attend. Visit in autumn for incredible fall colors, especially on the Maroon Bells, the two most-photographed peaks in the state. 9. Scottsdale A charming Arizona town on the outskirts of Phoenix, Scottsdale boasts 330 days of sunshine a year. Make the most of it by golfing the 50+ golf courses in the region, attending the Scottsdale Arts Festival or road-tripping to the Grand Canyon, just a few hours away. 10. New York City There’s no place in the world quite like New York. Lose yourself in the Metropolitan Museum of Art, take in a Broadway show, stroll through Central Park or across the Brooklyn Bridge or sample flavorful cuisine from all over the world. International retirement trips Planning on spending your golden years around the globe? Here are five great countries to explore. 11. Italy In the AARP survey, Italy topped the list of European destinations — and it’s easy to see why. Book a trip of at least two weeks (maybe more!) so you have time to marvel at ancient ruins, immerse yourself in Renaissance artwork, indulge in pasta and wine, and explore pristine landscapes. 12. France Say “oui” to the sparkling lights of the Eiffel Tower and all that Paris, the City of Lights, has to offer. France is a country of beautiful landscapes, quaint hamlets, chic beach resorts and rugged mountain towns. 13. Mexico Mexico’s most alluring destinations are less than a day’s travel from major U.S. cities, making Mexico a popular vacation destination. Each spot offers unique experiences, from the rugged beauty of the Baja coastline near Cabo San Lucas to the charming town squares of Guadalajara and the incredible Mayan ruins outside of Mexico City. 14. Australia No matter which part of the United States you depart from, it takes a long time to get to Australia. This makes it the perfect trip for travelers with flexible schedules. Spend a couple of weeks Down Under, exploring iconic sites like the Sydney Opera House and Uluru, then get out of town — experiencing the unique flora and fauna of the Great Barrier Reef, Kangaroo Island and Tasmania. 15. Japan Futuristic cities meet centuries-old traditions in Japan. A bucket list destination for travelers interested in art, history and culture, Japan doesn’t disappoint. Invite your favorite travel buddies and embark on a journey through Japan’s fascinating cities, bucolic landscapes and most iconic sites. Don’t miss a stay at an invigorating onsen (hot spring). Outside-the-box retirement travel Every traveler has different goals, so don’t be afraid to chart your own course during your retirement. Here are some less common ways to see the world during your retirement years. Embark on a cross-country road trip Tune up the car, queue your favorite playlist, pack some snacks and hit the road on a good old-fashioned road trip. Whether you’re the type to plan your entire itinerary stop by stop or just see where the road takes you, a road trip is a great way to see the country. Consider a national park trip, a summer journey through the Rocky Mountains, a fall leaf-peeping journey or a historic exploration through New England. Take an around-the-world cruise If your goal is to see as much of the world as possible, consider an around-the-world cruise. Ranging in length from a few months to a whole year, these cruises tempt savvy travelers with an incredible collection of ports of call, without having to deal with all the logistics of air travel, customs and immigration, and hotel accommodations. Some retirees even cruise continually, linking together cruise after cruise, instead of living in a traditional home. Buy your dream second home If you’ve already fallen in love with a destination and are ready to put down some roots, consider purchasing a vacation home. You’ll avoid the spendy hotel nights and have a true sense of belonging in your favorite vacation spot. Pacaso makes second home ownership easy. We offer homes in top destinations across the United States and beyond, and our unique co-ownership model makes buying a second home accessible for more people. Co-owning a fully managed, turnkey Pacaso means you’ll have time in your second home but also plenty of time to travel to new places. It’s the best of both worlds.
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.
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.
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.
International real estate has its benefits, but the complexities can be intimidating and risky. From navigating legal regulations and language barriers to working with local vendors and securing financing, buying a home abroad requires careful consideration and expert guidance. If you’re an U.S. citizen looking to buy a second home in another country, Pacaso can help streamline the process. Learn more about what you need to consider when buying property abroad — and how Pacaso takes care of everything for you. Reasons to search international real estate Just like owning a second home in the United States can pro vide benefits like equity appreciation and having your personal retreat, so does owning an international second home. Below are some benefits for Americans buying property abroad. 1. Travel and exploration Buying property overseas instantly provides you with a place to call home in a new destination, whether that's a flat in London or a beach escape in Mexico. Overall, property ownership lets you explore a new culture and way of life. Rather than coordinating expensive hotel stays every time you want to travel abroad, buying a house in another country means you have your own place to stay. 2. Cost savings compared to the U.S. market The U.S. housing market can be extremely competitive and expensive, so buying a house abroad may save you money. Many countries have lower property prices, allowing you to stretch your budget. This can make it possible to own a luxury home in a foreign location for roughly the same price as a starter home in the United States. 3. Lower cost of living Aside from lower property costs, things like groceries, dining out, utilities and transportation can also be lower than in the United States. This means that owning a property abroad could allow you to enjoy a more comfortable lifestyle for less than you’d pay back home. 4. Fast-track to residency Some countries offer residency programs specifically for foreign property buyers. If you own property that meets certain criteria, you may have an easier time gaining residency, allowing you to spend extended time in your home abroad. This can be a great option for those considering retiring abroad or wanting to make their second home a primary residence. Tips for buying property abroad U.S. buyers of a home abroad need to consider both tax regulations and financing. Foreign buyers often face obstacles in securing a loan because they can be perceived as high-risk by local banks and international home loan lenders. Pacaso’s LLC ownership model is structured to minimize tax burdens and ensure compliance with local regulations. While we recommend you consult your tax professional for more personalized advice, our team can work with them and provide general guidance on tax implications. The tips below can also help you get started. 1. Consult your financial advisor Before buying international real estate, consult a financial advisor specializing in foreign real estate. They can help you take a holistic approach, considering your financial goals, and the risks and rewards of owning a home abroad. An advisor can also guide you on currency exchange rates, tax implications and estate planning considerations. Bonus Tip: Use our down payment calculator to estimate how much home you can afford and how much cash you’ll need to save. 2. Research the country’s real estate process Every country has its own real estate process, from property search and negotiation to closing and ownership transfer. Always research the specific process in your chosen country to know what to expect. Things to look into include local customs, legal requirements and tax implications. Also, find out about any specific documentation or permits that may be required. Bonus Tip: Check out Pacaso's free webinars that break down international property ownership. 3. Find local representation Learning how to invest in international real estate can be challenging without the help of a local real estate agent who understands the lay of the land. Consider hiring an agent in your country of choice who understands the market and can help you navigate your purchasing journey. A local agent can also help negotiate, handle paperwork and comply with local regulations. Bonus Tip: If necessary, use a professional translator to ensure accurate communication and avoid misunderstandings. 4. Review residency requirements If you plan to spend extended time in your vacation home, you’ll want to understand the country’s visitor and residency requirements. Some countries may have specific visa programs for foreign property owners, while others may restrict your stay without obtaining a visa. Research the residency options available or ask your local agent to help you find the option that best suits your needs. Bonus Tip: Familiarize yourself with cultural nuances and negotiation styles that may differ from your home country. 5. Discover other options to finance an overseas property While Pacaso offers financing options for our properties, you can finance an overseas property in other ways. Consider exploring options like cash purchases or private lenders that may provide financing for foreign purchasers. Research your options and lean on your local agent and financial advisor to determine the best option for your financial situation. Bonus Tip: Connect with a property broker like Pacaso to simplify the home-buying process — from curating the best listings in top second home markets to offering integrated financing — and more. Things to consider with foreign real estate Consider the following factors when learning how to buy a house in another country. Laws and eligibility It’s crucial to understand the local laws and regulations governing international real estate. Research the specific requirements and restrictions for foreign buyers before making any decisions. Your local agent or financial advisor can also guide you on property taxes and any other potential restrictions to be aware of. Language barriers Unless you’re fluent in the local language, think about how you will communicate in your country of choice — especially with agents and local authorities during the purchasing process. You may decide to hire a translator to assist with things like negotiations and paperwork unless you find a local agent who speaks your language. Difference in currency Investing in foreign real estate involves dealing with different currencies. Fluctuations in exchange rates can impact the value of your home and potentially increase or decrease your return. Stay informed about currency trends as you navigate your purchase. Culture Understanding the country's culture where you plan to buy a second home is essential. Research things like the country’s political stability, social customs and overall feel for various regions or neighborhoods. Be aware of cultural faux pas or scams targeting foreign buyers. Confidently buy a vacation property abroad with Pacaso Owning abroad doesn't have to be challenging — especially with a a vacation home. Pacaso simplifies this process by offering co-ownership in luxury homes across international destinations like London, Paris and Mexico. We leverage our local expertise to help you bypass burdensome legal and tax intricacies, and we offer tailored financing solutions and remote home management to help own with confidence. This full-service experience is all streamlined so you can fully enjoy your home, whether you’re there or miles away. Ready to find your dream vacation home? Contact our team to explore our curated listings nationwide and in select global markets.
The holidays are a time for family and reflection, and Pacaso is making it easier than ever to invest in those moments. Pacaso will cover the first three months of operating expenses for select homes purchased by Dec. 31st, 2024. Life doesn’t wait, and neither should you. There’s something magical about the holiday season — the way it brings people together, creates space for traditions, and gives us the chance to slow down and appreciate what matters most. A chance to look ahead and think about the next year just a little better. Life doesn’t wait. This season, make the choice to invest in time and in the experiences that truly matter. The perfect time to start living your best life is now. What does that look like for you? Cuddling up by the fire in Vail, surfing in La Jolla, or taking in the sound of ocean waves with friends and family on Kiawah Island? Wherever your dream escape lies, Pacaso makes it easy to turn that vision into reality. To make memory making even more seamless, we’re offering three months of complimentary operating expenses on select homes for new co-owners who close before the end of the year. Experience true hassle-free vacation home living, where every detail — maintenance, management, and care — is expertly handled, so you can focus on what matters most 5 ideas for where new traditions can begin Marea This one-of-a-kind retreat features breathtaking views, newly remodeled amenities and privacy in one of Cabo’s most exclusive communities. Fallridge Immersed in the beauty of Colorado’s Rocky Mountains, this Vail Townhome boasts lush surroundings and updated amenities. Timberline Nestled in the heart of Park City’s Old Town, this cozy, modern home is perfect for après ski relaxation with its central location and thoughtful design. Palmetto Cove Step into this newly remodeled oceanfront villa on Kiawah Island, South Carolina’s coastal treasure, for the ideal seaside escape. Westbourne Resort-style living meets the comforts of home in this San Diego treasure, complete with panoramic ocean views and elegant indoor-outdoor spaces. *This offer cannot be combined with any other discounts or promotions.
Recent interest rate cuts by the Federal Reserve have spurred enthusiasm in the real estate market because even small changes can have a significant impact on real estate purchasing power. The Fed cut rates .5% in September and .25% in November, lowering its benchmark borrowing rate by three quarters of a point in 2024. While the Federal Reserve does not directly set mortgage rates, the changes in its benchmark rate does influence real estate borrowing. With this lower benchmark target, first and second home buyers should have more purchasing power and the ability to capitalize on real estate purchases. For Pacaso clients, who purchase shares of a luxury vacation home through our co-ownership model, lower borrowing rates translate directly to more affordability, better financing options and a generally enhanced ownership experience. Greater affordability for luxury living In general, a lower Federal Reserve benchmark rate means lower borrowing costs for real estate buyers. Pacaso’s model already excels at supercharging buying power, making high-end properties accessible by splitting the purchase price and ongoing costs among multiple co-owners. The recent cuts amplify this affordability. For example, rather than buy 100% of a $10 million Aspen home that you might only use 1-2 months a year, Pacaso enables you to purchase ⅛ to ½ of that same home, for a fraction of the price. You get the same enjoyment of the home, without the large price tag, and Pacaso tackles all of the headaches associated with owning the home. Additionally, buyers can finance their purchase. Lower borrowing rates lead to smaller monthly payments. And with direct financing, Pacaso is already offering great financing options. With lower rates, your potential savings extend over the life of the loan, translating to more luxury living for a smaller price tag. Enhanced financing options Pacaso gives buyers the ability to finance their purchase directly. Qualified buyers can put 30% down to purchase a Pacaso home in Napa, Vail, Miami or many other vacation destinations. Pacaso also offers financing directly in order to make the purchase, and your ownership, as seamless as possible. You may be able to find a loan with your bank to purchase a second home, but the rates you find through Pacaso will likely be even more competitive and affordable than a traditional loan. This is in large part due to our lending partnerships, and our growing experience in financing hundreds of vacation home purchases. Plus, Pacaso closings can happen in as little as one day so you can start enjoying vacation home ownership right away. Reduced monthly costs One of the biggest advantages of decreased interest rates is the reduction in monthly payments. This can make owning a share of a luxury property more cost-effective than ever before. Lower monthly expenses allow buyers to allocate more resources to other important priorities while still enjoying the benefits of ownership. For example, let’s take a $500,000, 7-year loan. At 10%, the total interest for this simple loan would amount to about $197,000. At 9%, even just 1 percentage point lower, the same borrower would save about $22,000, a roughly 11% savings, over the course of the loan. This shows how even small changes in borrowing rates significantly impact the overall price of a loan. A smart move for savvy buyers Timing of these cuts presents an opportunity for those looking to enrich their lives. In a recent report, Pacaso found increases of 20% or more growth year-over-year in co-ownership. Savvy real estate buyers are finding more ways to maximize their dollar. The value of spending time with family and friends in combination with dollar maximizing strategies position Pacaso to serve you and your goals. From reduced monthly costs to enhanced financing, your buying power is truly amplified, and the benefits are clear. Pacaso’s co-ownership model not only simplifies your route to luxury living, it lets you maximize your financial opportunities.
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.
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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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.
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.
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.
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 embrace this new chapter and 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 and have the kids come to you. 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 hobbies, 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 stage of life might just be the ideal time to buy a second home. Without the packed schedule of school events, sports practices and sleepovers, there's more time for you to get out of town. Pacaso puts second home ownership within reach — our unique co-ownership model allows you to buy your dream vacation home in your favorite destination 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. Our collection of homes features impeccable amenities and access to endless activities, allowing you to make your second home the go-to destination for your family.
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.
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 simpler and more streamlined. 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 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 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. 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 Owner selldown 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. 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.
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.
Fractional real estate vs. a timeshare Fractional vacation home ownership grants you partial ownership of a property's title, while timeshare ownership only allows you to own blocks of time to use a property. When it comes to owning a vacation property, you might be considering fractional ownership vs. timeshare options. Both vacation home ownership models grant you regular access to your dream destination throughout the year. However, fractional ownership means you co-own the home, while timeshares allow you to own a period of time to spend at the vacation property. We’ll discuss the pros and cons of fractional ownership vs. timeshares, and present factional vacation options — including owning your own second home with Pacaso. Fractional ownership Timeshare Number of owners At least two owners Up to 52 owners Scheduling availability Five weeks or more One to two weeks Equity benefits Property may appreciate in value Owners do not have equity Management Owners can regulate it Owners have no role in management Maintenance Owners are responsible for maintenance and taxes Owners pay maintenance fees and annual taxes Building Single-family and multifamily units Typically multifamily units Resale value Real estate tends to appreciate Timeshares tend to depreciate What is a timeshare? Timeshares 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. In most cases, buying a timeshare means paying for one week-long access to a condo, apartment or resort room. The average upfront cost for a timeshare unit is around $22,000, plus yearly maintenance fees, which often increase over time. The value of timeshares has long been debated — while upfront costs are relatively low compared to owning a second home, depreciation is high and resale opportunities are uncertain. Pros Cons Less expensive than a home purchase Increasing annual maintenance fees Condo-style accommodations Value depreciates over time Easy booking Resale process is difficult What is fractional home ownership? Fractional home ownership is a shared real estate purchase strategy where multiple parties collectively own a property, distributing the costs among them. Typically found in condo and resort settings, this approach differs from traditional timeshares. While timeshares might restrict property access to just a few weeks annually, fractional ownership often grants owners access for over multiple weeks a year, contingent on the number of joint owners. Because these units have fewer owners than timeshares, fractional owners often have more of a say in decisions regarding property maintenance and upkeep. Many fractional properties also offer on-site storage for owners. Pros Cons Deeded ownership More expensive than timeshares Fewer owners Higher annual fees Value appreciation Timeshare vs. fractional ownership: 7 differences Unlike short-term rentals, both timeshares and fractional ownership properties allow you to own part of your vacation experience. Although they share this similarity, these ownership models differ in seven key ways. Number of owners The number of owners is an important factor to consider, since fractional owners may have to communicate and share decision-making responsibilities. Here is what to expect with both vacation ownership models: Fractional ownership: Most fractional ownership properties limit ownership to 6-14 parties per unit. Timeshare: A single unit could have up to 52 owners. Scheduling availability As a co-owner, you’ll need to be cognizant of when the shared home is available to book. The number of days or weeks the home will be available largely depends on how many owners there are. Here is what potential scheduling availability could look like for both options: Fractional ownership: Fractional ownership can allow access to the home for five weeks or more per year. Scheduling availability ultimately depends on the number of owners per unit. Timeshare: A traditional timeshare limits access to the property to one to two weeks per year. Equity benefits A vacation home can potentially serve as an investment that benefits owners with equity and value appreciation. Here are the equity opportunities for fractional ownership and timeshares: Fractional ownership: As a co-owner of real estate, you can benefit from equity and value appreciation over time. Timeshare: Since you only own a block of time at the vacation property, you cannot reap the benefits of equity. Management Vacation home owners can choose to share property management, hire a property management company, or have no say at all. Here is how property management opportunities break down for both: Fractional ownership: Co-owners can make joint decisions about how their shared vacation property is managed, like hiring a property manager. Timeshare: The timeshare developer, hotel or resort makes all property management decisions. Maintenance Similar to management, vacation home maintenance is a crucial part of owning a vacation property. This is how maintenance works for both options: Fractional ownership: All owners must share the cost of maintaining their vacation property. Some co-owners decide to outsource this responsibility. Timeshare: Timeshare owners must pay annual maintenance fees that are subject to increase every year. The fee covers all maintenance costs. Building One of the biggest differences between fractional ownership of a vacation home and timeshares is the type of structure you’ll be staying in. Here is what to expect: Fractional ownership: Both single-family and multifamily homes are available for co-owners to choose from in urban, suburban and rural areas. Timeshare: Timeshares are generally multifamily units within a hotel or resort complex. Resale value The resale process can look different for both ownership models. Here is what to expect when you’re ready to sell your vacation property: Fractional ownership: Co-owners can sell their vacation home like a regular piece of real estate and generally expect to benefit from value appreciation. Timeshare: Timeshares typically depreciate over time and will likely be sold at a reduced cost. Other popular vacation options Timeshares and fractional ownership models aren’t the only ways to enjoy a vacation property. Let’s take a look at other popular vacation options like private residence clubs and destination clubs. Private residence club Private residence clubs are similar to fractional properties in that both offer ownership interest in shares of a vacation property. Private residence clubs typically: Are operated by luxury hospitality chains Have amenities usually found in high-end hotels Sell condominiums or villas Share access to the club’s golf courses or ski resorts Provide professional room cleaning and turndown service Provide 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 between $5,000 and $20,000 on average. Pros Cons Access to luxury amenities Very expensive Deeded ownership Resale challenges Gained equity High annual fees Destination club A destination club grants members proprietary access to its services, which means high-end vacation homes on a non-equity basis in various locations around the world. With destination clubs: Paying membership fees give a wide variety of luxury homes to rent Membership tiers offer varying levels of reservation priority You can stay in luxury single-family homes You can access amenities like beach clubs, private chefs and high-end spas Members eschew a traditional mortgage payment in favor of membership tiers that offer personalized services and amenities. Inventory is based on availability and can sell out quickly during peak times in popular areas. Pros Cons Single-family homes in varied locales Pricey membership fees Pay-as-you-go model Limited inventory Luxury amenities No gained equity The Pacaso difference Pacaso’s professionally managed LLC co-ownership model offers a better, smarter, more modern way to own a second home. It's like having a few families come together to purchase a home and share the costs, but Pacaso takes care of all the details so that you can enjoy your home without the risk and hassle associated with a 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 fully furnished, professionally managed home where you don't have to deal with the typical hassles of second home ownership A smaller owner group; instead of up to 52 owners with timeshares, a Pacaso has a maximum of eight Exclusive use of the home by vetted owners and their guests through an equitable scheduling system, with no third-party rentals allowed Lower operating costs on items such as property management and repairs A streamlined and standardized resale approach — just like a whole home When it comes to fractional ownership vs. timeshare vacation home options, there are pros and cons to both models. Owning a timeshare comes at a lower price, but you only own the block of time that you’re able to vacation there and will not benefit from equity. Private residence clubs and destination clubs are also worthy contenders for people who aren’t interested in a mortgage. But if owning a portion of a real estate asset is what you’re looking for, then fractional ownership may be for you. With a Pacaso second home, you’ll enjoy vacationing at a fully managed luxury home in your favorite destination. And with just a few co-owners, you’ll be able to enjoy your turn-key vacation property multiple times a year at a fraction of the cost.
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.
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. Mansion Construction Costs: The cost of constructing a mansion includes factors such as lot size, home dimensions, finish quality and regional labor rates. On average, building a luxury residence ranges from $200 to $500 per square foot. Notably, labor constitutes about 40% of the overall expenditure, while materials, permits and design fees account for the remaining 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.
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.
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? Understanding what "Letter of Explanation" means: A letter of explanation is a concise document crafted to provide clarity on specific aspects of one's financial or employment history. Letters of explanation are particularly useful in situations where an underwriter might have concerns during the loan or mortgage application process. It serves to address issues such as past bankruptcies or gaps in employment, ensuring a transparent and comprehensive understanding of the applicant's financial standing. 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.
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 new possibilities. All you need are ideas for empty nester adventures — both where you live and in a destination where you may consider owning a second home. 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. Spring: Cherry blossom viewing 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. Summer: Firefly viewing 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. Fall: Apple picking 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. Winter: Ice skating 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. Spring: Tulip festival 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. Summer: Visit the Great Lakes 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. Fall: Visit a cider mill 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. Winter: Ice fishing 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 water sports 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. Spring: Go whale watching 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. Summer: Go surfing 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. Fall: Sample wines 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. Winter: Visit a national park 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. Spring: Try horseback riding 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. Summer: Go river tubing 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. Fall: Camping 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. Winter: Soak in a hot spring 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. Spring: Boating 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. Summer: Visit a botanical garden 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. Fall: Take a haunted house tour 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. Winter: Head to the beach 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. Plus, Pacaso’s streamlined buying process makes it possible to buy your new luxury home sight unseen.
Now that you own a vacation home, it’s time to learn how to properly care for your asset. Our vacation home maintenance checklist includes the weekly, monthly, quarterly and annual tasks that will keep your home in pristine condition. Maintaining a second home means staying ahead of major shifts in temperature, weather patterns and potential repairs. We’ll also share helpful tips to consider while using our vacation house checklist. If second home care isn’t something you have the bandwidth to tackle on your own, consider becoming a co-owner of a fully managed vacation home. Every Pacaso second home has a dedicated property manager so you can focus on enjoying your home, not maintaining it. The ultimate vacation home checklist for routine maintenance With the help of our vacation home maintenance checklist, you’ll be able to stay on top of indoor and outdoor tasks and responsibilities. To use the checklist: Download it below and open the file Use it digitally or print it out 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. Keep these tips in mind while learning how to maintain a vacation home: Be proactive: Staying on top of regular preventative maintenance can help extend the life of your home’s major systems and give you an early warning about potential issues, which is key to avoiding costly headaches down the road. Stay at your home often: 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 and potentially result in costly repairs. Install smart home tech: Consider adding smart home gadgets like security cameras with Wi-Fi that let you keep an eye on your property. Install thermostats that you can control with your phone to run your HVAC system occasionally. While maintaining a house, you’ll need to perform regular interior and exterior maintenance. Let’s take a look at the indoor and outdoor maintenance tasks you need to complete in each time frame. Weekly vacation home maintenance Performing these maintenance tasks every week can help keep your vacation home in great shape. If you’re unable to tend your vacation home weekly, consider hiring a property manager to assist you with the following tasks: Indoor Inspect light switches and replace any burnt-out light bulbs. Double-check keys/access and ensure that your backup key is where you left it and that all access points are working properly. Confirm that toilets flush properly and tanks refill as expected. Test your home’s faucets to assess water pressure and temperature. Look for leaks and examine the areas under kitchen and bathroom sinks for leaks. Assess the showers’ water pressure and temperature. Ensure all tubs and sinks are draining properly. Evaluate appliance performance of minor appliances like coffee machines and major appliances like the washing machine. Check the garbage disposal for cleanliness and functionality. Examine the property, particularly the kitchen, for signs of pests. Test your technology and Wi-Fi, including your entertainment system, remotes, streaming services and speakers and the reliability of the Wi-Fi connection throughout the entire property. Examine wires and cables for any signs of damage. Verify that the pilot light is lit for gas fireplaces or boilers. Outdoor Closely examine your yard for signs of pest infestations or invasive weeds. Examine trees on the property, especially those near a pool or power lines, for any loose branches. Test the functionality of outdoor tech, like motion detectors, exterior cameras and outdoor lighting systems. Verify that all outdoor locks work correctly and gates latch securely. Clean and maintain the pool, including checking and adjusting the pH and chlorine levels as needed. Monthly second home care Some maintenance responsibilities don’t require your weekly attention. Complete these tasks every month to keep your vacation home running smoothly: Indoor Dust all surfaces, especially those near windows or doors. Inspect water filters and replace them if necessary. Check for indications of dampness that could create mold or water damage. Evaluate the condition of grout and caulk in the shower and bathtub. Examine the showerheads for any mildew or mineral buildup. Check the batteries of smoke alarms and carbon monoxide detectors. Check the air conditioning and heating systems to verify proper operation. Ensure thermostats are functioning correctly and set to an appropriate temperature. Inspect the security systems and cameras. Examine door hinges and handles throughout the property for any issues. Assess the condition of furniture to ensure its structural integrity. Inspect bedding, linens and pillows for any signs of damage or wear. Verify that curtains and blinds open and close smoothly without issues. Inspect window and door screens for holes or damage. Ensure all exit routes are clear of obstructions. Check the fire extinguisher’s expiration date. Examine the fireplace to ensure it is functional, the flue is clean and all accompanying accessories (gloves, tongs, etc.) are in good condition. Outdoor Maintain the lawn by mowing and trimming foliage as needed. Look for holes in the ground that may be potential safety hazards. Ensure the barbecue grill is clean and in good working condition. Examine carports and fencing for damage. Test the security of safety railings and gates to ensure they are secure. Run the irrigation system and check for any leaks. Clean the pool and/or hot tub filter to maintain water quality and circulation. Seasonal home maintenance checklist Using a quarterly or seasonal home maintenance checklist is the best way to ensure your home is weather-ready. Here are your maintenance responsibilities to tend to as the seasons change: Indoor Replace the air filters in the HVAC system. Ensure the dryer vents are clear and clean. Conduct tests on all power outlets to ensure they are in working order. Review the replacement dates of all safety devices. Examine the kitchen hood vent filter and clean the hood vent as needed. Verify the furnace functions properly. Perform touch-up paint and seal maintenance for both interior and exterior surfaces. Outdoor Ensure the garage door operates smoothly and properly. Apply fertilizer to plants and lawns to promote healthy growth. Drain and flush the hot tub to maintain its cleanliness and functionality. Clean and inspect the cladding and exterior trim for any issues or damage. Check gutters and drains for weather-related issues, such as ice damage. Review the date of the last inspection and arrange for pumping if necessary if your property has a septic system. Yearly vacation home maintenance checklist At the beginning or end of every year, it’s important to assess any damage your vacation home may have endured. While you’re at it, complete the following maintenance tasks to prevent further wear and tear: Indoor Perform a water heater flush to remove sediment buildup. Bleed the radiators to ensure efficient heating. Examine the insulation around windows and doors for cracks. Clean and clear sinks and drains thoroughly to prevent blockage. Inspect the foundation for any signs of damage or deterioration. Deep clean and repair the grout in the kitchen and bathroom. Outdoor Prune trees during the winter season to encourage healthy growth. Plant new shrubs or flowers to enhance the property's curb appeal. Inspect the outdoor AC unit, especially before summer arrives. Restock emergency supplies if your home is in an area prone to natural disasters. Conduct a thorough inspection of the roof, foundation, brick pointing and other structural elements for any signs of damage. Check the condition of exterior caulking and reseal where needed to maintain a watertight seal. Does managing a second home seem overwhelming? Explore what co-ownership of a fully managed vacation home through Pacaso can offer you and your family. Each Pacaso is equipped with a dedicated property manager, allowing you to prioritize the enjoyment of buying a second home — without the hassle of constant maintenance.
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.)
What is fractional ownership? Fractional ownership refers to a collaborative investment strategy where multiple parties share the expenses of a high-value asset, such as a luxury yacht or an upscale vacation property. In this arrangement, each investor retains specific ownership rights and entitlements to the asset based on their contribution. For instance, if you invest in a fractional ownership of a holiday home, you're essentially purchasing the right to use that property for a predetermined number of days or weeks annually. This approach allows individuals to enjoy the benefits of owning premium assets without bearing the full financial burden alone. In this post, you’ll learn what fractional ownership is, explore its pros and cons, and get answers to some frequently asked questions. Understanding fractional ownership You’ll typically find fractional ownership for real estate like vacation homes. However, fractional ownership can also come into play for art, stocks and fashion items. When owners purchase real estate assets with fractional ownership, they are issued deeds representing their fraction of the property. Fractional owners also take on the benefits and losses of ownership: If a fractional ownership vacation home grows in value over the years, the value of their individual share will appreciate. Co-owners share usage rights, income and access to their shared property proportionate to the percentage of the asset they own, as well as the cost of maintaining and operating the home. Fractional ownership is a great way to buy and own a property or another asset without purchasing it alone. It means all owners of an asset have divided percentage shares of a specific item or property. While families sometimes share ownership, fractional property owners can be unrelated. Types of fractional ownership There are two main types of fractional ownership structures: An entity, like an LLC Tenancy in common (TIC) Fractional ownership through an entity Some properties split ownership by using a structural entity like an LLC (limited liability company) or LLP (limited liability partnership). This means that a separate legal entity defines the ownership. Tenancy in common Tenancy in common (TIC) means each tenant holds an individual deed for a fraction or percentage of a commercial or residential property. However, no one person or company is in charge. With a TIC, individuals can own different percentages of the property but share it equally. Some TIC agreements are self-managed. Fractional ownership vs. timeshares Fractional ownership differs from timeshares because you own a portion of the property with fractional ownership. For most timeshares, you only own time to use the property — this is called interval ownership. Timeshares may be shared by as many as 52 owners (one person or group for every week of the year) while fractionally owned properties can have as few as two owners. Fractional ownership advantages There are several advantages to owning a property through fractional ownership. Expanded opportunity to own Fractional investments allow you to own a portion of one or more properties — usually a resort condo or vacation home — in prime locales that might otherwise be beyond your budget. With multiple owners sharing the costs, you can enjoy all the amenities of a high-end, resort-like property without breaking the bank. Deeded ownership Unlike a 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, fractional ownership means you own actual property, giving you the right to use the fractional ownership 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 three 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 Using the fractional ownership model, you're also responsible for only a fraction of the upkeep and maintenance of the property. This includes the cost of taxes, HOA fees, repair bills, landscaping, utilities, property management companies and other expenses associated with shared home ownership. Lower upkeep and maintenance burden Most fractional ownership agreements include provisions for long-term property management, with owners deciding how to handle any issues. Maintenance of shared ownership properties typically falls to a third-party management company. If the property you share is recognized as a tenancy in common, the owners might take a more casual approach and assign property management tasks to individuals in the group. When you have fractional vacation home ownership through an entity, it will include preventative and routine maintenance, cleaning and property management in its ownership costs. Potential rental income A fractionally owned property can be rented out as a long- or short-term rental if the ownership agreement (and location regulations) allows it. Depending on the terms of the agreement, all owners may earn a share in the proceeds of rental income. Fractional ownership cons Though fractional ownership has its advantages, there are a few drawbacks to consider as well. Fewer financing options Fewer banks provide mortgages for those looking to buy properties fractionally. You may need to shop around or consider other ways to finance your fractional ownership property, like special second home down payment options. Less flexibility and freedom All decisions about maintenance, repairs and decor must go through all ownership partners, which can be a hassle. If you want to sell a fractional property, the other fractional owners must approve the sale, depending on your agreement. Some 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, investing in fractional ownership also means investing in the location you’re going to revisit. Of course, you can still vacation elsewhere, but it's something to factor into your travel plans and budget. An alternative to fractional ownership Where fractional ownership falls short, Pacaso steps up. Pacaso's professionally managed LLC co-ownership model gives you all the perks and lower co-ownership costs with key differences that set it apart from fractional ownership resort clubs. Unlike fractional ownership resorts, Pacaso offers LLC co-ownership of luxurious vacation homes in choice destinations. Buyers decide how much home they want to own, from one-eighth to one-half of a property. Pacaso handles all maintenance and management, offers easy and equitable scheduling on the Pacaso app, and features a streamlined resale process in our co-ownership marketplace.
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? Simply put, 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 to use its rental income and property value for an eventual 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 important to keep in mind when exploring this path of 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 obligated 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 these 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 deductions 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, it might be best to register your property as a vacation home 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, of course, vary 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.
Not finding the right short-term rental for your next vacation on Airbnb? Don’t worry — the best Airbnb alternative is only a click away. Whether you’re looking for a perfect place to take the family, a romantic weekend getaway, or a second home, there’s an alternative to Airbnb that’s right for you. Check out our list of alternatives to Airbnb before you book your next vacation: 1. Pacaso Best for: Those who love returning to the same destination 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 or hotels, you will instead own a home you and your family can return to throughout the year and enjoy a luxury experience each time. Pacaso is also a great alternative to a timeshare; it 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, bill paying and maintenance while owners simply show up and enjoy their home. Co-ownership helps buyers afford luxury amenities in turnkey second homes that are never rented out. Since owners have equity in the house, they also have the option to sell their home in the future. Pros Cons Turnkey luxury properties in more than 40 world-class destinations Owners have a fixed travel destination 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 2. VRBO Best for: Those who want an experience much like Airbnb Like Airbnb, Vrbo is one of the first sites to give property owners a marketplace to connect with travelers — the name comes from "vacation rental by owner." Despite being early to the table, Vrbo’s 2 million rentals lag behind Airbnb’s impressive 7 million listings. The two platforms are very similar regarding the kind of vacation rental properties they offer, and many property owners list on both sites. If you plan to use Airbnb, it’s worth checking Vrbo — you might get the same place for a lower price. Note that Vrbo offers only whole properties, not shared homes. Pros Cons Comprehensive search tools Inconsistent property owners Great for a group Complicated cancellation policies 3. Booking.com Best for: Those who want an abundance of options Booking.com has been around since 1996 and was originally known for scheduling air travel and hotel accommodations. It now offers short-term housing and apartment rentals. It is becoming a formidable Airbnb competitor in the vacation rental market, with offices in more than 70 countries and over 28 million listings, including hotel rooms. Booking.com charges a higher booking fee — 15% compared to Airbnb’s 3% — and renters will often pay these fees in the form of higher prices. Pros Cons Operates in 43 languages and 226 countries Higher costs on average than Airbnb Many professionally managed properties Inconsistent property owners 24/7 customer experience team to answer questions and advocate for guests 4. Hipcamp Best for: Those who are outdoors enthusiasts Hipcamp is like Airbnb for campers, offering a range of campsites that accommodate tents and RVs. It even has camping-adjacent accommodations like treehouses and cabins for those who prefer glamping. Since guests may travel to remote locations, Hipcamp has established standards to ensure safety and privacy. For example, hosts must limit campground occupancy 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 Cons Affordable Limited listings Wide range of camping options 5. Marriott Homes and Villas Best for: Those who enjoy a hotel-like experience Managing expectations is one of the most challenging factors when staying at independent vacation homes. Hotel chains can deliver on cookie-cutter expectations but often lack the personal touch. Marriott entered the vacation rental market by offering units backed by their trusted brand. Travelers can find beach bungalows, townhouses, penthouses and more. 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 a Marriott Bonvoy account. Pros Cons Rewards program Limited catalog Consistent amenities 6. Hopper Homes Best for: Those who are okay with booking last minute Hopper began as a travel booking service but recently launched a vacation rental program. And it’s off to a strong start, with over 2 million listings worldwide. Hopper Homes uses professional property managers to ensure high-quality rentals. The streamlined app-only interface is convenient to use, with fewer distractions than many other platforms. Travelers can book their stay instantly rather than waiting for approval and receive flexible cancellation policies. Hopper has its own rewards program in the works, Carrot Cash, to help customers save even more money while traveling. Pros Cons Rewards program Limited catalog Last-minute deals 7. Plum Guide Best for: Those looking to splurge on a rental Plum Guide hosts luxury travel accommodations vetted by experts. The site is a great Airbnb alternative for travel in North America 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. Expect to pay more than the average vacation rental, 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 Cons Curated list of high-end rentals High prices Guarantee the rental will be as advertised 8. Agoda Best for: Those traveling to Asia Agoda is the go-to Airbnb competitor for the Asian market, although it operates on other continents, too. It has 9 million listings that include hotels, homes and hostels. Like other Airbnb competitors, Agoda only offers whole-unit rentals but also emphasizes 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 a flight aggregator to compare hundreds of sites at once. Pros Cons Frequent booking discounts Inconsistent property owners Large inventory 9. Homestayin Best for: Those who want to stay with a local host 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 Cons Ideal for solo travelers Lack of privacy Affordable accommodations Immersive experience 10. Sonder Best for: Those who enjoy multi-unit city living 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 deal with private owners or shared spaces. Compared to Airbnb, Sonder also aims to keep their service accessible and affordable. They operate in just 10 countries with approximately 7,300 available listings, so selection is currently limited. 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 Cons Hotel-level quality standards Limited listings 24/7 concierge service 11. Blueground Best for: Those who value a well-designed rental 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 hand-picks its properties and takes care of the interior design. With that in mind, you can be certain Blueground’s over 12,000 rentals in 30 cities will maintain a defined level of quality. Since these are long-term rentals, apartments have smart home entertainment, kitchenware, toiletries and a workspace. Pros Cons Flexible long-term stays Not ideal for short getaways Fully furnished 12. Onefinestay Best for: Those who want a fully vetted stay Onefinestay, like Plum Guide, focuses on listing quality over quantity. It tests accommodations by having a team member stay at each potential property. All of the listings are whole units, so you won’t share the property with other travelers or the owner. The accommodations include houses, chalets and luxury villas, giving you the personal touch missing from hotels while delivering professional property management. Pros Cons Luxury amenities Expensive compared to other Airbnb competitors Carefully vetted listings 13. 9flats Best for: Those searching for an aggregator 9flats is a German-based company with over 6 million listings. It’s a European competitor to Airbnb, with rentals ranging 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 your style. It offers features like instant booking and advertises the maximum occupancy of every listing on the results page for quick scanning. Pros Cons Instant booking No unique listings Scannable search results 14. FlipKey Best for: Those searching for specific amenities FlipKey is part of Tripadvisor and benefits from its large catalog of user reviews. FlipKey improves upon Tripadvisor’s service by having more functional search tools to find specific amenities. Travelers can search for gardens, fireplaces and even nearby walking trips. While solo travelers can use FlipKey, it is ideal for groups. Finding a place big enough for a group can be challenging on other sites. FlipKey is facing the problem head-on. Pros Cons Easily search for amenities Inconsistent property owners Tripadvisor user reviews 15. Glamping Hub Best for: Those who crave a unique stay Glamping Hub is another Airbnb competitor that specializes in connecting travelers with the great outdoors to promote more sustainable tourism. It has over 35,000 accommodations, including 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 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 Cons Unique properties Inconsistent property owners Safe booking system 16. ThirdHome Best for: Those who enjoy travel clubs 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 for stays at other members’ homes. To qualify, your second home must be worth at least $500,000, in a desirable location and well-maintained. This niche marketplace has 14,000 options, 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 Cons Luxury amenities Must own a luxury second home Exclusive membership More affordable than comparable listings on other Airbnb alternatives 17. Outdoorsy Best for: Those going on a road trip Outdoorsy is an RV rental marketplace for those seeking unique outdoor accommodation experiences. Users can rent or list campervans, motorhomes and travel trailers. Users can find and rent one of their RV listings in 14 countries across the globe and join their network of over 1 million customers since the company began in 2015. They also offer comprehensive insurance coverage options and 24/7 roadside assistance plans, ensuring a secure rental process and peace of mind. Pros Cons Unique outdoor experiences Only RVs are available Comprehensive insurance coverage 18. Wimdu Best for: Those who plan to use public transportation Wimdu is one of the many websites like Airbnb with listings currently available in 20 countries. Most of their units are located within large cities, and the site has options ranging from hotel rooms to entire apartments and even houseboats. Users can choose from an array of filter options to search by distance to the city center (which is great for public transportation users), average ratings, amenities and price. They also have several pet-friendly listings and cater to families as well as solo travelers and couples. Pros Cons Wide selection for all budgets Little to no listings outside of cities Abundant search and filter options Only available in 20 countries 19. Tripadvisor Vacation Rentals Best for: Those who value reviews Tripadvisor claims to be the world’s largest travel community and has vacation rental listings in over 200 countries. From island villas to big-city condos, Tripadvisor offers a wide range of accommodation options. Tripadvisor taps into its deep reservoir of user-generated travel recommendations and reviews, so users get local recommendations on where to eat, the best excursions and more. Pros Cons Users have access to one of the largest travel review resources available User interface may be overwhelming Transparent reviews 20. Expedia Vacation Rentals Best for: Those looking for a one-stop travel shop Expedia Vacation Rentals is an online platform, similar to Tripadvisor, that provides listings from all over the world. Its comprehensive search filters enable travelers to find accommodations that suit their specific preferences, ranging from cozy cottages to luxurious beachfront condos. Reviews are also abundant here, helping travelers make an informed decision about what to do outside of the accommodation as well, allowing users to seamlessly combine their accommodation bookings with other travel essentials such as flights and car rentals. Pros Cons Extensive inventory Overly complicated search filters Competitive pricing 21. Vacasa Best for: Those who want to tour before booking 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 Cons AI-powered scheduling and prices Limited options outside of the U.S. Virtual tours 22. HomeToGo Best for: Those who want to compare multiple sites at once Like Airbnb alternative 9flats, HomeToGo is 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 place rather than having to set search filters like budget and amenities on multiple sites to find answers. Once you find a rental that you like, you finish booking through the provider’s website. Pros Cons Comprehensive search tools Travelers deal with the pros and cons of the final service they book through Works for all travel budgets 23. Kid & Coe Best for: Traveling families Since 2013, Kid & Coe has exclusively catered to families searching for short-term vacation rental properties. The platform not only offers rental and hotel listings, but it also has home exchange opportunities as well — appealing to a wide spectrum of budget options for traveling families. Regardless of the accommodation type, each hand-picked listing has a supply of books, toys and child travel essentials awaiting every family in 50 destinations around the world. Visitors can also request cribs and high chairs, ensuring a turnkey experience for every guest. Pros Cons Turnkey rentals ready for families Not be ideal for solo travelers Homes exchange options available When searching for a great vacation property, Airbnb isn’t your only option. And if you’re dreaming of a long-term vacation home, consider becoming a co-owner of a second home. A luxurious Pacaso vacation is professionally decorated and managed, so you can focus on relaxing at your home away from home.
Do you dream of owning multiple homes that double as vacation properties or short-term rentals? If so, join us in learning how to buy a second home without selling the first. We’ll break down the five steps to buying a new home without selling the one you currently live in. We’ll explore all of your property use options, share potential tax implications and provide tips for effective property management. 1. Assess your financial situation This first step to buying a home when you already own one is to assess the current state of your finances. Begin by reviewing your relevant financial status: Income: Examine your current and projected income to determine if you can comfortably support the additional financial responsibilities of owning a second home. Expenses: Conduct a comprehensive analysis of your existing expenses and potential additional costs of a second home, ensuring you clearly understand your overall financial commitments. Debt: Evaluate your existing debt obligations, considering credit card balances, car loans and any outstanding loans. This will help determine if taking on a second mortgage will strain your ability to repay your debt. Credit score: Check your credit score and history to assess your creditworthiness. A higher credit score may secure better mortgage terms and interest rates. It’s also important to determine your budget for another home. To do so, consider the additional costs of buying a second home: Mortgage: Carefully consider your mortgage options. Compare interest rates and terms to find mortgage terms that align with your financial goals and ensure sustainable payments over the life of the loan. Property taxes: Check local tax rates and regulations to accurately estimate the ongoing financial commitment. Maintenance: Assess the potential maintenance costs of the second home, including routine repairs and unforeseen issues. Confirm that you have the financial capacity to keep the property in good condition. Insurance: Obtain comprehensive insurance coverage for your second home, factoring in property value, location-specific risks and liability protection to safeguard your investment. Now that you know the costs of buying a house without selling yours first, let’s explore ways to get funding for your new home. 2. Source funding for another down payment When researching how to buy a second home, you'll come across several ways to source down payments. Here are a few resources if you want to begin buying a house without selling yours first. HELOC Using a home equity line of credit (HELOC) for a second home purchase allows you to leverage the equity built up in your primary residence to secure financing. This is a potentially great option if you want to learn how to buy another house while already owning a house. Pros Cons HELOCs often come with lower interest rates compared to other options. They are subject to variable interest rates, so payments can fluctuate. You can access funds as needed and only pay interest on the amount you use. Using a HELOC puts your primary residence at some risk, as it's used as collateral. Retirement accounts Did you know that you can potentially make penalty-free withdrawals from your retirement accounts to secure down payment funding towards a home purchase? Here’s how tapping into your retirement accounts works: Traditional IRA: Initial home purchasers can withdraw up to $10,000 from their IRA without incurring a 10% penalty. However, taxes are applicable on the withdrawn sum. Roth IRA: The same penalty-free rules apply. However, withdrawals of contributions (money you've already paid taxes on) are more flexible. 401(k): A first-time homebuyer can make 401(k) withdrawals of up to $10,000 that are penalty-free. You can also take out a loan against your 401(k) to fund a down payment. This option is for first-time home buyers who are currently renting their primary residence and looking to purchase their secondary residence. Pros Cons First-time home buyers may qualify for penalty-free withdrawals up to $10,000. The more funds you withdraw, the less you have for retirement. This is a low-risk option if you have plenty of time before retirement. You'll face expensive fees if you do not qualify for penalty-free withdrawals. Cash Saving up cash to fund the down payment for your second home is an ideal financial strategy. Paying in cash is risk-averse, provides greater flexibility and reduces reliance on external financing. You can build a substantial down payment over time by consistently setting aside a portion of your income into a dedicated savings account. This may also help you to negotiate better mortgage terms. Pros Cons Offering cash for the down payment can strengthen your negotiating position. Using a large amount of cash for a down payment can reduce your liquidity. Sellers often prefer cash transactions as they are more straightforward. Family gifts You can apply a monetary gift from a family member towards the down payment of your second home. However, it's essential to navigate this arrangement with transparency and communicate the stipulations of accepting family gifts for a home purchase. For example, the gift giver must: Complete a gift letter: A gift letter is a formal document that outlines the giver's intention to provide a financial gift without expectation of repayment, serving as a crucial piece of documentation for the real estate transaction. Provide bank statements: When using a family gift payment, you’ll need to provide statements from the donor demonstrating the origin of the funds. Know it’s not a loan and can’t be repaid: The donor must know that repayment is unacceptable if the sum is given as a monetary gift. If you’re going to explore this funding option, make sure that the process is well-documented and that everyone has a good understanding of any expectations or conditions attached to the financial gift. Pros Cons You will not have to repay the gift like you would a traditional financing option. Gifts can sometimes lead to strained relationships or unspoken expectations. You will not pay interest on the gift. You’ll need to file additional paperwork with your lender. 3. Decide how both homes will operate The most important step is determining how your primary and secondary residences will operate. You have three main other options to choose from. Renting out your current home Are you hoping to find a new primary residence so you can rent out your current home? If so, you’ll need to keep the following factors in mind: Rental income potential: Research rental prices in your area for comparable homes and locations to understand if the potential income is enough to keep your finances secure as you purchase a second home. Condition of your current home: Assess the condition of your current home to avoid major problems as you transition into becoming a landlord. Local zoning laws: Double-check your community guidelines regarding short-term or long-term rentals. Renting out your current home while purchasing a second home can be tricky to navigate at first. However, it can potentially be a great way to earn income while switching to a new primary residence. Investing in a vacation rental You may want to continue living in your primary residence and find a second home that works well as a short-term vacation rental. If that’s the case, consider the following: Property location: The location of your vacation rental can drastically affect its appeal to potential renters. Search for rental properties that are near sought-after destinations and amenities. Seasonal demand: The rental income you can expect to generate from your rental can change with the seasons. Have a firm grasp of seasonal demand to accurately estimate a home’s rental income potential. Local competition: Scope out how many rentals you’d be competing with to gauge what your nightly rates should be and how you can differentiate yourself from your competitors. Local zoning laws: Double-check community guidelines regarding short-term rentals. Operating a short-term rental can turn into a business of its own, but it won’t happen overnight. Understand that this path has the potential to pay off, yet it’s still an investment venture that you should consider carefully. 4. Research tax implications For tax purposes, you’ll need to define each of your properties as one of the following property categories: Primary residence: This is the home where you live most of the time. It’s typically the place you consider your main home, where you are registered to vote and receive mail. Mixed-use property: This property can combine residential and commercial uses. This can potentially include a building with both living space and commercial storefronts. Investment property: The primary goal of this property is generating income or appreciation. This category includes properties like rental homes and short-term vacation rentals. After properly categorizing your residences, determine if your second home qualifies for the following second home tax deductions: Mortgage interest: You may be able to deduct mortgage interest payments on loans. This can apply to primary and second residences, offering potential tax savings for the mortgage used to finance the second property. Property taxes: Property taxes paid on a second home are typically deductible on your federal income tax return. HELOC deduction: If you use a HELOC to finance improvements or other qualified expenses for a second home, you likely can deduct the interest. Rental expenses: If you rent out your second home, you can deduct some rental expenses like property management fees, maintenance costs and utilities. However, it's crucial to distinguish between personal and rental use to accurately claim these deductions. It’s best to consult a financial advisor or tax professional. Once you’re comfortable with the tax implications of owning multiple properties, you can decide if property management will be necessary as you learn how to buy a house while living in another. 5. Organize property management (if necessary) For homeowners who are going to proceed with renting out a primary or secondary residence, you’ll need to: Decide who will manage your property: Evaluate whether you will self-manage your home or homes, or hire a professional property management service. Consider the costs in terms of both time and money. Ensure the property is well-maintained: Keep both your primary and secondary homes in good condition, addressing repairs promptly and conducting regular inspections. Stay aware of local rental laws: Inform yourself about both properties' local rental laws and regulations. Understanding tenant rights, eviction procedures and other legal aspects helps you manage the properties. Market your rental property: Learn how to market and advertise your property to effectively attract tenants and avoid as many vacancies as possible. Prepare for potential vacancies: When vacancies do occur, have a financial plan for maintaining your rental property without rental income flowing in. An effective property management game plan can help you begin buying a new primary residence without selling your current home. Fully-managed vacation homes If you want to enjoy your second home as a hassle-free vacation home, then consider opting for a fully-managed property. No need to worry about property management or rental income potential when you go this route. For prospective homeowners who know they’ll only be enjoying their vacation home a few times a year, co-owning your second home can help you save money and share the maintenance responsibilities that owning a vacation home can bring. Now that you know how to buy a second home without selling the first, you can pursue the best property strategies for your financial goals. If you’re still learning how to buy a house when you own a house, consider the benefits of becoming a co-owner of a fully managed second home. Pacaso makes it easy to schedule time to enjoy a turnkey vacation home at a fraction of the cost of solo home ownership.
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.
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.
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.
Is a vacation home a good investment? The answer is not always a simple yes or no. Whether owning a vacation home is a smart financial move depends on a lot of factors, including the location of the property, the home’s characteristics, market conditions, your financial situation and whether you plan on using the home as a vacation rental. When you’re considering whether you should buy a vacation home, here are a few financial considerations to keep in mind. Before you make any purchase, be sure to consult with your financial advisor, accountant and tax professional about your specific situation. Potential benefits 1. Equity gains Like any home you purchase, your property may appreciate over time, allowing you to either access your equity with a home equity line of credit (HELOC) or a home equity loan. Of course, you will also realize all your equity gains upon selling your vacation home. But there’s no guarantee that your property will appreciate. Market conditions and broader economic trends can dictate how much you pay for your second home when you buy it, and whether you’ll turn a profit upon selling. 2. Rental income potential The potential to earn extra income is one of the reasons many people find vacation homes appealing. Plenty of second home owners take the route of renting out their property when they’re not using it personally, as a way to offset ownership costs. Be sure to do your research before assuming rental income will completely offset your monthly mortgage payment, property taxes and maintenance costs. Many second home destinations are highly seasonal, so while you may have plenty of rental income during the peak tourism months or over the holidays, low periods throughout the year may cause cash flow issues. A best practice is to make sure you can afford the mortgage and associated costs without relying on rental income. That way, any money you do make is simply icing on the cake. Also, you'll want to research the destination you’re considering to check on local regulations that might prohibit or restrict short-term rentals. 3. Personal use and comfort Hotels and other types of accommodations are typically one of the most expensive parts of any vacation. If you enjoy visiting the same location every year (or multiple times each year), buying a vacation home in that location can make more financial sense than shelling out your hard-earned money to the same hotel over and over again. Plus, it’s nice to have a “home away from home” where you can truly enjoy your vacation time in a place where you’re comfortable and have everything you need. 4. Investment diversification Talk to any financial planner and they’ll tell you that diversifying your portfolio is a must. That means if you have too much of your nest egg in one asset type, you should move some money to a different type of investment to minimize risk. That’s one reason people choose to invest in a second home. It’s an investment vehicle you can enjoy while it has potential to increase in value over time. 5. Tax advantages Depending on how your vacation home is used, you can deduct your property taxes and mortgage interest on a second home, same as with your primary residence (though there’s a cap to how much you can deduct each year). If you choose to rent out your vacation home, you may be able to deduct expenses like repairs, maintenance, property improvements, cleaning and more. Be sure to talk through your options with a tax professional. Potential drawbacks 1. Costly down payments Potential second home owners who apply for financing are sometimes surprised at the higher down payment and credit qualification requirements for vacation home purchases. Because second home loans are considered to be riskier for banks to underwrite, down payments of at least 10% are almost always required. This is in stark contrast to buying a primary residence, where down payments as low as 3.5% (or 0% if you qualify for specific government-backed lending programs) are sometimes available. 2. Ongoing costs The more homes you own, the more you’ll pay in regular expenses, including mortgage payments, property taxes and homeowners insurance. You’ll also want to factor in regularly required maintenance that keeps your home in tip-top shape and helps you avoid unexpected repairs. One more thing: Many vacation homes are located in locations where a bit of extra TLC may be required, such as snow removal in winter or summer pool maintenance. 3. Property management costs If your second home is far from where you live, you may need local, on-the-ground support. It’s common for second home owners who rent out their home to use property management services, which can run between 25% and 35% of your nightly rental cost. But even if you don’t rent out your home, it can be helpful to have local resources available in case of maintenance issues. 4. Unexpected expenses Every homeowner has experienced the sting of an unexpected repair bill, and vacation home owners aren’t immune. Despite taking great care of your property and doing all the necessary preventive maintenance, sometimes problems arise. Unexpected expenses can quickly gobble up any vacation rental profits and vacation time, so it’s best to have an emergency fund established from the very beginning. 5. Seasonal fluctuations As we mentioned earlier, many vacation destinations see the bulk of travelers during a relatively short season — think winter ski resort season or summer boating season. If you’re counting on rental income to cover the ongoing costs of your ownership, you may run into cash flow issues during times of the year when you don’t have many renters. Similarly, you may not want to sacrifice a week’s worth or rental income to use the home yourself, which means you may be relegated to using your own home during less enjoyable parts of the year. 6. Regulatory and legal challenges If you plan on renting out your home, you’ll want to be aware of some logistical hurdles you may encounter. First, individual cities, towns and jurisdictions have different rules related to short-term vacation rentals. Some places forbid them entirely, as a way to preserve the local community for full-time residents, while others require you to jump through some hoops to rent your property legally. You’ll also want to make sure you’re legally protected, which includes things like paying for plenty of homeowners insurance (which can be more expensive on rental properties than primary homes) and having a lawyer review your rental agreements. Another path to second home ownership If you’re interested in owning a vacation home for personal enjoyment without the hassle of managing a rental, consider Pacaso. Available in destinations across the United States and abroad, Pacaso homes are co-owned by up to eight individuals and reserved for use by owners and their guests. Because you split the cost of ownership with others, it can be a more affordable option compared to buying a property on your own and relying on unpredictable rental income. Plus, Pacaso takes care of furnishing, maintaining and managing the home so that you don't have to stress about the details when you spend time at your home. What’s more, Pacaso owners enjoy real estate ownership, as you are purchasing a share of a property-specific LLC. When it comes time to sell, Pacaso shares have historically sold for an average 10% gain. Explore the destinations and homes where Pacaso co-ownership makes investing in a vacation home the smarter choice.
Ever caught yourself daydreaming about living in a million-dollar home, only to dismiss it as a far-fetched idea? Well, contrary to popular belief, owning a million-dollar abode isn't just for the super-rich. If owning a million-dollar home is one of your life goals, you’re not alone. With some clever planning, a sprinkle of financial savvy and a pinch of determination, you may turn that dream home into a reality. We’ll examine what it takes to afford a million-dollar home, including annual income, mortgage payments and other ownership costs. While learning how to afford a million-dollar home, you’ll also see the unexpected costs, tax implications and possible advantages of buying a million-dollar vacation home. What annual salary do you need to afford a million-dollar house? To comfortably afford a home valued at $1 million, financial experts recommend an annual salary between $269,000 and $366,000. This range, however, is subject to variation depending on your: Annual income Debt-to-income ratio (DTI) Credit score Available down payment Current interest rates It’s crucial to consider these factors to determine your financial ability to manage a mortgage on a $1 million home. Your income may ultimately decide if you rent or buy the home. Example: If you put down 20% ($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 7%). This would bring your monthly mortgage payment to about $5,300 before factoring in property taxes and homeowners insurance. Even if your after-tax earnings are $200,000 annually, that’s still a quarter of your income going just to principal and interest. If your credit is low 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’ll put down. That initial payment, 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: mortgage insurance, property taxes and possible HOA fees. Although mortgage insurance isn’t always necessary, your lender may require it if you supply a low down payment. 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 down $200,000, you would likely need to pay an additional $375 monthly for PMI. Property taxes are also an important factor to consider. Rates are set by local jurisdictions so check with your real estate agent. The average national property tax rate is about 1%, so an extra $10,000 per year, or $833 per month, for a million-dollar home. If your neighborhood has a homeowners association (HOA), you’ll be charged monthly HOA fees on top of your mortgage. HOAs have additional regulations and codes agreed upon by neighbors. You may also need to seek approval for certain projects or renovations. In addition to the expense above, consider the cost of Home and yard maintenance Homeowners insurance Possible property management It’s important to know what to expect so you can factor all expenses into your finance plan. Tax implications of a million-dollar home You might not anticipate how your new home will affect your income taxes. For example, you can lose potential tax savings if your mortgage interest exceeds the current deduction threshold. 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 $1 million 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 for landlords. However, this can be a complicated adjustment, and finding renters and managing a rental — or short-term rental property — can be a hassle. Financing strategies: How to buy a million-dollar house Financing a mortgage on a million-dollar home doesn’t have to be stressful. In fact, there are three financing strategies available for those who have the income for a million-dollar home. Paying interest on a large loan may seem intimidating, but with these financing tools, you’re one step closer to your million-dollar dream home. Large down payments Paying a larger down payment upfront can help you minimize the amount of interest you’ll pay on your principal. Although 20% is generally expected by lenders, providing more can help make your bid more competitive and potentially lower your mortgage payments. Jumbo mortgages If your home’s price exceeds the conventional loan limits set by your state — generally over one million dollars — you may require financing via a jumbo loan. These non-conforming loans may require a down payment of as little as 5% and are not subject to limits set by Fannie Mae or Freddie Mac. Check with your county and lender to see if you qualify for a jumbo mortgage. Home equity loans A home equity loan and a home equity line of credit (HELOC) may help current homeowners pay for a mortgage on a million-dollar house. These financing tools work by leveraging the equity of your primary residence as a means of financing when buying a second home. 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 you won’t use 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 co-own a luxury second home for as little as one-eighth of the home’s price, increasing your buying power and allowing you to own more house for less money. Pacaso takes care of the home’s maintenance, bill payments and management. Co-ownership Prospective second home owners are embracing Pacaso’s fully managed LLC co-ownership model. It offers the benefits of real estate ownership at a lower cost than whole home ownership and without property maintenance and management hassles. Thanks to our transparent pricing model, you won’t be surprised by added expenses. And with our banking partners, Pacaso offers buyers access to a competitive-rate mortgage for up to 70% of the home’s share 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 get 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 Pacaso can help you own the million-dollar home of your dreams. Learning how to afford a million-dollar home means keeping expected and unexpected expenses in mind, simplifying ownership responsibilities and finding the best financing strategies that work for your financial goals.
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.
Smart home products are everywhere. And one place they should definitely be? In your second home. Home automation is a must when you own a property that’s more than a short drive away from your primary residence. Connected devices can make time in your vacation property more enjoyable as well as be your eyes and ears when you’re back home. For safety and security Many vacation homes sit empty for long stretches, making them an attractive target for criminals. Here are a few must-have connected devices to protect you and your property. 1. Security system Keep your home safer with a Wi-Fi enabled home security system that alerts you to any unusual activity. With sensors on your doors and windows and motion detectors, an app notification will let you know if there’s any unusual activity at your vacant property. 2. Security cameras Wi-Fi enabled security cameras are another popular solution, allowing you to see what’s going on outside your home in real time. You can set up motion alerts to notify you when someone walks past the camera, or you can use the app to check in whenever you’d like. In addition to surveillance for security, these cameras are a nice way to monitor conditions at the home more generally. Pop into the app anytime and see how much snow is in the driveway or make sure the landscapers showed up. If you have working security cameras on a home that you’re renting out, you need to disclose it to your renters. Check with your state and local governments, as well as the vacation rental platform you use, for any restrictions. 3. Smart smoke and carbon monoxide detectors Fire and carbon monoxide are real threats, both when it’s occupied and when it’s empty. Unlike traditional models that simply emit a loud sound when smoke or carbon monoxide is detected, smart detectors will notify you immediately via a mobile app. Many give you the option of silencing the alarm with a tap of the app in case the cause was overzealous cooking, not a house fire. They will also notify you on the app when it’s time to change the batteries, so no more annoying chirping in the middle of the night! 4. Water alarms Damage caused by leaks in a home can be very costly to repair, and the longer the problem goes unnoticed, the higher the price tag. Smart water alarms can be placed in leak-prone locations around the house, like in the bathroom, under the dishwasher, near the washing machine and by the water heater. If they detect water, you’ll receive a notification on your phone. For enjoyment and comfort Smart home devices aren’t just for safety. They can also make everyday life a bit more enjoyable. Here are a few devices that can take some tasks off your plate. 5. Smart thermostats With a smart thermostat in your vacation home, you always come home to a space that’s warm and cozy in the winter and nice and cool in the summer. A smart thermostat not only lets you set a schedule from anywhere, but many of them will learn your habits over time and make adjustments that keep you comfortable — and boost energy efficiency. 6. Smart TVs Smart TVs make it easy to stream favorite shows, movies, music and sporting events without the need for additional devices. Best of all, if you rent out your home, your guests can easily log into their own streaming accounts. 7. Smart lighting Smart lighting gives every home an upscale feel, but their appeal is more than aesthetic. Smart lighting systems with LED bulbs are more energy efficient than traditional bulbs, and scheduling features ensure you never forget to turn the lights off. These same scheduling capabilities allow you to set up lighting timers to make it appear like people are home, discouraging break-ins. 8. Home assistants Smart home gadgets can add a lot of convenience to everyday life, but they can also be a lot to juggle. That’s where a smart home assistant comes in. Products enabled with voice technology like Google Home or Amazon Alexa can connect with all your smart home tech, allowing you to control everything with a series of simple voice commands. For rentals The smart home products listed above are good in any vacation home, but if you’re using your home for short-term rentals, there are a few additional items you may want to use. 9. Smart locks Smart door locks are a must for vacation rentals, as they facilitate self check-in for guests without the need for physical keys. You can set a separate entrance code for each reservation, which expires upon check-out. Your guests can use the same code to come and go during their stay, and you’ll never need to worry about lost keys or anyone getting locked out. 10. Noise monitors Large, unruly parties are a vacation rental owner’s worst nightmare. Wi-Fi noise monitors don’t record audio inside your property (to ensure compliance with privacy laws) but they do track audio levels, notifying you if noise exceed a pre-set decibel level. A smarter second home is waiting When you buy a Pacaso second home, the smart home bells and whistles come standard for your convenience and enjoyment. Every Pacaso home comes fully furnished and with everything you need to enjoy every visit. Standard smart home features include high-speed internet with mesh Wi-Fi, smart TVs and sound systems, and smart locks. What’s more, even Pacaso’s scheduling tool is an app, designed to make it easy and equitable for each co-owner to enjoy time in the home.
There are so many ways to vacation: the consistency of a hotel, the extra space in a vacation rental, the structure of a timeshare, or the comfort and convenience of owning your own second home. There’s another option, too: luxury vacation clubs. Here’s everything you need to know about this interesting travel program. What is a luxury vacation club? A vacation club is a membership-based program that gives participants access to thousands of hotels, rental vacation homes and travel experiences. Luxury vacation clubs take these offerings to the next level, with an exclusive, curated collection of high-end hotel and resort accommodations, luxury homes and private, bespoke travel experiences. In addition to accommodations and experiences, some travel clubs offer members concierge services and special perks with airlines, car rental companies and more. Many large hotel chains — Hilton, Marriott, Hyatt and Wyndham, for example — have travel clubs designed around their own collection of hotels and resorts. However, the most exclusive, high-end vacation clubs operate independently of a single hotel brand, offering their members a wide range of options. How do luxury vacation clubs work? While each luxury vacation club has its nuances, they typically operate with the same general model. Members usually pay a one-time initiation fee to join. Costs can range from a few thousand to much more, depending on how exclusive the club you join is. Then, you’ll pay annual dues, with prices fluctuating based on how much you want to travel each year. In exchange for your investment, you have access to a wide range of accommodations and experiences, many with better perks, lower per-night costs and more options than you’d find if you booked on your own. Some offer a rewards program based on your spend. The most exclusive travel clubs — among them Inspirato, Exclusive Resorts and Solstice Collection — cater to discerning travelers who aren’t satisfied with a standard, off-the-shelf vacation. For example, Exclusive Resorts boasts stays in private beachfront properties in the West Indies, ski-in/ski-out residences in Telluride, Colorado, and Italian villa stays in Tuscany. What are the most popular luxury vacation clubs? Vacation clubs are available at a wide variety of price points, but in the luxury space, there are a handful of clubs that lead the pack among jet-setters. Inspirato Inspirato boasts a portfolio of high-end homes, hotels and experiences in the most sought-after vacation destinations. Service is Inspirato’s hallmark, including travel planning, an on-site concierge, daily housekeeping and more. A rewards program provides extra discounts, early access to special events and complementary guest passes, depending on how much you spend each year. Inspirato offers two tiers of membership: Inspirato Club and Inspirato Pass. Inspirato Club, a traditional vacation club membership model, lets you choose between a monthly or annual membership, both of which will set you back $7,800 per year. The monthly membership is more flexible, allowing new members to try out an Inspirato membership without a large upfront investment, but the monthly membership does require a $650 enrollment fee. The Inspirato Pass is a more flexible, monthly subscription model. For $2,550 per month, members can book Pass Trips from a list of over 1.5 million options, with nightly rates, taxes and fees included. There are limits to how many trips you can have reserved at a time. Exclusive Resorts If Inspirato is a luxury vacation club, Exclusive Resorts is an ultra-exclusive vacation club. Their 4,000 members have access to 400 exquisite homes and expansive experiences in 75 global destinations. Most of the homes are owned by Exclusive Resorts, which allows for a consistently high level of service and amenities. Members enjoy the services of a travel planner before each trip, plus a dedicated concierge at the destination. Exclusive Resorts invites only about 200 new members each year. Members pay a $195,000 initiation fee for a 10-year plan, plus $42,250 each year for 25 travel days. Solstice Collection Solstice Collection offers a more intimate luxury club experience, with far fewer properties but a promise of better availability. There’s a 6:1 ratio of homes to members, making it easier to book and enjoy time at the home you want. All of the homes in their portfolio are in the multi-million-dollar range and they include a sunny hillside estate in Cabo San Lucas, a historic palace in Florence and a private beach oasis in Koh Samui. The costs of Solstice Collection membership include a one-time initiation fee of $15,000, plus annual dues ranging from $49,000 to well over $100,000, depending on how many nights you’d like to travel. What’s the difference between a vacation club and a timeshare? While both vacation clubs and timeshares offer a structured way to schedule your vacations, they operate quite differently. Vacation clubs offer members access to accommodations and experiences based on a yearly membership fee, whereas a timeshare provides the right to use a property for a set period each year. Another key difference is that timeshares are usually limited to a single resort or group of resorts, whereas vacation clubs can offer a wider range of properties. In terms of financial investment, both timeshares and vacation clubs require an upfront payment and ongoing dues. However, timeshare owners often get saddled with maintenance fees, taxes and special assessments. And timeshares can be notoriously difficult to resell. How is Pacaso different? Luxury vacation clubs offer access to incredible properties around the world. So does Pacaso, with one major difference: You own your second home. Pacaso uses an innovative co-ownership model that lets up to eight homeowners share the purchase price and ongoing costs of a fully furnished, professionally designed luxury home. Pacaso takes care of all the details, from setting up a multi-member LLC to ensuring that every little detail is perfect before you arrive. Best of all, our SmartStay™ system makes scheduling time in your home easy and equitable for every owner. With homes available from California Wine Country to Colorado ski towns, from Baja, Mexico to the United Kingdom, there’s a Pacaso home for every traveler.
You’ve booked a plane ticket or planned your road trip. You’ve blocked out the calendar. Now, where are you going to stay on your trip? Accommodations can make or break a vacation experience, and which type you choose depends on the amenities you’re looking for, your destination and your budget. Here’s what you need to know about your options. 1. Hotels Ah, the old standby. Staying in a hotel is the de facto choice for many travelers, and for good reason. You’ll find hotels in all major cities and almost all vacation destinations, with a wide range of options for size, amenities and price point. Types of hotel properties Luxury: Typically described as four- or five-star properties, luxury hotels have all the bells and whistles. Discerning travelers love the personalized service, myriad of amenities and luxurious furnishings. Many properties feature 24/7 concierge services, fine dining restaurants, on-site spas and a staff dedicated to making your stay the very best. Boutique: Boutique hotels often have the same level of service as a luxury hotel, but in a more intimate or unique setting. Boutique hotels have fewer rooms and unlike large hotel chains where every room is the same regardless of the destination, boutique hotels often take design cues from the local area and offer a more one-of-a-kind vibe. Mid-range: Most mid-range hotels are operated by large national chains. They’re a middle-of-the-road option, with quality rooms and a comfortable level of service that’s consistent across locations. Rewards programs give benefits to loyal travelers. Budget: The most affordable option, budget hotels are wallet-friendly but they have limited service, not offering much in the way of perks or amenities. Pros: Easy to book online, upfront pricing, a standard set of amenities based on room and property type. Cons: Can be expensive, small guest rooms, often no kitchen, lack of cultural immersion with the location. 2. Destination resorts & all-inclusive properties Designed specifically to deliver memorable vacation experiences in popular destinations, destination resorts and all-inclusive properties are big on amenities — think swimming pools, expansive spas, golf courses and casinos. While resorts offer plenty of perks, all-inclusive resorts take it to the next level. When you stay at an all-inclusive property, you’ll pay a flat rate for all food, drinks, activities and gratuities. Pros: Great amenities, top-notch service, on-site activities, family-friendly services, a carefree experience. Cons: All-inclusive resorts can be expensive, some have limitations on guests (adults only, for example). 3. Bed & breakfasts Bed and breakfasts are independently owned and operated by an individual, who often lives on-site. These small inns typically have only a handful of rooms in a single residence, but sometimes standalone cottages are considered in this category. Because the owner resides on site, you can expect warm and friendly service — often, a homemade breakfast is included. The communal environment is a plus for guests looking to connect with fellow travelers. Pros: Locations often in the heart of a destination, friendly service, opportunities for connection. Cons: Fewer amenities, less privacy, shorter check-in/check-out hours. 4. Vacation rentals With the advent of sites like Airbnb, Vacasa, Vrbo and others, it’s easier than ever to book a vacation rental for your next vacation. Vacation rental offerings run the gamut from single rooms in a shared apartment to luxury villas to private homes as part of a vacation club. They can be a great solution if you need more space than a hotel room, want to immerse yourself in a specific neighborhood or you’re traveling with a group. Pros: Many property types, affordable options, convenient locations. Cons: Unpredictable hosts, restrictive rules, expensive fees. 5. Timeshares Unlike other accommodation types where you can visit once and never return, with a timeshare, you purchase ongoing access to a specific hotel or resort group, with a set number of nights per year available for your use. They can be a good option for people who like to return to the same destination every year, but they can also have restrictions that make it hard to take advantage of your membership. Pros: Access to stays that might be too costly otherwise, built-in stays at a favorite destination. Cons: Inflexibility, hard to resell membership, large upfront costs. 6. Co-owning a second home with Pacaso While each of the accommodation types we’ve explored here offers great benefits, there’s one option that every frequent traveler should consider: co-ownership of a luxury Pacaso second home. Instead of spending money on hotel stay after hotel stay, getting locked into a timeshare, or having to scope out a different vacation rental on every trip, Pacaso gives you a true home away from home in your favorite destination. As a ⅛ owner of a Pacaso second home, you’ll enjoy every moment in your luxurious abode. Maintenance and management are all overseen by your dedicated property manager, who makes sure everything is perfect for your stay. Equitable and flexible scheduling ensures every owner gets ample time to make memories in the home every year. Best of all, Pacaso homes are available in top vacation spots, whether your dream destination is the mountains of Aspen, the sunny shores of Baja, California Wine Country, the Florida Keys or any number of other crave-worthy locales.
Dreaming of a vacation home to call your own in 2024? Get one step closer to your goal by learning how to buy a second home. From budgeting to closing on your second home, our guide breaks down the second home buying process and provides essential second home buying tips. Let’s explore the seven steps of how to purchase a second home: 1. Determine your budget 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. Determining your budget for a second home involves assessing your current and future finances. Consider income, expenses and additional costs like taxes and maintenance. You can use a second home calculator to help you determine if a new home purchase is feasible. Evaluate financing options and consult a financial advisor for insights into tax implications and investment alignment. This thorough analysis ensures that your second home purchase aligns with your financial goals and lifestyle. Second home expenses In addition to the purchase price, be sure to factor in these expenses when budgeting for a second home: Interest: On top of your mortgage payment, expect the interest rates for your second home loan to be 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. Homeowners insurance: The insurance for your second home is usually more than for 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 must account for the added monthly expense. HOA fees vary widely, depending on the amenities offered. Utilities: Whether you’re using the second home or planning to use it as a short-term rental, you’ll need to budget for monthly expenses. If you plan to have long-term tenants, you might have them pay the utility bills. Maintenance: Prepare to pay for lawn care, snow shoveling and any repairs tied to home ownership. Broken washers and dryers and roof repairs may be rare, but they can throw your budget into turmoil if you don’t set aside funds. Property management expenses: If you live far from your second home, handling property management yourself might not be feasible. In that case, you’ll need to hire a property manager to coordinate regular maintenance and handle tenant issues. Although second homes come with their fair share of added expenses, they are also offer a few tax deductions that can make your second house dreams a little less costly. Potential second home tax deductions As you’re crunching the numbers, remember your second home can also be a source of rental income and tax breaks. Depending on how your second home is classified and used, you may be able to: 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, including repair costs and depreciation. These are great ways to make owning a second home more feasible. However, second home tax deductions can be complex, so consult a tax adviser before making big financial decisions. 2. Consider your financing options Lenders often see second homes as being higher risk for loan repayment. For this reason, second home loans have a few key differences from first mortgages. Some financial notes regarding buying a second home: You need to pay a larger down payment. If you don’t have at least 10% of the second home’s cost on hand, you may struggle to find a lender. If that takes all of your savings, you’ll be at a disadvantage to deal with unexpected expenses like home repairs. There are higher credit score requirements. According to The Mortgage Reports, the lowest credit score to qualify for a conventional home loan is 620. Be mindful of your debt-to-income (DTI) ratio. Your DTI ratio includes all of your current debts plus the added debt of the second home. So make sure your DTI doesn’t 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. Becoming a co-owner Buying a second home doesn’t have to be a solo endeavor. Joint ownership can increase your buying power and reduce a second home's maintenance and management burden. 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. Second home buyer tip: If you choose a co-ownership LLC through Pacaso, you can apply for second home financing offered by one of our banking partners. Pacaso serves as a corporate guarantor of the loan, vetting qualified buyers and protecting you if a co-owner defaults. 3. Compare lenders When comparing lenders for a second home, it's essential to conduct a thorough evaluation to secure the best financing option tailored to your specific needs. Consider the following factors and use them as a basis for comparison: Loan terms: Examine the loan terms, including the duration of the loan and any associated fees. Longer loan terms may result in lower monthly payments but can lead to higher overall interest costs. Loan-to-value ratio: Assess the loan-to-value (LTV) ratio, which is the loan amount compared to the appraised value of the property. A lower LTV ratio may result in better loan terms. Closing costs: Compare the closing costs associated with each lender. These costs can vary, and understanding them helps avoid unexpected financial burdens at closing. Prepayment penalties: Check for prepayment penalties, as some lenders impose fees for paying off the loan early. Opting for a lender without such penalties provides flexibility if you decide to refinance or pay off the loan ahead of schedule. By comparing these factors among different lenders, you can make an informed decision that aligns with your financial goals and secures the most favorable mortgage terms. Second home buyer tip: Don’t get pressured to go with a certain lender on the spot. Make sure you’ve evaluated different options and give yourself time to consider the pros and cons of each one. 4. Get pre-approved 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, 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 some lenders may see financing a second home as a higher risk, the loan they approve you for may be lower than what you’re expecting. 5. Find a location and a local agent Once you decide on how you’ll use your second home, you can hone in on the perfect location. Going with your favorite vacation spot is tempting, but there are other important factors to consider before you start house hunting. Ask yourself: 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 plan to use it for longer stays a few times a year, then something farther away could work well. Can I afford to live far away? The farther away your second home is, the more challenging it will be to manage, so you might need to rely on a property manager. Distant locations will also require higher travel costs, and locations prone to natural disasters — like beachfront property vulnerable to hurricanes — will cost more to insure. Do I want a home in a high-traffic area? Places with warm winter weather like Palm Springs or year-round adventures like Lake Tahoe are likely to stay rented and sell more quickly than one in a more remote location. However, they also cost more. Confirming your reason for owning a second home can help you decide on the perfect destination for your new vacation spot. Choosing the right agent Finding a knowledgeable agent in your target market can significantly decrease your workload in your second home search. You can use their local knowledge to help you with logistics and make an informed decision. Research local agents online, cross-reference reviews and ask for recommendations from your friends and family when possible. According to Redfin, the going rate of a real estate agent is about 5% of the home’s sale price. Commissions are negotiable, so if you find a real estate agent with a higher-than-average rate, you may be able to talk them down. 6. 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. You can negotiate with the seller or walk away if the inspection reveals anything major. Have a professional home appraisal conducted. Your lender will arrange for an appraisal, which determines the home's real value to compare it to the listing price. You can proceed with the sale if the appraisal is equal to or higher than the listing. If the appraisal comes in lower, you should try negotiating for a price closer to the appraised value. Purchase homeowners insurance. You’ll need proof of insurance before you can close on the second house. 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 to your coverage. 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. Once your offer is accepted, it’s time to begin the closing process for your new home. 7. Begin closing After the seller accepts your offer, the second home closing process begins. This process involves several crucial steps: Select a real estate attorney or closing agent: Depending on the state in which you are closing, the services of a real estate attorney may be necessary to handle settlement and closing paperwork. Bring proof of homeowners insurance: Secure homeowners insurance and provide proof at closing for your lender to release funds. Acquire title insurance: Your lender will collaborate with a title company to investigate any existing issues with the property for a clear buying process. The title company will also issue title insurance to protect your new home purchase. Schedule another home inspection: Conduct a comprehensive home inspection to thoroughly examine the property one more time. Work with your agent to negotiate with the seller on pricing or repairs if issues arise. Await appraisal results: Although you can conduct the appraisal before the inspection, the latter helps identify major issues early on. Your lender can arrange for a home appraisal to verify the accuracy of your home's value. Arrange a final walk-through: Schedule a final walk-through to ensure the home is in optimal condition for the purchase. Close on your second home: Cover any remaining closing costs, sign all necessary paperwork and receive your keys! Although closing on your second home may appear overwhelming, a smooth closing is key to turning your house purchase into a dreamy second home getaway. Now that you know how to buy a second home, it’s time to find the second house of your dreams. If turn-key luxury is what you’re after, consider buying a second home with Pacaso. Each of our co-owned homes is part of an LLC, is fully decorated and furnished, and comes equipped with a dedicated property manager to make your second home ownership journey as stress-free as possible. We even offer financing with trusted lenders.
If you're considering buying a vacation home — or a primary home — in another state, it’s important to be organized and manage your expectations. Since you may not be able to view the house in person or easily deliver paperwork to your real estate agent, planning is essential to keep yourself on track. We've compiled these steps to help you get started with purchasing a house out of state. Soon, you'll be enjoying your new home in the mountains, desert or by the beach. 1. Get pre-approved for your new home Mortgage pre-approval gives you the 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 typically requires a down payment (depending on your loan type). In fact, some lenders have stricter requirements for debt-to-income (DTI) ratios and down payment amounts 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 consider your budget to determine how much home you can afford. Loan pre-approval represents buying power, but you know better than your lender what a reasonable monthly payment is 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 additional costs to consider. Of course, furnishing your second home and moving costs can get expensive, too. As part of your home-buying budget, start to price out what you’ll need to buy immediately to enjoy your new home. 2. Research your target destination If you can’t visit your target locations, the internet provides a wealth of resources to get a feel for places. Websites can help you understand the housing market and what your budget can afford in different areas. Don't stop at just the property listings, though. Use online resources to delve deeper into a city, town or neighborhood. Community websites and social media groups can offer valuable insights into what it's like to live there. The more research you do online, the more prepared you'll be to narrow your search and find a place that truly feels like home. Consider these location factors to decide if a destination 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 significant tax implications. 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-related costs that are likely different from 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 new community. Groceries, 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, such as the types of businesses, parks and community event, can help you envision your life there. Local newspapers and community websites offer a great glimpse into upcoming events and entertainment options. 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. 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 mood, the entertainment options in an area and the maintenance needs of your new home. 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 can also be a factor 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 destination — and what seasonal weather or social changes may impact your experience — can help you choose the best place 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, consider active listings and organize your paperwork to submit an offer. 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 make everyone feel heard. 5. Determine your 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 while house hunting and can 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 who hates yard work may decide it’s an immediate pass. 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. 6. 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 can help you 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, agents 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 having your home-buying journey guided by a local professional is helpful. 7. Get videos and tour virtually When you can’t tour a home in person, virtual tours, videos and listing pictures are the next best things. Many online home listings even include floor plans to 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 whether to make an offer. This will also allow you to share the home with your family and friends to get their opinions. 8. 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 will be the only resident, you can work with contractors as needed to maintain your property while you’re away. A full-service property management company may be worth investing in if you want to offer short-term rentals between your stays. With year-round residents, maintenance needs will increase, and you’ll be responsible for any repairs needed to provide tenants with a safe and comfortable home. A property management company would help take care of these concerns while you’re at home across state lines. 9. 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 plan to rent the house when you’re not visiting, you’ll still be responsible for the extra expenses of a second home. However, depending on how you use your home, there are tax benefits available to alleviate some of the cost. If you plan to rent the house when you’re not visiting, you’ll still be responsible for the extra expenses of a second home. However, depending on how you use your home, there are tax benefits available to alleviate some of the cost. 10. Find a trusted title agency Title agencies are responsible for investigating the details of the property’s previous owners, 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. 11. 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 ensure it’s 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, as the buyer, you have the power to re-negotiate the home’s sale price when considering the 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 property as-is, which means a leaking roof or electrical shortage is entirely your responsibility once you complete the transfer of ownership. 12. 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 requires a lot of effort, 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. 13. Create a move-in checklist Here's a checklist to help you stay on top important tasks before your big move to another state: No matter if the home will be your primary address or a vacation home, be sure to: Hire movers (if necessary): Consider getting quotes from multiple movers to find the best fit for your budget and needs. Arrange for furniture delivery: If any furniture is scheduled for delivery around your move date, confirm the details and ensure the mover’s timeline aligns with your move-in schedule. Contact utility companies: Research providers in your new area and set up services for electricity, gas, water, trash collection and internet/cable (if applicable). Schedule a connection for your move-in date or soon after. And if the home will be your primary address, don’t forget to: File a change of address with the post office: You can do this online at USPS Change of Address at least a week before your move. Register to vote in your new state: You may need to research how to register to vote in your new state. You can usually do this online or at your local DMV. Notify cable and internet provider: Contact your current cable and internet provider to transfer service to your new address or to schedule disconnection. Update accounts and subscriptions: Update your address with banks, credit card companies and your local county to update your driver's license. Completing these tasks ahead of time can ensure a smoother transition to your new home in another state. Buy an easier way with Pacaso Whether it's a beachfront escape in Maui or a ski chalet in Vail, our guide makes out-of-state ownership a breeze — for primary and secondary home buyers alike. If you’re shopping for a vacation home, consider unlocking the possibilities of out-of-state ownership with Pacaso's innovative co-ownership model. You can experience a luxurious vacation property in a coveted destination without dealing with management and maintenance challenges. Spread the cost among fellow co-owners while enjoying access to a stunning property. Pacaso makes scheduling a stay simple, and ensures your home is meticulously maintained so you can relax and create unforgettable memories.
When travelers choose to stay in a vacation rental instead of a hotel, they expect certain amenities will be provided to ensure a comfortable and convenient experience. As a vacation rental property owner, it’s up to you to stock your home with these items — and if you do it well, you may garner better reviews from renters and be able to charge more per night. Here’s what you need to know about providing the right set of amenities in your vacation rental. Essential vacation rental amenities At your run-of-the-mill hotel, there’s a standard slate of amenities travelers expect to find in their room: a coffee maker, bath amenities like shampoo and soap, towels (and sometimes bathrobes), hair dryers, an iron and ironing board, and a safe for valuables. Of course, the room should also be equipped with comfortable beds, a clean and functional bathroom, a TV and Wi-Fi. But when someone rents a single-family home or a privately owned condominium as their vacation accommodations, those hotel-level amenities are just the beginning. Let’s explore the must-have amenities you’ll want to provide, room by room. Whole-home amenities Here are a few required amenities that should be functioning throughout the home. Heating and air conditioning High-speed Internet access Cable/streaming TV services Major systems and appliances Safety-related items The safety of your guests should be your top priority. What’s more, many of these items are required by law — or by rental listing platforms. Smoke detectors Carbon monoxide detectors Fire extinguishers Locking doors and windows Flashlights First aid kid Kitchen essentials The kitchen is one of the most complicated rooms to stock, due simply to the long list of items needed to successfully prepare and serve meals. Small kitchen appliances (toaster, coffeemaker and blender, for example) Pots and pans Dishes Glasses, mugs and barware Silverware Utensils for food preparation and serving Cutting board Bakeware Kitchen towels Oven mitts Salt and pepper A small selection of spices Cooking oil Bedroom amenities A good night’s sleep is vital to a great vacation experience. Don’t overlook comfort. Comfortable mattresses Quality linens (with extras available) Pillows Alarm clock Reading light Luggage stand Closet space Bathroom basics A fully stocked bathroom is an absolute must. Towels and washcloths Shampoo, conditioner, soap and lotion Hair dryer Full-length mirror Laundry amenities In-unit laundry is one way that vacation rentals stand out compared to staying in a hotel. Make sure your home’s laundry room is ready for every guest. Washer and dryer Laundry detergent Fabric softener Drying rack Hangers Consumables Always have plenty of these essential items that commonly have to be replaced during a guest’s stay. Paper towels and toilet paper Soap Batteries Light bulbs Garbage bags Amenities your renters will love Want to take your rental to the next level? Here are the amenities that will show guests that you’re going above and beyond to make their stay exceptional. Luxury amenities Luxury rental prices require luxury amenities. Discerning travelers expect high-quality amenities that turn an average stay into an indulgent getaway. High-end appliances Hot tub Home theater Pool table or game room Swimming pool Sauna Luxury bath amenities Upscale linens and pillows Exercise equipment Family-friendly features Many people who choose to rent a home have small children and need more space than a hotel room allows. It’s important to offer them the amenities they need to keep the younger set safe and happy. Portable crib and bedding High chair A few toys and books Kid-friendly dinnerware and utensils Extendable baby gate Plenty of storage space Fun-filled amenities It’s always a nice touch to provide your guests with some items to keep themselves entertained. Board games Playing cards Puzzles Books Outdoor games Smart home elements Today’s smart home gadgets make a stay more enjoyable for guests — and more convenient for owners and property managers. Smart lock for self check-in Smart thermostats Bluetooth-enabled music and entertainment Outdoor amenities Don’t focus so much on interior amenities that you forget to stock your home’s outdoor spaces. Barbecue with fuel and utensils Outdoor seating Bikes and bike storage Pool or hot tub towels Outdoor-friendly dinnerware and drinkware Garden hose with spray nozzle Beach toys Location-specific amenities Every vacation home requires some specialty amenities based on location: Mountain home: Homes located in mountain ski towns make popular vacation rentals among skiers and snowboarders. Delight your winter weather-loving renters with thoughtful amenities like an apres-ski hot tub, on-site gear storage and boot warmers. Lakefront home: Anticipate what your renters will need before and after a day on the water. Coolers, ice packs, floaties, ropes, shade umbrellas and beach towels can make all the difference. Desert home: When the weather’s hot, earn brownie points by giving your renters plenty of ways to cool off. If your home has a pool, be sure to include floaties (and a way to inflate them), pool toys, pool towels, plenty of shade, a cooler and — best of all — built-in cool water misters. Other things to consider about vacation home amenities Making your vacation rental stand out If your rental is located in a popular vacation destination, it can be a challenge to differentiate your listing from others. Here are a few ways you can use your amenities to your advantage. Decorate with a theme: The most memorable vacation rentals deliver a distinct sense of place. Take cues from your outdoor environment and decorate in a way that complements the setting. Include a welcome kit: Make the extra effort to provide your guests with “insider information” that will help them have a great trip. Create a welcome kit that includes notes on your favorite local restaurants, watering holes and activities. Include a guest book to sign and maybe even supply your favorite local coffee or a sweet treat. Show off your amenities in photos: Great photos make all the difference when renters are choosing between a few listings. In addition to professional photos of the home’s interior and exterior, take the time to photograph your home’s most impressive features and amenities. Upgrading your home’s amenities It can be expensive to outfit a whole home at one time. Start with the essentials, then build on your offerings over time. When time and budget allows, add or upgrade elements that will make your rental special. Not sure where to start? Read your guest reviews! They’ll let you know the most pressing issues that need to be addressed, whether it’s missing kitchen utensils, lumpy mattresses or simply “nice to have” items that would have made their stay even better. Let Pacaso take care of it Setting up and running a vacation rental can be expensive and time consuming — and the amenities are just the beginning. If you’d rather spend more time enjoying your second home and less time managing it, consider buying a Pacaso. While Pacaso homes can’t be used as vacation rentals, our unique co-ownership model puts a vacation home within reach that you might not need renters. As a co-owner of a Pacaso second home, you’ll enjoy time in your very own professionally designed and furnished property. Everything you need will be taken care of for you by professional property managers. Every time you arrive at your home it will be fully stocked with all the amenities you need, from Turkish cotton towels and natural down-filled duvets to kitchenware from brands like Le Creuset, Ninja and KitchenAid. There are plenty of thoughtful extras, too, like barware for any cocktail you can concoct, family-friendly must-haves, Nespresso coffee makers for early mornings and beach chairs for fun in the sun. Ready to find your dream vacation home with Pacaso? Explore our collection of turnkey listings in some of the most sought-after destinations.
According to a 2022 survey, over 60% of Americans would rather book a stay at a hotel instead of a home rental like Airbnb. Although Airbnb can be a cheaper option, many people prefer the amenities and consistency of a hotel stay. In this guide, we’ll share Airbnb vs. hotel pros and cons, and cover the top 10 factors to consider when looking for your next accommodation. We’ll even introduce you to a third option — second homes — and share how it stacks up against the short-term rental competition. Overview: Airbnb vs. hotel Airbnb is usually the cheaper option, based on the nightly rate. However, you can also expect variabilities in quality, privacy and amenities. Hotels may be more expensive, but they often offer a more consistent experience for guests. Airbnb Hotel Price Averages $137 per night Averages $149 per night Accommodation types Shared rooms, private rooms and entire homes Mainly private rooms Safety Safety precautions vary Security cameras and key card access are the norm Booking experience Book within a single app Book on the hotel’s website, by phone or on a third-party platform Locations Available in urban, neighborhood and rural destinations Typically in urban areas and near airports Privacy Hosts may live on the property or nearby Little to no privacy outside of your room Amenities Varies with each listing Typically on-site concierge and housekeeping Length of stay Long-term travel discounts available Well suited for stays under a week Accessibility features Accessibility filters are available when browsing In general, all hotels must be ADA compliant Cancellation policies Fees and policies vary, but are often flexible Policies and fees vary Checkout Hosts provide checkout instructions Hotels may require you to return key cards Airbnb Airbnb facilitates both shared and private short-term rentals, connecting travelers with hosts who offer accommodations in their homes or properties. Airbnb has helped guests find accommodations in popular tourist destinations and remote environments since 2008. Airbnbs are typically quick and easy to book, cancel and check into, making them a top contender in the short-term travel market. Pros Cons Airbnbs are generally cheaper than hotel rooms (based on nightly rates) The quality of each listing can be inconsistent Guests can experience living like a local and sometimes have the option of getting to know the host Little to no guest services available Guests can book entire homes, complete with a kitchen and other living spaces Safety features can be difficult to gauge Hotels A hotel is a private business that offers travelers accommodations, access to shared facilities and guest services. They are primarily located in urban areas and typically only have private rooms available. In general, hotels offer a consistent level of quality, so many travelers know what to expect during their stay. Pros Cons Hotels offer convenient services like housekeeping and room service Hotels are often more expensive than Airbnbs (based on nightly rates) Surveillance cameras and key card access are common safety features Most hotel rooms do not include a cooking space Some hotels offer loyalty programs that can generate discounts Hotel rooms typically lack a personal touch The differences between Airbnb and hotels Now that you know how both business models function, let’s take a closer look at the differences between Airbnb vs. hotels. Price When it comes to Airbnb vs. hotel prices, Airbnb has a broad spectrum of accommodation options at different price points, while hotels are often more expensive per night. Airbnb Globally, the average cost of an Airbnb is $137 per night, though this price can vary significantly depending on factors like location, property type, size and amenities. Airbnb provides a variety of accommodation options, from budget-friendly to luxurious. Here is a breakdown of what’s included in the price: Room rate: the cost to book the room or home Cleaning fee: the cost of cleaning the space before and after your arrival Service fee: the cost for the host to use the Airbnb platform Taxes: any local and tourist taxes associated with the listing Hotels The global average cost of a hotel is $167 per night. A hotel room may be more expensive because it is a fully managed accommodation that includes staff members who assist you during your stay. Motels offer cheaper alternatives, while exclusive resorts represent the pinnacle of luxury. Here is a hotel price breakdown: Room rate: the cost to book the room Meals: "complimentary" meals, like breakfast, are factored into the price of your stay Resort fees: the cost to keep the resort and its amenities properly maintained Taxes: any local and tourist taxes associated with the area Accommodation types Hotels specialize in providing private rooms, while Airbnb has multiple accommodation types to suit your budget’s needs. Airbnb Hosts can categorize their listing based on the layout of their lodging: Shared room: Similar to a hostel, guests share a room and bathroom with one or multiple strangers. Private room: Similar to a hotel setting, guests have a private sleeping area, though they may still have to share a bathroom. Entire home: Guests have exclusive use of sleeping areas, bathroom, living space and kitchen. Hotels Although you can share a room with your friends and family, private rooms are the only accommodations you’ll find in a hotel setting. However, some luxury hotels offer penthouses and villas with a kitchen and a dining and living room. Safety When it comes to safety, hotels may have more resources to keep guests secure than Airbnb. However, even the largest hotel chains are not immune to security breaches. Airbnb Since Airbnb listings are managed by individual hosts, it can be difficult to accurately gauge the safety of a location. A Plos One study shows that an increase in short-term rental solutions like Airbnb may lead to an increase in violent crimes within that neighborhood. Here are the safety features that Airbnb provides to combat this: 24/7 safety line: Although there is no in-person Airbnb staff available, there is a call center available at all times. Host background checks: Every Airbnb host must pass a background check. Fire prevention: Airbnb encourages every host to install multiple alarms and provide an extinguisher in every listing. Hotels Both Airbnb and hotels can be subject to data breaches since travelers have to share personal information when booking online. Cybercrimes aside, hotels generally take the following security measures to keep guests physically safe: Security staff: Some hotels have security personnel on site. Safety box: Many hotel rooms are equipped with lockable safety boxes. Fire prevention: Along with fire and carbon monoxide alarms, hotels generally equip each room with a fire extinguisher and sprinkler system. Security cameras: Many hotels install security cameras in common areas. Key card access: Many hotels have a key card system that only allows verified guests to access private rooms and shared hotel amenities. Locations If you’re looking for an off-the-beaten-path lodging option, Airbnb may have what you’re looking for. If a room in the city is what you need, consider staying at a hotel. Airbnb One of the most attractive qualities of Airbnb is that you can find unique accommodation options across the globe. From a snow igloo in Finland to an underground bunker in New Mexico, Airbnb listings are sure to impress the most seasoned travelers. Airbnb has listings in over 220 countries, including rural and urban settings. Hotels Similarly to Airbnb, Booking.com currently features 228 countries with hotel listings. Hotels are generally found near popular attractions and dining options in dense urban areas. Since hotels require operating staff to cater to guests, it can be difficult to run this business model in remote locations. Privacy Both hotels and Airbnb have privacy concerns; however, many Airbnbs allow self check-in procedures that limit or remove face time with hosts. Airbnb Like safety, privacy can be difficult to gauge from Airbnb listings. Even if you book an entire home, you could still share a wall or outdoor space with your host. While some hosts may live on the property, others live nearby or may remotely manage their property. The key to finding a private unit is to read the property description and reviews thoroughly. Hotels In terms of your room, it’s hard to find a more private option than a hotel. However, once you leave that space, you may find yourself swimming in a sea of people in the common areas. Even the most luxurious hotels typically have a check-in procedure that requires guests to have public interactions before retiring to their private rooms. Amenities Hotels often provide guests with a few basics, while some offer more luxurious amenities like gyms and spas. Airbnb amenities can vary widely — from nonexistent to the most unique and coveted. Airbnb Airbnb amenities can vary from listing to listing. In general, don’t expect the same amenities as you would receive during a hotel stay. Available amenities depend on individual hosts, and their quality can differ per listing. Here is what Airbnb considers some of the top amenities hosts should include: Free parking: Either covered, driveway or street parking may be available. Wi-Fi: It will be mentioned in the listing, but it is typically available. Air conditioning: Either built-in or portable units may be available. Pets allowed: Guests can choose to view only pet-friendly listings. Kitchens: Not only do kitchens help cut the cost of dining out, but they also extend the available living space. Hotels One of the defining features of a hotel is the wide array of amenities offered to guests. Along with the amenities mentioned for Airbnb, hotels typically offer at least one of the following as well: Swimming pool: Either indoor or outdoor pools and a hot tub may be available. Room service: Order food straight to your room for an added fee. Spa: Book spa packages online or at the front desk for an added fee. Housekeeping: Request fresh towels and allow the professionals to clean up when you’re not in the room. Concierge: Someone is available to answer questions in person. Length of stay Hotels are ideal for a weekend getaway. But if you’re searching for a place to stay longer than a few nights, Airbnb may be the better option. Airbnb Booking an entire home on Airbnb may be more comfortable than hotels for long-term travel. Airbnb also offers weekly and monthly discounts to travelers wishing to book a longer stay. The discount percentage, however, is determined by the host and varies for every listing. Hotels Most hotels cater to short-term travelers who prioritize convenience and location over long-term travel amenities like a kitchen or laundry facilities. Extended-stay hotels cater to long-term travelers, but they won’t be available at every destination. Accessibility features Both Airbnb and hotels try to create more accessible spaces for their guests; however, hotels are often more accessible since they’re commercial businesses. Airbnb While Airbnb does have an “Accessibility features” section in their search filters, hosts are not required to comply with Americans with Disabilities Act (ADA) guidelines. Here are the accessibility features you can include in your search: Step-free entrance: ensures wheelchair users can easily enter Toilet grab bar: allows guests to safely sit down and get back up Entrances wider than 32 inches: ensures wheelchair users can comfortably go from one room to the next Hotels In general, hotels are required to comply with ADA guidelines. Along with the features mentioned above, here are some more examples of how hotels adhere to ADA policies: Ramps: if stairs are present, a ramp ensures everyone can easily access the entrance, including wheelchair users and strollers Elevators: ensures that guests do not have to climb multiple flights of stairs Handicap parking: makes it easier for guests with mobility challenges to enter and exit the facility Checkout Some guests may prefer to stay at hotels to avoid the long list of checkout procedures some Airbnb hosts require. Airbnb The Airbnb checkout experience can be as simple as locking the door when you leave or something similar to what’s expected from a paid housekeeper. Here is what a lengthy checkout procedure could look like for an Airbnb stay: Take out the trash Strip the bed Put linens in the washer Turn off all lights Wash the dishes Clean used common areas Lock the doors and gates Hotels In general, a hotel has a housekeeping crew that is responsible for a majority of the cleanup after your stay. However, guests may also be responsible for small tasks like returning the room key. Note that the added convenience of leaving the cleaning to the professionals may result in higher costs. The second home difference Whether you want a romantic weekend getaway or a few weeks of tranquility at your favorite destination, nothing beats the cozy atmosphere of an actual home. Here are the benefits of buying a second home with Pacaso over renting short-term accommodations: Co-own your second home to ensure a consistent quality experience. Easily schedule time in your home, thanks to SmartStay. Invest in a real estate asset and potentially benefit from equity. Enjoy a fully managed vacation home with a professional property manager. Relax in your home away from home. When it comes to booking an Airbnb vs. hotel, the cheaper option will be Airbnb. However, the price of a hotel may be well worth it. From guest services to prime urban locations, a hotel typically offers a consistent level of quality to every guest. If a unique accommodation equipped with a kitchen (and a potentially long list of checkout procedures) is what you’re after, book an Airbnb. If a home away from home in a dream destination is your priority, then consider owning a second home. As a co-owner of a Pacaso, you can skip the headache of property management and schedule a relaxing stay your own second home. Already have a vacation destination in mind? Pacaso homes are available in a variety of world-class locations.
The median home price in the United States is $439,716, which is a 5% increase compared to the same time last year, according to Redfin. For first-time buyers and those without equity, this is intimidating — so shared home ownership might be the answer. This approach to property acquisition allows you to co-own a primary or secondary home, making ownership more accessible with a lower initial investment. But before diving in, weighing the pros and cons is crucial. Let's explore how shared ownership works, its advantages and potential drawbacks before deciding if it's the right path for you. What is shared ownership? Shared ownership is a type of homeownership where you co-own a property with someone else. Expenses and equity may be split proportionally. How shared ownership works In shared ownership, co-owners 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: Primary residences: The square footage each co-owner will utilize Second homes: The amount of time each co-owner will spend in the vacation home Investment properties: The amount of money each co-owner is willing to invest Some programs even allow you to gradually increase your ownership percentage over time, known as “staircasing.” This can give you more control and potentially greater equity growth. 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. Joint tenancy Joint tenancy occurs when all property co-owners hold the title to the property. 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 your co-owners to inherit your share in the property. It’s also worth knowing that if your co-owner has unpaid debts, a creditor can force a sale, which will also affect your share. 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 remember that if another co-owner passes away or chooses to sell, you may be stuck sharing ownership with an unfamiliar new co-owner. Limited liability corporation (LLC) When you form a multi-member LLC with other co-owners, you create a separate legal entity that can enter into contracts and purchase property much like an individual. Separating the finances of the LLC from the finances of the LLC owners limits the financial liability of the co-owners within the LLC. LLCs have been used primarily for investment purposes, but companies like Pacaso now use 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. Shared ownership pros and cons Weighing the pros and cons of home ownership and vacation home ownership alongside your financial goals and risk tolerance will help you decide if shared ownership is the right path for you. Benefits of shared ownership Shared ownership offers a unique path to property ownership, especially for those facing challenges with traditional affordability hurdles. Here's a breakdown of the key advantages: Lower upfront cost: The down payment and overall purchase price are significantly lower than buying a whole property alone, making homeownership more accessible. Shared expenses and responsibilities: Maintenance costs, repairs, utilities, and even upkeep tasks are shared with your co-owner, easing the financial burden and workload. Faster path to homeownership: Shared ownership allows entry into the property market with a smaller investment compared to a traditional mortgage. Potential for equity growth: As the property value increases, your shared ownership stake grows in value, too, building equity over time. Option for vacation homes: Shared ownership can make vacation home ownership more attainable by splitting the cost and usage with others. The lower upfront costs, shared expenses, and potential for equity growth make shared ownership compelling. However, it’s also crucial to carefully consider your financial situation, risk tolerance, and long-term goals. Cons of shared ownership While shared ownership offers an attractive entry point, it's essential to consider the potential drawbacks before deciding: Limited control: Decisions regarding renovations or property changes require agreement with your co-owner, potentially leading to delays or disagreements. Finding compatible co-owners: Compatibility with your co-owner in terms of financial goals and living styles is crucial for a smooth experience. Exit strategy challenges: Selling your shared ownership stake or exiting the scheme might be more complex than selling a traditional property. Rent on top of mortgage: You'll still pay rent on the portion of the property you don't own, alongside your mortgage payments. Restrictions on the property: There might be limitations on renting out your shared ownership property, making major modifications or hiring a property manager. The limitations on control, challenges in finding compatible co-owners, and complexities associated with exiting the scheme require careful consideration. Reasons to try shared ownership homes There are multiple reasons why you may want to own multiple homes under a shared ownership model. Here are a few reasons why people choose shared ownership in a primary or secondary home. Reduce 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 payments. The lender will consider every applicant’s income, credit score and debt-to-income ratio. If some of the applicants are stronger financially in areas where others are weaker, this can benefit all parties involved. Make 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. Relieve a financial burden on an existing property If an individual faces 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. Achieve vacation home ownership Owning a vacation home can be a dream come true. However, traditional second home financing can be a significant hurdle. Shared ownership offers a unique solution. By co-owning a vacation property with others, you can split the cost of purchase, maintenance and upkeep. This makes the dream of vacation home ownership more accessible, allowing you to enjoy a dedicated escape without the financial burden of a sole owner. Co-own a vacation home with Pacaso Shared ownership presents a compelling option for those seeking a foothold on the property ladder or a more affordable route to vacation home ownership. However, it's not a one-size-fits-all solution. Carefully consider your financial situation, risk tolerance and long-term goals. If you value flexibility and affordability — and are comfortable with shared responsibility — shared ownership could be your gateway to property ownership. Mitigate the risks of DIY co-ownership by partnering with a luxury vacation home provider like Pacaso. We offer professionally designed and managed second home in top destinations.
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.
Owning a vacation home is a dream for many people — a beautiful home away from home where you, your family and your friends can relax, reconnect and enjoy living like a local in your favorite vacation destination. Yet full second home ownership isn’t always the right fit for everyone. Owning a vacation home can be expensive, require a lot of effort to maintain and make you feel obligated to spend every vacation there to get your money’s worth. Here are some popular alternatives to buying a vacation home, including the pros and cons of each option. 1. Renting a vacation home When you rent a vacation home, you get some of the benefits of your own vacation home, without the investment or responsibility of actually owning it. Here are a few pros and cons. Benefits of renting a vacation home When you rent a vacation home, you enjoy a lot of flexibility. You can choose to stay in a different home, in a different destination, every time you travel. You can choose a smaller home for traveling with your immediate family, then a bigger home for a multi-generational trip or a trip with a large group of friends. Stay at a beachfront home for a warm-weather getaway, then spend a winter weekend on the slopes in your favorite ski resort town. When you rent a vacation home, you won’t have the large investment of a down payment and monthly mortgage payments, nor will you have a long-term commitment. Drawbacks of renting a vacation home When you rent a vacation home, you won’t build equity as you might with second home ownership. You also can’t make any changes to the home to suit your needs — what you see is what you get. Finally, you may have to negotiate rental restrictions and book far in advance to find a rental that suits your needs. 2. Timeshares With a timeshare, you purchase rights to use a vacation property for a pre-set number of stays per year. Some timeshares are for use of a single property, while others may give you access to a portfolio of properties. Some offer a set number of nights per year, whereas others operate on a points system, which you can apply toward available stays. Benefits of timeshares As a timeshare owner, you enjoy cost-sharing benefits — per-night stays can often be cheaper than hotel bookings. And, since most timeshares are in a hotel or resort setting, you’ll enjoy access to on-site amenities and perks. Many people appreciate the predictability of their vacation costs as timeshare owners (although fees can vary year to year). Drawbacks of vacation clubs and timeshares Just because the pricing is more predictable with a timeshare doesn’t mean it’s always affordable. Some of these programs have high annual fees and expensive maintenance costs that may increase each year. Another downside is that it may be hard to find availability during peak seasons in popular destinations. Finally, timeshares often depreciate in value over time, making it hard to sell your shares when you decide you no longer want to participate. 3. Vacation clubs As the name implies, vacation clubs are membership-based programs. In exchange for a one-time initiation fee and the cost of an annual membership, you get access to hotels, vacation homes, and, in some cases, travel experiences all over the world. You’ll find vacation clubs associated with major hotel brands, as well as luxury vacation clubs for the most discerning travelers. Benefits of vacation clubs While the specific perks vary from one club to the next, generally vacation club members enjoy access to a wide range of accommodations around the world, some of which are inaccessible to the general public. Nightly rates are discounted, and a host of amenities are included. Compared to other travel options, members often find bookings to be flexible. Membership also usually comes with perks such as concierge services, discounted rates on other types of travel and loyalty rewards. Drawbacks of vacation clubs The biggest drawback to being part of a vacation club is that membership can be expensive. Some also require long-term commitments, which make it difficult to cancel or modify your membership. Like many types of travel, members may find it difficult to book in-demand destinations during peak seasons. 4. Fractional ownership With fractional ownership, a group of owners share the upfront purchase price and ongoing costs of a vacation home and they come to an agreement about equitable use of the home. Sometimes the owners know each other, as friends or family members. Other times, like the Pacaso model, you may buy into a fractional ownership using a limited liability company (LLC) with individuals you don’t know. Advantages of fractional ownership The biggest benefit of fractional ownership is the cost-sharing. Instead of shouldering the entire cost of buying and owning a second home, multiple owners split everything: the purchase price and the cost of maintenance and management. Because multiple parties pool their money, owners may be able to access a higher-end property than they’d be able to afford on their own. When you become an owner of a Pacaso, for example, you’ll enjoy a hassle-free, fully managed experience of a turnkey luxury home. Drawbacks of fractional ownership When you co-own a property, you have to equitably share time in the home with your fellow owners, so you may not be able to stay in the home every time you’d like. There’s also the potential of conflict or disagreements with your co-owners. Finally, you won’t have the full ownership benefits you’d enjoy as a single owner. Find the right option for you If full vacation home ownership isn’t right for you, there are many other options. You may want the flexibility of simply booking a rental home whenever wanderlust strikes. Or, if you want exclusive perks and access to multiple properties around the world, a vacation club or timeshare might be the right fit. Finally, a co-ownership opportunity might make the most sense, giving you access to a luxury home at a fraction of the full purchase price. Another option: Co-ownership with Pacaso If co-ownership of a second home is the best fit for your vacation goals, budget and lifestyle, consider Pacaso. Our unique co-ownership model allows up to eight individuals to share ownership of a luxury vacation property, set up as a multi-member LLC. Pacaso takes care of the day-to-day details, from cleaning and home management to managing billing and maintaining the LLC. Plus, our smart scheduling system makes booking stays easy and equitable for every owner. Fully furnished and expertly designed Pacaso homes are available in incredible vacation destinations across the country, as well as in Mexico and Europe.
Buying a vacation home with friends can be a good idea. Splitting the purchase — and ongoing maintenance costs — with another party can make second home ownership more affordable. And it may put a more luxurious property within your reach. Buying with friends may also help justify the purchase, since a vacation home with multiple owners will likely get used more weeks each year than properties owned by an individual or a single family. Plus, co-owning allows you to share the workload of owning and maintaining a second home. But just because it may make financial and logistical sense to purchase a vacation home with friends doesn’t mean it’s a seamless process. Buying a home with friends can be a high-stakes situation, as there are large sums of money involved — and even higher expectations. Read on for tips to find success when buying a second home with friends. 1. Get on the same page The first step in the process is to make sure all would-be owners have the same goals. You’ll need everyone to align on where to buy the vacation home, home type, budget and amenities. Take the time to create a combined wish list that takes into consideration everyone’s preferences. Don’t be afraid to get into the details: What’s the preferred architectural style? How far from the beach/ski hill/downtown are we willing to be? Do we want to rent out the home when none of us are using it to generate income? Make sure to iron out these big decisions before you begin your home search. It’s important to go into home shopping with a clear set of criteria. And remember: Everyone will need to make compromises to keep the process moving forward. 2. Evaluate finances Many people are uncomfortable talking about money with people outside their immediate family, but it’s an absolute must if you’re considering making a real estate investment with friends. Sit down with all potential owners for a conversation about ideal purchase price, down payment size and credit scores. You’ll also want to make sure everyone has stable finances not only for the initial purchase but also for covering ongoing costs and monthly mortgage payments for years into the future. 3. Have the tough conversations Take the time to ask each other hard questions about how and when the home will be used. Here are a few questions to get you started: How will we manage scheduling? Who gets to use the home on holidays and school breaks (if applicable)? What if one owner uses the home more than the others? Will we allow owners to bring guests with them? Will we allow owners to bring pets? Do we want to rent out the home when none of us is using it? What will we do if one owner wants to sell or can no longer afford the home? How will we decide when to complete maintenance? 4. Assign tasks Owning a second home — especially in another city, state or country from your primary residence — can be a lot of work. Luckily, owning a home with friends means you can share the responsibilities. Before purchasing, make plans for who will take care of specific tasks. You might assign one person to take care of paying the bills, like the mortgage, utility bills and insurance, while someone else might take care of overseeing vendors like house cleaners, landscapers or property managers. Considering renting out the home? You might assign one person to oversee this portion of the work. 5. Create a co-ownership agreement Protecting yourself legally is an absolute must before investing in real estate with friends. It’s always worth the time and expense to hire a real estate attorney who can draft a co-ownership agreement that all parties sign. These legally binding contracts establish an ownership structure for the purchase. There are multiple options available, including tenancy in common and joint tenancy. Tenancy in common allows different owners to divide stakes in the property, whereas joint tenancy is meant for owners who want to share equal stakes. There’s more to these ownership structures than just the shares of ownership, so be sure to evaluate your options with a lawyer. In addition to defining the ownership structure, a co-ownership agreement can establish an LLC, help you set aside a pool of money for ongoing maintenance and outline what happens in the case of death, divorce or major disagreements. 6. Find the right home Now comes the fun part: house shopping! Hire a real estate agent who has experience both in your target market and with friends buying together. Provide your agent with your predetermined wish list and find a time when all parties can travel to the destination to tour homes in person. After each showing, have an open conversation about pros and cons to narrow the options. Remember to pack your patience. It may take some time to find a property that fits everyone’s wants and needs. 7. Keep the lines of communication open Good, honest communication among owners shouldn’t end as soon as you receive the keys. Home ownership is an ongoing responsibility, so stay in contact with your co-owners so you can decide on things like vacation dates, maintenance needs and home improvements. And don’t forget the fun stuff. Be sure to share tips and tricks with your co-owners, whether that’s the great new restaurant they won’t want to miss or a local hiking trail you discovered on your last visit. Pacaso: Fully managed co-ownership However, it can be a challenge to find a friend (or multiple friends) who share the same second homeownership and financial goals. But that doesn’t mean co-ownership is out of reach. Pacaso makes it possible to become the co-owner of your own luxury second home, but without having to do everything on your own. We’ll find trustworthy and vetted co-owners, facilitate the creation of a co-ownership agreement and LLC, and manage all the details of ownership including property management, home design and maintenance. You just get to arrive, unpack and enjoy life in your professionally furnished vacation home. You’ll find Pacaso second homes in swoon-worthy destinations from California Wine Country to Colorado ski destinations to Florida beaches and beyond.
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.
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.
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
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? What is a "workcation?" Unlike a typical vacation where you disconnect entirely from work, a workcation allows you to maintain a work schedule and commitments. However, the setting is shifted to a more desirable or relaxing location, be it a sun-soaked beach house or a serene ski resort. A workcation lets you enjoy a change of scenery without compromising work responsibilities. 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.
Dreaming of waking up to ocean waves and balmy breezes? You're not alone. In 2023, 48% of surveyed travelers planned on visiting a waterfront destination. While coastal vacation home ownership can seem glamorous, financing and maintaining a beach home can present its share of challenges. Our guide will break down the four steps of buying a beach house and discuss the pros, cons and considerations of owning a second home by the water. 1. Understand the beach house market In 2023, the luxury modern beach house market was valued at $13.4 billion and is expected to increase to $22.9 billion by 2030. However, the beach house market can vary significantly depending on location. Some areas, particularly those popular with tourists or empty nesters, may experience more consistent price growth. As tourism thrives in coastal areas, so does the desire for contemporary beach houses — a luxurious way to experience the beachfront. Other beach destinations might see more seasonal fluctuations, especially those in less populated regions. By understanding these dynamics, you can enter the beach house market with a realistic perspective on pricing and competition. Location is key, so researching specific coastal communities is crucial for making informed buying decisions. Financing options to buy a beach house Financing a second home by the sea can differ slightly from financing a primary residence. Traditional mortgage options are still available, but you might encounter stricter requirements or higher interest rates. For example, conventional loans for vacation homes often require a higher down payment (usually 20%-30%) compared to primary residences. These loans may have different qualification requirements and might come with adjustable interest rates (ARMs) that start low but can fluctuate over time. For those who don't require full-time ownership, co-ownership presents an intriguing financing option. Pacaso, for instance, offers a model where multiple people co-own a luxury beach house at destinations like: Maui, Hawai’i Malibu, California Hilton Head, South Carolina Miami, Florida Co-ownership allows you to enjoy the benefits of beach living without the full financial burden and responsibility of sole ownership. Expert quote: ”Co-owning with friends or family offers a solution to lower that barrier and provides a hack for the current affordability crisis sweeping the nation.” — Austin Allison, CEO of Pacaso Source: The Pacaso co-ownership growth report 2. Find the best beach house location While the allure of beachfront living is undeniable, location goes beyond just proximity to the water. Consider the following when searching for the best place to buy a beach house: Distance from your primary residence: The occasional trip might be manageable for a nearby romantic weekend getaway, but weekly commutes could become a burden. Walkability score: Living somewhere with a high walkability score means you can ditch the car and explore the neighborhood on foot. Climate: Consider if you want warm weather year-round or a seasonal escape with crisp autumns and colorful foliage. Ambiance: Seek the solitude of a secluded beach with minimal development or embrace the lively energy of a bustling beach town. Activities: Decide if relaxing with your family or enjoying a trendy atmosphere is more of a priority. Prioritizing these preferences will help narrow your search and ensure your beach house becomes a true haven. For example, if you're a snowbird, you may value Florida’s warm weather and abundant water activities over a more brackish beach destination like New England. 3. Evaluate the long-term value of a house near the beach Beyond the initial purchase, consider the long-term value proposition of your beach house. Owning beachfront property can be a fantastic investment or second home, but aligning with your goals is essential. By carefully evaluating the following points, you can ensure your beach house becomes a tailor-made space that fulfills your coastal living dreams: Ownership goals: Consider whether you see this as your permanent residence, a vacation getaway you'll use occasionally or a rental property. Long-term usability: Think about the size and layout of the house and if it will comfortably fit your needs now and in the future. Property age and condition: Assess the house's condition, considering age and potential repairs. Older beach homes may require renovations. Maintenance costs: Factor in the costs of maintaining a beach house due to salt air and sand exposure. This may include routine pressure washing. Potential resale value: Consider the property's resale value in the future. While the allure of beachfront living is undeniable, factoring in the property's long-term usability is essential. If this amount of upkeep seems overwhelming, consider hiring a property manager to handle the maintenance responsibilities. 4. Complete inspections and due diligence Before finalizing any purchase, thorough inspections and due diligence are crucial to avoid unwelcome vacation home mistakes. Inspections by qualified professionals can uncover hidden costs that might not be readily apparent. These could range from structural issues due to age and wear to potential problems with plumbing or electrical systems exposed to the harsh beach environment. For example, research flood zones and storm risks in your chosen location because, while beachfront property offers stunning views, beach living might also be more susceptible to flooding or storm damage. Standard homeowners insurance typically doesn't cover flood damage, so factor in the cost of beach-specific flood insurance when calculating your second home budget. By taking these steps, you can move forward with confidence, knowing you're investing in a sound property with minimal hidden costs. Pros and cons of owning a beach house Owning a beach house offers a unique lifestyle with undeniable advantages, but it also comes with challenges and considerations that go beyond the idyllic vacation picture. Let's dive into both sides of the equation to help you decide if a beach house is the perfect fit for your dream home. Advantages of buying a beach house Owning a beach house isn't just about proximity to the water. It unlocks a lifestyle brimming with advantages: Convenience: The beach is in your backyard with this type of vacation home. Perspective: Beaches can be some of the most relaxing destinations, allowing you to gain a healthier perspective on life. Familiarity: You’ll likely see many of the same people, allowing you to develop a sense of belonging that could grow with every visit. These are just a few of the many advantages that owning a beach house can bring. But remember, the decision requires careful consideration. Disadvantages of buying a beach house While the allure of beachfront living is undeniable, it's important to acknowledge the potential drawbacks before making a significant purchase. Here are some of the challenges that come with owning a beach house: Cost: In many places, you could spend more on a beach house than you would for a house twice as big a few miles inland. Upkeep: Owning a second home brings its share of work, just like a primary home. Beachfront homes require even more attention due to salt damage. Insurance: It costs more to insure a home near the water due to the elements. By acknowledging the challenges alongside the undeniable advantages, you can make an informed decision that aligns with your lifestyle and financial goals. Things to consider when buying a beach house Beyond the idyllic vision of beachfront living lies the reality of property ownership. Here are some key considerations to factor in before diving headfirst into the beach house market: Implement financial planning: Set a realistic budget that encompasses not just the purchase price but also ongoing costs like maintenance, property taxes and insurance. Factor in potential renovations or upgrades you might desire down the line. Evaluate geological hazards: Research flood zones and erosion rates in your chosen area. A beachfront view might be tempting, but it could come with higher flood insurance premiums and long-term vulnerability to erosion. Schedule inspections: Schedule a thorough inspection by a qualified professional familiar with the specific challenges of beach houses. Consider HOA rules: If the property falls within a homeowners association (HOA), carefully review the association's rules and fees. Prepare for the salt: Install a sprinkler system to regularly wash away corrosive salt spray from the house's exterior. This can help minimize rust and extend the lifespan of your siding and other components. Manage moisture: Regularly maintain gutters and ventilation systems to prevent moisture build-up and potential mold growth. Protect against storms: Consider installing storm shutters or a hurricane protection system, especially if you live in an area prone to severe weather. They help lower insurance premiums. Meet local experts: Research and establish relationships with local contractors familiar with the specific maintenance needs of beach houses. By carefully considering these factors, you can confidently approach beach house buying. Remember, a beach house can be a magical escape, but with thoughtful planning and proactive maintenance, it can also be a sound financial decision that brings you joy for years to come. Co-own a beach home Owning a beach house might seem out of reach due to the high cost of purchasing and maintaining a waterfront property. But what if you could enjoy the benefits of beach living without the sole financial responsibility? Co-ownership through a platform like Pacaso presents an innovative solution. Pacaso offers shared ownership of luxury beach homes, allowing you to experience the joys of beachfront living at a fraction of the cost of traditional ownership. Owning a Pacaso lets you spend quality time with loved ones at your beach getaway without the hassles of maintenance and management.
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. Vacasa is the largest full-service vacation rental property management company in North America. Unlike Airbnb, which primarily functions as a listing platform connecting travelers with hosts, Vacasa distinguishes itself as a comprehensive property management company. Vacasa's unique approach caters to both homeowners and travelers, providing services that go beyond mere listings to include property management, maintenance, and customer service. Recognizing this fundamental difference between Vacasa and Airbnb is pivotal for both homeowners and travelers when selecting a service for their vacation needs. 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.
If you bought your vacation home to, well, vacation, then property maintenance and tenant management may not be exactly what you had in mind. Your job is to enjoy your holiday, so leave the hard work to the professionals, aka property managers. A property manager handles the day-to-day operations of your home so you can relax. They will typically charge around 8%-12% of rent collected to communicate with you and potential renters, and to keep the property running smoothly. So, how much does a property manager cost in 2024? We’ll break down all the factors, from property types to the climate of the housing market, that contribute to property management costs– plus, highlight which ones apply to short-term or long-term rentals. 1. Property management fee structures There are three ways property management companies can structure their costs: Percentage of the monthly rent Flat monthly fee Per-project fee Let’s explore each property management fee structure more in-depth, plus share their pros and cons. Percentage of monthly rent In this arrangement, your property management company takes an agreed-upon percentage of the rent your vacation rental generates each month. The percentage is usually between 8% and 12% of rent collected. Many factors affect the percentage a company will charge. One advantage of this model is that the property manager is incentivized to keep your property booked for as many nights as possible. However, this means they may set limits on how many nights you are allowed to use the home since it is unavailable to rent during those times. Pros Cons Property managers are incentivized to book guests Limits the time you have access to the home The property management fee can fluctuate The more rental income you earn, the higher your fees are Flat fee 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, a fixed fee may help stabilize your monthly management expenses. Using this model, you may go through periods when your property management fee only makes up a small portion of your monthly earnings. When your rental isn’t generating much income, however, it may feel like a significant expense. If you don’t intend to rent out your vacation home, a property manager could charge a flat fee to look after your property while you’re away. This is especially helpful for homeowners who live in another state or country and need to budget an average monthly property management cost. The upside to a flat monthly fee arrangement is that it makes budgeting for your operating expenses more predictable. It’s important to note that some property management companies offering flat monthly fees have a wide range of surcharges for specific tasks, like responding to after-hours maintenance emergencies. Pros Cons The property management fee is more predictable Less flexibility when unforeseen issues arise Pay the same fee despite high- and low-volume renter seasons Subject to surcharges for additional work Guaranteed income fees It’s also possible to customize the fee agreement between you and your property manager. One example is the guaranteed income arrangement. In this model, the management company guarantees the owner a consistent 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 income they think the short-term rental can generate, and keep any excess profits. So, if your property generates consistent year-round income, you might make more money with one of the other two models. If you do choose this model, make sure the wording of your contract is consistent with your goals. Pros Cons Customize your property management contract Homeowners unfamiliar with contracts have the potential to be overcharged Benefits homeowners with multiple properties May need to renegotiate prices often 2. Type of property The type of home you have can significantly affect the price a property manager will charge. For example, a detached single-family home may require more upkeep than a studio apartment, condo or similar multifamily unit. 3. Condition of the property Older homes are generally subject to more repairs and maintenance. If your property is older, you may incur higher property management fees than you would with a newer home — even if it’s been renovated. 4. Property size and amenities In general, the larger your property, the higher the property management fees will be. This is because the more square footage you have, the more space the property manager will have to manage and maintain. If your property includes special amenities that require additional or specialized maintenance, you may be charged extra. This can include things like: Pools Hot tubs Gardens Home gyms Accessory dwelling units (ADUs) 5. Location Properties in high-traffic tourist areas or harsh weather environments may be subject to higher-than-average property management fees. 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. 6. Market climate Similar to how rent prices reflect current market conditions, property manager costs can also increase depending on the state of the rental market and local economy. With this in mind, choose a fee structure tailored to your property’s expected income potential. If prices often rise in your area, consider a flat fee arrangement. 7. Rent collected vs. rent due An important distinction to bear in mind is the difference between property management fees based on rent collected vs. rent due. Here are the main differences: Rent collected: You only compensate the property management company when they successfully collect rent payments. Rent due: You pay a property management cost based on the proposed rental income — even if your rental becomes vacant. Make sure your property management contract explicitly states which model you’ll use during your partnership to avoid payment discrepancies. 8. Other typical property management fees When hiring for a property management company, look for a company that is straightforward about its fee structure and any additional setup costs or fees. Here are some additional fees property managers may charge depending on the property type.. Account setup fee When you first sign on with a property management company, they may charge a one-time $500 setup fee. This includes things like installing a digital lock, taking listing photos and taking inventory of what’s included in the home. Can apply to: Short-term and long-term rentals Advertising fee The cost of advertising your property on social media or within the property management team’s network is an additional service that could result in an advertising fee. Although this isn’t necessary, it is a good option to consider if you’re struggling to find tenants or don’t live nearby. Can apply to: Short-term and long-term rentals Bill payment fee Some property management companies may also charge a separate fee for the hours spent paying recurring bills like homeowners association (HOA) dues, utilities or even the property’s mortgage. This fee is typically around 4% of expected revenue and can increase when multiple properties’ bills are involved. Can apply to: Short-term and long-term rentals Early termination fee This fee is only applicable when homeowners terminate their contract with a property management company earlier than expected. Can apply to: Short-term and long-term rentals Eviction fee Evictions can result in court appearances and costly legal fees. The total amount of this fee may depend on how time-consuming the eviction process is on a case-by-case basis. Can apply to: Long-term rentals Late or unpaid service payment fee When homeowners are late on their property management payments or don’t pay them at all, a property manager may charge an absence of payment fee. Can apply to: Short-term and long-term rentals Lease renewal fee Since a lease renewal potentially reflects your property manager’s sound performance, some property management companies may charge a small fee for every lease they’re able to renew. A 2% fee may occur when extra negotiation is necessary to maintain the same tenant and keep the rental unit cash flowing. Can apply to: Long-term rentals Maintenance fee Most contracts cover basic maintenance in their fees but often limit what they include. 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. Can apply to: Short-term and long-term rentals New tenant placement fee Whenever a property manager secures a new tenant or lease, you may have to pay an additional fee equal to 2% of your rental’s revenue. Some management agreements also include the cost of cleaning the property between renters. Others separate this into a per-cleaning fee. If it’s the latter, you’ll likely want to pass this cost along to your renters. Can apply to: Long-term rentals Reserve fund fee A reserve fund is what some property managers use when unexpected fees arise or when they need to pay recurring bills on your behalf. This may be an ongoing cost since you may need to refill the fund when it gets low. Can apply to: Short-term and long-term rentals Returned check fee A property manager may charge anytime you or a renter provides a bounced check or invalid form of payment that results in an additional round of payment processing. Can apply to: Short-term and long-term rentals Vacancy fee Depending on your agreed-upon fee structure, some property managers may make less when your property is vacant. In that case, a vacancy fee can give the property manager the funds to continue maintaining the property. Can apply to: Short-term and long-term rentals So, how much do property managers charge? Although their base fee can be 8% to 12% of the rent, there is a long list of additional fees to factor into the total cost, leading some homeowners to DIY property management. If learning how to manage a second home or vacation property doesn’t sound like the right fit for you, consider becoming a co-owner of a fully managed second home. Every Pacaso second home comes with its own dedicated property management team so you can focus on your vacation — not maintenance.
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.
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.
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.
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.
Dreaming of owning your own private getaway? Vacation home financing can turn that dream into reality. Unlike primary residences, financing a vacation home comes with its own set of requirements and considerations. Our comprehensive guide will equip you with the knowledge to navigate the process, from understanding what lenders look for to choosing the right loan option. Vacation home financing requirements Lenders will assess your financial readiness. Here are the key factors they consider: Adequate credit score: Aim for a credit score of 620 or higher to qualify for the most favorable interest rates. Acceptable DTI ratio: A debt-to-income ratio of 45% or below demonstrates your ability to manage additional debt. Sufficient assets: Lenders consider your overall asset accumulation when determining whether you are eligible for a mortgage, especially for a luxury home. Down payment: Generally, lenders expect you to put down at least 10% of the home’s purchase price. Lenders look for these factors to assess two key things: your creditworthiness and your ability to repay the loan. These factors help them determine the risk of lending you money. Getting ahead of what lenders are looking for is a great way of positioning yourself for a smoother loan application process. Necessary financial documents Gathering the required documents streamlines the loan application process. Here's what you'll typically need. Financial statements: Provide proof of income and employment, such as pay stubs and tax returns. List of monthly debts: Include existing loans, credit card balances and any other monthly obligations. Recent mortgage statements: If you own another property, include statements demonstrating responsible debt management. With all the documentation readily available, lenders can efficiently assess your financial situation and confirm your qualifications. Options for financing a vacation home Understanding your financing options is crucial when applying for a vacation home loan. Here's a breakdown of some popular loan types. Traditional mortgages A traditional vacation home mortgage typically requires a down payment of 10% or more. Traditional mortgages are a good option for borrowers with strong credit scores and access to a substantial down payment. Although this type of loan normally applies to a primary residence purchase, it can be an option for financing vacation homes. Fixed-rate mortgages Fixed-rate mortgages provide peace of mind with a consistent monthly payment throughout the loan term. This level of predictability allows for easier budgeting as you'll know exactly how much your monthly second home mortgage payment will be, regardless of fluctuations in interest rates. This type of loan is one of the best vacation home financing options for those who prioritize stability and dislike the uncertainty of variable rates. Adjustable-rate mortgages Adjustable-rate mortgages (ARMs) have a fixed interest rate for an initial period, then periodically “adjust” the rate on the outstanding balance. Lenders take on less risk during the fixed-rate introductory period. Compared to fixed-rate mortgages, an adjustable-rate mortgage can entice borrowers with its lower initial interest rate. This may be attractive if you plan to sell the property before the introductory period ends. However, the interest rate on an ARM adjusts periodically. These adjustments can significantly impact your monthly payment: Index rate changes: Changes in the financial index used to adjust the interest rate, like the prime rate, directly impact your ARM's interest rate and potentially your monthly payment. Initial interest rate: The lower introductory rate on an ARM is enticing, but it's important to consider the length of the fixed-rate period. A shorter fixed period means your rate adjusts sooner, potentially exposing you to market fluctuations. Payment caps: ARMs often limit how much the monthly payment can increase or decrease with each adjustment. These caps can prevent drastic payment changes but also extend the loan term if the interest rate increases significantly. Due to the potential volatility, ARMs are best for borrowers who feel comfortable with risk and plan to hold onto a second home for a shorter time. VA loans The Department of Veterans Affairs offers VA loans to eligible veterans and service members with favorable terms and often doesn’t require a down payment for a vacation home. VA loans are a fantastic benefit for veterans seeking to purchase a vacation home. Qualifying veterans can enjoy competitive interest rates, relaxed credit score requirements and the potential to skip the down payment altogether. Jumbo loans Jumbo loans are designed for properties exceeding conforming loan limits set by government-backed entities like Fannie Mae and Freddie Mac. Jumbo loans come from private lenders and may have slightly higher interest rates than conforming loans. However, they cater to the luxury second home market, allowing you to finance that mountaintop or beachfront property. How to choose a lender for a vacation home When it comes to securing financing for your vacation home, choosing the right lender is crucial. Allow these steps to guide you. Research lender options Explore interest rates, loan terms and fees offered by various lenders, including banks, credit unions and online lenders. The more options you consider, the better your chance of finding the most competitive deal. Compare interest rates and loan terms Getting the first offer shouldn't be the end of the road. Compare the interest rates and loan terms from different lenders to find the one that aligns best with your financial goals and budget. Don't hesitate to leverage competing offers to get a better deal. Seek recommendations Talk to real estate professionals, friends or family who have financed vacation homes. Their insights and referrals can be invaluable in helping you find a reputable and trustworthy lender with experience in vacation home financing. By comparing multiple lenders, you ensure you're getting the best rate and terms. Recommendations can also give you peace of mind, knowing you're working with a qualified lender who understands the unique aspects of vacation home financing. Legal and tax considerations Before finalizing your vacation home purchase, you must remember some legal and tax considerations. Research zoning and regulatory compliance Ensure the property follows local zoning regulations. If you plan on renting out your vacation home for short-term stays, be aware of any restrictions on such rentals in the area. Review HOA rules Familiarize yourself with any homeowners association (HOA) fees and regulations associated with the property. These fees can impact your budget and how you utilize the vacation home. Research HOA rules upfront to avoid any surprises down the road. Skipping either step could result in unexpected limitations on using your property and affect the ultimate cost of second home ownership. Tips for securing financing Now that you understand the loan options and considerations, here's what you can do to solidify your financing. Strengthen your credit profile Demonstrate your financial responsibility by paying down debt, addressing errors on your credit report and aiming for a higher credit score. A strong credit score translates to better interest rates and loan terms. The better your credit score, the more favorable loan options you'll qualify for. Explore down payment assistance programs Research down payment assistance programs that might be available to help you reach your down payment goals. These programs can significantly reduce the upfront financial burden of purchasing a vacation home, making vacation home ownership more accessible. Invest strategically for a larger down payment Consider investing a portion of your savings to accumulate a larger down payment. This will improve your chances of loan approval and qualify you for more favorable loan terms, potentially lowering your monthly payments. A larger down payment can save you money in the long run through lower interest rates and potentially private mortgage insurance (PMI) avoidance. Financing vacation homes with Pacaso You've successfully explored the essential steps to navigating vacation home financing. By understanding the requirements, loan options and key considerations, you can make your dream getaway a reality. However, for some, traditional vacation home ownership might not align with their lifestyle or financial goals. You'll need to consider the complexities of managing a property remotely, potential vacancy periods and ongoing maintenance costs. Pacaso offers a smart alternative: co-ownership of a turnkey vacation property. This approach allows you to enjoy the perks of vacation home ownership without the sole responsibility and associated costs. Pacaso handles everything from property management and maintenance to booking reservations, ensuring a hassle-free ownership experience.
With a blend of comfort and privacy, vacation homes are tailor-made for creating lasting memories with family and friends. However, with so many types of vacation homes available, choosing the right one may feel overwhelming at first. Our guide explores the 20 most popular vacation home options, reveals their pros and cons, and offers helpful tips to navigate your search. 1. Condominiums Best for: Groups, first-time vacation home buyers, urban getaways Condominiums are multi-family units within a larger building. Condos are a convenient, relatively low-maintenance option and may feature luxury amenities like pools, fitness centers and security precautions. Consider a condo if you're looking for a vacation home in a city or easy access to urban attractions. Pros Cons Multi-family units may be more affordable Neighbors may share a wall Low maintenance HOA restrictions are common Security features may include gated entry Not ideal for large groups 2. Villas Best for: Multi-generational vacations, luxurious stays, nature lovers Villas are typically larger, freestanding homes offering ample space and privacy in a tranquil or tropical setting. They often boast world-class features like private pools, stunning views and expansive gardens. A villa’s luxury interior design may feature multiple indoor and outdoor areas to lounge in, all while embracing the surrounding natural environment. Pros Cons Spacious and private Potentially higher costs Luxurious amenities Often in remote locations Stunning locations Potentially more maintenance due to proximity to nature 3. Cottages Best for: Romantic getaways, cozy retreats, budget-conscious travelers Cottages offer a charming escape for those seeking a simpler, more intimate vacation experience. These quaint dwellings often feature fireplaces and rustic decor. This type of accommodation is ideal for couples or small families looking to get away from the hustle and bustle of city life and spend quality time together. Pros Cons Often affordable year-round Space is tight Typically nestled somewhere peaceful Fewer amenities may be available Perfect for creating memories together Remote locations may require a car 4. Cabins Best for: Nature lovers, rustic adventures, off-the-grid experiences A cabin serves as the perfect mountain getaway. Cabins are usually located in forest settings and some have sustainable design for off-the-grid use. You’ll likely be close to outdoor activities like hiking, mountain biking or bird watching. A cabin is a great option for those who want to enjoy a comfort level above camping while still having nature at your doorstep. Pros Cons Easily immerse yourself in nature Space is tight Often pet friendly Fewer amenities may be available A comfortable version of camping Bugs may be more common 5. Chalets Best for: Winter vacations, ski trips, large groups Chalets are quintessential modern mountain homes inspired by Swiss architecture. Built for snowy climates, they feature recognizable steeply pitched roofs with wide, overhanging eaves that shed snow effectively. These cozy dwellings are ideal for winter vacations and enjoying stunning mountain vistas — making them perfect for hosting a ski trip. Pros Cons Perfect for enjoying winter sports May be too expensive for small groups Scenic views are usually abundant May be inaccessible during heavy snowfall Good for groups Potentially higher heating costs 6. Single-family homes Best for: Families, large groups, flexibility for renovations and customization Single-family vacation homes are the best type of house for people who value privacy and space. This option offers a true home-away-from-home experience with potential amenities like a garage and backyard. Perfect for large families or groups traveling together, single-family homes provide the freedom to come and go without sharing walls or common areas with neighbors. Pros Cons Buyers can often customize with ease Higher maintenance costs Ample amounts of space Property taxes and insurance Vacationers don’t share walls May be located in the suburbs, far from urban areas and things to do 7. Beach houses Best for: Sun and water enthusiasts, families with children Beach houses offer the quintessential coastal retreat, putting you steps away from the sand and surf. Imagine waking up to the sound of crashing waves, spending your days sunbathing and enjoying breathtaking sunrises or sunsets. A beach house is perfect for families with children or water enthusiasts who want to indulge in water sports like surfing, kayaking or paddleboarding. Pros Cons Easy beach access Exposed to storms Perfect for on-the-water activities High demand may lead to higher price Water views May attract sand erosion 8. Lake houses Best for: Water lovers, fishing trips, peaceful retreats A lake house can be a waterfront oasis or close to a freshwater lake. If you’re seeking a tranquil vacation experience surrounded by nature, look no further. Lake houses are perfect for those who want easy access to the water from a private dock. They also provide a peaceful retreat for those seeking relaxation and a deep connection with nature. Pros Cons Ideal for boating and fishing Potential algae blooms Easy access to water activities Plenty of maintenance considerations Potential for a private dock May not have access during the winter 9. Mansions Best for: Extended family visits, extravagant gatherings, an abundance of space Mansions are arguably the most luxurious type of vacation property available. They are perfect for large families who need lots of space, grand celebrations or those seeking a high-class vacation experience. These estates boast expansive living areas, multiple bedrooms and bathrooms, and lavish features like wine cellars, home theaters and game rooms. Pros Cons Unmatched luxury Extremely high cost Loads of space Loads of space to clean Perfect for entertaining Potentially limited availability 10. Townhomes Best for: Urban adventures, first-time vacation home buyers, young couples Townhomes blend condo-style living with the feel of a single-family home. These multi-story residences share one or two walls with neighboring units but have their own private entrances and, often, small yards or patios. Townhomes are great for vacationers seeking an urban escape with easy access to restaurants, shops and attractions. They can also be a good option for first-time vacation home buyers due to lower price points compared to detached single-family homes. Pros Cons Frequently situated in walkable urban areas Shared walls Low-maintenance living Possible HOA restrictions Access to shared amenities Minimal outdoor space 11. Apartments Best for: Short stays, budget-conscious travelers, city exploration An apartment is a convenient and affordable option for shorter vacations in cities or neighboring suburbs. You will often find these multi-family units within large complexes. They provide basic living amenities and a place to rest your head after a day of exploring. Apartments come in many styles, containing both luxury and budget-friendly vacation accommodations. Pros Cons Budget-friendly Less privacy Prime locations Fewer amenities Minimal maintenance Rent may go up 12. Studios Best for: Solo travelers, short stays, budget-conscious adventurers Studios are compact living spaces with affordability as its biggest perk. They are often in prime urban locations that put you steps away from the action. Plus, with minimal cleaning required in a single space, travelers can maximize their time exploring a destination. Pros Cons Very affordable Very limited space Prime city locations Lack of privacy if sharing Low maintenance Limited amenities 13. Timeshares Best for: Travelers who frequent the same destination, families who need kids clubs Owning a timeshare at a specific resort usually ensures you'll have a place to stay during your preferred travel week, year after year. This can be a good option for families who return to the same location every year, especially if the timeshare offers desired amenities like pools, kids clubs or on-site restaurants. Pros Cons Guaranteed accommodations Limited flexibility Little maintenance necessary Ongoing costs Plenty of amenities and activities Potential resale challenges 14. Short-term rentals Best for: Flexible travelers, getting a variety of locations, experiencing a local area Short-term rentals come in a wide array of options, and you can book multiple places depending on your itinerary and proximity to daily activities. This flexibility allows you to find the perfect types of vacation rentals for your needs and budget in almost any location, providing a more customizable vacation experience. Staying in a short-term rental may feel more immersive than a hotel or other multi-family unit accommodations. Pros Cons Variety and flexibility Variable quality Range of prices Potential for hidden fees Easy to book online Uncertain availability 15. Aparthotels Best for: Extended stays, travelers who like hotel amenities with a homey feel Aparthotels, or condotels, are a hybrid solution for travelers who crave both hotel amenities and the space of an apartment or condo. They allow guests to enjoy housekeeping services and on-site restaurants like a hotel while also having the comfort of a separate living area, kitchen and bedrooms in a multifamily unit. Pros Cons Hotel amenities and services Higher cost than apartments Apartment-style living Fewer amenities than traditional hotels Easy to book online Cookie-cutter aesthetic 16. Lodges Best for: Nature enthusiasts, adventure seekers, social travelers Lodges are full of rustic charm and a sense of remoteness, perfect for those seeking an escape into nature. Many lodges provide staff-guided adventures and excursions, allowing you to fully immerse yourself in the natural environment. The communal atmosphere of lodges fosters social interaction with fellow travelers, creating a unique opportunity to share stories and experiences while vacationing. Pros Cons Immersion in nature Remote locations Social atmosphere Limited privacy Excursions available Social settings may not suit families 17. Bungalows Best for: Budget-minded travelers, couples, small families Bungalows are single-story dwellings known for their compact size and charm. They offer a cozy, affordable option for couples or small families who want to share a small space. The simple layout with minimal living space encourages quality time together. You will often find bungalows in beach towns or scenic locations, providing a relaxing atmosphere close to nature. Pros Cons A sense of intimacy and togetherness Might be unavailable in urban areas Often found in charming beach towns May be difficult to find a new model Budget-friendly Limited space 18. RVs Best for: Adventurous travelers seeking freedom and flexibility, road trip enthusiasts RVs, or recreational vehicles, are the poster child of travel flexibility while vacationing. They come in various sizes and offer a range of amenities, from basic campervans to luxurious motorhomes. This allows you to customize your experience and choose a vehicle that satisfies your vacation needs. RV parks can provide convenient overnight locations with amenities like hookups for electricity and water. Pros Cons Ultimate flexibility Campsite unavailability Variety of options Driving requirements Doubles as a vehicle Routine maintenance 19. Houseboats Best for: Nature lovers who enjoy waterfront living, families seeking adventure Houseboats are a great way to vacation on lakes and rivers. Cruise waterways in some of the country's most relaxing vacation destinations. Houseboats generally come equipped with all the amenities you need for a comfortable stay, including a small kitchen, living area, bathroom and potentially multiple bedrooms. Drop anchor at a nearby marina to explore coastal towns whenever you miss solid ground. Pros Cons Waterfront living Limited availability An unforgettable vacation Operating challenges Doubles as a vehicle Unique maintenance responsibilities 20. Unusual homes Best for: Thrill seekers, those wanting a unique vacation Unusual homes represent a chance to stay in one-of-a-kind or quirky accommodations, from tree houses nestled in a forest to converted windmills and traditional yurts. These unique properties provide an unforgettable experience and a chance to connect with nature in an innovative or time-honored way. This vacation home option is perfect for avid travelers who want to try something new. Pros Cons Unforgettable experience Variable amenities Available worldwide Potentially remote locations Try something new Generally higher costs Tips for choosing a vacation home type Here are some key factors to help you narrow down your search and find your perfect vacation housing. Be clear on its intended use Imagine how you will use the vacation home. Large families may prioritize spacious layouts with multiple bedrooms and bathrooms. Empty nesters, however, might prefer a cozy cottage or bungalow. Consider whether you'll be hosting extended family or friends or if it's primarily for solo adventures or couples' retreats. Consider your budget Look beyond the cost of buying or renting the home. Factor in ongoing costs like mortgage payments (if financing), insurance, property taxes, utilities, maintenance and potential HOA fees. Consider how much you're realistically comfortable spending and choose a property type that aligns with your budget. Calculate travel logistics Think about how you'll get to and from your vacation home. Consider travel costs like gas and flights, travel time and ease of accessibility. If easy access to restaurants and attractions is important, prioritize central locations. For a secluded escape, consider a more remote cabin or beach house. Decide how remote you want to be Understand what sacrifices you’re willing to make to unplug. Remote locations offer tranquility and privacy but may have limited services or require longer travel times. On the other hand, urban or suburban vacation homes provide convenience and proximity to shops, restaurants and entertainment — but these options may come with more noise and less seclusion. Determine if you’ll rent it out Consider offsetting ownership costs by renting out your vacation home. Some properties, like condos or beach houses, may have better rental potential than others due to their year-round availability. Research local rental regulations and consider the ongoing management responsibilities before purchasing. Ready to find the best vacation home? With so many types of vacation homes available, there are sure to be a few options that best suit your and your loved ones' needs. Beyond the initial excitement, however, the prospect of managing and maintaining your vacation home on your own may feel daunting. That's why second home co-ownership is an exciting alternative for vacationers. Pacaso allows you to experience all the benefits of owning a luxury vacation home without having to pay the full cost of the property or deal with maintenance and upkeep. By sharing ownership with a qualified group of buyers, you gain access to your dream property while splitting the ongoing expenses and responsibilities. Explore our listings to find a dream home in your happy place.
Decorating a home from scratch can be daunting. Even redecorating part of your home can feel overwhelming. 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 heading into 2024, including: And because decorating should be fun, we’ve even created a game to test your knowledge of interior design basics you need to know. 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 2024 With so many popular 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 are having a moment. Here are the top trending styles we’re seeing in 2024. 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 scheme, 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 and stands the test of time 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 The traditional interior design style 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 pieces 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 the contemporary interior design style. 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 interior design 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 interior design 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 interior 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 and accessories typically have 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 and adds a modern twist, integrating clean lined and a bright feel. 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. Designing your home in your preferred style Discovering your unique interior design style is an exciting endeavor. Yet, maintaining a cohesive design throughout your home demands thoughtful consideration and, often, professional guidance. You can employ a skilled interior designer to ensure that your vision translates into a harmonious and aesthetically pleasing living space. If you're looking for a second home, you can also consider innovative solutions like fully managed co-ownership modelslike Pacaso. Pacaso not only provides co-ownership of a luxurious vacation home, but also professionally designs and fully furnishes each home so you find one that fits your preferred design style without the need for interior designer. Your second home is ready to enjoy, and the design cost is built into your cost of ownership. Whether through personal research, a designer's expertise or co-ownership models, a personalized and cohesive interior design can make a difference in your everyday living. Interested in Pacaso? Browse our luxury listings and find your dream home today.
From buying a vacation home to funding your next investment property, taking out a home equity loan to buy another house can make your homebuyer dreams a reality. Although you can use a home equity loan to fund a down payment, there are several pros and cons you should consider. Our guide breaks down what a home equity loan is, how to get a second mortgage with the loan, and potential alternatives — like a home equity line of credit (HELOC) for second home purchases. Consult with a financial advisor to ensure that this aligns with your overall financial strategy and that you fully understand the terms and potential risks involved. What is a home equity loan? A home equity loan allows homeowners to borrow money by using the equity in their home as collateral. Equity is the difference between the market value of your home and the outstanding balance on any existing mortgage. Not to be confused with HELOC, home equity loans are lump sum amounts. Both funding sources, however, are exclusively for current homeowners looking for a second home down payment option. Here are the main characteristics of this loan type: Loan amount: Lenders may allow you to borrow a percentage of your home's appraised value minus the outstanding mortgage balance. Interest rate: Home equity loans often have fixed interest rates, meaning the interest rate remains constant over the life of the loan. Repayment terms: Home equity loans are typically structured as fixed monthly payments over a set period. Collateral: The home serves as collateral for the loan. It’s important to note that if you fail to repay the loan according to the terms, the lender can potentially foreclose on your property. Can I use my house equity to buy another house? Yes, it is possible to use the equity in your current house to buy another house. Although specific scenarios warrant using a home equity loan, you should use one prudently to prevent financial instability. When to use a home equity loan Using a home equity loan can be a strategic financial move in a few situations, such as: Long-term investments: Since repayment terms can last years, long-term real estate investments are ideal candidates for a home equity loan. Debt consolidation: If you have high-interest debts from past property purchases, consolidating them with a home equity loan at a lower interest rate may save you money. Emergency expenses: If you need to fund a new home purchase on short notice, your available equity may be able to help secure a house during an emergency. For the right circumstances, a home equity loan can be the key to owning multiple homes. However, there are other considerations to take into account before borrowing. When to avoid a home equity loan Unless you’re investing in a home for the reasons above, you may want to consider avoiding a home equity loan a funding options — especially for the following reasons: Unstable financial situation: If your financial situation is uncertain or if you anticipate a decrease in income, taking on additional debt through a home equity loan may not be advisable. Short-term ventures: If you only need funds for a short period, a home equity loan with its long-term repayment plan may not be the most cost-effective solution. Risky investments: Using a home equity loan to invest in high-risk ventures can be financially hazardous. Before using a home equity loan, carefully evaluate your financial goals, purpose and ability to repay. How to get a home equity loan to buy another house From budgeting to closing on the loan, let’s explore everything you need to do to get a home equity loan to buy another house. 1. Decide on a budget Before diving into the process of obtaining a home equity loan to purchase another house, it's crucial to establish a clear budget. Assess your current financial situation, including your: Income: Calculate how much money you’ll earn while the loan repayment terms are active. Expenses: Calculate what your estimated expenses will be during the life of the loan. Outstanding debts: Have a firm grasp on other debt you must pay off before adding a new loan into the mix. A well-defined budget can guide your decisions, ensuring you pursue a home equity loan that aligns with your financial capabilities and homeownership goals. 2. Gather your financial information Once you have a budget, the next step is to gather all the necessary financial information. This typically includes: Proof of income: Recent pay stubs may be the most reliable way to verify your current income. W-2 or 1099 forms may also suffice. Tax returns: Provide copies of your federal income tax returns for the past two years. Business owners can also provide business returns for the same period. Existing mortgage information: Provide statements for your current mortgage detailing the outstanding balance, interest rate and payments. Property details: Gather as much information as possible about the second home you intend to purchase with this loan. Lenders will use this information to assess your home equity loan eligibility and determine the loan amount and terms. 3. Shop around for lenders With your financial information in hand, it's time to explore different lenders and loan options. Shop around to compare: Interest rates: Search for the best fixed-interest rate loan available. The rate you qualify for depends on your credit score, loan amount and loan-to-value ratio. Loan terms: Consider the length of the repayment period. Shorter terms may have higher monthly payments but lower overall interest costs. Fees: Understand the additional costs of obtaining a home equity loan with a prospective lender. Consider traditional banks, credit unions and online lenders to find the best fit for your needs. Remember that the goal is not just to secure a loan but to secure the most favorable terms. 4. Apply for a home equity loan After you've identified a suitable lender, you can initiate the application process. Complete the required forms, provide accurate information and be prepared for additional documentation requests. The lender will likely thoroughly review your financial history, credit score and the value of your primary residence. Timely and transparent cooperation during this stage can expedite the approval process and potentially increase the chances of obtaining a home equity loan on favorable terms. 5. Close on the loan application Upon approval, the final step is a closing meeting to sign the necessary paperwork, which includes the loan agreement and other legal documents. Be sure you fully understand the terms and conditions before finalizing the process to make an informed financial decision. Closing completes the transaction, allowing you to access the funds from your home equity loan. Pros and cons of using a home equity loan to buy another house As with any kind of loan, there are advantages and disadvantages to using home equity loans to fund your next home purchase. Pay close attention to the pros and cons of home equity loans to ensure that this type of financing option is right for your homeownership goals. Advantages of a home equity loan A home equity loan can offer homeowners a powerful financial tool, providing access to funds based on the equity accumulated in their property. Increase your down payment size: A larger down payment may enhance your negotiating power and result in better mortgage terms. Overcome financing challenges: If you're facing challenges securing financing for a new home, a home equity loan can be a viable solution. Lower interest rates: Home equity loans often come with lower rates than unsecured loans or credit cards. Since these loans are unique to current homeowners, you’ll also benefit from your prior financing application experience. Disadvantages of a home equity loan Despite the benefits, home equity loans have certain drawbacks. Understanding the potential disadvantages is essential before agreeing to a loan. Trading assets for debt: A home equity loan involves using your home as collateral, putting it at risk if you cannot meet the repayment obligations. Three mortgages for two homes: Juggling multiple loans can be complex, requiring diligent financial management to avoid potential challenges. Subject to equity loss: If your equity on your primary home drops, this could affect your ability to finance your second home purchase. Before pursuing a home equity loan, weigh the advantages and disadvantages to mitigate as much financial risk as possible. Alternatives to using a home equity loan to buy another house While a home equity loan is one option for financing the purchase of another house, there are a few other alternatives worth considering. HELOC A home equity line of credit is a flexible financing option that allows homeowners to borrow against their home equity on an as-needed basis. A HELOC provides a revolving line of credit, allowing you to borrow funds when needed. This can be advantageous for financing a new property since you can draw funds as expenses arise during the buying process. However, managing your borrowing and repayment is crucial to avoid unnecessarily increasing debt. HELOCs often come with variable interest rates, which means your payments will likely fluctuate based on market conditions. While this can lead to potential savings during periods of lower interest rates, it also introduces the risk of higher payments if rates rise. Personal loan Another alternative to a home equity loan is a personal loan, an unsecured loan that doesn't require collateral. Since personal loans don’t use your home as collateral, you won’t have the risk of losing your property in case of default. While personal loans offer flexibility, they may have higher interest rates than home equity loans or HELOCs. Additionally, the loan amount may be more limited, making assessing whether the funds available meet your property purchasing needs is important. Reverse mortgage Homeowners over 62 may qualify for a reverse mortgage. A reverse mortgage allows you to convert a portion of your home equity into cash. One unique feature of a reverse mortgage is that repayment is typically not required until the homeowner sells the home, moves out of the home or passes away. Interest accrues over time and is added to the loan balance. See more about Home Equity Conversion Mortgages (HECM) qualifications here. Cash-out refinance Similar to a reverse mortgage, a cash-out refinance involves refinancing your existing mortgage for a higher amount than you currently owe. You receive the excess funds in cash. It's important to carefully assess the impact of increasing your mortgage amount, as this will result in higher monthly payments and potentially a longer repayment period. Additionally, be mindful of closing costs associated with the refinancing process. Using a home equity loan to buy another house is a simple five-step process that, under the right conditions, can help you afford your next home purchase. Remember to factor in the overall cost of buying another home by factoring in potential down payments, closing costs and future mortgage payments. If being the sole owner of your second home isn’t the direction you want to pursue, consider fractional ownership as an alternative. With Pacaso, you can become a co-owner of a fully managed, turnkey vacation home at a fraction of the price of sole ownership.
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.
With careful planning, buying a second home for investment purposes can potentially help you generate passive income and prepare you for an early retirement. What is an investment property, you ask? If you plan to generate income from value appreciation or renting, your second home can become an investment property. Unlike conventional investment products such as mutual funds and stocks, purchasing a second home for investment entails additional costs like maintenance, insurance and property taxes. But it also may offer some tax benefits. A simple cost/benefit analysis can help you decide if a second home investment property is right for you. Answering the following questions can also point you in the right direction. How much do second homes really cost? The median U.S. home price is $389,500. However, 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 A property manager (if needed) 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 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 investing. 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. Pros Cons Allows you to enjoy your second home whenever you want Provides no active income streams May not require a property manager Requires higher insurance rates because it's not a primary residence Avoids hassles and damage from renters May require paid services for lawn care and snow removal Easier to finance than a rental property Buying a second house to rent is a different story. 2. Short-term rental Renting out a second home to short-term tenants has grown in popularity. Here’s what you need to know about doing the same with your property. Pros Cons Can use it as a personal vacation home More expensive in popular destinations Generates an income stream to help defray mortgage and maintenance costs Must be furnished and decorated upfront Undergoes frequent maintenance and cleaning for guests, helping it maintain value Requires you to maintain an active listing on a short-term rental site Positions you as the responsible party for guest problems, complaints, etc. May not be allowed under HOA regulations or local laws May not provide consistent income if reservations fluctuate May require a business insurance policy in addition to higher insurance rates 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. Pros Cons Provides a reasonably consistent income stream May not be as lucrative as a short-term rental Requires less work than a short-term rental Puts more wear and tear on the house than short-term rentals Allows you to vet home occupants before renting to them May create additional hassle if renters don't pay Doesn’t require furnishing, decorating or household items May sit vacant for long periods without viable rental applicants 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 considering investing in a second home, you can expect higher interest rates, down payments and credit score requirements on a mortgage for investment properties compared to primary and second homes. The criteria lenders use to determine taxable rental income and tax benefits for second homes are often similar to those the IRS and tax professionals use. 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 for 14 days or more each year Cannot be used as a rental property for 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 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 the average rent 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 know if a second home “business” is a smart investment for you. Co-ownership option If buying a second home for investment purposes sounds like too much of a hassle, consider becoming a co-owner of a turnkey and fully managed vacation home with Pacaso. Own a share of a home, starting at 1/8, and enjoy it several times throughout the year while saving on the total cost of ownership. Plus, Pacaso takes care of the maintenance, taxes and bill payment responsibilities so you can focus on enjoying your second home. It's not a timeshare — you can sell your portion of ownership on the Pacaso marketplace if you decide later to move on. DISCLAIMER: 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.
Dreaming of owning your first — or second home — in 2024? Our free down payment calculator is a great first step in the buying process. We crunch the numbers to estimate how much home you can afford and how much cash you’ll need, plus share helpful tips to discover your ideal down payment. Disclaimer: 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. How to use the down payment calculator To use our house down payment calculator, you’ll need to pull together some financial data, enter it into the calculator and review your results. Here’s how to use the down payment calculator. Step 1: Gather home data Assemble the financial information relevant to the home you want to purchase. Here’s what you need: Home price: The total cost of the home you want to purchase. Down payment percentage: The percentage of the home price that you will pay upfront in cash. Interest rate: The annual cost of borrowing money from a lender as a percentage determines the amount of interest you will pay. Loan terms: The loan duration as determined by the National Association of Realtors, typically 15, 20 or 30 years. Closing costs: These are additional fees (on top of the listed home price) that you’ll pay during the finalization of the home purchase. They are typically a flat percentage of the home price. Step 2: Enter your data into the calculator Next, you’ll enter your data into the calculator. Double-check that you insert your information correctly since these inputs will affect your results. When you are ready to review your results, click “Calculate.” Step 3: Review your results Once the calculations are complete, it’s time to see how much down payment you can afford for this home price. Down payment: The amount you’ll need in “cash” to afford a home at this price. It’s essentially what you need to be ready to pay upfront. Monthly payment: The amount you can expect to pay in monthly mortgage payments. Total home price: The total home price, including mortgage interest. Loan amount: The home price minus your down payment — equates to the amount of money you’ll need to borrow from a lender. Closing costs: The dollar amount you expect to pay in fees when closing on your new home. Now that you know how to calculate down payment estimations with our calculator, let’s explore the manual way to calculate down payments. How do I estimate a down payment manually? Simple formula: Home price x down payment percentage = down payment in cash Here’s a step-by-step walkthrough of estimating your down payment, which will help you determine if you can afford a million-dollar home. Obtain the home price: In this case, your target home price is $1,000,000. Confirm the down payment percentage: Find the necessary down payment percentage for the home purchase. Let’s assume it’s 20% (or “.2”) for this example. Plug your numbers into the equation: 1,000,000 x .2 = 200,000. Review your results: Your resulting down payment will be $200,000. You can use this process to calculate the down payment for any home, but understanding the long-term costs is also important. Down payment calculator example Here’s an example of how the home down payment calculator works using a theoretical home listed at $500,000. Using the manual method above, you can estimate $100,000, but we’ve also broken down additional calculations below to paint the full picture and help you better evaluate. Home price: $500,000 Down payment percentage: 20% Interest rate: 5% Loan terms: 30 years Closing costs: 3% Result Calculation example Down payment: $100,000 500,000 x .2 = 100,000 Monthly payment: $2,147 (400,000 x ((0.05/12×(1+0.05/12)^360/(1+0.05/12)^360−1))/360) = 2,147.29 Closing costs: $25,000 500,000 x .05 = 25,000 Total home price: $773,024 2,147.29 x 360 = 773,024.4 Loan amount: $400,000 500,000 - 100,000 = 400,000 Tips to figure out the right down payment amount for you To ensure that you’re able to achieve your home ownership goals and remain financially healthy, keep the following tips in mind while using our mortgage down payment calculator. Assess your financial situation Before embarking on the home buying process, review your financial situation. Take stock of the following factors that can influence your down payment amount: Income and expenses: Evaluate your monthly income against essential expenses to determine how much you can comfortably afford. Credit score: A higher credit score may open doors to better mortgage terms, affecting your down payment requirements. Debt-to-Income ratio: Compare your debt-to-income ratio — a lower ratio can improve your borrowing capacity. Emergency fund: Establish a safety net for unexpected expenses to avoid compromising your down payment funds. Market conditions: Research current real estate market conditions to understand home price trends in the location of your ideal home. Future goals: Consider your long-term financial goals and how homeownership fits into your overall financial plan. Your financial situation doesn’t need to be perfect to qualify for a home, but a healthy amount of savings can help smooth the home buying process. Consider your funding options There are several ways to source the cash you need for a down payment. Here are a few funding options to consider: Savings: Using savings avoids additional debt and may help with negotiations, as it demonstrates financial responsibility to lenders. Piggyback loans: This involves taking out a second loan, often a home equity loan or line of credit, to cover part of the down payment. Down payment assistance programs: These programs provide financial aid to eligible homebuyers, especially first-time buyers with limited financial resources. IRA (Individual Retirement Account): Some first-time homebuyers may qualify for penalty-free withdrawals (up to a certain limit) from their traditional IRA to fund a down payment. 401(k): Some individuals may consider borrowing from their 401(k) through a loan or a hardship withdrawal. Carefully evaluate the pros and cons of each funding option based on your financial situation and long-term goals. Consulting a financial advisor can provide personalized guidance for your home ownership goals. Anticipate closing costs In general, closing costs are typically around 2% to 7% of the purchase price. Adding closing costs to your upfront payments can help you know how much you can afford as a down payment. If you don’t pay closing costs in cash upfront, they’ll roll into your mortgage and can affect your monthly payments and the amount of interest you pay during the duration of your loan. Choose a loan with care While lenders are motivated to provide you with the highest possible loan amount due to interest incentives, it's important to note that qualifying for a large loan doesn't automatically mean it's in your best interest to accept the full amount. Saving for a higher down payment that reduces your loan amount may benefit your financial health in the long run. In terms of the length of a loan: Longer loan lengths may create smaller monthly payments. Shorter loans generally mean you’re paying less in interest over time. What to look at when calculating a second home down payment When buying a second home, prospective homeowners can employ a few unique strategies to calculate their potential down payment: Review your existing property's equity: If you already own a property, assessing its equity can provide a potential source for the down payment on your second home. Using this equity may reduce the need for a large cash down payment. Decide on the purpose of the second home: Knowing your intentions helps you tailor your approach to the down payment based on the property's use and potential future income. Lenders may have different requirements for an investment property or a vacation home. Consider your ownership type options: Exploring ownership types, such as joint ownership or forming a partnership, may open up new opportunities to pool together funding sources. A down payment calculator can help you quickly understand if your ideal home is within reach or if you need to make financial adjustments to prepare for your next home purchase. If you want to finance a second home, consider becoming a co-owner of a luxury home through Pacaso. From the initial down payment to recurring maintenance costs, co-ownership allows you to split vacation home expenses with your fellow co-owners while getting full use of the home throughout the year. Scheduling is easy and equitable, and each Pacaso home is taken care of by a dedicated property manager, giving you a hassle-free and turnkeyexperience throughout the year.
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. Before we dive in, it’s important to note that many vacation rental owners (also known as hosts) list their properties on multiple online platforms. This allows hosts to cast a wider net with potential renters and gives renters the ability to do a side-by-side comparison on costs and fees — we’ll touch on more on that below. Without further ado, lets 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, private 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, whether they’re individuals or property management companies. Since this filter groups multiple criteria together, it isn’t as useful to renters who prioritize one above others. Winner: Vrbo Airbnb vs. Vrbo selection Since Airbnb has options for shared rentals, its total selection is about triple that of Vrbo’s. It’s estimated that Airbnb has about six million listings. 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. Winner: Airbnb 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. Winner: It depends on your situation 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 guests and Vrbo hosts have 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. Winner: Airbnb Airbnb vs. Vrbo customer service Since both Vrbo and Airbnb are the liaisons between guests and hosts, they need to make both parties happy, which means that customer service resolutions can be complicated. But which has better customer service? 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 these numbers may be misleading. Winner: Vrbo 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. Winner: Vrbo Airbnb and Vrbo cancellation policies Both vacation rental platforms allow hosts to choose from different cancellation policy options. On Airbnb, the options range from flexible (where guests can cancel until 24 hours before check-in to receive a full refund) to strict (where guests must cancel within 48 hours of booking and at least 14 days before check-in). There are a few other options in between. Vrbo’s cancellation policy options are similar but named differently. The most lenient option is relaxed, in which bookings canceled with at least 14 days notice will receive a full refund. The strictest option is no refund, where no money will be refunded, no matter the reason. Like Airbnb, there are a few options in between. As a renter, you should always check the cancellation policy before booking, as the restrictions can vary by individual listing. Cancellation policies can also vary based on the length of your rental. Longer-term rentals, like those longer than 28 days in duration, may have different cancellation policies. Winner: It depends on the individual listing 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.
In 2023, you have a variety of options to choose from for your next vacation. Whether you’re interested in a vacation club vs. timeshare — or a second home — you have more accommodation choices than ever before. Convenience and cost are the largest differentiating factors between all three vacation models. Ultimately, your destination may be the best indicator of which vacation option is right for you. In this guide, we'll explore the key considerations when comparing vacation clubs, timeshares and second homes to help you make informed decisions tailored to your vacation preferences and budget. Vacation clubs Timeshares Second homes Purchase price May require you to buy membership points to join Requires an initial purchase of a unit Requires a down payment Financing costs Subscription-based service with no financing required Private loans are available Traditional financing and fractional ownership options available Membership fees Requires annual or monthly payments No membership fees required No membership fees required Maintenance fees Covered by your membership fees Responsible to pay and subject to price increases May require payment, with fully managed options available Vacation costs Potential discounts on lodging, dining and attractions Subject to tourist prices for dining and attractions Potential savings due to residential location What is a vacation club? A vacation club is a membership-based travel service that offers members access to various vacation destinations, accommodations, and attractions within a network of affiliated resorts or properties. Vacation clubs are popular timeshare alternatives for travelers who want access to various destinations and experiences. Travel clubs are a type of vacation club where members travel together. If you’re looking to enjoy a solo or family vacation at different places, a vacation club may be for you. Consider joining a travel club if you’d like to meet new people and travel with fellow members. Getting a vacation club or travel club membership can mean access to discounted rates for accommodations and excursions within the club's network. Expect to pay an annual renewal fee and maintenance charges during the duration of your membership. Pros Cons Access to a range of destinations May be subject to blackout dates Potential discounts on accommodations and excursions Pay a membership fee Vacation club costs While timeshares may have a higher initial purchase price, a vacation club membership can be expensive to maintain. Let’s take a look at the true costs of a vacation club membership. For example, a Holiday Inn Club membership can begin by purchasing credits worth around $16,000. Depending on peak season time slots, these amounts can result in a stay lasting a few days or up to an entire week. When you run out of credits, you’ll need to purchase more to continue being a member and access the club’s amenities. These fees cover the upkeep and operational costs of the club's properties. They are typically paid annually and vary depending on the membership type and usage. Along with the initial purchase, financing and maintenance fees, travelers will need to factor vacation fees into their budget. The average vacation cost in 2024 is around $1,986 per week for one person. However, vacation clubs also offer discounts for lodging, dining and attractions. What is a timeshare? A timeshare is a property owned by multiple individuals or families that own a "share" of that specific property. That share allows them to visit the property for a set period of time each year. Timeshares can technically be any property type but are typically a resort, condominium or apartment. They are often in popular vacation destinations and allow owners to vacation for a set period each year. Timeshare membership comes with associated costs like the initial purchase price and regular maintenance fees. Also, as mentioned, you have little control over when you can visit, as your time is usually preset. Pros Cons Dependable and guaranteed vacation spot Potential exposure to high-pressure sales and may be difficult to resell Shared maintenance costs Less flexibility in setting your own vacation schedule Limited time to take advantage of your vacation home Timeshare costs When you initially purchase a timeshare, you acquire a specific share or right to use a property for a set period each year, which often involves a substantial upfront cost. Currently, the average timeshare transaction is around $24,000. Timeshare financing models are also known for high interest rates. Some travelers even consider taking out a personal loan to finance their vacation. The difficulty of finding affordable financing solutions has led to predatory companies taking advantage of vacationers in search of a good deal. Timeshare maintenance fees can be $1,000 and potentially increase yearly. Vacation fees may be most expensive where timeshares are located and, unlike vacation clubs, there are typically no discounts for dining or attractions. The third option: A second home Best for those who want to own a home away from home If owning a home sounds more appealing than owning time or restocking on membership points, consider buying a vacation home. A second home is typically a vacation home, separate from your primary residence. Unlike a timeshare, second home ownership can allow you to: Visit multiple times a year. When you own a second home, you have more control over enjoying the space when it’s convenient for you and your family. Potentially benefit from real estate ownership. Full and fractional ownership of a second home can result in an increase in equity and property appreciation. Enjoy a streamlined resale process. When it’s time to sell your second home, you can list your home to interested buyers on reputable house-buying websites. Relax in a real home. If hotels and resorts aren’t for you, enjoy the cozy comforts of staying in a one-of-a-kind second home. With fractional ownership, you get to enjoy a second home during your vacation at a fraction of the cost. Pacaso's fully managed co-ownership model, however, takes it a step further. When you buy a Pacaso second home, you co-own a professionally designed, professionally maintained home in your destination of choice with none of the the hassles. The best vacation model for you and your family is ultimately up to your travel preferences and budgets. While weighing the pros and cons of a vacation clubs vs. a timeshare, consider the benefits of co-owning a second home. With Pacaso, owning and financing a fully-managed second home may be more attainable than you think. Try our second home calculator to see if luxury second home ownership is the right option for you.
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.
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.
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.
When you decide to buy real estate, you may not realize there are many different property ownership types. It’s not always as simple as buying a property and putting your name on it. With so many different types of ownership in real estate, it can be difficult to know which type will best fit your needs as a property owner. The type you choose has practical implications, but it can also be an important decision in regard to estate planning and tax liability. To help you better understand each ownership path, we’ve categorized the different types by who they usually fit best. 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, you can explore your options with your real estate attorney. For single individuals Real estate ownership for individual owners is pretty straightforward — assuming there’s a single owner with full ownership of a property. Sole ownership Sole ownership is one of the simplest types of ownership in real estate. As the name implies, sole ownership is when an individual is the only owner of a property, and they can sell, lease or give the property to another party without needing anyone’s permission. When a sole owner passes away, their property must go through probate, which means that it will be in limbo until the sole owner’s will is proven to be legally binding. The main benefit of sole ownership is simple: You have control of all of the decisions related to the property. The drawbacks are the costly and time-consuming probate process to transfer your real estate to heirs after your death. For married couples Married couples buying property together have a few options to choose from in terms of real estate ownership type. Joint tenancy with rights of survivorship (JTWROS) Joint tenancy is the most common type of property ownership for married couples, where both parties share undivided ownership. They both have equal rights to use the property with equal liability and financial responsibility for the property, including maintenance and repairs. In JTWROS, one owner may sell or transfer their share of the property without the other owner's permission. “Rights of survivorship” means that when one owner dies, the other owner automatically inherits the property without the hassle of probate. The easy transfer to the surviving owner is one of the key benefits of being joint tenants. However, one key drawback is that if one owner has unpaid debts, a creditor can legally force a sale to recoup their money. Tenants by the entirety (TBE) Another type of ownership in real estate for married couples is tenants by the entirety. Unlike JTWROS, this type of ownership is reserved only for married couples, as it treats the couple as a single entity. In TBE, one owner may not sell or transfer the property without consent from the other owner. Like JTWROS, the property automatically goes to the pouse if one owner passes away. In the case of divorce, the ownership type automatically shifts from TBE to tenants in common (TIC). One upside of this property ownership type is that TBE can also protect one spouse’s ownership interest in a property from their spouse's debt. If a debtor gets a legal judgment to sell the property to pay the debts of one spouse, the spouse who isn’t responsible for the debt must be reimbursed for their ownership interest. It’s important to know that TBE is only recognized in about half of all U.S. states. TBE is available to property owners in Alaska, Arkansas, Delaware, Washington D.C., 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. Community property Community property law is only recognized in 10 U.S. states, and it classifies any property obtained by a spouse during marriage as being “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. These 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. 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. For minors or adults with special needs There are cases where minors become owners of real estate. This could be in the case of inheritance or simply tax and estate planning. The same ownership type that applies to minors is available to adults with special needs. Owning trust An owning trust is a type of real estate ownership that puts the responsibility for the care and management of a property in the hands of a trustee on behalf of a beneficiary. The beneficiary is typically a minor or an incapacitated adult. When a trust is created while the original owner (trustor or grantor) is still alive, it is referred to as a "living trust." The trustor puts the property in the name of the beneficiary but acts as the trustee until their (the trustor’s) death. Upon their death, the property remains in the name of the beneficiary, but a new trustee is appointed (usually specified by the trust). This eliminates the need for probate when the property is being passed to underage heirs, and the trust may exist indefinitely or end when specific conditions are met, like a child coming of age. For multiple unrelated owners of a single property Instead of owning an entire property, multiple people can share property ownership. There are a few ways co-ownership can be arranged. Tenancy in common (TIC) With tenancy in common, each tenant holds an individual deed for a fraction or percentage of the property. For example, three unrelated people might each own one-third of a property, or one owner may own two-thirds and the other two may own one-sixth each. Each tenant has rights to the property in accordance with their ownership share, but they do not have survivorship rights. That means if one tenant passes away, their share goes through probate and then is passed on to their heirs. Tenants-in-common may also sell or transfer their share of a property without the consent of the other tenants. Owning partnership/LLC An LLC allows multiple individuals to purchase ownership interest in a limited liability corporation (LLC), and the LLC then holds the deed to the real estate. Unlike other types of ownership in real estate, this form of ownership separates the personal finances of the LLC owners from the property owned by the LLC, adding an extra layer of privacy and protection for owners — who in some cases may not even know each other. Individual owners may sell their interest in the LLC without needing permission from other owners. LLCs can be either do-it-yourself or managed by a third party like Pacaso for a more seamless experience. 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 for additional guidance. 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, up to eight owners share the cost of owning, managing and maintaining a second home — and equally split time spent enjoying the home. In Pacaso’s fractional ownership model, an LLC model is set up, ensuring true asset 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.
If your dream is to own multiple homes, then you’ll be faced with a choice: a second home vs investment property. The right purchase decision for you will depend on factors like financing availability and rental income potential. We’ll share the top seven financing differences between investment properties and second homes to better understand both options. Plus, we’ll cover the tax considerations that may affect the type of second home you choose. What is a second home? A second home is a dwelling you own in addition to your primary residence. A vacation home is a type of second home that owners use for leisure throughout the year but do not reside there permanently. Here are a few defining factors of a second home: The owner must use the home at least 14 days of the year. Cannot rent out more than 180 days of the year. Must be a minimum of 50 miles from your primary residence. Note that the way lenders classify second homes, vacation homes and investment properties can vary. What is an investment property? An investment property is an asset you buy with the intention of generating income through rent or value appreciation. A short-term rental is an example of an investment property with the primary objective of generating rental income. Here are the defining factors of an investment property: You must occupy the property for less than 14 days of the year. You may generate income through long-term rental, short-term rental or “flipping.” The home must be within 50 miles of your primary residence. Are you considering buying a house to use as a second home and investment property? Although possible, you may need to choose a primary intent for your purchase to satisfy financing and tax regulations. 7 second home vs investment property financing differences When it comes to financing, investment property and second home requirements can differ greatly. Here’s an overview of how each ownership type affects your several financing factors Second home Investment properties Mortgage rates Higher than primary home Higher than second home Down payments Minimum of 10% Between 15% to 25% Debt-to-income ratio 45% with a 620 to 680 credit score 45% with a 700 or higher credit score Closing costs About the same as a primary home Higher than second home Income reporting Income potential won’t factor into financing Lenders may consider profit potential Number of units One mortgage per property Multifamily unit financing available Cash reserves Minimum of two months Minimum of six months Source: Fannie Mae Eligibility Matrix To better understand how to begin financing investment property and second home mortgages, let’s dive into the specifics of each factor. 1. Mortgage 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. 2. Down payments According to the Fannie Mae Eligibility Matrix, a second home loan will require a minimum down payment of 10%. In comparison, an investment property minimum down payment starts at 15% and can be as high as 25%. Like a mortgage for a primary home, the higher your credit score, the less money you’ll need for a down payment. 3. Debt-to-income (DTI) ratio According to Bankrate, the minimum credit score range lenders will consider for a second home purchase is between 620 and 680. For investment properties, on the other hand, lenders may require a score of 700 or better to qualify for investment property mortgage financing. You should also aim for a DTI of 45% or less to increase your chances of securing an investment property or a second home mortgage. 4. Closing costs Lenders often charge higher origination fees (or closing costs) for investment properties than for second homes. 5. Income reporting Because an investment property can 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 second home financing. 6. Number of units For a second home, you are only allowed a mortgage on a single-unit property. For an investment property or rental property, you can get a mortgage on a property of up to four units. 7. 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. Tax considerations Aside from having a firm grasp on investment property and second home mortgage rules, it’s important to understand the tax implications of both options. It’s also smart to consult with your tax adviser. Let’s break down the tax considerations. 1. Mortgage interest While mortgage interest on a second home is often deductible for personal use, it can also be claimed as a business expense for an investment property, potentially providing tax benefits based on the property's purpose. Here is how second home and investment property mortgage rates differ: Second home: Deductible on up to $750,000 of mortgage debt or $375,000 if married but filing separately. Investment property: You can deduct mortgage interest as a business expense when you use your investment property more than 14 days a year. 2. Property taxes You can potentially deduct the property taxes of your second home, especially if it’s the first home you buy. However, investment property taxes are almost always deductible as a qualifying business expense. Second home: You can potentially deduct $10,000 worth of total property taxes on your tax return or $5,000 if you’re married and filing separately. Investment property: Your property taxes can potentially qualify as a deductible business expense. 3. Rental income Income you earn from your vacation rental can potentially be deductible, and second homes that you occasionally rent out may also qualify for this perk. Second home: If you rent your second home fewer than 14 days a year, you don’t need to report rental income on your tax return. Investment property: Although you do have to pay taxes on the rental income of your investment property, you can also deduct relevant business expenses like repair costs. 4. Home equity loan interest Interest on a home equity loan for a second home may be deductible. In contrast, interest on a home equity loan for an investment property is generally deductible as a business expense. Second home: If there is a mortgage on your second home and you haven't borrowed against the equity of your first home, you can deduct the interest on a home equity loan. Investment property: Investment properties also qualify for this deduction. You will, however, be responsible for paying capital gains tax when selling the investment property. Now that you’re aware of the major differences between a second home vs. an investment property, it’s time to decide which option best suits your needs. If you decide that buying a second home is the right decision, remember that being the sole owner isn’t the only option. With Pacaso, you can become a co-owner of a luxury, turnkey vacation home for 1/8 the cost of a typical whole home purchase. Every listing has a dedicated property manager so you can focus on relaxing and making memories during trips to your vacation home. Plus, Pacaso offers competitive-rate, integrated financing to put your dream second home in reach.
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.
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 mortgage 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 mortgage calculator This easy-to-use calculator breaks the number-crunching down into a few steps. Simply plug in details about your total 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 per 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 total monthly mortgage payment: This is how much you spend every month on the mortgage amount 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. Total 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 mortgage 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 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 housing 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 Mortgage insurance (if your down payment is less than 20%) 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 mortgage 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. Considering purchasing a second home? A key financial metric to assess is your debt-to-income (DTI) ratio. To comfortably afford a second property, your DTI should ideally not exceed 45%. While this threshold is a general benchmark, having a favorable credit score, a substantial down payment or considerable cash reserves can provide added flexibility. Ensuring that these financial parameters are in check will guide you in making an informed decision about acquiring a secondary residence. Typically, you will need to have a favorable credit score, as anything below 640 could result in a rejected application. 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 on your home on your own. 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 purchase 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, including credit cards, 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.
Looking for the perfect place to unplug with your family? Look no further — we’ve curated a list of the 45 best family vacation spots in the U.S. From waterside destinations to urban jungles, browse our list of family vacation ideas. We’ve ranked the destinations in each category by region and family-friendliness. Best family vacation spots on the water It’s hard to beat a vacation as relaxing as lounging at a beach house or lakefront cabin. Get ready to soak up some vitamin D. To that end, the best family vacation spots on the water all have excellent shoreline access along with a variety of family-friendly activities. 1. San Diego, California Top attraction: San Diego Zoo San Diego is 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. Balboa Park is home to 17 museums and performing arts venues, multiple gardens perfect for picnics and the the world-renowned San Diego Zoo. And there’s more for animal lovers: Check out the Birch Aquarium, SeaWorld or a whale-watching cruise. 2. Branson, Missouri Top attraction: Ozark Mountains Billed itself as the live entertainment capital of the world, Branson is packed with options, from comedy and music to magic and dance performances. Visit the 1880s theme park Silver Dollar City to enjoyr 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 years old ride for free. 3. Outer Banks, North Carolina Top attraction: The North Carolina Aquariums If you’re looking for a good mix of simplicity and entertainment in your family vacation destination, 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. Although the beaches are the primary attraction, there are plenty of other activities to explore. With four locations, the North Carolina Aquariums offer interactive exhibits with animals like manta rays and horseshoe crabs. Your kids can also 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. 4. Orlando, Florida Top attraction: Walt Disney World Resort Orlando stands out as one of the top family vacation spots, offering an enchanting blend of world-class attractions and magical experiences for visitors of all ages. At the heart of Orlando's allure is Walt Disney World Resort, a sprawling complex that transports families into a realm of fantasy and adventure. With iconic theme parks like Magic Kingdom, Epcot, Disney's Hollywood Studios and Disney's Animal Kingdom, families can immerse themselves in a captivating world of beloved characters, thrilling rides and enchanting performances. Universal Studios is another Orlando highlight, with rides, shows and experiences inspired by popular movies and franchises. 5. Cape Cod, Massachusetts Top attraction: Cape Cod National Seashore Cape Cod is the quintessential New England beach destination. Known for its iconic lighthouses, pristine beaches and quaint coastal villages, Cape Cod provides a serene and family-friendly atmosphere. One of the major draws is the Cape Cod National Seashore, encompassing miles of pristine shoreline and dunes. Beyond the beaches, historic towns such as Provincetown, Chatham and Hyannis exude charm with their cobblestone streets, art galleries and seafood restaurants. Families can embark on whale-watching excursions from Provincetown, explore the Cape Cod Maritime Museum in Hyannis or take a scenic bike ride along the Cape Cod Rail Trail. 6. Destin, Florida Top attraction: Destin Harbor Boardwalk Destin emerges as a top-notch family vacation destination thanks to its white-sand beaches, emerald-green waters and an abundance of family-friendly activities. The breathtaking beaches, such as Henderson Beach State Park and Crystal Sands Beach, offer the perfect place for building sandcastles, playing beach volleyball or simply soaking up the sun. For a break from the beach, families can explore the Destin Harbor Boardwalk, a bustling area lined with shops, restaurants and entertainment options. Additionally, the Big Kahuna's Water and Adventure Park offers a thrilling day of water slides, wave pools and mini-golf. 7. Gulf Shores, Alabama Top attraction: Bon Secour National Wildlife Refuge Gulf Shores is a Gulf Coast gem that promises families a delightful blend of sun, sea and Southern hospitality. Boasting some of the most pristine white-sand beaches in the region, Gulf Shores provides the ideal setting for a relaxing family vacation. Gulf State Park, with its miles of trails, a fishing pier and a golf course, offers a diverse range of outdoor activities for families looking to explore the area's natural beauty. The area is not just about beaches; it's also a haven for wildlife enthusiasts. Families can visit the dunes and shoreline of Bon Secour National Wildlife Refuge, home to various bird species and sea turtles, offering an educational and immersive experience. 8. Myrtle Beach, South Carolina Top attraction: Myrtle Beach Boardwalk and Promenade Myrtle Beach is renowned for its family-friendly atmosphere, with numerous resorts and hotels catering to their needs. The iconic Myrtle Beach Boardwalk and Promenade is at the heart of the action, lined with shops, arcades and amusement rides. Families can take a spin on the iconic SkyWheel for breathtaking views of the coastline or enjoy live performances at the Myrtle Beach Bandstand. For those seeking a break from the beach, Broadway at the Beach offers an entertainment complex with attractions like Ripley's Aquarium, mini-golf and shopping. Myrtle Waves Water Park provides thrilling water slides and lazy rivers. 9. Miami Beach, Florida Top attraction: Jungle Island 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 amenities such as playgrounds, splash parks, volleyball courts and water activities like paddleboarding. If your family gets their fill of sand, check out the eco theme park Jungle Island, the Bass Museum of Art and Miami Beach Botanical Garden — each offering unique learning opportunities for the whole family. 10. Hilton Head Island, South Carolina Top attraction: Adventure Cove Hilton Head is a lively island that 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 local seafood, so make sure to sample the catch of the day at one of the island’s many restaurants. 11. Maui, Hawai’i Top attraction: The Road to Hana Whether you are looking for adventure or relaxation, Maui can meet you wherever you please. Take a family zip line trip or snorkel in the Molokini Crater. End your day at an authentic luau experience with 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 sightseeing tour that takes you to epic spots like the view from “Jurassic Park” at Keopuka Rock, a pit stop for shave ice and a walk through a bamboo forest on the Pipiwai Trail. 12. Mackinac Island, Michigan Top attraction: Fort Mackinac Mackinac Island is stubbornly resistant to change, and that’s exactly what makes it one of the top places to go on vacation from late spring to late fall. This small island off the tip of Northern Michigan boasts no cars and no chain hotels, but being small doesn’t mean there’s not a lot to enjoy. Access the island by ferry and travel around by foot, bicycle or horse-drawn carriage. Stay at the historic Grand Hotel, which 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. 13. Wisconsin Dells, Wisconsin Top attraction: Noah’s Ark Waterpark This central Wisconsin city offers plenty of thrills for all ages — 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. 14. Lake Tahoe, California Top attraction: Cascade Falls 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 stunning blue water. Rent a boat, kayak or paddleboard for different activity levels 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. 15. Sandusky, Ohio Top attraction: Cedar Point 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. 16. Finger Lakes, New York Top attraction: The Strong National Museum of Play 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 several museums that will 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. 17. Chicago, Illinois Top attraction: Millennium Park The third-largest city in the United States is a hard spot to overlook when considering the best family vacation spots. With Chicago’s size comes many options for entertainment, including on its waterfront. It offers ample beaches along Lake Michigan and multiple river tours to learn about the city’s history. Millennium Park boasts nearly 25 acres of easily accessible gardens, events spaces and public art pieces — most notably “The Bean” which reflects the skyline and surrounding park. The world-class Art Institute of Chicago, Field Museum, Shedd Aquarium and Adler Planetarium offer unique opportunities for your children to learn about the world (and space) around them. And though the city gets cold in the winter, an autumn walk along Lake Michigan also makes the Windy City one of the best fall vacation destinations. Best family vacation spots in the desert If you want to avoid crowded beach towns while still getting as much sun as possible, the desert might be up your family’s alley. Deserts feature wide-open spaces, picturesque photo opportunities and loads of outdoor activities. Just be sure to include plenty of sun protection on your packing list. 18. Sedona, Arizona Top attraction: Red Rocks 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 based on your preferred level of comfort — one even includes a Wild West reenactment. Aside from its natural beauty, Sedona also features the Out of Africa Wildlife Park where your family can safely experience a safari. Other options include zip lining over the exotic animals or feeding a tiger up close. 19. Albuquerque, New Mexico Top attraction: International Balloon Fiesta Every October, hundreds of hot air balloons gather in Albuquerque for its International Balloon Fiesta. Day and night, colorful balloons fill the sky, making for an enchanting experience you can’t find 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 classic 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 Botanic Garden and Aquarium, so your kids can get their nature fix. 20. Glen Rose, Texas Top attraction: Dinosaur Valley State Park We can’t mention dinosaurs 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. At Dinosaur World, visitors can walk among over 100 life-size dinosaur models, 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. Grand Canyon, Arizona Top attraction: Hiking in the Grand Canyon 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. Make reservations more than a year in advance for camping and waterfall excursions. 22. Joshua Tree National Park, California Top attraction: Joshua Tree Joshua Tree is known worldwide for its unique rock formations and namesake twisted trees. The park is a must-visit destination for rock climbing and hiking enthusiasts, with trails for all skill levels. 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. 23. Scottsdale, Arizona Top attraction: Sonoran Desert Scottsdale has the best of city life and desert landscapes. You can take your family for a morning hike or a jeep to tour the Sonoran Desert. When the afternoon heat sets in, cool off at one of Scottsdale’s fantastic waterparks. Scottsdale’s Old Town district is home to a number of art galleries. For the Thursday night ArtWalk, galleries stay open late and treat guests to complementary activities. Since Scottsdale is conveniently located near Phoenix, you’ll have easy access to the state capital’s attractions, including a zoo, aquarium, botanical garden and the fascinating Musical Instrument Museum. 24. Palm Springs, California Top attraction: Aerial Tramway 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 royalty like Frank Sinatra were drawn to this desert destination. Unlike some other desert locations on this list, Palm Springs destinations offer 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. 25. Moab, Utah Top attraction: Mill Canyon If any family members are in their dinosaur phase, Moab is one of the must-visit places to travel with kids. Mill Canyon Dinosaur Tracksite has easily identifiable dinosaur tracks and bones. Moab Giants features indoor and outdoor interactive exhibits that bring 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. Or enjoy the thrill of Erafting through a canyon on the Colorado River. 26. Big Bend National Park, Texas Top attraction: Lajitas Canyons 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, dip in Big Bend’s hot springs. The water is naturally 105 degrees Fahrenheit and has long been considered therapeutic. 27. Santa Fe, New Mexico Top attraction: Meow Wolf 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, home to the world's largest collection of folk art. 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 best family vacation destinations are in the mountains, offering unique activities for every season. While many people love the mountains for their winter ski resorts, the rest of the year offers new opportunities to connect with the terrain. 28. Jackson Hole, Wyoming Top attraction: The Snake River rapids Jackson Hole’s main attraction is its world-class ski slopes that make for a magical family vacation, with routes and programs for all skill levels. Snowmobiles are also available for rent, and sleigh rides take you through Jackson’s blankets of snow. But there are year-round activities in Jackson Hole for families, too. 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. 29. Black Hills, South Dakota Top attraction: Mount Rushmore The Mount Rushmore National Monument is undoubtedly the biggest attraction in this area. But there are plenty of other reasons to visit. The Indian Museum of North America has an impressive collection or art and artifacts from more than 300 native nations. And Crazy Horse Memorial, under construction since 1948, will be 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 area's history. Explore some of the longest caves in the world at Jewel or Wind Cave. Take the kids down the 2,000-foot alpine slide at Rushmore Tramway Adventures. 30. White Mountains, New Hampshire Top attraction: Ice Castles The White Mountains offer a sprawling landscape that is as enjoyable in the summer as it is in the winter. Enjoy golf, zip lines, waterfall hikes and old-fashioned train rides. Explore polar caves where you can touch ice even in the middle of summer. In the winter, check out one of many ski resorts and visit the Ice Castles, with caverns, tunnels and slides designed to make you feel like you’re in a fairytale. 31. Yellowstone National Park, Wyoming Top attraction: Grand Prismatic Spring Yellowstone was the first national park in the United States, and it’s easy to see why the country was so quick to preserve its natural beauty. The 2.2 million-acre park sits on a volcanic caldera that produces hot springs like the rainbow-colored Grand Prismatic Spring and hundreds of geyser eruptions. The park offers over 1,000 miles of backcountry trails and bears, bison, wolves and elk all roam freely. Bird watchers can see more than 300 species of birds. 32. Yosemite National Park, California Top attraction: El Capitan 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 a true sense of their magnitude. Yosemite has an abundance of waterfalls to explore, including some with paved trails for easy access. Horseback riding provides another option to hit the trails. — and you can watch the leaves change if you make this a fall travel destination. 33. Aspen, Colorado Top attraction: Nordic trail system Like Jackson Hole, Aspen turns into a verifiable wonderland when winter snow falls. Gondolas take you to the mountaintops in comfort while the Nordic trail system provides more than 60 miles of cross-country ski trails. In warmer months, Aspen has some of the best fly fishing conditions in North America. Appreciate the scenery by putting on your waders and trying to catch a prized trout. For history lovers, take a walking tour of the former silver mining town, offered by the Aspen Historical Society. 34. Gatlinburg, Tennessee Top attraction: Smoky Mountains 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. Or check out Anakeesta, a mountaintop theme park with mountain roller coasters and a zip line. Stroll across the longest pedestrian cable bridge in North America at SkyPark. 35. Park City, Utah Top attraction: Utah Olympic Park If you’re wondering where to go on vacation, Park City is one of the most versatile destinations 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 year-round 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. 36. Glacier National Park, Montana Top attraction: Going-to-the-Sun Road With a mix of melting glaciers, alpine meadows,and spectacular lakes and waterfalls, Glacier National Park has over 700 miles of trails. Your kids can attend a junior ranger program and receive a badge after completing certain activities. The Going-to-the-Sun Road, a 50-mile road that bisects the park when conditions allow, provides scenic views that are hard to beat. The park offers ample opportunities for rafting, kayaking and horseback riding. And when your day’s activities are over, comfortable accommodations are available inside and outside the park — reserve early! 37. Catskill Mountains, New York Top attraction: Saugerties Lighthouse The Catskill Mountains have been one of the best family vacation spots for city dwellers for over 100 years. Families seeking a break from city hustle can relax in this historic area's natural beauty. No wonder it’s one of the best mountain getaways for you and your family. 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 and visit the Mountain Top Arboretum. 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 a good alternative. Cities are jam-packed with options for everyone’s taste. Education, amusement and active adventures await. 38. San Francisco, California Top attraction: Golden Gate Bridge 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. Then explore the adjoining Presidio, established as a Spanish military outpost in 1776 and the longest operating Army installation in the West. The Exploratorium is a science, technology and arts museum that enables kids to interact with more than 600 installations. Pier 39 is home to wild sea lions, street performers, a carousel and even an aquarium. Walk around the largest Chinatown outside of Asia before having a picnic at Golden Gate Park. 39. New Orleans, Louisiana Top attraction: Great food Mardi 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. Sample sugar-laden beignets, oversized muffuletta sandwiches, and Creole and Cajun cuisine. 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. Spend a day at the Carousel Gardens Amusement Park or take a swamp tour to get up-close looks at native alligators. 40. Nashville, Tennessee Top attraction: Grand Ole Opry Nashville has long been the hot spot for country music aficionados, but it has recently been growing in popularity for the general public, too. Take a tour of the Grand Ole Opry and (if you’re lucky) snag tickets to a live radio concert. Then head to The Gaylord Opryland Resort featuring an indoor river with boat rides, a waterfall and a garden conservatory. Stop by Centennial Park to see a replica of the Greek Parthenon. Then, drop by Musicians 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. 41. New York City, New York Top attraction: Central Park 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 or take in a show on or off Broadway. 42. Austin, Texas Top attraction: Barton Springs Pool Proud to be weird, Austin has all the oddities and entertainment someone could hope for a family vacation. 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 over 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 rescued and receiving rehabilitation. 43. Seattle, Washington Top attraction: Space Needle Seattle offers loads of family-friendly attractions. Seattle Center, built for the 1962 World’s Fair, is home to the iconic Space Needle, the Pacific Science Center and IMAX theater, and Seattle Children’s Theatre. The Chihuly Garden and Glass is a family-friendly museum of brightly colored sculptures of varying shapes and sizes. If you’re looking to squeeze a little nature into your trip, head to Mount Rainier for hiking or take a whale-watching excursion. Shop at the historic Pike Market and watch fishmongers throw purchases into the air and look at (but don’t touch!) the infamous gum wall. 44. Denver, Colorado Top attraction: Red Rocks Park Denver is great to visit at any time, thanks to its more than 300 sunny days each year. Elitch Gardens has both butterfly-inducing roller coasters and water slides. The Children’s Museum of Denver lets young children learn about nature and test their creativity in the featured art studio. The Downtown Aquarium provides the unique experience of having a meal while surrounded by floor-to-ceiling aquariums. But no trip to Denver can be considered complete without visiting Red Rocks Park and Amphitheater in the nearby mountain town of Morrison. Witnessing a live performance is unlike any other, but even if you don’t get tickets for a show, wandering the park is worth the trip. 45. Minneapolis, Minnesota Top attraction: Mall of America 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 in nearby Apple Valley 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. If you’re considering buying a second home at one of the best family vacation spots, becoming a co-owner with Pacaso can help your family enjoy a fully managed, turnkey vacation home at a fraction of the cost.
Coordinating vacation plans as a pet owner can make you feel as stressed as a dog wit h 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. Whether you’re planning a family vacation, a spring break escape or just exploring somewhere new, browse these top dog-friendly vacation spots (listed in no particular order) to get ideas for your next trip. Ready, set, go fetch your next dog-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, which features a dog-friendly patio. 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, and Arizona is a popular destination for snowbirds looking to escape cold winter weather. 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. No matter where you end up, you and your pup are sure to enjoy a vacation in America’s Finest City. 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. 1. Consider the mode of transportation How you’ll get to your destination depends on how far away from home you’re going, of course, but you’ll also want to consider your dog’s comfort. Some dogs are perfectly fine flying on an airplane, but it can be traumatic for others. Some dogs love a road trip, while others don’t like being stuck in a car for a long time. Consider your dog’s personality before plotting your course. 2. 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. 3. Double-check dog-friendly accommodations Before you leave, it’s smart to verify that you can bring your furry friend along to your hotel or vacation rental. Businesses can change their policies at any time and you don’t want to be left without a place to stay. The best dog-friendly hotels go out of their way to welcome four-legged guests, with special amenities like treats and dog beds. Regardless of where you stay, it’s important to note even when dogs are allowed, many hotels won’t allow you to leave your pet unattended in a hotel room while you’re out and about. 4. Make a dog-friendly vacation itinerary Think through the places you want to visit on your vacation. For example, dogs are allowed in most national parks, but you’ll need to keep them on a leash and on the trail at all times. In town, look for pet-friendly restaurants with outdoor dining options. 5. Pad your travel schedule Even a well-trained dog can act out of character in new or unfamiliar environments. Allow for extra time for your four-legged friend to get acclimated so you don’t miss out on sought-after activities or reservations. 6. 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. 7. Bring extra supplies Pack more waste bags, medications and other necessities than you think you’ll need, just in case. Don’t forget to pack food, a water bowl and a few items to help your pet feel comfortable, like a portable dog bed and a few of their favorite toys and treats. Buy your own dog-friendly vacation home Like most humans, most pets enjoy a sense of familiarity and routine. Instead of staying in a new hotel in a new city every time you travel, consider setting down roots in your (and Fido’s!) favorite dog-friendly vacation destination. As a second home owner, you can enjoy all the comforts of home, while venturing out together in search of local dog-friendly parks, dog-friendly hiking trails and maybe even a dog-friendly beach. 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 pet-friendly vacation. You may even like the destination enough to make it a second home.
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.
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? Timeshares operate on a concept of fractional usage, where individuals secure the right to use a specific property for predetermined durations. Essentially, if you invest in a timeshare, you're acquiring the right to occupy a particular accommodation, like a hotel or resort unit, for a set period each year. For instance, if 52 parties invest in one unit, each party typically gets usage for one week annually. It's crucial to understand that with timeshares, you're primarily purchasing usage rights rather than actual property ownership. While this model is common for vacation spots, it's seldom applied to individual residential 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.
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 cover LLC oversight and property management. Home operating estimates, like maintenance, taxes, insurance and utilities, are passed through to owners at cost. 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.
What does "property ownership" entail? Property ownership goes beyond merely acquiring real estate and registering it under one's name. It encompasses various forms and structures, each with its unique practical, financial and legal implications. Depending on the chosen type of ownership, individuals may encounter different estate planning challenges and tax liabilities. It's essential to understand these nuances, as they can significantly impact future events, including inheritance or tax assessments. 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.
This webinar will walk you through everything from how to schedule stays to tips on using our new swap feature, ensuring you can secure the dates you desire. This is the perfect opportunity to get all your questions answered and see how effortless co-ownership can be.
Savvy investors know that portfolio diversification can be a key to long-term investment success. For that reason, investors should understand the variety of investment opportunities open to them. One exciting option for investors, offered via Regulation A+ (“Reg A”), enables individuals to invest in businesses that aren’t yet publicly traded. Reg A gives companies the framework to publicly offer securities without the rigorous and costly process of a traditional initial public offering (“IPO”). Here is what potential investors should know about Reg A. What is Regulation A? At a high level, Reg A is a regulation adopted by the Securities and Exchange Commission (“SEC”) that allows private companies to raise capital from the public. The recently updated regulation, which is an exemption from registration under the Securities Act of 1933, helps democratize the investment landscape by opening the door for the general public to invest in private companies. Reg A gives individual investors a chance to invest in opportunities historically open only to institutional and angel investors. Due to its structure, many types of companies can use Reg A to raise money. Reg A offerings are a popular choice for technology companies seeking to fund business growth or product development, for consumer goods companies looking to expand their product line, and for real estate developers funding property acquisition. Reg A offerings are typically launched by companies that focus on select industries or have niche fundraising structures. For example, in the real estate context, many companies elect to use Reg A offerings to fund their real estate investment trust (“REIT”). In a REIT, pooled investor funds are often used to invest in a portfolio of real estate assets. Reg A provides a streamlined way for the REIT to raise money from the public and efficiently acquire the real estate assets. Types of Reg A offerings As set out by the SEC, Reg A offerings can be completed under one of two tiers. The two tiers have different reporting requirements and authorize companies to raise different amounts of money. The regulation provides more flexibility for companies seeking to raise while ensuring investors receive adequate information from the company raising. Tier 1 Companies can use a Tier 1 Reg A offering to raise up to $20 million over 12 months. The company must file a Form 1-A offering statement with the SEC, including the company’s financial statements. In most cases, Tier 1 offerings do not require audited financial statements, but the SEC has outlined cases where audited financials may be required. Though Reg A is a federal regulation, companies using Tier 1 usually need to file state-by-state registrations in each state where they intend to sell securities. The offering will likely be subject to review by those states under state-specific Blue Sky laws. After the offering, companies must file an exit report 30 days after the offering closes, but are not required to submit annual or semi-annual updates to investors. Overall, given the $20 million raise limit, the Tier 1 requirements are lighter than those for Tier 2. Tier 2 Tier 2 Reg A offerings permit companies to raise up to $75 million over a 12-month period, which is substantially higher than the Tier 1 limit of $20 million. Like Tier 1, companies must file an offering statement with the SEC and undergo a thorough SEC review. The SEC must qualify the offering before the company starts selling securities. That process and its related requirements can often take companies four to six months to complete, which may partly relate to the requirement of including audited financial statements. Companies offering under Tier 2 need to work with an auditor who is willing to consent to their audit being included in the offering and publicly filed. Unlike Tier 1, Tier 2 does typically preempt state law, although companies should work with counsel to determine any state compliance that may be required. Additionally, Tier 2 requires more rigorous ongoing reporting, including annual, semi-annual, and current event reports. These reports are designed to provide investors with more comprehensive financial and business information to keep them updated on their investment status. It is also worth noting that in a Tier 2 offering, non-accredited investors may only invest up to 10% of their annual income or net worth. Tier 1 does not include that limitation. Overall, Tier 1 and Tier 2 offer different raise amount authorizations and come with different reporting requirements. Investors must understand which tier they are investing in and what ongoing reports they should expect to receive. The chart below outlines the high-level differences between Tier 1 and Tier 2. Requirements Tier 1 Tier 2 Maximum raise over 12 months $20 million $75 million File an offering statement with the SEC Yes Yes Audited Financials Not typically required Required State Regulations Blue Sky regulations: State-by-state registration, fees, and review of documents Blue Sky exemption: Can typically raise in all states, though some state compliance may be required Ongoing Reporting No ongoing reporting required. Exit report 30 days after close of offering Ongoing reporting required including annual, semi-annual, and current events reports How Reg A offerings work For a company to participate in a Reg A, it must first determine its eligibility and determine whether it will offer under Tier 1 or Tier 2. Certain eligibility requirements must be met before a company can offer securities via Reg A. For example, in a Tier 2 raise, the company must be formed and have its principal place of business in the United States or Canada. It must not be an investment company required to register under the Investment Company Act of 1940, not be a business development company, and not be disqualified under “bad actor rules” as outlined by the SEC. After determining eligibility, the company will prepare the required financial statements, draft an offering circular, and file the offering circular and all required documents with the SEC. The main document the company drafts is a Form 1-A, which includes the offering circular and exhibits. The offering circular outlines the details of the offering, the business, required disclosures, and any necessary financials. The two main authorizations the company needs to receive before selling securities to the public are “qualification” by the SEC and receiving a no objection letter from the Financial Industry Regulatory Authority (“FINRA”). Once the offering is qualified by the SEC and a no objection letter is received from FINRA, the company can start to sell securities and individuals can start investing via the company’s offering page. To ensure regulatory compliance, the Reg A investment process must be facilitated by a broker-dealer that assists the company in offering the securities. Benefits of Reg A offerings for investors There are multiple benefits for investors who participate in a company’s Reg A offering. First, investors have the opportunity to invest in typically early-stage companies with significant growth potential and financially back companies they support and want to see grow. Over the life of the investment, investors will likely receive insider updates on the company, particularly if the Reg A is offered through Tier 2. Second, Reg A offerings may be a way for investors to diversify their investment portfolio beyond traditional investments like public stocks and bonds. Finally, if the company reaches a successful exit or IPO, investors may see their investment grow in value. Drawbacks of Reg A offerings for investors Like any investment, there is no guarantee of returns for investors choosing to invest in a Reg A offering. Many early-stage companies opt to use Reg A to fundraise, and that investment may be more risky than an investment in a larger, more established company. Compared to a traditional public company investment, Reg A requires fewer disclosures to investors, particularly if the company offers under Tier 1. This means that investors may receive less information about the company throughout the life of their investment. Some companies, however, provide regular updates to investors including investor calls, webinars, and conferences. Additionally, investors should always refer to the offering circular drafted by the company to do their own up-front research about the company. Lastly, shares purchased in Reg A offerings may not be liquid, meaning that investors may need to wait for a company to exit or IPO for them to be able to sell their stake. How to invest in a Reg A offering Before investing, it is important to consult with a financial advisor or investment professional who can provide personalized advice based on your financial goals and risk tolerance. Once you decide to move forward, you follow these general steps to invest in a Reg A offering: Research: The company conducting a Reg A is required to provide an offering circular, which includes information about the company, its business model, and how the funds will be used. The offering circular is a great place to start investment research. You may also conduct your own independent research on the company, seeking out news articles, press releases, and industry reports. Many companies will also offer the opportunity to engage with their team via webinars or investor calls, allowing you to take advantage of direct access to the company’s executive team. Assess the risks and rewards: Early-stage companies can be risky because they have a limited operating history. However, the growth potential can be attractive to investors with a higher risk tolerance, as you may get in on the ground floor of a company’s future growth. Understand investor rights: Review the terms of the investment, which should include the type of securities offered and any rights or privileges that come with those securities such as dividends or voting rights. It is key to understand the investment exit strategy, including the mechanisms for you to sell your investment and any guidelines about such sales if they are permitted. Complete the investment: Follow the platform or broker’s instructions for investing. This includes choosing the investment amount, signing an investment agreement, and adding personal information. Some platforms may have minimum investment requirements, or may even offer perks and bonuses for higher investment amounts. Safeguard investment documentation: You will receive confirmation of your investment and often will gain access to an investor portal to provide and receive updates, if applicable. Be sure to keep all investment files and login information in a secure location. Monitor the investment: Keep an eye out for company updates, especially if the company offered its raise via Tier 2. Through these updates and other personal research, you can keep abreast of the company’s progress, overall financial performance, and any developments that might affect your investment. The future of Reg A investments With the evolution of technology and securities regulation, it is becoming more efficient for individuals to participate in the investment market. As investor interest in private offerings and alternative investments continues to grow, Reg A offerings will likely gain popularity. Reg A serves as a lighter form of a traditional IPO, providing both companies and investors with flexibility and a new range of investment possibilities. Reg A offerings can be an exciting way for individuals to participate in private companies on the ground floor and potentially benefit from their growth. Like any investment, investors should conduct research, consult with financial advisors, and understand the risks before investing to ensure alignment with financial goals and risk tolerance. Invest in Pacaso’s Reg A offering Looking to diversify your portfolio and participate in a Reg A offering? Pacaso is giving investors the chance to get in on the ground floor as we expand. As a pioneer and leader of the co-ownership category in real estate, Pacaso has a successful track record backed by venture capital support and proven leaders, including former executives at Zillow, dotloop and Hotwire. With nearly $100 million in adjusted gross profit in just four years, Pacaso is tapping into a growing market and is poised to enter the next stage of growth. Learn more about the Pacaso Reg A opportunity.
Over the last 10 years, the investing world has seen many firsts, including several new types of opportunities for investors. One developing opportunity is equity crowdfunding, which offers the chance for everyday investors to own a piece of, and participate in the growth of, private companies. Until the mid 2010s, it was quite difficult for most people to access these types of opportunities. That changed with the 2012, Jumpstart Our Business Startups Act, known as the JOBS Act, which paved the way for investors to access private company investments. At that point, companies could start to leverage the JOBS Act and its innovative and community-building crowdfunding model to raise rounds of capital. This introduction to equity crowdfunding is most helpful for investors starting to explore the space and the opportunities it holds. How equity crowdfunding works At a high level, companies can use certain crowdfunding regulations (like Regulation CF), adopted by the Securities and Exchange Commission (SEC), to offer shares to everyday investors. Companies using crowdfunding must work within the SEC’s guidelines, and comply with federal regulations. Unlike traditional investments offered by brokerage accounts (think Charles Schawb, Merrill Lynch, or Fidelity), equity crowdfunding opportunities often live on crowdfunding platforms or on the private company website directly. These platforms and self-hosted fundraises provide simple, accessible investment processes just like your typical brokerage. There are numerous equity crowdfunding platforms and some (like Wefunder) give you the chance to “get equity and front row seats to the startups and small businesses you love – for as little as $100.” Other platforms, like DealMaker, provide companies the tools to host a raise on their own company website. Whether you invest via a crowdfunding platform, or through the company directly, for just a small investment, you can get company equity and participate in its future growth. Crowdfunding appeals to companies because they can raise money from a broad range of people and continue to build their community. As an investor, you can diversify your portfolio and invest in private companies that may see great returns in the long run. Substack, for example, recently ran a crowdfunding round and raised over $7 million from nearly 7,000 investors. These investors were new and existing community members, and now they all can share in Substack’s potential success. DealMaker notes that “equity crowdfunding is a powerful way to turn customers into shareholders (and vice versa),” and that is exactly what Substack was able to do. With massive community support, Substack oversubscribed their investment round in just three weeks in April 2023. Other companies may look at this case study and realize they have the ability to raise from investors in the same way, so it is important to keep your eyes open for investment opportunities. Opportunities and benefits of equity crowdfunding Because of its unique nature, equity crowdfunding offers a broad range of benefits to investors. It an opportunity to: Get in on the ground floor Equity crowdfunding gives investors the chance to invest in companies early, sometimes even before traditional venture capital or private investment. If the company is successful, investors could see very high returns. For example, the company Soliton raised $11 million of common stock in an equity round in 2019. They raised that $11 million at an $86 million valuation, and were acquired by Allergan Aesthetics in 2021 for $550 million, a valuation substantially higher than the initial equity round valuation. In that case, everyday investors paid $5 per share in 2019, and the ultimate exit was at $22.60 per share in 2021. Diversify Crowdfunding opportunities allow investors to broaden their investment portfolio, and diversify their investments. As an everyday investor, you are no longer limited to trading only traditional stocks and bonds. With just a small amount of capital, you can diversify your portfolio and invest in private companies through crowdfunding. Support companies you love Crowdfunding is a way for individuals to support businesses they love. For example, The Oakland Ballers, the new Oakland baseball team, recently launched a crowdfunding campaign. Yes, they are offering a chance to invest in them as a company in a traditional sense, but investment is also a vote of support and a way to become an actively engaged community member. With an investment of $170 or more in the Oakland Ballers, investors have the ability to vote in major company issues, and are invited to participate in the owners forum group. Companies may embrace crowdfunding in order to build their own investor and supporter community. Enjoy perks Investors may receive perks for investing in a crowdfunding round. For example, you may get early access to product releases, opportunities to meet key executives, company swag, and invitations to VIP events. Companies can benefit from investor feedback on their products or services, knowing that you have an incentive to provide an honest review to help the company grow in the long run. What are the risks of crowdfunding investing? While there are many possible benefits of equity crowdfunding, there are some risks for investors: Lack of liquidity One major risk of investing in a private company through crowdfunding is the possible lack of liquidity. This means that you may not be able to sell your shares until the company reaches an exit or Initial Public Offering (IPO). Your money may be tied up in the company for an unknown period of time, so you should only invest if you are comfortable with that possibility. For example, Uber completed its Series A round in 2011, but did not go public until 2019. Although it did not raise via crowdfunding, this example shows that even very successful companies may have lengthy time horizons for investors to see a return on their investment. Some companies may provide liquidity opportunities before an exit or IPO, but that is not guaranteed. It is important to check each specific investment opportunity to see if it provides liquidity. Startup risk Startups tend to be risky. With the potential for high reward also comes great risks. In an often-cited statistic, about 90% of startup companies fail. Research from Startup Genome has shown that only about 1.5% of startups produce a successful exit of $50 million or more across the top eight U.S. startup ecosystems. Cost to the company From a company perspective, there is an added cost of compliance for the initial raise as well as ongoing obligations. These costs are not nearly as high as for a traditional IPO, but they may be more expensive than seeking a private raise led mainly by one or two institutional investors. This added cost can have a negative financial impact on the company if the raise does not earn them as much capital as they anticipated. When researching potential investments, you may see references to a “minimum raise amount,” which helps the company ensure it raises enough to cover all of its costs with a large amount designated for company growth once the raise is complete. Additionally, in some crowdfunding offerings, companies are responsible for keeping investors informed of their investment status on an ongoing basis. This is an extra cost for companies, but does provide good insight for investors. How to get started? If all of this detail about equity crowdfunding excites you, your next step is to search online for equity crowdfunding opportunities just like you might research traditional stocks. There are many equity crowdfunding platforms — StartEngine, Wefunder, DealMaker, and Republic among them — that host numerous opportunities. Other platforms, such as DealMaker, help companies host the raise on their own websites. You will want to do some research to confirm you are comfortable investing on any of the sites. One key feature of these crowdfunding platforms is that businesses usually need to pitch the platforms themselves in order to partner with the platform. The platforms are incentivized to host successful raises because the platforms take a cut of the raise, so the platforms does its own background research and vets companies before launching a raise. You will find many different investment opportunities on each crowdfunding platform. Typically, companies will have their own investment websites, pages explaining the investment opportunity, and update posts showing offering progress. You will find all of the company’s offering documents on the platform or site. These offering documents usually include pitch decks, marketing materials, and any regulatory filings. For example, AptDeco’s raise featured a video, offering details, and questions and comments from investors. You also may find details of the company’s financials as well as a link to their official filing with the SEC. You can search the different crowdfunding sites to find businesses that interest you. After your research, making the actual investment is a seamless process. For example, let’s say you want to invest in AptDeco, which facilitates buying and selling of pre-owned furniture. Through your research, you found they are running a crowdfunding campaign. Simply create your account on their Wefunder investment page, plug in your information, and make the investment. Once the investment round is closed, you will receive your investment documentation and you have officially joined as an investor. Platforms like Kingscrowd provide investors with data on companies that are actively crowdfunding and offer additional background research. Kingscrowd is a platform that does not host raises itself, but analyzes investments across the top equity crowdfunding platforms and helps investors decide which crowdfunding investments are the most promising. The future of the industry Online crowdfunding platforms and current regulatory frameworks make it easier and more efficient for investors to participate in equity crowdfunding. Equity crowdfunding opens a new route for companies to raise money, and the data backs up the dramatic increase over the last several years. Since 2020, companies have raised over $3 billion in Reg A+ and Reg CF. That is a tremendous amount of capital, and companies may be drawn to more of this type of offering. With average investments of just about $1,000 and minimums as low as $100, the future seems bright for investors looking to equity crowdfunding as their next investment strategy. Invest in Pacaso’s Reg A offering Looking to diversify your portfolio and participate in a Reg A offering? Pacaso is giving investors the chance to invest in our company via Reg A. As a pioneer and leader of the co-ownership category in real estate, Pacaso has a successful track record backed by venture capital support and proven leaders, including former executives at Zillow, dotloop and Hotwire. With nearly $100 million in adjusted gross profit in just four years, Pacaso is tapping into a growing market and is poised to enter the next stage of growth. Learn more about the Pacaso Reg A opportunity here.
Real estate crowdfunding gives individual investors direct access to participate in larger, often long-term real estate projects. These opportunities, typically facilitated online, allow developers or property owners to connect with many investors in order to fund their real estate project, and share the returns to that same investor group over time. Unlike traditional real estate investment, which usually requires significant capital, crowdfunding enables investors to access the benefits of real estate investing with only a small amount of initial money. Even $100 will get you access to many real estate crowdfunding opportunities, providing you an entryway into the real estate investment arena. Real estate crowdfunding continues to gain popularity, especially after the 2012 JOBS Act modified federal regulations around crowdfunding investments. Advances in technology have also increased accessibility and transparency for investors of all types. This article gives a high-level overview of real estate crowdfunding and how investors can get started. How real estate crowdfunding works For real estate crowdfunding to be successful, a project developer or sponsor must raise adequate funds to finance the project. Using online real estate crowdfunding platforms, real estate developers or project managers (called “sponsors”) pitch their investments. These sponsors are typically individuals or companies that will find, organize, and manage a real estate crowdfunding investment. These investments include purchasing rental properties, developing land, or making loans to real estate-related parties. Real estate crowdfunding platforms provide the necessary infrastructure for sponsors to seek investment, while ensuring regulatory compliance. Investors can be individuals or entities. For example, some platforms are limited to accredited investors. To be an accredited investor, you must generally have an annual income of over $200,000 or a net worth of over $1 million. Other crowdfunding opportunities are open to everyday investors, with investment minimums as low as $100. There are two main types of real estate crowdfunding: equity crowdfunding and debt crowdfunding. Each type has a different risk profile and different potential investment returns. Equity crowdfunding In the real estate equity crowdfunding space, investors purchase shares of a property directly, or they buy part of a business that will buy properties or operate a business that earns income from real estate. Like traditional real estate ownership, equity crowdfunding investors may benefit from property appreciation, rental revenue, and other streams of income produced by the property. However, just like any real estate investment, equity crowdfunding investors also assume their share of the risk if the project is unsuccessful. Equity crowdfunding gives investors a slice of ownership, and the success of the investment is tied to the success of the property or project. With this investment strategy, there is a chance of larger returns, because the property or project may exceed expectations and produce significantly more income than anticipated. Because the investor owns equity, they get their piece of the income as it is passed on directly to investors after other expenses are paid. Overall, you can think of equity crowdfunding as owning a stake in a property or business. Debt crowdfunding Debt crowdfunding is slightly different from equity crowdfunding. In debt crowdfunding, investors usually lend money to the sponsor in exchange for a fixed return, typically in the form of an interest payment. Investors can think of debt crowdfunding as similar to a loan. For example, a sponsor may want to raise $10 million in debt in order to purchase rental properties. In equity crowdfunding, the investor would either own shares in the sponsor, or own shares of the properties themselves. In debt crowdfunding, the sponsor simply promises to give a certain return, but investors do not own shares of the sponsor or property. For example, an investor might invest $1,000 in a debt crowdfunding project and receive a 10% return for five years. Each year, the investor will receive $100 from the sponsor. At the end of the five years, the sponsor must return the initial $1,000 to the investor. Returns for debt investments may be lower than equity investments, but debt crowdfunding is considered less risky, as investment returns tend to be more predictable. Benefits of real estate crowdfunding For individual investors who may not have the expertise or capital to fully fund a standalone real estate investment (such as buying a rental property outright), crowdfunding offers a range of benefits. Accessibility One of the biggest advantages of real estate crowdfunding is accessibility. Many platforms have low minimum investment requirements, leveling the playing field for investors interested in investing as little as $100. Since the crowdfunding platforms are accessible online, it is easy for investors to get started, without the need for an investment advisor, industry connections, or prior real estate investing experience. Portfolio diversification Only a small amount of money is typically required per investment, making it possible to diversify investments. Investors can spread their money across property types, geographic locations, and projects, reducing overall risk. For example, an investor using any one of the top real estate crowdfunding can invest in a single-family rental home in Georgia, a vacation rental in Phoenix and a real estate debt fund, all on the same platform. Passive income opportunities Many real estate investments give investors the opportunity to earn passive income through rental earnings or interest payments. This is a key benefit to real estate crowdfunding; investors do not have to be involved in the day-to-day management of the property. For example, investors in a rental property might earn money every month as rent comes in, the expenses for the home are paid, and the profit is distributed to investors. Potential for high returns Like any investment, real estate crowdfunding does not guarantee any level of returns. However, given the reputation of real estate for strong returns over time, it can be a strong, risk-adjusted investment. That is why you will see many real estate crowdfunding projects with timelines of five years or more. Industry experts know that the greatest returns often come to those who are invested for a longer time period. Risks and challenges While there are many potential benefits to real estate crowdfunding as an investment avenue, there are some risks and challenges that all investors should be aware of. Market risks and economic factors Macro, or large-scale, factors like economic downturns can disrupt the real estate market, which also includes real estate crowdfunding investments. When real estate values drop, investors may experience losses or diminishing returns. However, some findings show that the real estate market is generally more stable than the stock market during periods of economic uncertainty. Lack of liquidity When you invest in a real estate project, your money may be tied up for quite a while. Unlike publicly traded stock, which you can buy and sell within moments, real estate investors may not be able to easily sell shares or withdraw funds before the project is completed. For example, in a development project, investments may be used to build the project, so funds won’t be available until the project starts to receive a return on investment. This is a key reason to do your research and understand the details of your investment. Some investment opportunities include the ability to sell your investment after a certain time period, so keep an eye out for those details. Many crowdfunding platforms have sprung up over the last decade, but not all platforms are created equal. Some platforms may have different levels of vetting processes for projects, leading to different levels of risk for investors. It is important to always research the platform itself before moving forward with a project-specific investment. Also, every real estate project will have a different risk profile, so it is best to dig into the details before diving in. Regulatory and legal considerations As the real estate crowdfunding industry is relatively new, laws and regulations continue to evolve. The legality and custom of today’s practices may change with new regulations and innovations. Investors must accept potential regulatory uncertainty and the risk associated with it. Getting started with real estate crowdfunding Ready to get involved with real estate crowdfunding? Take an approach that prioritizes careful planning and informed decision-making. Here are a few steps to follow: 1. Choose the right platform Seek out an online investment platform that is reputable, well-regulated, and transparent. Be sure they outline any and all fees, and get a good understanding of what exactly you are buying (for example, equity or debt). Check that the platform has a strong track record of successful projects, and review their vetting process for projects and sponsors. If you know other people who invest in real estate crowdfunding, ask for recommendations. There are many websites that go over real estate crowdfunding opportunities in depth, such as BiggerPockets and NerdWallet. Some real estate crowdfunding platforms to consider are Arrived, Fundrise, Yieldstreet, RealtyMogul and EquityMultiple. 2. Know the investment limits The federal Securities and Exchange Commission sets investment limits for non-accredited investors, based on annual income or net worth. According to the SEC: “If either your annual income or your net worth is less than $124,000, then during any 12-month period, you can invest up to the greater of either $2,500 or 5% of the greater of your annual income or net worth. If both your annual income and your net worth are equal to or more than $124,000, then during any 12-month period, you can invest up to 10% of annual income or net worth, whichever is greater, but not to exceed $124,000.” 3. Carefully evaluate each investment opportunity Do not jump in without doing your research. Take time to review the details of each project, including property type, location, expected returns, and investment timeline. You should also review the sponsor’s experience and take a deep dive into the financial details of the project. Within the context of each opportunity, be sure to evaluate market conditions and potential risks. 4. Follow the step-by-step investment process After you have decided on an investment, you will need to first create an account on your selected platform. Review and sign all necessary documents, and transfer funds. Then track your project’s progress on the platform throughout the life of your investment. Future trends in real estate crowdfunding It is an exciting time to be a real estate crowdfunding investor, as many industry experts expect the market to continue to grow, for a few key reasons. First, technological advancements are widening the investor pool and making it easier for individual investors to participate. These innovations include new blockchain technologies and smart contracts, as well as improved online investment portals. All are poised to streamline transactions, boost transparency and increase investment efficiency. Second, the growing popularity of real estate crowdfunding is seen as a democratization of real estate investing. Because the entry point is lower than traditional real estate investments, it’s a vehicle available to a more diverse set of individual investors, which opens new pathways for wealth creation. These reasons outline a case for the future continued growth of real estate crowdfunding, and it is definitely worth exploring as an investment strategy. Invest in Pacaso’s Reg A offering Looking to diversify your portfolio and participate in a Reg A offering? Pacaso is giving investors the chance to invest in our company via Reg A. As a pioneer and leader of the co-ownership category in real estate, Pacaso has a successful track record backed by venture capital support and proven leaders, including former executives at Zillow, dotloop and Hotwire. With nearly $100 million in adjusted gross profit in just four years, Pacaso is tapping into a growing market and is poised to enter the next stage of growth. Learn more about the Pacaso Reg A opportunity here.
Dreaming of owning a vacation getaway but are overwhelmed by the traditional home-buying process? You're not alone. Between hefty down payments, ongoing maintenance and limited usage, the path to a vacation home can feel daunting. In this post, we'll break down how to buy a vacation home in five simple steps. We’ll also explore key considerations to ensure your vacation property perfectly complements your lifestyle and financial goals. 1. Determine your vacation home’s use How to buy a vacation home starts with defining how you envision using your property. Will you escape for long weekends, spend summers by the shore or enjoy a cozy winter retreat? Your usage frequency will significantly impact property type, location and budget. Finally, think long-term. Will your vacation home be a family heirloom, a retirement haven or a potential investment property? Aligning your vacation home goals with your broader financial plan ensures a fulfilling ownership experience. Tip: Consider consulting with a real estate agent specializing in vacation homes to gain insights into popular rental markets and property types that align with your usage goals. 2. Create a realistic budget Before diving into property searches, establish a clear financial roadmap. Determine the maximum purchase price you can comfortably afford for your vacation home. To understand how to afford a vacation home, remember that your budget extends beyond the property price itself. Factor in closing costs, ongoing property taxes, homeowners insurance and potential home maintenance expenses. As well, consider exploring financing options tailored for second homes. Vacation home loans and home equity lines of credit can make ownership more accessible. Carefully consider interest rates, down payment requirements and monthly payments to find the financing that aligns with your financial goals. Tip: Pacaso helps offset ownership costs through co-ownership. Purchase ⅛ or ¼ of a luxury second home and share costs with fellow co-owners. 3. Secure financing for your second home Before diving into property searches, it's crucial to secure vacation home financing. Improving your credit score can significantly impact the interest rate you'll receive on your mortgage. Pay bills on time, reduce credit card balances and dispute any errors on your credit report. Once your credit is in shape, gather essential financial documents like tax returns, pay stubs and bank statements for the mortgage application process. To secure the best possible loan terms when buying a vacation home, shop around and compare offers from multiple lenders. Consider factors like interest rates, closing costs and lender fees. A pre-approval letter can strengthen your offer when you find your perfect vacation home. Tip: Consider consolidating debt to improve your credit score before applying for a mortgage. With Pacaso, you can finance up to 70% of your home’s purchase price. 4. Get pre-approved A pre-approval letter is a lender's formal commitment to loan you a specific amount to buy a vacation home. This document is crucial when making an offer, demonstrating your financial readiness to serious sellers. To obtain pre-approval, gather essential financial documents, including: Proof of income (pay stubs, tax returns) Asset statements (bank accounts, investments) Debt information (credit card balances, loans) Shop around for lenders to compare interest rates, loan terms and fees. Remember, a strong credit score improves your chances of pre-approval and can secure a lower interest rate, ultimately saving you money on your vacation home mortgage. Tip: With Pacaso, you can find listings with mortgage rates under 5%. Request pre-approval letters from multiple lenders to compare offers and find the best terms. 5. Find a local agent to make an offer Partnering with a knowledgeable local real estate agent is essential for navigating the vacation home market. A skilled agent possesses in-depth knowledge of the area, understands market trends and can efficiently walk you through how to buy a second home. They'll help you find properties that match your criteria, schedule showings and negotiate the best possible deal on your behalf. Leverage your agent's expertise to craft a competitive offer. They can provide insights into fair market value, suggest appropriate offer terms, and handle the paperwork and communication with the seller's agent. A strong offer and your agent's negotiation skills increase your chances of securing your vacation home. Tip: Pacaso manages every aspect of your home, from maintenance to billing, so you won’t need to worry about finding a reliable property manager. Additional vacation home considerations Owning a vacation home involves more than just finding the perfect property. Carefully consider the following factors to make an informed decision. Homeowners Association (HOA) fees Homeowners associations (HOAs) can offer amenities like pools, gyms and landscaping, but they also come with monthly fees. Carefully evaluate HOA fees to determine if the benefits align with your budget and lifestyle. Some HOAs have strict rules regarding property aesthetics and renovations, which might limit your customization options. Insurance coverage Protecting your vacation home is crucial. Standard homeowners insurance may not adequately cover vacation properties. Explore specialized policies that offer coverage for seasonal rentals, vacant homes and potential liabilities. Consider factors like location, property value and personal belongings when determining the appropriate coverage level. Tax implications Owning a vacation home can have tax implications. Consult with a tax professional to understand deductions, rental income reporting and potential capital gains taxes if you decide to sell. Be aware of property taxes, which can vary significantly between primary and secondary residences. Also, be aware of second home tax deductions you can claim on your tax return. Maintenance and upkeep Unlike primary residences, vacation homes often experience periods of vacancy. This can lead to increased maintenance needs. Consider hiring a property management company to handle tasks like lawn care, cleaning and minor repairs during your absence. Factor the cost of routine maintenance and potential emergency repairs into your overall budget. Affordability While owning a vacation home can be fulfilling, assessing the long-term financial commitment is essential. When evaluating affordability, consider factors like property taxes, homeowners insurance and utilities. Create a detailed budget to ensure your vacation home fits comfortably within your financial plan. Price fluctuations The vacation home market can experience price fluctuations. While owning a vacation home can be rewarding, it's essential to be aware of potential market downturns. Research historical property values in your desired location to understand price trends and make informed decisions. Make your dream a reality with Pacaso Learning how to buy a vacation home can be a transformative experience, offering a private retreat and a chance to create lasting memories. Carefully consider your budget, financing options, property location and the type of vacation home you’d enjoy. To make buying a vacation home even more feasible, consider co-owning a vacation home. By sharing ownership with friends or family, you can significantly reduce upfront costs, ongoing expenses and the burden of property management. Co-ownership allows you to access a higher-end property than you might be able to afford on your own while still enjoying the benefits of exclusive ownership.
Searching for a place to unwind, reconnect with loved ones and create lasting memories? Buying a vacation home could be your answer. But there are also many strategic reasons to buy a vacation home. Here are 10 reasons why a second home might be the perfect purchase for you. 1. Enjoy your own personal retreat Owning a vacation home provides a haven away from the daily grind, a sanctuary when you need a break. Imagine having a place designed entirely for relaxation, a zen space that melts away your stress. Unlike hotels or rentals, you can customize your second home to your taste, unpack your favorite books and board games, and have everything set up exactly how you like it. 2. Have flexibility for your vacations With a vacation home, you no longer need to fight for reservations during peak season or scramble to find last-minute vacation accommodations. A second home ensures a readily available place, allowing you to be spontaneous and take advantage of unexpected getaway opportunities. Do you need a quick weekend escape to clear your head? Or a romantic fall getaway? Whether you're looking for a short recharge or an extended period of relaxation and exploration, your vacation home will be waiting for you. 3. Build a lifetime of memories A vacation home transcends bricks and mortar — it becomes a cornerstone for creating cherished memories with the people you love. Host unforgettable holidays and family gatherings to create lifelong memories. Imagine cozy nights by the fireplace at your mountain getaway after a day on the slopes or around the pool on your next trip to Florida. Families will love having plenty of space for everyone to gather and celebrate birthdays, anniversaries and graduations at your dream destination. 4. Relish familiar settings Owning a vacation homes has the benefit of being your home-away-from-home. Equip your space with luxury amenities, like a heated pool, home gym and dedicated workspace. Being in a familiar place can significantly relieve your stress. Plus, your second home allows you to truly relax the moment you arrive. 5. Embrace a new community Purchasing a vacation home can open doors to a new community. Strike up conversations with friendly neighbors who share a love for the area. Explore local shops and restaurants, gaining a deeper understanding of the region's culture and hidden gems. This sense of belonging can enrich your vacation experiences and grow your sense of community at your second home. 6. Cultivate a sense of adventure A vacation home can serve as a springboard for exploration. Since you have a convenient home base, you can delve deeper into the surrounding area. Explore nearby towns, hike or bike scenic trails or discover hidden beaches — the possibilities are only limited by your vacation home location. Proximity to these activities allows you to embrace a more adventurous spirit and enjoy experiences beyond the typical tourist’s itinerary. 7. Create a healthier lifestyle A vacation home can be a catalyst for embracing a healthier way of living. Many vacation destinations offer opportunities for outdoor hobbies like hiking, biking, swimming and other water sports. Being surrounded by nature and engaging in physical activity can significantly improve your overall well-being. Inside you vacation home, consider creating a dedicated zen room to relax and de-stress. It can improve your sleep patterns and general state of mind. 8. Pass down an asset to your children A vacation home can become a cherished part of your family's legacy. It can be a gathering place for future generations to reconnect with loved ones and create lasting memories. Eventually, you can pass vacation homes down as an inheritance. A valuable asset like this can give your children and grandchildren a special connection to their family history. 9. Choose a location close to activities you love Finding a second home in a place that supports your interests and hobbies can significantly enhance your lifestyle. Imagine living by a lake and spending your weekends fishing, or owning beach house with nearby easy access to kayaking or paddleboarding. For those who crave the thrill of winter sports or the serenity of mountain hikes, a cozy cabin could be the perfect fit. 10. Take advantage of unique financing options When buying a vacation home, you can access second home financing options. Remember that you may need a higher credit score and a larger down payment. Also, you can expect higher interest rates than on a loan for a primary residence. Additionally, your vacation home expenses don’t end with the down payment and mortgage — you’ll also need to budget for utilities, insurance, property taxes, maintenance and possible HOA fees. Advantages of vacation homes Although owning a second home has some down sides, the advantages can greatly outweigh the trouble of finding and financing a vacation home. The pros of owning a second home or vacation investment property include potential passive income, property appreciation and unique tax benefits. Personal use When you own your vacation accommodations, you always have a great place to stay (even if it’s a busy holiday weekend). You can keep all the comforts and necessities — clothes, toiletries, outdoor gear and more — at your vacation home so you can get away from it all at a moment’s notice. 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 vacation home. Buying a second home in a destination you love allows you to experience the place in a whole new way and truly become a community member. Your vacation home could become your primary residence once you retire, but you can start enjoying it and building equity long before it’s time to turn in your employee badge. In the meantime, it’s a special place to bring family together for vacations and special events. You can also pass down your vacation home to your heirs. Passive income potential Although some owners prefer to keep their vacation home exclusively for personal use, listing your second home as a short-term rental may also be possible. 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. Investing in vacation rentals requires considering things like the home’s proximity to local attractions, rental competition, local housing rules and the possible cost of property management. Your short-term rental may serve as an Airbnb alternative for vacationers in the area, allowing you to generate rental income. Potential property appreciation Whether you plan to keep your vacation home for personal use or earn passive income, your property may increase in value. A secondary residence can increase equity and value appreciation like a primary residence. In this way, buying a vacation home can be an investment. Of course, housing markets fluctuate, so value appreciation depends on market trends where you buy. Adding real estate to your portfolio is a great way to diversify your portfolio and hedge against the ebb and flow of different markets. It’s always smart to consult a financial planner before making such an investment. Tax benefits You can deduct any mortgage interest paid on up to $750,000 of principal mortgage debt, including your vacation home. Other second home tax benefits may include deducting property taxes and interest paid on home equity loans. If your vacation home doubles as a short-term or long-term rental, you may also be able to claim certain costs as business expenses for your vacation rental business. Consult with a tax professional to determine which tax deductions you’ll be eligible for. Challenges of vacation homes Vacation home ownership also includes several challenging cons. Property maintenance and management Your second home likely won’t be close enough to your primary residence for you to stop by frequently. Home repairs and regular maintenance (lawn mowing, snow removal, etc.) can become a hassle. And if you’re renting out your second home, you must deal with reservations, clean up and more. A potential solution is to hire a property manager to maintain your vacation property and manage potential tenants. The expense can potentially give you peace of mind, knowing that the business side of your vacation property is taken care of. Income volatility If you plan to rent out your vacation property, you’ll need to be aware of the high and low tourist seasons in your home’s locale. Plan for income fluctuations and charge appropriate nightly rates to curb potential low-season vacancies. To keep attracting bookings, you may need to pay for marketing and advertising your property to help decrease income volatility. Local vacation rental laws Many towns are passing ordinances prohibiting short-term rentals or requiring homeowners to pay hefty fees to list a home as a rental. Check local laws before banking on your ability to rent out your vacation home. Remember that other vacation rental competitors will be subject to the same laws and consider how this could affect your ability to compete or earn a profit at this destination. Limited location Once you invest in a vacation home, you’ll probably want to use it as much as possible. That means you’ll likely spend more time in one second home vacation spot and be less likely to frequent other destinatons. Just like an unused gym membership or a new dress in the back of the closet, a distant vacation home can easily turn from a dream come true into a money pit if you’re not committed to using it regularly. Co-own a vacation home with Pacaso While there are nearly a dozen reasons to buy a vacation home, the initial cost and ongoing maintenance can be daunting. Pacaso offers a unique co-ownership model that allows you to enjoy the perks of vacation home ownership without the full financial and logistical burden. With Pacaso, you can co-own a fully managed luxury vacation home ready for you to enjoy as soon as you arrive. DISCLAIMER: This content is published solely for informational purposes and isn’t intended to be investment advice. You should consult an appropriate professional for specific advice tailored to your situation.
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. Consider taking more vacations or starting a new hobby 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.
You asked, we answered. We’re excited to launch one of the most highly requested features: Swap. You can now exchange dates with another co-owner of your home, or swap stays with a friend who owns a different Pacaso — all in the Pacaso owner app. It’s your time, spent when and where you want. Flexibility when you need it One of the biggest benefits of the new feature is the flexibility it offers owners. With swap, you can easily change your vacation plans without having to give up time in your home. How it works As an owner, you are able to indicate which of your booked stays are “Open to swap.” This makes it easy for you and co-owners of your home to view dates on the calendar that are booked but flexible, and gives either of you the opportunity to initiate a swap. Once you’ve initiated a swap request, the other co-owner can select from your “Open to swap” stays or any other open dates on the calendar. You and the other co-owner each have 48 hours to confirm the swap. Note that all SmartStay scheduling rules apply as usual. Once a swap is confirmed, it will be booked as a stay on your calendar. You can modify, cancel or add guests as you would with any regular stay. And the best part? All swaps are done anonymously for privacy and convenience. Easy ways to enjoy a different Pacaso The swap feature also makes it easy to choose where you spend your time. Do you own a stunning mountain retreat in Tahoe but want to stay at your friend’s sunny oasis in Palm Springs? Instead of having to coordinate dates on your own or arrange guest stays, you have the option to easily swap dates with friends using our seamless scheduling system in the app. How it works To swap stays with a friend or family member who owns a different Pacaso, you must first be connected in the app, which you can access by sending a connection link in the app. Once connected, you can view your friend’s calendar, see swappable dates and initiate a request, similar to how you would look for dates with the co-owners of your own home. Once the swap is confirmed, you're all set to live the Pacaso lifestyle in your friend’s home and destination. The more Pacaso owners you know, the more swaps are possible. Refer friends so they, too, can enjoy the enriching experience of owning a second home. Enhancing the ownership experience The swap feature brings a new dimension to owning a Pacaso second home. It offers greater flexibility and exciting opportunities for enjoying second home living at its best. Ready to swap? Browse our swap FAQs to learn more, then head to your owner app to get started.
Finding funding sources for the down payment on your next home purchase doesn’t have to be a headache. In fact, you may be wondering, “Can I use my 401(k) to buy a house?” Retirement accounts like IRAs and 401(k)s are often forgotten sources of capital for those interested in buying a home. Read our guide to unlock the potential of your 401(k) as a way to help finance your dream home. We’ll show you how to potentially make penalty-free withdrawals and showcase the pros and cons of this funding strategy. Penalty-free 401(k) withdrawal exemptions If you’re under the age of 59½ and would like to purchase a home using your 401(k) without paying the 10% early withdrawal penalty, you’ll need to qualify for one of these three exemptions: First-time home buyer 401(k) withdrawals of up to $10,000 are penalty-free. Hardship withdrawals may be available in cases such as high medical expenses or funeral costs. The withdrawn amount is still subject to income tax. A 401(k) loan is a borrowing option that allows you to take out a loan from your 401(k) in order to fund the purchase of a primary residence. A 401(k) loan is distinct from a hardship withdrawal since it is essentially a loan from your own retirement savings account that you're obligated to repay — with interest. If you’re unsure if you qualify for any of these exemptions, consult a financial professional. How to use a 401(k) to buy a house Whether you’re interested in applying for a penalty-free hardship withdrawal, first-time home buyer 401(k) withdrawal or 401(k) loan, this retirement savings account can help you afford a new primary residence. Let’s explore how to obtain a 401(k) home loan from your employer. Obtain a 401(k) loan To secure a 401(k) loan for a home purchase through your employer, follow these steps. Step 1: Check your 401(k) plan to see if it allows you to take out loans and familiarize yourself with the terms and conditions. Step 2: Obtain loan application forms from HR or your plan administrator and fill them out accurately, being honest about your financial situation. Step 3: Specify the loan amount within permitted limits based on your current balance and down payment plans. Step 4: Choose repayment terms and review associated interest rates and fees. Step 5: Submit your application and wait for approval, which can take a few weeks. Step 6: Consult a financial advisor before proceeding, as this decision affects retirement savings. Keep in mind that if you don’t pay back the loan according to your payment terms, you may be responsible for paying the 10% tax after all. Make a 401(k) withdrawal Here is how to make a 401(k) withdrawal: Review terms: Once approved, carefully review the loan terms, including the interest rate, repayment schedule and any associated fees. Make sure you understand how the repayment will be deducted from your paycheck. Confirm withdrawal amount: The plan administrator will confirm the approved loan amount. Receive funds: The administrator will process the loan and transfer the approved loan amount to your specified bank account. Begin repayment: Loan repayments will typically begin on the next available pay cycle. These repayments can be deducted directly from your paycheck. Stay informed: Regularly monitor your loan balance and repayment schedule to ensure you're on track with your payments. Stay aware of any changes in the loan terms or procedures. Paying your loan installments on time is the key to avoiding high penalty costs. Remember that the more funds you take out, the less effective the 401(k) will be since there will be less time for your interest to compound. Let’s take a look at some more pros and cons of using a 401(k) to buy a home. Pros and cons of using a 401(k) to buy a home Before you borrow from your 401(k) for house purchases, carefully consider the following advantages and disadvantages. Here are the pros of using a 401(k) to buy a house: No credit check for approval Liquidate your holdings quickly Generally good loan interest rates Although tapping into your 401(k) can potentially help you afford a home, there are also disadvantages to this funding strategy. Be mindful of these cons: May have to pay the 10% penalty Potential loss of 401(k) account growth Can’t contribute while taking a loan out against your 401(k) If you decide to use your 401(k) to buy your first home, consider looking into other retirement savings accounts as additional sources of funding. Alternatives to using your 401(k) to buy a house In addition to a 401(k), there are other retirement accounts that can potentially help you purchase the home of your dreams. An IRA, or individual retirement account, comes in multiple forms, and each one can potentially yield penalty-free withdrawals: Traditional IRA: If eligible, you can withdraw up to $10,000 penalty-free for a qualified first-time home purchase, subject to income tax. Roth IRA: If eligible, you can withdraw up to $10,000 from your Roth IRA tax-free and penalty-free for a qualified first-time home purchase. Self-directed IRA: This account allows you to invest in real estate properties, such as a home, using your IRA funds as the investment source. Each IRA comes with different levels of complexity and tax benefits. As always, consider consulting a tax professional before taking funds out of your retirement savings accounts. Still wondering, "Can I use my 401(k) to buy a house?" The answer is yes. There are multiple ways to qualify for penalty-free withdrawals from your retirement savings accounts to buy a new home. Although most exemptions require you to be a first-time home buyer, there are many types of ownership for you to explore. From investment properties to vacation homes, fractional ownership, for example, can help you achieve your goal of owning luxury real estate as a primary residence or as a second home. Although co-owning a second home doesn’t qualify you for penalty-free exemptions, shared ownership is another avenue to explore during the home-buying process. As always, consult a tax professional as you explore your financing options.
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.
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.
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.
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.
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.
Owning a second home is a dream for many, but selecting a location, securing a mortgage and dealing with property management are common barriers for would-be buyers. When it comes to location, buyers in England and beyond have many good reasons to choose a second home in the UK. Whether you want a penthouse in the middle of the city or prefer to escape to the countryside, there’s a UK second home for every taste. Understand the pros and cons of buying a holiday home in the UK, and discover an alternative to the traditional UK second home purchase. Benefits of owning a UK holiday home There are many benefits to owning a second home in the UK, including: It can be a good investment: There’s an extremely high demand for property in the UK and a shortage of supply, meaning house prices are often on the rise. People are also able to sell their properties rapidly in the UK marketplace. Some analysts are suggesting a 35% increase in value from 2020 to 2025 for UK properties — meaning you could enjoy your second home and feel confident that you have made a good investment. You can take advantage of the rich history and culture: From Buckingham Palace to Shakespeare and Stonehenge to The Beatles, the UK is a globally influential center of history, culture, and wealth. Britain is also home to Oxford, the oldest university in the English-speaking world, not to mention Windsor Castle, Canterbury Cathedral, and other magnificent architectural feats. The United Kingdom has an endless supply of historical and cultural curiosities for holidaymakers to enjoy. The region is perfect for relaxing breaks: A UK second home offers many opportunities for fun and relaxation, regardless of the location. For those who enjoy the bustling energy of London, having a second home in one of Europe’s most prestigious cities is truly something to be proud of. While great for nightlife, this classy metropolis also offers plenty of opportunities for a quiet getaway. You can take a stroll around Kensington Gardens or attend one of London’s many theatres. Venture beyond the cities, and you’ll discover the UK is home to some of the most stunning countryside in the world. A picnic in the rolling hills and meadows of the Cotswolds may be just what you need to unwind. You could pay lower taxes: The good news is – depending on the local authority – you should pay a lower rate of council tax on your second home. Some local authorities offer a discount for second homes, and most holiday-home owners get a 10% reduction. You have another home to call your own: There’s the joy of owning something that’s yours — a place where you might consider retiring to in the long term, where you build up connections with your community and where you feel at home. It could even be a source of second income. Cons of owning a UK holiday home There are also a couple of potential downsides to owning a holiday home in the UK: It can be costly: While the average house price in the UK has risen since 1970, this sustained price increase has placed second home ownership further out of reach for most buyers. Owning a second home has its hassles: Responsibilities of ownerships like bills and maintenance can add on additional costs and hassles. Second homeowners often complain that they spend much of their time dealing with property maintenance and admin instead of relaxing. You can be subject to high resale taxes: If and when you decide to sell your second home, you will be taxed for capital gains on however much the rental property has gained in value since your purchase — this could be up to 28% depending on your tax status. It can be difficult to obtain a mortgage: Lenders have increasingly strict affordability criteria for mortgages, meaning obtaining one for a holiday home could prove challenging. Buyers who are able to secure a loan will likely have to pay a large cash down payment. Mortgage rates are generally higher for a second home, and a second home can incur a stamp duty surcharge of 3%. Temperamental weather: It’s no secret that the UK experiences some wet weather. Luckily, the weather is far milder than many countries, so while you might experience a shower or two, you’ll be neither too hot nor too cold for most of the year. Summers are warm enough in the UK, with temperatures in the mid-to-upper 60s most of the time and up to the mid-80s during the occasional summer heatwave. Purchasing a UK holiday home with Pacaso Buying a second home on your own can be difficult, expensive and a hassle. An alternative to the traditional second home purchase is co-owning a UK holiday home with Pacaso. Here are a few ways Pacaso makes it easier to buy a second home: Accessible financing Lenders can be strict when it comes to mortgaging a second home. This is why Pacaso helps you access alternative property financing. We partner with banks and act as your corporate guarantor to help you qualify for a loan of up to 70% of the property’s value, meaning you put down just 30% and finance the remainder. You can own ½ of a property, ¼ or even ⅛, depending on what ownership amount works for you. Hassle-free ownership Pacaso eliminates the downsides associated with second home ownership. You don’t have to worry about furnishing or decorating your home, and maintenance, bill payment and cleaning are all taken care of when you own a Pacaso home. Each property is fully stocked with the supplies you need for a relaxing and comfortable stay (view all standard amenities). If there’s anything amiss, you can reach out to your Home Manager or provide feedback through the Pacaso app to help us to improve. Cutting-edge scheduling app Our state-of-the-art scheduling app enables you and up to seven co-owners to book dates that suit you. Powered by our SmartStay scheduling system, the app is designed to be fair and flexible, ensuring all owners have equitable access to their home during peak seasons and over holidays. If you have ⅛ ownership in the property, you can book up to six weeks in your home each year. Easy resale Because you have true ownership of your Pacaso, you can set your own price and sell your ownership at any time if the other ownership units in your home are sold. If you bought ½ ownership of a Pacaso property and later realized you’re only using it ⅛ of the time, you can sell a portion of your ownership interest. We won’t try to persuade you not to sell, rather, we will actually help you and give you access to an exclusive buyer marketplace. Responsible ownership Unlike traditional second homes, Pacaso’s co-owned properties are occupied most of the year, which helps to add value to local communities and place less of a burden on them. Co-ownership is the more sustainable, more responsible way to enjoy second home ownership, and Pacaso is the leader in making co-ownership simple and accessible.
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.
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.
While strolling white sandy beaches or skiing alpine slopes may not be possible at your primary residence, buying a vacation home can be the precursor to the adventures you’ve been dreaming of. Whether it’s a financial goal or a means to spend more time with your family (or both), owning a vacation property can transform how you holiday at your favorite vacation destination. When you buy a vacation home, you can say goodbye to short-term rentals and say hello to regular visits to a home away from home — complete with the cozy touches that enable you to relax in a familiar and luxurious environment. From financing a vacation home to knowing which vacation home mistakes to avoid, our guide walks you through the eight steps of how to buy a vacation home in 2024. 1. Evaluate the pros and cons of purchasing a vacation home Putting your money into another property is a big commitment. It’s important to fully understand everything you stand to gain and lose when considering buying a vacation home. Home ownership is a large responsibility in itself, and adding a vacation property can greatly increase that financial pressure. However, buying a vacation home also has the potential to increase your quality of life. Pros of buying a vacation home Some of the major benefits of buying a vacation property include: Saving money on vacations since you won’t need an Airbnb or hotel Affordable vacations leading to more frequent or longer trips Investing in real estate, an asset that potentially appreciates Offsetting some of the costs of ownership via tax deductions Buying a vacation rental property for passive income Retiring at your secondary residence after selling your primary home But all of these benefits can come with some drawbacks. Cons of buying a vacation home Make sure you consider some of the downsides that follow vacation home purchases, like: Budgeting for expenses like utilities, taxes and insurance Paying for maintenance costs even though the home may be vacant Hiring a property manager to handle the maintenance and manage renters Growing tired of visiting the same vacation destination Losing liquid cash due to the large second home purchase If you feel prepared for all of these pros and cons, then it’s time to find the vacation home that’s right for you. 2. Prepare your potential household for new vacation property responsibilities Although buying a vacation property can result in a lot of fun, it’s also important to have a firm grasp on the responsibilities of vacation home ownership. Here are a few to consider: Furnishing the vacation home Yearly time commitments Property management Property maintenance Consider delegating tasks to yourself, your partner or other family members. Decide who will prioritize maintaining the property, who will manage potential tenants and how you will outsource any necessary tasks while you’re away. Now that everyone is on the same page, it’s time to pinpoint why you want to buy a vacation home. 3. Know what’s motivating the vacation home purchase “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. There are three core factors to remember here: intended use, activities and style. Intended use Your main motivation for buying a vacation home may be simply relaxing or having a space to escape from the hustle and bustle of everyday life. On the other hand, many people want to turn their second home into a money-maker, and the success of services like Airbnb and Vrbo makes it easier. Using your second home as a rental property will affect both your second home mortgage application and tax benefits. A rental property is seen as a business and qualifies for interest rates and taxes that are different from vacation home financing. Ensure you understand the full implications and discuss it with your lender and financial advisor. Activities Do you have specific ideas 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 lounging by the pool or biking to wineries on backcountry roads. Consider how a vacation home destination aligns with your lifestyle, and which amenities you want to comfortably create a home away from home. Style The style of a house can often take a back seat to the more important factors on this list, but it still matters. 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? Whatever interior design you choose, make sure you have enough bedrooms and bathrooms to accommodate your guests in style and comfort. And look for a home with spaces for spending quality time together. Having a home you’re in love can keep you happy with the purchase for years to come. 4. Choose a vacation home destination With dozens of potential vacation home destinations, it’s essential that you are crazy about the location of your second home. You’ll frequent the same place, so make sure it’s the right fit for your family. Since real estate is a long-term investment, you’ll want your new home to have long-term appeal. Ask yourself the following questions: Do I want it to be within driving distance so I can visit regularly? Is the destination family-friendly, or does it center around nightlife? Will visiting it require long-distance plane travel? Will my vacation home be in a different climate? You should be well acquainted with the location before you buy a vacation home. Plan a visit or two to your prospective destination before making a purchase decision. 5. Determine your financial goals Now that your dream destination and lifestyle factors align, it’s time to determine your overall financial goals. Before you can move through the rest of the second home buying process, complete the following: Assess your financial health: Review your credit score, debt-to-income ratio and current expenses to assess if your finances are ready for a second home. Create a vacation home budget: Create a budget for a second home mortgage, utilities and maintenance of your vacation home. Plan for emergency expenses: Add padding to your budget by planning for emergency expenses like roof repairs or clean-up after a natural disaster. It’s important to note that owning a second home means having certain tax obligations. Understand vacation home tax obligations Your vacation home may qualify for several unique second home tax deductions. Qualifying for these tax breaks can help you lower your overall vacation home expenses. Potential tax benefits include: Mortgage interest reduction Property tax deduction Home equity loan deduction Energy efficiency deduction Rental expense deduction Rental depreciation deduction Taxes aren’t the only financial factor that can help lower the cost of second home ownership. The type of ownership structure you choose can also be a determining factor. 6. Consider vacation home ownership structures Being the sole owner of your vacation property isn’t the only option. In fact, there are several types of ownership to choose from. Co-owning a property within a limited liability corporation (LLC), for example, allows multiple people to own a single property. You will make decisions together, and expenses get split accordingly. While being a sole owner of a second home allows you to make all the decisions, you’re also responsible for all the expenses. Co-ownership can potentially reduce the stress of owning multiple homes. 7. Avoid common vacation home mistakes There are some established and reliable rules for buying a vacation home. Here’s how to avoid vacation home mistakes when buying your second home. Don’t make emotional decisions Having a vacation house you love in a destination you love is a great goal, but letting that passion cloud your judgment can lead to long-term problems. Deciding to buy a second home while your emotions are high after a recent visit may feel like the right move, but you might develop buyer’s remorse when those feelings fade. Instead, approach buying a vacation home from a calm, rational perspective to successfully manage expectations. Watch your budget Once you’re attached to purchasing a vacation home, increasing spending to reach your goal can be easy. 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. Aside from high-level expenses like your mortgage, factor costs like lawn care and cleaning services into your budget. Don’t miscalculate your expenses Many additional costs are 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 remember. 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. Expert tip: Using a vacation home maintenance checklist while calculating your budget can help you best estimate your potential second home expenses. Underestimating property management If you live far away from your vacation home, you’ll need help keeping the place livable throughout the year. For that, you’ll likely need to pay a property manager. This is especially necessary if you plan to rent it out. While the service is well worth the expense, it will affect your projected revenue. Remember that the type of house you own and the location of your home may also increase property maintenance costs. For example, a beach home may suffer from salt damage. 8. Begin the home buying process If your mind’s made up and 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. Determine if you can afford the vacation home. Track your monthly income and deduct your regular expenses. Do you have enough left over each month to cover another mortgage payment, 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 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. 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. Pacaso offers fully managed ownership of a luxurious turnkey second home in epic destinations.
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 turnover services 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 the Home Operating Estimate that includes 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. 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.
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
As home prices continue to rise, the question for many is whether it makes financial sense to buy or rent their next residence. Factors like initial costs, interest rates, maintenance responsibilities and the ever-changing economic landscape are shaping how people choose to live and if they make the decision to invest in real estate. Let’s break down what it looks like to rent vs. buy a primary home or second home in 2023 or 2024. 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 financial 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. Many people also choose to get renters insurance, and some leases require it. Renters Homeowners Pay rent Pay mortgage (if you have a loan) Pay utilities (depending on the lease) Pay utilities 1. 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 2. Monthly housing payment Renters are responsible for a monthly rent payment. It’s typically a set amount that only changes in between lease terms or in month-to-month rental arrangements. In fact, there are laws in place that regulate how often a landlord can raise rent prices. Some landlords include the cost of utilities in the total rent payment, while others require renters to pay for utilities. Homeowners are responsible for a wider range of costs. First, you have a monthly housing payment that includes principal and interest. Then, your mortgage company will usually take a scheduled payment for your escrow account, from which your mortgage company pays things like property taxes, homeowners insurance and mortgage insurance premiums (if you purchase your home with a down payment of less than 20 percent). Whether you’ll pay more in your monthly housing payment as a renter or a homeowner depends on a lot of factors, including market conditions, interest rates and the size of your down payment. Homeowners who bought their home with a fixed rate mortgage can expect monthly payment amounts to stay relatively flat over the life of the loan, with the exception of insurance premium and tax fluctuations over time. Renters Homeowners A single monthly payment Multiple items to pay, often lumped together into a single payment Rent can go up at the end of your lease period Payment amount stays flat for homeowners with fixed-rate mortgages 3. 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. It can also protect your belongings in case of flood or fire. 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 4. Home equity A major difference between renting and buying a home is the opportunity to build 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. 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 and property tax and mortgage interest deductions. 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 6. 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 and upkeep. Renters Homeowners Little to no maintenance responsibilities Responsible for all property maintenance Potential access to shared amenities Potential to build long-term community connections A word on second homes The rent vs. buy debate isn’t limited to primary residences. Buying a vacation home is a big decision, and sometimes people decide to rent their primary residence and make their second home the first one they buy. Many of the financial comparisons are the same — you’ll need to decide whether you want to take out a mortgage, pay for a wider range of expenses. and be responsible for maintenance, or whether you’d rather simply pay a flat rate to the owner of the property whenever you’d like to use it. There are pros and cons, of course, related to the value of real estate ownership. But above and beyond the financial implications of buying a second home, you’ll need to compare pros and cons related to destination, vacation priorities and whether you want to rent out your property. 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, however, renting may be more expensive than buying, as homeowners build equity in their property and benefit from potential property appreciation. Home ownership also offers potential tax benefits, including 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, but a fully managed co-ownership model like Pacaso makes co-owning a second home easier than ever.
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.
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. 1. 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. 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 the ongoing costs of ownership like maintenance, repairs, property management, bill payment and more. Operating costs are passed through to owners with no markup, and Pacaso charges a fixed monthly program management fee per share for its services. Below, you'll see how the estimated operating costs of a Pacaso compare to a whole second home, along with the cost of renting a similar rental. Co-ownership can provide a significant cost advantage long-term over both options. Whole second home Co-ownership (1/8 share)* Comparable luxury rental Design, furnishings, upgrades and moving costs $490,000 Included; turnkey N/A Monthly property management $3,200 $400 N/A Monthly Maintenance $3,200 $400 N/A Monthly property taxes $3,800 $225 N/A Monthly home insurance $3,200 $475 N/A Monthly utilities $1,800 $200 N/A Estimated total cost $16,800 /month* $2,101 /month* $1,400-1,500 /night *This estimate is based on the typical operating costs of a Pacaso and a similar whole home and is intended for comparison purposes only. 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. Find your perfect home 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.
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.