6 Things to Consider Before Buying a Second Home | Pacaso

Vacation home dreams? 6 realities to consider for second homeowners

Laura Vecsey

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Many people dream about owning a vacation home or a second home. That’s the easy part. What comes next is more challenging.

Start by considering these six aspects of second homes:  

  1. Location: How close do you want to be from your primary residence?
  2. Cost: What is your income and comfort level for spending? 
  3. Space: What is your desired home type, size and configuration? 
  4. Household: How many people are you trying to accommodate?
  5. Usage: How much time can you really spend at your second home?
  6. Pets: Do you have a four legged companion joining you?

It’s helpful, too, for second-home buyers to understand real estate market conditions of their getaway location. Other financial factors include the cost of furnishings, taxes, insurance, utilities and general maintenance. The all-in cost of whole home ownership can sorely detract from what’s supposed to be a relaxing and pleasurable experience. 

These pressures prompt people longing for vacation homes to consider other options, including:

  • Short-term weekly, monthly or seasonal rentals: Home-sharing through rental platforms such as Airbnb and VRBO have been very popular. But these vacation home rentals can come at pretty steep prices because property owners ask premium rents, seeking a quick return on their investment.

Renters may also be disappointed if the property doesn’t live up to the expectations set by listing photos or descriptions. The property’s condition and cleanliness may vary widely from home to home. And with concerns over health and hygiene, the high volume of people coming and going makes these kinds of rentals less appealing to some people. 

  • Timeshares: These “right-to-use” purchases can work for buyers who have identified a vacation spot in a resort community they want to return to regularly. But the expense of buying into a hotel or resort condo timeshare can be daunting, annual fees can be high, and use restrictions can be a turnoff. 

It’s also difficult to recoup your purchase costs. According to the respected Sherpa Report, a timeshare owner can lose as much as 30-50% of the value once the time comes to sell.

Fortunately, in a changing world that has more aspirational buyers looking for a second home, there’s a new ownership model to consider: co-ownership

Co-ownership is an innovative way to own a second home. Owners purchase a 12.5% ownership interest in the home as part of a small, vetted group of owners, and enjoy the home more than six weeks every year. 

Whether a buyer decides to buy one share or several, co-owners have true property ownership of a fabulous home plus flexible access to a property. There are flexible financing options available and owners split monthly operating expenses proportionally. An annual owner fee includes (but is not limited to) a membership fee of $99 per month per share, as well as property management and maintenance fees, and monthly operating expenses (utilities, etc.). Plus you can sell at any time after your first 12 months of ownership, at a price and with a real estate agent of your choosing.

The co-ownership model takes into account how much has changed in the way Americans live, work and vacation. Some Pacaso benefits include:

  • An innovative Smart Stay™ system that is easy to use, equitable for owners based on the number of shares owned, and reflective of real-time home availability.  
  • Freedom from management hassles, care and upkeep of the property. It’s completely handled. Your home is cleaned and sanitized to our high standards, ready for you and your loved ones. 
  • A seasoned and technologically advanced leadership team, which gives owners peace of mind and confidence in their purchase decision. 
  • Pups welcome!

People are looking for smarter ways to get the vacation home they want, without high risks and overhead. The co-ownership model created by Pacaso can help make second home ownership possible.

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