Real estate investment returns: What's a good ROI right now?

Yes. Italy places no blanket restrictions on foreign buyers, and there is no national quota limiting how much property non-Italians can own. Ownership rests on a legal principle called the condition of reciprocity, set out in Article 16 of the Disposizioni sulla legge in generale, the general provisions that precede the Italian Civil Code: a foreign national can buy real estate in Italy if their home country allows Italian citizens to buy property there under similar terms. For buying property in Italy as an American, this works in your favor. The United States permits Italian citizens to purchase real estate freely, so American buyers pass Italy's reciprocity test without complication. The same is true for British, Australian and most other non-EU buyers. EU and EEA citizens face no reciprocity check at all and are treated exactly like Italian nationals. A few practical points apply to every foreign buyer, regardless of nationality: If you are weighing Italy against other European markets, our guide to The Italy notary process is the backbone of every property purchase, and it works differently than in the United States. Here is how a typical transaction unfolds: The notary, or notaio, is a public official appointed by the state rather than a representative for either the buyer or the seller. They draft the deed, verify legal title, collect the required taxes on the state's behalf and are personally liable for the accuracy of the transaction. If you cannot attend the closing in person, you can grant power of attorney to a lawyer or trusted representative to sign on your behalf. This centralized, notary-led model has a close cousin in France, where a notaire plays a similar role. If you are also considering the French market, our guide to Are there property taxes in Italy at the time of purchase? Yes, and they are the largest one-time cost of the transaction. The specific taxes depend on whether you are buying from a private seller or a developer. On top of these, budget for legal fees (roughly 1% to 2%) and, if you used an agent, a commission of 2% to 4% plus VAT. Altogether, total closing costs on a second home purchased from a private seller typically run 9% to 15% of the purchase price. Once you own the home, two recurring taxes apply: Tuscany property taxes tend to sit toward the higher end of the national range in the most sought-after areas. Florence applies close to the maximum 1.06% rate, and the "Chiantishire" belt of countryside between Florence and Siena, popular with foreign buyers for its farmhouses and vineyard estates, tends to price similarly.  Because IMU is calculated on the cadastral value rather than market value, the annual bill is usually far smaller than the purchase price might suggest. A modest Tuscan farmhouse with a cadastral value in the low thousands of euros might generate an annual IMU bill of only a few hundred to around €1,000, while a high-value historic property in central Florence can run into several thousand euros a year. It depends on how long you have owned the property. If you sell within five years of the purchase date, any gain is subject to a 26% substitute tax, calculated on the difference between the sale price and the original purchase price plus documented costs. This tax is settled directly through the notary at closing. After five years of ownership, the capital gain is exempt from tax entirely for individual, non-business sellers, including non-residents. There is also an exemption if the property served as your primary residence for most of your ownership period, though non-resident owners rarely qualify for this since primary residence status generally requires Italian tax residency. Americans who sell Italian property should keep in mind that Italian capital gains tax does not eliminate U.S. reporting obligations. Any gain typically still needs to be reported on a U.S. tax return, and a foreign tax credit may be available for tax paid to Italy. This isn't tax advice, so it's worth confirming your specific situation with a cross-border tax professional before you sell. Prices vary enormously by region. Nationally, asking prices for existing homes average somewhere in the €2,000 to €2,500 per square meter range, but that figure masks wide swings between Italy's most in-demand cities and its quieter provinces. In Florence, prices have been climbing steadily and now sit around €4,600 to €4,700 per square meter on average, with prime central neighborhoods like the historic center and Oltrarno commanding considerably more. Across the wider Tuscany region, the average drops closer to €2,500 to €2,650 per square meter, though this ranges from roughly €3,600 per square meter in Lucca province down to around €1,500 in Arezzo province. Rural farmhouses needing renovation can be found well below the regional average, while restored villas in Chianti or coastal Versilia often clear €1 million. If you're browsing properties for sale in Italy more broadly, expect the widest price range of any major European second-home market: from modest inland apartments under €150,000 to multimillion-euro estates in Tuscany's most prestigious pockets. For buyers drawn to rolling countryside, historic hill towns and a slower pace of life without giving up world-class art and food, Tuscany remains one of Italy's strongest second-home markets. Florence anchors the region with an established international community, direct flights, and English widely spoken in the city center, while the surrounding countryside, from the vineyards of Chianti to the medieval towers of Siena, offers a different but equally compelling lifestyle. If you are still deciding where in Italy to put down roots, our guide to the There's a particular kind of pull that draws people back to Tuscany year after year: long dinners under a pergola, the light on the hills at golden hour, a place that feels like it's yours even if you only visit a few weeks a year. The catch is that navigating a foreign legal system, a notary-led closing process and a tax structure built around cadastral values can feel overwhelming from thousands of miles away, especially when you only need the home part of the year. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a

Buying property abroad lets you immerse yourself in a different culture and may offer a lower cost of living than the U.S. However, the complexities of making this kind of purchase can feel intimidating. 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.  Keep reading to learn more about what you need to consider when buying property abroad. Tip 1: Define your goals for the property Ask yourself how you plan to use your vacation home. Knowing your intended use upfront will shape every decision that follows, from where you buy to how you structure ownership. Tip 2: Think about where you want to buy If you’re unsure where you want to purchase a second home abroad, ask yourself the following questions: These questions can help you determine where you would like to purchase property. Even if you already have a dream destination in mind, evaluate the market before committing. When weighing locations, consider a few key factors. Tip 3: Understand foreign ownership laws Most countries allow Americans to buy property freely, but the rules vary enough by market that it’s worth a quick check before you get too far into your search. Two exceptions worth knowing:  Beyond the rules themselves, it’s important to know that legal representation is separate from your real estate agent. An agent helps you find and negotiate a property. An attorney or notary handles the transaction. In France, a notaire is legally required for every sale. Spain requires a notario. For buyers managing this across languages and time zones, Tip 4: Find a local agent and attorney  Learning how to buy property abroad is much easier with the right people in your corner, and those are two distinct roles. A local agent brings market knowledge and helps you search and negotiate when buying. An attorney handles the legal side: title review, contract drafting, and compliance with local regulations.  Tip 5: Understand your financing options Here’s a breakdown of the most common paths to financing a home abroad: Tip 6: Know your U.S. tax obligations If you’re buying property overseas, U.S. tax obligations don’t stop at the border. Here are the key tax obligations to know: You’ll want a tax expert in both the U.S. and your destination country, along with a local legal expert, to help you navigate these requirements before closing. Tip 7: Review residency and visa requirements If you plan to spend extended time or Other countries may restrict your length of stay without a visa or have separate requirements for property owners. Research the options available in your destination country or ask your local attorney to walk you through what applies to your situation. Tip 8: Plan for ongoing property management While away from your property, someone still needs to take care of the home’s security, cleaning and maintenance. And when something goes wrong, you need someone local who can respond quickly. When evaluating overseas For buyers who want this handled from day one, Pacaso’s co-ownership model includes a dedicated local property manager in each of its international markets. Security, cleaning, maintenance and vendor coordination are all managed on your behalf, so your home is ready when you arrive and looked after when you’re not there. What are the benefits of buying property abroad? Buying property abroad opens up advantages that go well beyond what a vacation rental or hotel can offer. Confidently buy a vacation property abroad with Pacaso Pacaso was built specifically for buyers who want the experience of owning a luxury home in a world-class destination without the full complexity of a solo cross-border purchase. Through Pacaso's Ready to find your home abroad? Explore our

Dreaming of buying a second home? Despite market shifts, it’s still within reach. Whether you’re seeking a mountain escape, a beach retreat or a cozy getaway, understanding the realities of purchasing a vacation property is key. Buying a second home can feel overwhelming between higher costs, financing nuances, ongoing upkeep and limited time to enjoy the home. That’s why Let’s start with the seven steps of how to buy a second home: 1. Determining your second home budget involves assessing your current and future finances. Consider income, expenses and additional costs like taxes and maintenance, especially if you will be assuming a second mortgage. A It’s also important to think long-term. Will this home primarily serve as a personal getaway, a future retirement retreat, or a potential investment? Aligning your second home goals with your broader financial plan helps ensure the purchase supports your lifestyle, not strains it. 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. Second home expenses In addition to the purchase price, be sure to factor in these expenses when budgeting for a second home: Although second homes come with added expenses, they can also offer tax advantages that help offset costs. 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: These are great ways to make owning a second home more feasible. However, 2. Consider your financing options Lenders often see second homes as being at higher risk for loan repayment. For this reason, Here are some things to consider when financing a second home: It’s important to note that Buying a second home doesn’t have to be a solo endeavor. The standard minimum What are the no- and low-down-payment options? VA loans are available to eligible veterans, active-duty service members, surviving spouses, and those receiving VA disability benefits. They offer zero-down financing and are one of the few truly no-money-down paths available. Because VA loans are government-backed, they tend to carry more favorable terms than conventional second home loans. Note that VA loan eligibility for a second home depends on how the property is used and your remaining entitlement. If the seller's existing mortgage is assumable, you may be able to take over their loan terms, including a lower interest rate, without a new down payment. This option is relatively rare but can be a meaningful cost saver in a high-rate environment. If you have equity built up in your primary residence, a home equity loan or For homeowners 62 and older, a reverse mortgage allows you to access existing home equity without monthly mortgage payments. The funds can be directed toward a second home purchase. The loan is repaid when the borrower sells the home, moves out, or passes away. This option comes with high fees and significant complexity; consult a financial advisor before pursuing it. A gift of equity occurs when a family member or close contact sells you a property below market value. If the gift amount equals 20% or more of the property's fair market value, you can avoid a traditional down payment. Tax implications apply, so consult a tax professional before proceeding. A lease-option agreement lets you rent a property with the right to purchase it later. A portion of your rent payments may be credited toward the purchase price, reducing the down payment you need at closing. Negotiate these terms upfront with the help of a real estate attorney. In a seller-financed deal, the seller acts as the lender and you negotiate terms directly, potentially including a reduced or no down payment. Seller financing does not include standard mortgage protections, so the legal safeguards of a traditional loan may not apply. Proceed carefully with legal counsel. Adding a co-borrower who can contribute the down payment is another path. Shared financing reduces the burden on either party, though it also means shared ownership and responsibility. A formal co-ownership agreement is strongly recommended. What are the key considerations before going no-money-down? Reducing or eliminating your down payment does not eliminate costs entirely. Before pursuing a no-down-payment strategy, factor in the following: 3. Compare lenders When comparing second home lenders, 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: 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. 4. Get pre-approved Getting pre-approved for a second home gives you a clear picture of what you can afford and strengthens your position when making an offer. Lenders will review your income, assets and debts to determine an approved loan amount. Consult multiple lenders to compare interest rates and terms. Keep in mind that because lenders may see 5. Find a location and a local agent Once you decide how to use your second home, you can hone in on the best second home locations. Ask yourself: 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. 6. Make an offer Buying a second home 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: Once your offer is accepted, it’s time to begin the closing process for your new second home. 7. Begin closing After the seller accepts your offer, the second home closing process begins. This process involves several crucial steps: 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.  How does a second home differ from a primary residence? A second home and a primary residence aren't interchangeable in the eyes of the IRS or your lender. A primary residence is the property you live in most of the year and qualifies for benefits like the capital gains exclusion on sale, while a second home doesn't qualify for that exclusion or for homestead tax exemptions, even though mortgage interest deductions can still apply to both. If you're weighing whether your second home could eventually become your primary residence, see our full breakdown of What changes if I buy a second home in another state? Buying a second home doesn't mean staying close to home, but an out-of-state purchase adds a few extra wrinkles: remote tours, paperwork you can't always handle in person, and state-specific tax and closing requirements. Our guide to What should I know about buying property abroad? An international second home comes with its own set of considerations: foreign ownership laws, financing options, U.S. tax obligations, and visa or residency rules all vary by country. Our guide to What about buying a second home in Europe? Europe remains one of the most popular international destinations for second home buyers, thanks to deep, established real estate markets in cities like Paris and London and easy access to the surrounding region. Our guide to What are the current second home market trends? Second home demand shifts with interest rates, remote work patterns, and buyer priorities like sustainability and destination affordability, so it helps to know what's happening in the broader market before you buy. Check out the latest How do you know if you’re ready for a second home? When considering purchasing a second home, you'll want to evaluate your finances, lifestyle, and market conditions to determine whether it's the right time to purchase, but those factors are just the tip of the iceberg. Here are some of our team's top considerations for those considering a second place of residence. Down payments, interest rates and debt Assess your current financial situation to see if you can comfortably afford a If additional debt strains your financial resources, it may not be quite the Location and lifestyle fit The ideal second home also aligns seamlessly with your lifestyle. Prioritize locations that support your hobbies and desired activities, guaranteeing a frequent and enjoyable retreat. If you like to ski, for example, a Investment or personal escape? When deciding on the main goal for your second home, it's crucial to determine if you're primarily interested in generating rental income, building long-term investment appreciation, or creating a personal retreat. Each of these objectives will significantly affect your approach to buying, managing, financing, and handling taxes for the property. Time investment Owning a second home comes with significant responsibilities. Are you prepared to manage the upkeep of two properties? This includes regular maintenance, potential repairs and the time and financial commitment of traveling between both homes. If not, are you willing and able to hire a property management company or other professionals to handle these tasks?  Remember that delegating these responsibilities will add to the overall cost of owning a second home. Market timing Finally, when looking to take a big step forward in your second home journey, you'll want to look at the home market conditions. Many properties are available in a buyer's market, and buyers have more negotiating power. In a seller's market, high demand and low inventory give sellers the upper hand.  Understanding the current market conditions will help you set realistic expectations, develop an effective negotiation strategy and help you determine if now is the right time to buy.  How do I buy a second home with Pacaso? Now that you know how to buy a second home, it’s time to explore your options. If turnkey luxury and simplicity appeal to you, co-ownership with Pacaso offers a modern alternative to traditional second home ownership. If you’re unfamiliar with Here are 11 steps to follow if you’re wondering how to buy a second home with Pacaso.  1. Find a second home you love From there, you can explore each destination and the homes available within it, picturing what life could look like in every location. Each destination page brings the area to life, showcasing Pacaso homes through rich photography, detailed descriptions, and a true sense of how it feels to live there. Every Pacaso home is hand-selected and 2. Talk to us We’re excited to share all the details about our homes. If you’re not sure which one is best for your needs, we’ll go through each home’s unique attributes and location to help you decide.  You can easily schedule a time to talk with one of our Crew members from any listing details page, or if you have general questions about co-ownership, you’re welcome to get in touch via our 3. Take a tour  Touring is an important step in buying a vacation home. We’ll give you all the information we have about the home, but seeing is believing. While you’re on the call with our Crew member, they can arrange a time for you to tour the home. Buyers can schedule a virtual tour, an in-person tour, or 4. Say yes!       You talked, you toured, you fell in love, and you’ve decided on owning a vacation home! We’ll walk you through the purchase process and paperwork, and our Crew will make sure you understand all the terminology related to co-ownership, such as: We want you to feel confident in the process, so ask as many questions as you’d like. Once you’re ready to proceed, you’ll reserve your share with a 10% deposit. 5. Secure second home financing  If you’re interested in The approval process is straightforward and fast. Once all documents are provided, typically your most recent pay stub, bank statement and tax return, approval takes just a few days. You also have the option to pay all cash or take out a HELOC or personal line of credit through a lender of your choice. 6. Close on your new second home Your journey begins by reserving your share and signing the residential purchase agreement. You’ll submit a deposit equal to 10% of the share price, officially kicking off the closing process.  From there, you’ll receive two sets of documents to review and sign. These include familiar items, such as the inspection report and seller disclosures, as well as Pacaso-specific agreements that outline how the home is managed and owned through our property LLC structure. If you choose to finance a portion of your purchase, our team will work with you to collect the required financial information and keep things moving smoothly. As closing approaches, we’ll schedule a check-in call to review your final closing statement, confirm wire instructions for the remaining funds, and verify that everything is in place, including your first stay date. Once the transaction is complete, congratulations are in order: you’re officially a Pacaso owner. After closing, you’ll transition into onboarding, where you’ll meet your Home Manager, download the Pacaso app, and start booking stays. From there, all that’s left to do is settle in and enjoy your new second home. 7. Get ready for vacation home bliss Congratulations on owning a vacation home with Pacaso! Our commitment to owners doesn’t end at closing. We assign a 8. Book your stays You can begin scheduling stays after completion, and the property will be ready for your enjoyment as soon as all upgrades to the property are completed. As an owner, you have ongoing access to the property, and you can quickly and easily book multiple stays with the Pacaso app, powered by our 9. Experience the ease of fully managed ownership One of the best things about buying a vacation home? It’s all yours! One of the worst things? It’s all your responsibility. The hassles of vacation home ownership can take a lot of joy out of the experience.  Pacaso’s fully managed co-ownership model gives you the benefits of vacation home ownership without all the headaches. We take care of maintenance, repairs and cleaning; manage payments for utilities, insurance and taxes; oversee 10. Flex your ownership muscles Pacaso’s management services are designed to make your ownership experience easier, but that doesn’t mean you don’t have a voice. In fact, you and your property’s co-owners have 100% ownership of the property once all shares are sold, which means your co-ownership group has decision-making authority.   Here’s how this works in practice: Owners can bring major issues about their property to a vote of the co-ownership group, and every share owned holds one vote. A major issue might be a costly property upgrade, like the installation of a hot tub.  To call for a vote, you would get in touch with your home management team. Routine maintenance and necessary repairs (such as replacing a broken dishwasher) are handled by Pacaso and do not require a vote. 11. Feel confident if it’s time to move on We think you’ll love your Pacaso for years to come, but life evolves, and your ownership can evolve with it. If your needs change, you’re free to Why is buying a second home with Pacaso the smart choice? For buyers who want to reduce upfront costs without the complexity of no-down-payment strategies, You can From luxury homes in premier destinations to professional property management, Pacaso provides everything you need to make ownership simpler and more enjoyable. Whether you're just beginning to explore or ready to take the next step,

When buyers ask what a turnkey home entails, they’re usually trying to understand whether a house truly requires zero renovation work before it’s livable. While typical turnkey properties aren’t automatically furnished, many homes in luxury and second-home markets do include curated furnishings, décor and smart-home features to create a genuinely ready-to-use experience. How do turnkey homes work for second-home buyers? Turnkey homes offer unique value for second-home buyers, especially those For second-home owners, time is precious. A turnkey home lets you focus on making memories, not managing permits, interviewing contractors or coordinating deliveries. Whether your second home is a beach retreat or a And because everything is finished before closing, you experience faster access to the lifestyle you’re working toward, like meaningful time with family, stress-free travel and comfortable stays throughout the year. What’s included in a turnkey home? While every property is different, most turnkey homes share a set of core qualities. These features give buyers confidence that they won't need to make immediate repairs or updates. Here's what's usually included in a turnkey home: In Together, these features make it possible to start living in the home right away, with little to no prep work on your part. What are the pros of buying a turnkey home? Turnkey homes are appealing for many reasons. They offer an experience built on convenience, comfort, and clarity. Here are some of the benefits of buying a turnkey home: For second-home buyers, the ability to enjoy your home immediately without stress or delays is often the biggest advantage. What are the cons of buying a turnkey home? Turnkey homes also have a few trade-offs, especially if customization or cost savings are top priorities. Here’s what you’ll need to look out for when buying turnkey properties: A turnkey property should offer genuine readiness. The proper documentation will help you confirm that. Who is a turnkey home right for? Turnkey homes are an excellent fit for buyers who want to spend less time coordinating projects and more time actually enjoying their home. They’re especially appealing to people with full schedules who prefer a space that’s fully prepared from day one. Out-of-state and On the other hand, buyers who love hands-on customization or who enjoy shaping a property to their exact preferences may feel limited by a home that’s already completed. Those who thrive on renovation projects often find a fixer-upper more satisfying. These buyers typically prioritize the control and potential transformation that come with renovating, while turnkey buyers prioritize convenience, predictability and immediate comfort. What should you consider before buying a turnkey home? Before buying a turnkey home, it’s important to take a thoughtful look at the property’s quality, history and documentation so you know exactly what “move-in ready” truly means. Even when a home is labeled turnkey property or turnkey home in real estate listings, the level of work completed can vary widely, so due diligence is essential. Questions to ask the builder or seller When evaluating what is included in a turnkey home, ask the builder or seller detailed questions to better understand the scope and quality of updates. Confirm whether improvements were cosmetic or structural, how recently they were completed and whether licensed contractors performed the work.  Here are some questions to ask during the walkthrough: How do you verify a listing is truly move-in ready? To verify that a listing is genuinely turnkey, request documentation that reflects the quality of the work. This may include inspection reports, permits for structural changes, receipts from contractors or proof of recent servicing for major systems.  A true turnkey property will have consistent updates across the home, modern mechanical systems and completed spaces with no unfinished rooms or outdated features. When inspecting the home, pay attention to common signs that the home isn’t fully turnkey, such as mismatched finishes, older electrical panels, aging HVAC units or partially updated kitchens and bathrooms. What are the cost expectations for turnkey homes? Turnkey homes often come with a higher upfront purchase price because the improvements, design work and system updates have already been completed for you. However, buyers typically save money and time by avoiding renovation expenses, travel for project oversight and the unpredictable costs that come with fixer-uppers.  Turnkey home vs. fixer-upper: what’s the difference? A turnkey home is all about readiness. It’s complete, polished and requires no immediate work. A fixer-upper, on the other hand, is a property that needs renovation, repair or modernization before it feels complete. Turnkey homes streamline the experience from day one, allowing buyers to arrive and enjoy their vacation home with peace of mind. Fixer-uppers appeal to those who want the creative freedom to customize deeply and are comfortable navigating updates, delays and long-term projects. As you compare your options, weigh the immediate convenience and clarity of a turnkey home against the potentially lower upfront cost of a home that requires additional work. For many second-home buyers looking for ease, speed and comfort, the turnkey route offers a smoother path into ownership. How do you find a turnkey home?  Turnkey homes are especially common in second-home markets and desirable vacation destinations. When browsing listings, look for descriptions like “move-in ready” or “recently renovated.” Also, verify that the features align with your expectations for readiness, as not every home labeled “turnkey” meets the same standard of quality. Pacaso offers How can Pacaso help you find your turnkey home? Pacaso simplifies second home ownership by offering Whether you’re right-sizing your time away or exploring new destinations, Pacaso makes second-home living more seamless, ensuring your turnkey home is ready from the moment you walk in the door.

A second home down payment is more manageable than most buyers expect, as long as the funding source actually fits your financial picture. Most articles on the topic list ten options and leave you to figure out which one applies. This guide does the opposite: it shows you how much you actually need by loan type and price point, then walks through the smartest down payment options for four common buyer profiles. It also shows where co-ownership fits, because for many would-be buyers it solves the down payment problem before you ever fill out a mortgage application. For a conventional loan on a single-family second home, expect to put down at least 10% if your credit, debt-to-income ratio, and cash reserves are strong. In practice, most lenders push that closer to 15% to 20%, and jumbo loans on higher-priced vacation homes typically require 20% to 25% down.  The reason is risk: lenders assume that if a borrower runs into financial trouble, they will keep paying the mortgage on their primary residence before their vacation home, so they offset that risk with a larger second home down payment, a higher credit score floor, and stricter cash reserve requirements. Beyond the down payment itself, you should be ready to document two to six months of cash reserves on top of closing costs, hold a credit score of at least 640 (700+ is ideal), keep your total debt-to-income ratio at or below 43%, and confirm the home meets Fannie Mae and Freddie Mac second home occupancy rules, typically a one-unit, year-round property located at least 50 to 100 miles from your primary residence. Not every loan product is on the table when you are The percentage is only half the picture. The other half is the dollar figure you actually need at the closing table. Here is what a down payment on a vacation home looks like across common second home price points. For most buyers shopping in the $750,000 to $1.5 million range that defines today's second home market, that means $75,000 on the low end and $375,000 on the high end, before closing costs, furnishings, and reserves. The size of that check is exactly why The table above uses standard percentages, but your own numbers depend on your target price, loan type, and closing costs. Use the home down payment calculator below to enter your own inputs and see your results instantly, no manual math required. The calculator takes the guesswork out of affordability by breaking the math into a few simple steps. The more accurate your inputs, the more helpful your results will be. Here is a quick example: say your target home price is $1,000,000 and your lender requires 20% down. Multiply $1,000,000 by 0.20 and your down payment comes to $200,000. The same formula works at any price point or percentage, which is useful for a fast gut check before you open the calculator above. If you’re wondering how to buy a second home with a low down payment, co-ownership rewrites the math because the second home down payment is calculated against the share you actually buy, not the full value of the home. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a fully managed luxury home through a For a deeper walk-through of how co-ownership works alongside conventional financing, see Pacaso's The right down payment options for second home purchases depend on where most of your wealth sits today. Four profiles cover the majority of real-world buyers. If your primary residence has appreciated and you have at least 30% to 40% equity, a HELOC or cash-out refinance is usually the cheapest and fastest source of down payment cash. You access the equity without selling, deduct mortgage interest where eligible, and avoid liquidating investments. Pacaso has a focused walk-through on using High earners often run into a timing problem rather than a wealth problem. The best down payment options here are a conventional loan with 10% down (accepting PMI), gift funds from family (documented per Fannie Mae guidelines), seller financing for part of the down payment, or co-ownership, which reduces the cash hurdle by an order of magnitude. If your wealth is concentrated in retirement accounts, taxable brokerage, or your existing home, asset-depletion mortgages and securities-backed lines of credit let you qualify and fund a second home down payment without selling appreciated positions or triggering big tax bills. Co-ownership is also a natural fit at this life stage, since you get the home you want without tying up retirement liquidity in a single illiquid asset. Expect to put at least 10% to 15% down, and budget for closing costs of 2% to 5% on top. If you are unsure whether to go full ownership or test the waters first, co-ownership is the lower-risk on-ramp: a deeded share, fully managed, with a clear resale path. Pacaso's Across the buyer profiles above, six funding sources do most of the work. The smartest choice is the one that fits your balance sheet, not the one with the lowest headline rate. For a side-by-side cost comparison of these paths, the Pacaso shrinks the second home down payment problem in three concrete ways.  The result is a true real estate asset, with a deeded LLC interest, in a luxury market you might otherwise be priced out of. To see what is available in your preferred destination,

If your dream is to 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 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 What are the 7 financial differences between a second home and an investment property? When it comes to financing, investment property and second home requirements can differ greatly. Investment properties tend to have stricter requirements, such as higher mortgage rates, a more substantial down payment and a higher credit score requirement. However, investment properties may result in substantial income or qualify for more desirable tax breaks.  Here’s an overview of how each To better understand how to begin financing investment property and 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.  This is more than just a percentage; it results in a higher monthly payment, which can add tens or hundreds of dollars to the overall cost over a 15- or 30-year period. For example, a 1% increase in a mortgage rate (say, from 6% to 7%) on a $ 3 million home can add $700,000 in interest over the course of a 30-year loan. 2. Down payments According to the 3. Debt-to-income (DTI) ratio According to 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. Keeping your debt ratio below 45% shows lenders that you’re financially stable and in control of your debt, which increases the chances of approval. This is because borrowers have more of a financial cushion, which lowers the perceived risk of non-payment to lenders. 4. Closing costs Lenders often charge higher origination fees (or closing costs) for investment properties than for second homes, often at a rate of 2% to 5% in comparison to the traditional 0.5% or 1% charged on a second home mortgage. 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. This, in turn, may mean that lenders will offer you a larger loan with more certainty that you can repay with rental proceeds. You won’t have that perk with 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. This lets you scale your earnings and build a rental portfolio much quicker than buying separate accommodations. 7. Cash reserves Cash reserves are necessary for a second home or vacation home, which refers to an amount of liquid cash on hand for any home expenses. 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. 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 and take a look at how the IRS handles second homes vs investment properties. 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 2. Property taxes You can potentially deduct the property 3. Rental income Income you earn from your 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. 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 With

A growing number of Americans are warming up to mindfulness and zen-influenced practices. Between 2012 and 2017, meditation more than tripled in use in the U.S., according to the CDC. Having a dedicated room where you can step away from negative emotions makes it far easier to build soothing practices into daily life. Not everyone responds to the same decor and routines, though, so tailoring your zen room ideas to your personality will help you get more out of the space. Below, explore seven zen room ideas for inspiration on designing your own retreat, along with expert tips for outfitting your emotional escape room, whether that's in your everyday home or a second home you're still furnishing. What is a zen room? A zen room is a space where you can isolate yourself from the distractions or negative emotional triggers of the outside world. Traditionally, zen rooms are used for meditation, and having a dedicated area makes it easier to incorporate this practice into day-to-day life.  Today, the concept of zen rooms takes on many forms. People use zen rooms to focus on whatever activities bring them peace and a sense of calm, whether that's quiet meditation, reading, music or movement. A meditation zen room idea in particular is a perfect place to enjoy some solitude. It can be a sacred space for relaxation, de-stressing, or simply reconnecting with self-care practices. What do you need for a zen room? Since the overarching goal of a zen room is to encourage peacefulness, minimizing distractions is a recurring theme across zen room decor ideas. That still leaves plenty of room for personalization, which is part of why zen rooms have grown so popular. Cool tones Cool colors and earth tones increase feelings of serenity. Surrounding yourself with shades of blue, green or purple aids your pursuit of peace. Conversely, sharply contrasting colors, like blue and yellow, can have a stimulating effect and work against the right mental state.  According to Rick Berres, owner of the home remodeling company Honey-Doer, achieving a peaceful space starts with your use of color: bright white or a pastel shade of blue or lavender tends to read as the most calming. Minimalism Leaving distractions at the door is an important step toward relaxation. Keep things simple when designing your zen room, and avoid decorating with too many trinkets or pictures. Prioritize only having items in the room that nurture your mental well-being. Natural light Abundant natural light increases feelings of calm in a meditation space. Choose a room with ample windows where you can avoid artificial light during the daytime. East or west-facing windows may allow for sunrise or sunset views in your sacred space. Even better, consider creating your meditation space outdoors. Negative space Negative space is an area not occupied by an object. It's an important design element when pursuing minimalist ends, and properly implementing it keeps a room from feeling either too cluttered or too bare. Plants Spending time in nature is linked to reducing negative feelings like stress while increasing positive ones. Bringing natural elements like plants into your meditation room is an easy way to bring out those positive emotions. Scents Aromatherapy can be used to induce relaxation through incense, candles or essential oil diffusers. Stay away from strong scents, especially in a small space, since they can become irritating over prolonged periods. Lily Wili, CEO of Ever Wallpaper, recommends scents such as lavender and jasmine for creating a calm environment that helps you focus and let go of negative emotions as you prepare to meditate. What are some zen room ideas for every personality type? The type of zen meditation room that is right for you is heavily dependent on your personality. Here we’ve constructed four types of personalities, informed by the 1. Meditation room  A meditation room is the classic zen room idea. Its primary purpose is to center oneself and increase mental peace. A dedicated meditation room can even have physical benefits: in Keep distractions to an absolute minimum, and select a room with plenty of natural light if possible; a sheer fabric can diffuse intense light as a window shade. Meditation rooms don't require many objects or a large area, so it's often enough to design a meditation corner rather than dedicate a full room. 2. Music room Music can give a profound boost to mood and reduce anxiety, helping you manage stress and even cope with physical pain. If music is a constant in your life, harnessing it in your zen room idea can have lasting benefits.  Bring in your music collection or an instrument, whether you already play or want to learn. This is one zen room idea where extra knickknacks are welcome if they bring you joy, like a concert poster or your favorite band's merch. 3. Reading room  The principles behind a reading room are similar to a music room. Surrounding yourself with books you love can bring comforting feelings, and reading can lower cortisol, a hormone tied to stress. Keep your books organized to avoid feelings of disarray: try sorting by size or color to discover which feels most calming, and invest in a comfortable chair or couch. 4. Hobby room Sometimes the best way to find inner peace is through actively doing what you enjoy. People who spend time on hobbies they love benefit from lower blood pressure and better moods. A dedicated hobby room can incorporate woodworking, painting or puzzling, basically anything you want.  Adorn the walls with the tools you use and display completed projects you're proud of. Clutter is the greatest hindrance here, so clean the space after every session to get into a flow more quickly each time. 5. Green room While most zen styles incorporate natural elements, green rooms take it to the extreme. Cover floors and walls with plants to fill the space with green leaves and blooming color. Choose furniture that's practical but doesn't overwhelm the space; low-backed chairs and couches let plants hang low and envelop you. Beyond looks, the act of caring for plants day to day is where you'll find even more benefit, and houseplants can help clean the air in the room. 6. Yoga room  The meditative nature of yoga pairs naturally with the concept of a zen area or minimalist meditation room. While yoga lowers stress levels, it also improves physical health overall. Since you won't want objects hindering your movements, optimize negative space and keep furniture tight against the wall.  Mirrors can help with form, but they can also be a distraction; curtains over mirrors can increase the room's flexibility. According to Eva Prettyman, principal designer of Lincoln Home and Design, anything that requires movement benefits from minimal furniture and open space to practice. 7. Workout room A strenuous activity like weight lifting may seem like the opposite of zen, but it's all about mindset. Among zen workout room ideas, the goal is to use exercise as an emotional escape: leave daily worries at the door and focus solely on reaching new personal bests.  The regimented structure of a workout routine can bring order to an otherwise chaotic day. Find a balance between the cold practicality of a typical weight room and the coziness of a zen room by keeping equipment well organized and layering in ambient sound, like trickling water, to drown out distracting noise. How do you set up a zen room in a living room, dining room or office? Not every home has a spare room to dedicate entirely to zen. The good news is that zen principles, cool tones, minimalism, natural light and negative space, can be layered into rooms that already serve another purpose. Among office zen room ideas, a quiet corner with a closed door, a comfortable chair facing a window and a single calming object, like a small plant or a diffuser, can transform a workspace into a space that supports focus rather than draining it.  Zen living room ideas often center on decluttering one section of the room, perhaps a window seat or an underused corner, and outfitting it with a floor cushion, a soft throw and a bookshelf trimmed to only the items you love.  For zen dining room ideas, dimmable lighting, a runner in a calming neutral tone and a centerpiece of fresh greenery can turn a dining table into a more intentional gathering space, especially if it doubles as a place for quiet mornings when it isn't set for a meal. Not everyone has an extra room to dedicate to a meditation space, and a zen room often has to do double duty as a home office, bedroom or patio. That's okay. A few diy zen room ideas can help you build the feeling of a retreat without a dedicated floor plan: Incorporating elements of zen into your daily life can have a profound impact on your mental health. If one of these zen room ideas seems like a good fit for your lifestyle, experiment with the suggested design styles. You may like it so much that you carry it through to your second home as well. For many buyers, the desire for a space like this is exactly what kicks off the search for a second home in the first place. A meditation room, a home gym, a reading nook overlooking the water: these are some of the most commonly cited motivations people give for wanting a vacation property, more than any single destination or amenity.  A second home offers something a primary residence often can't: a fresh floor plan, free of the competing claims on every room that come with day-to-day family life, where an entire space can be set aside purely for restoration. If a dedicated retreat is part of why you're considering a second home, a few property features matter more than others when you're touring listings: These are the same features that show up consistently across Pacaso's portfolio, where Pacaso allows buyers to purchase a share (1/8 to 1/2) of a fully managed luxury home through a property-specific LLC, giving them a true real estate asset without the full cost or hassle of buying alone. Each Pacaso home also comes with a dedicated Home Manager who handles maintenance, cleaning and turnover, so the time you spend in your retreat room goes toward actually using it instead of managing it. And through If you're drawn to the idea of a second home built around a dedicated retreat, whether that's a meditation room with mountain views or a yoga room steps from the beach,

The way you structure property ownership shapes everything from estate planning to what happens if a co-owner runs into debt. There are nine types of ownership in real estate, each with different rules around liability, control and transfer. Choosing the right one matters whether you’re buying a primary residence, buying alone or exploring second home Every situation is different, and the right ownership structure depends on your goals, your state and who you’re buying with. If you’re unsure which property type will work best, explore your options with a real estate attorney. 1. Sole ownership Sole ownership means one person holds the title to a property outright. That owner has full authority to sell, lease or transfer the property at any time, with no other parties involved in the decision. Property owned by a sole owner is sent into probate when the owner dies until the will is validated. 2. Joint tenancy with rights of survivorship (JTWROS) One of the most common property ownership types is 3. Tenants by the entirety (TBE) 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. If the marriage ends in divorce, the ownership structure automatically converts to tenancy in common. 4. Community property Nine states are community property states, with Alaska allowing residents to opt in. 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 into a community property agreement. The same community property laws apply to registered domestic partnerships in California, Nevada and Washington. 5. Owning trust In an owning trust, a trustee holds and manages a property on behalf of someone else,  typically a minor child or an adult with special needs. A living trust is created during the original owner’s lifetime. The owner, also referred to as the trustor or grantor, designates a beneficiary to receive the property while continuing to serve as trustee until their death. At that point, a successor trustee steps in to manage the property and ensure it passes to the beneficiary without going through probate. 6. Tenancy in common (TIC) With Unlike joint tenancy, TIC carries no survivorship rights. Each owner is free to sell, will or transfer their share to whomever they choose without input from the other owners. When an owner dies, their share moves through probate before passing to any named heirs. 7. Owning a partnership/LLC or co-ownership A property can be placed under a Owners can create the LLC by doing it themselves or use a third-party company like 8. Condominium ownership Condominium ownership means holding an individual deed to a unit within a multi-unit building, while sharing ownership of common areas with other residents. Those shared spaces are managed through a homeowners' association (HOA), which handles maintenance and upkeep.  Before purchasing, buyers should review the HOA’s financials, rules and fee structure, as these vary significantly from building to building. 9. Cooperative (co-op) ownership In a co-op, buyers purchase shares in a corporation that owns the building rather than receiving a deed to a specific unit. Those shares entitle them to a proprietary lease for their unit. This makes co-op ownership fundamentally different from condo ownership. Rather than holding an individual title, buyers own shares in the corporation that holds the deed.  Co-ops are also most common in New York City but exist in other metro areas. Purchasing one typically involves a board approval process, which can be lengthy and restrictive. Subletting is often limited or prohibited, and financing can be harder to secure since fewer lenders offer co-op loans. What type of ownership is right for you? When comparing the types of real estate ownership, a good starting point is to narrow down by who you’re buying with. From there, a few other factors are worth weighing: A real estate attorney can help you determine which structure fits your situation and state. Own a luxury second home with Pacaso Pacaso offers professionally managed LLC co-ownership of luxury second homes in Up to eight owners share one home, with scheduling handled through  Plus, Pacaso takes care of all of the management and maintenance, so owners show up to a home that’s ready.