Buying vs. renting a home: Pros, cons and how to decide

There are so many ways to vacation: the consistency of a hotel, the extra space in a vacation rental, the structure of a 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 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 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 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.  Discover how Pacaso stacks up against Inspirato. Pacaso uses an innovative With homes available from

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 Two of the best known are 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 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 Inspirato pros and cons 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 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 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.”  

Buying a home in Europe for fall in London or Paris Autumn rewards those who plan ahead. If you are buying a home in Europe, a private base in London or Paris turns a packed cultural calendar into an easy ritual. From film premieres to gallery nights, Paris luxury homes and London townhouses place you steps from headline events, neighborhood bistros, and quiet parks between engagements. With Pacaso, you enjoy the city lifestyle without the day-to-day burden of solo second home ownership. Buying a home in Europe for a curated fall season Pacaso co-ownership gives you a professionally designed, fully furnished home and seamless management, so your time goes to exhibitions, performances, and dinners, not logistics. If you want a deeper understanding of how modern co-ownership works, see our explanation in London in autumn culture highlights October brings film, design, and private views across the city. Anchor your plans around these cultural touchpoints, then fill in afternoons with parks and gallery walks. Paris in autumn culture highlights For those buying a home in Europe to deepen their arts calendar, Paris delivers from neighborhood festivals to global fairs. The season layers heritage with contemporary voices across the city. Across the Seine, Why a private base beats busy hotels in peak season Both cities see strong demand each fall, as new hospitality projects and reimagined historic buildings signal ongoing appetite for high-end stays. Owning your Pacaso home means consistency, privacy, and the ability to host comfortably during marquee weeks. How Pacaso simplifies city ownership Find your base in London and Paris If you are thinking about buying a home in Europe, anchor your fall calendar with a Pacaso in these culture capitals. Browse

Before you To help you get started, we’ll break down the Let’s dive in.  IRS classifications: How your second home is taxed The availability of second home tax deductions largely depends on how the IRS classifies your property. Understanding these classifications is crucial for knowing what you can and cannot deduct. The three classifications are: Consult a tax professional to determine your home’s rental status and which tax form you need to file.  Tax deductions for second home ownership  Basking in luxury and relaxation isn’t the only advantage to owning a vacation home. Here are a few second home tax breaks you don’t want to miss.  Mortgage interest deduction Mortgage interest is the amount you pay to borrow money from the bank when you buy a home. A mortgage interest deduction is a tax benefit that allows owners of one or two qualified homes to write off the interest they paid on their mortgage. But remember that you can only Property tax deduction Another key second home tax deduction is for property taxes. Property tax is an annual fee charged to homeowners based on the value of their property. These taxes usually go toward funding local schools, public safety, roads and infrastructure, parks, library services and more. Home equity loan interest deductions You can Energy efficiency tax breaks The U.S. government offers two main tax credits for homeowners who make eco-friendly upgrades: the 5. Capital gains deduction A capital gain is the profit you make from selling a capital asset, such as a second home. The amount of your gain is the difference between your adjusted basis (what you paid for the property, plus the cost of any major improvements) and the net earnings from the sale (the selling price minus expenses like realtor fees and closing costs). One of the best ways to avoid tax on second home sales is to Understanding the 14-Day Rule and its tax implications The 14-day rule determines whether your property is classified as a personal residence with minimal rental activity or a full-fledged rental business, which impacts how your rental income and expenses are taxed. Tax-free rental income (14 days or less) If you use your second home as a personal residence and rent it out for 14 days or less during the year, a special rule applies: You don’t have to report any of the rental income earned on your tax return. However, it's a trade-off: You’re also not allowed to deduct any rental-related expenses, such as advertising, cleaning or property management fees. Reporting rental income (more than 14 days) If you rent out your second home for more than 14 days a year, you must report all the rental income you earn to the IRS. This is done using Schedule E (Form 1040), where you will report your gross rental income and can then deduct a wide range of expenses to calculate your taxable profit or loss. Additionally, you're allowed to depreciate the property. If the cabin’s value (not including land) is $240,000, the annual depreciation would be about $8,000. Rental expense deduction Rental depreciation deduction If you are using your second home exclusively as an You may recover the total cost of your expenses if the amount is less than $1,080,000, doesn’t surpass your taxable income and meets the requirements for a qualified property, service or improvement.  Here’s how you can qualify for a rental depreciation deduction on your second home: Many second home tax deductions are similar to those of a primary residence, however, the specific perks you can claim often depend on your usage of the property. Be sure to consult a licensed tax professional to better understand how second home tax laws might affect your tax situation. Find your perfect vacation home with Pacaso Understanding the tax benefits of a rental property is an important part of the journey. Once you're ready to find a property that suits your lifestyle, Pacaso offers a simplified path to

If owning a million-dollar home is one of your life goals, you’re not alone. But you might be wondering: How are people affording houses in the million-dollar range? With some clever planning, a sprinkle of financial savvy and a pinch of determination, it’s possible to 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 Key financials to afford a million-dollar house To comfortably This range, however, is subject to variation depending on your: 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 determine whether you Examples of a monthly mortgage payment for a million-dollar home 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 or down payment is low, expect the monthly cost to be substantially more. When it comes to how to afford a million-dollar home, understanding the monthly payment is key. The table below shows how different interest rates impact your monthly principal and interest payments on a $1 million loan. This assumes a 30-year fixed-rate mortgage with a 20% down payment. 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 house It’s important to plan for expenses beyond the mortgage. Here are a few things to factor in:  It’s important to know what to expect so you can factor all expenses into your financial plan. Tax implications of a million-dollar home You might not anticipate how your new home will affect your The 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 Financing strategies to afford 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 for a million-dollar Make a large down payment Paying a larger Get a jumbo mortgage If your home’s price exceeds the conventional loan limits Leverage home equity A Liquidate other assets For some, a key financing strategy involves liquidating assets like stocks, bonds or a current property if you Co-ownership models What if your million-dollar dream home is for vacations, not your Prospective second home owners are embracing Pacaso’s Pacaso offers a modern way to buy a million-dollar second home. Our Hassle-free ownership of a million-dollar home Owning a million-dollar house as a vacation home is more attainable through Check out our

Home co-ownership has been around for a long time, and it comes in many forms. It can be as simple as a married couple owning a property together or it can be more complex, legally or financially.  Spouses and family members often choose joint ownership of a primary or second home so when one owner dies the property’s title passes to the surviving owner or owners.  Other Co-ownership benefits The Co-ownership downsides A smarter option Pacaso has developed a Buyers purchase ownership interest, ranging from 1/8 to 1/2, in a Pacaso co-ownership is more flexible than a Pacaso owners enjoy Definitely not a timeshare “ Timeshares have proven to be poor investments. Most lose 30-50% of their value and are notoriously illiquid, according to the 2020 Sherpa Report. Use rights are often rigid, and “owners” may feel (and act) more like renters.By contrast, co-ownership in a second home gives you true ownership in a place you can call your own. All owners agree to a Pacaso code of conduct and share an owner mentality.  Definitely not a fractional A less common ownership model is “fractional” or shared resort ownership. You may see these marketed as “residence clubs.” These fractionals differ from timeshares in that they offer fewer shares, so owners get more use time. They are also costlier than timeshares, averaging $161,500 per share in 2019, according to Ragatz Associates. Additionally, members must pay costly annual membership dues. Fractionals often offer hotel-like services and amenities, but do not guarantee use of a specific space. Owners buy access to a type of unit at a club or resort, not a home.  Pacaso’s Pacaso co-ownership delivers the benefits of whole second home ownership without the downsides. Check out

There are several On the other hand, people who rent out their vacation home often find that it’s very time-consuming. In addition to It’s no wonder many vacation homeowners hire a rental management company to handle all those day-to-day tasks. Here are the seven best short-term rental management companies. 1. Vacasa The company focuses on whole-family rentals, including single-family homes, condominiums and townhomes. The hallmark of its offerings is 24/7 customer service for renters via phone or app and local management teams in case issues arise. For property owners, Vacasa’s sales and marketing services are a big draw. It provides 3D virtual home tours, professional photography and data-driven, dynamic pricing technology.  Pricing and fees Vacasa’s vacation property management includes a full-service deal, including bookkeeping, marketing and 24/7 guest support. However, pricing varies depending on the needs of the property and the local market. 2. Evolve Since launching in 2011, Evolve boasts a lower-than-average property management fee, starting at 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 Pricing and fees As far as vacation rental management companies go, Evolve is one of the most affordable. However, they don’t include some basic services like cleaning or maintenance. 3. AvantStay If your property is on the larger side, you’ll want to take a look at 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.  Pricing and fees As one of the top management rental companies, AvantStay prices and fees mirror their upscale services. You’d need a quote for their package. 4. SkyRun A collective of independent vacation rental companies, 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 new owners any onboarding fees.    Pricing and fees SkyRun is a collective of property managers and each may have their own pricing. You have to contact a vacation rental manager and get a quote.  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, 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.  Pricing and fees Casago’s vacation home management pricing depends on the size of the property. They use a commission-based structure. 6. Awning Its services include: guest communication, dynamic pricing and coordination of cleaning and maintenance. Availability and level of service can vary by market, and the platform is best suited for owners seeking a more analytical and structured management approach. Pricing and fees When it comes to vacation home property management, Awning has a distinct payment structure. They optimize their pricing according to various factors, such as the size and location of the property, to maximize returns.  7. Pacaso All maintenance, cleaning and management are handled by Pacaso, so there’s no need to chase rent payments or coordinate guest stays. This makes it the best vacation property management company for those who want the benefits of second home co-ownership without the responsibilities of hosting. Pricing and fees Pacaso’s home property management costs depend on various factors, particularly your share of the property. Pacaso budgets for the year, estimating your monthly costs.  Pros and cons of using a property management company  Hiring a property management company can be a smart move for vacation or second home owners who don’t live nearby or don’t want to manage day-to-day tasks. These companies take over responsibilities, such as guest communication, maintenance, cleaning and marketing. However, that convenience may be costly. Here’s a list of advantages and disadvantages to consider: Pros of using a property management company 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. You pay for peace of mind. Also, you may get: Cons of using a property management company The biggest owner gripe you’re likely to have about vacation home property management companies is the cost. Here are a few things to keep in mind: 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: Build equity while maintaining your lifestyle Renting out a second home can help offset co-ownership costs, but it also comes with effort: managing bookings, maintenance, and the unpredictability of guest income. And even with the best intentions, there’s no guarantee rental earnings will fully cover your expenses.  Pacaso offers a different approach. Through hassle-free co-ownership of vacation homes in top destinations, up to eight owners Find your luxury

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 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 To take advantage of the rescission period, you’ll need to write a letter to the timeshare developers with the following information:  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 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. Before pursuing this option, check your contract to learn Examples of deed-back programs include: 3. Sell your timeshare on the resale market 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.”   One of the major 4 A timeshare exit company is your likely last resort for getting out of a timeshare. If the other methods are unavailable, you should 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: 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. Donating your timeshare to charity seems like an easy way out of those rising fees, and you might even get a tax write-off. But it's not free. You'll still pay maintenance fees, taxes, and transfer costs until the charity officially owns it. If you want a big tax deduction, you'll also have to pay for an appraisal. Some charities might even ask for a cash donation to help cover their future expenses. 6 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. Dos and don’ts when exiting a timeshare In many cases, If you want to learn how to exit a timeshare without spending thousands of dollars or falling prey to a scam, avoid these methods: Benefits of Pacaso vs. a Timeshare 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 Some 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. If you don't want to deal with timeshare hassle, Pacaso is another option that offers true fractional ownership of a luxury home.