Stamp duty on a second home: A guide to rates and rules in the UK

Yes, France places no restrictions on foreign ownership of residential real estate. You can buy a Paris apartment, a Provence farmhouse or a Côte d'Azur villa as a non-resident, regardless of whether you hold an EU passport. Americans buying property in France have the same legal rights to purchase, hold, and resell as French nationals. What ownership does The sticker price is only part of the picture. Buying property in France as an overseas buyer typically adds 7% to 8% in closing costs on existing homes, plus agency fees and any financing costs. Here is what to budget for: Once you close, three recurring taxes shape your annual carrying cost. Paid annually by the owner, calculated on the property's cadastral rental value. Paris has historically had one of the lowest taxe foncière rates among major French cities, with a 2026 global rate of roughly 13.5%. For a typical 70 square meter apartment, that translates to approximately €450 per year, although prime properties with higher cadastral values pay more. Taxe d'habitation was abolished on primary residences in 2023, but it still applies to secondary residences. Paris levies a 60% surcharge on the municipal portion of taxe d'habitation for second homes, which is the highest surcharge band allowed under French law. If your French home is a vacation residence and not your declared primary residence, budget accordingly. France's real estate wealth tax. Non-residents are subject to IFI only on French real estate. The threshold to file is €1.3 million of net French real estate assets as of January 1 each year, and the progressive rate scale starts at €800,000. Rates range from 0.5% to 1.5% across brackets. For owners with a single Paris apartment under the threshold, IFI does not apply. For buyers stacking multiple French properties or a single high-value home, it becomes a meaningful annual line item. Non-residents selling French real estate pay capital gains tax on the profit. The headline rates: 19% income tax plus 17.2% social charges, for a combined 36.2% on the gain before relief. France then applies a generous taper relief (abattement pour durée de détention) the longer you hold. Under the Loi de Finances pour 2026, the income tax taper was accelerated. Full exemption from the 19% income tax portion is now reached after 17 years of ownership, down from 22 years. The social charges taper was not changed and still takes 30 years to reach full exemption. In practice, that means holding a French property long enough materially reduces the bite when you sell, but a sale within the first decade carries the full combined rate on most of the gain. EU and EEA nationals who were previously fiscally resident in France can also claim a lifetime €150,000 exemption on the net taxable gain. American sellers do not qualify for that specific allowance, but US-France tax treaty provisions help avoid double taxation on the same gain. A French tax advisor familiar with cross-border treatment is worth the fee. The right region depends on how you actually want to spend time in France. A few of the most-searched destinations among overseas buyers: Among the regions above, Paris stands apart for two reasons: liquidity (resale demand is consistent across cycles) and infrastructure (international flights, English-speaking professionals, robust property management). For overseas buyers asking where to buy property in France when they plan to visit on weekends or holidays rather than relocate, Paris remains the default answer. If you are weighing France against the UK, our guide on Ready to make Paris your second home? The French closing process is notaire-led and more structured than what most American buyers expect. The notaire is a public official who handles the legal transfer and represents the transaction itself, not the buyer or seller specifically. For overseas buyers, the practical friction is rarely the legal mechanics; it is the language, the paperwork volume, the time difference, and managing the home from afar once you own it. If you want the broader playbook beyond France specifically, our in-depth guide on Pacaso markets homes in France as luxury second homes, not investment vehicles. That framing matters: the right reason to buy in France is to actually spend time there, not to optimize a return. That said, the financial picture for a long-hold owner is reasonable. Paris real estate has shown decades of resilience across cycles, supported by limited central inventory, tight new-build supply, and consistent international demand. Taxe foncière is low relative to comparable global cities. Capital gains taper relief rewards long holds. And the dollar-priced fractional model removes some currency risk for US buyers. Where the math gets harder is on shorter holds, ownership of a high-value home that triggers IFI, or a property used too lightly to justify full ownership and management costs. That last point is where fractional ownership genuinely changes the equation. Use this comparison table as a real-world reference for Paris, specifically: The Paris price range above is grounded in two examples of Paris Pacaso homes in the 6th and 7th arrondissements: Most overseas buyers who want a home in France hit the same wall: the dream property in Paris is $5 million or more, sits empty 40 weeks a year, and brings a stack of cross-border management work along with it. Pacaso was built to solve that specific problem. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a You can

Finding the best places to buy a vacation home comes down to matching the location to your lifestyle, hobbies and climate preferences. Consider how you want to spend your free time, who will be traveling with you, and where you can see yourself returning year after year. To help you narrow down the choices, we've organized the top vacation home destinations into four groups: beach destinations, desert and sun destinations, mountain destinations, and international destinations. We've also added California-specific highlights and a full comparison table so you can easily evaluate every market at a glance. Beach destinations consistently rank among the most sought-after markets for second home buyers. Warm weather, outdoor lifestyle and strong rental demand make these locations perennial favorites. Miami is one of the best places to buy a vacation home in Florida because of its unique blend of coastal luxury and urban energy. South Florida has warm weather year-round, headline-making dining and art, and convenient access to Latin America and Europe. The vacation home market here has maintained strong momentum at the top end, reflecting consistent demand from domestic and international buyers. Hilton Head Island is one of the best places to buy a vacation home in South Carolina for buyers who want a mix of active outdoor living and relaxed coastal charm. The area offers warm weather year-round and easy access to world-class golf, nature trails and wide sandy beaches. It's also one of the best East Coast beach towns for buyers seeking solid long-term market growth. Charleston consistently tops lists of the best places to live and visit, and it's equally strong as a second home market. The city's subtropical climate, cobblestone streets and proximity to beaches like Isle of Palms and Sullivan's Island give it year-round appeal. It's a great option for those looking at the best places to buy a vacation home in South Carolina beyond the well-known resort islands. Desert markets offer a distinctive combination of over 300 days of sunshine, world-class golf, and a luxury lifestyle that appeals to buyers escaping cold or grey climates. Scottsdale is a premier destination for those looking at the best places to buy a vacation home in Arizona. Its desert landscape, strict zoning that preserves natural trails and a history of market resilience make it one of the most reliable luxury second home markets in the country.  Mountain towns offer four-season appeal, with skiing in winter and hiking and festivals in summer, and tend to attract buyers who want nature access paired with fine dining and luxury amenities. Aspen balances powder days with gallery nights, a rare combination that keeps real estate demand consistently high. Aspen is one of the best places to buy a vacation home in Colorado for buyers who want both winter skiing and a vibrant summer season.  Vail is one of the best places to buy a vacation home in Colorado for buyers who want a walkable mountain town with a pedestrian street system and resort-level amenities. When the snow melts, the town becomes a standout summer destination with whitewater rafting, farmers markets and outdoor concerts. Jackson Hole sits in one of the most dramatic natural settings in North America, flanked by Grand Teton and Yellowstone National Parks. The combination of world-class skiing, zero state income tax, and a tight inventory of luxury homes gives it consistently strong market fundamentals.  Steamboat Springs offers a more laid-back mountain lifestyle than some of Colorado's higher-profile resorts, while still delivering world-class skiing and year-round outdoor activities. Canoeing on Pearl Lake, soaking in geothermal springs, and access to Routt National Forest make it one of the most well-rounded mountain markets for second home buyers. California offers an extraordinary range of second home markets, from beach cities and wine country to desert retreats and mountain ski towns. Several markets have consistently demonstrated strong buyer demand and home value appreciation. San Diego consistently ranks as one of the best places to buy a vacation home in California because of its remarkably consistent climate and deep lifestyle appeal. The vacation rental market here is strong due to the city's massive draw for domestic and international travelers.  Palm Springs is one of the best places to buy a vacation home in California for buyers drawn to its striking desert scenery, more than 300 days of sunshine and iconic mid-century modern architecture. Cathedral City, just six miles away, is also worth considering for buyers seeking a more affordable entry into the Coachella Valley lifestyle. Truckee and Lake Tahoe to the north provide an entirely different California second home experience, with mountain lodges and year-round outdoor recreation.  Lake Tahoe is consistently one of the most desirable second home markets in California. Truckee, just north of the lake, has an allure of its own: an Old West aesthetic paired with epic ski resorts and proximity to Donner Lake. The area saw an extraordinary demand surge from Bay Area buyers in recent years. For a deeper look at this destination, explore Pacaso's Napa Valley offers a lifestyle centered on culinary excellence, natural beauty, and a quieter pace. The rolling vineyard scenery, Michelin-starred restaurants, and concentration of luxury estates make it one of the best places to buy a vacation home in California for buyers who prioritize food, wine and relaxation over resort activities. For globally mobile buyers, the best places to buy a vacation home internationally are places that deliver culture, connectivity, and everyday ease, along with strong property markets. Here are the top international destinations in Pacaso's portfolio, plus additional global markets worth considering. Paris rewards second home owners with a walkable city, world-class arts and food, and seamless rail and air connections across Europe. It is one of the best places to buy a vacation home in Europe for buyers assembling a global portfolio. London is one of the most globally connected cities in the world, making it an exceptional base for international second home buyers. The diversity of its neighborhoods, from the historic charm of Kensington to the energy of Shoreditch, means buyers can find a setting that matches almost any lifestyle. Tuscany is the quintessential Italian second home destination. Rolling hills, ancient walled towns, Michelin-starred restaurants, and proximity to Florence and Siena create a lifestyle that is hard to replicate anywhere else. It is one of the best places to buy a vacation home in Europe for buyers who want cultural richness paired with natural beauty. Los Cabos is widely considered one of the best places to buy a vacation home in Mexico. Located at the southern tip of Baja California, it combines desert canyons, turquoise water, world-class golf, and a growing luxury real estate market. From mornings on the water to evenings watching the sunset from a private terrace, the lifestyle here is easy to settle into.  Beyond Pacaso's portfolio, several other global markets consistently attract second home buyers: Use this table to quickly compare the top vacation home destinations across climate, price range, who each destination is best for, and Pacaso availability. Price range key: $$ = under $700K median · $$$ = $700K–$1.4M · $$$$ = $1.4M+ No matter which destination appeals to you, four key factors should shape your decision. How long does it take to get to your vacation home? A destination within driving distance encourages more frequent use. If you're flying, direct flights from your home airport significantly improve the ownership experience. Markets like Miami, San Diego, and Palm Springs all have major international airports nearby. For international destinations like Paris and London, consider the availability of nonstop transatlantic routes. Do you want a winter escape, a summer retreat or year-round access? Beach destinations like Miami and San Diego deliver year-round appeal, while mountain markets like Aspen and Vail are especially strong in winter and summer. Desert markets like Scottsdale and Palm Springs are best in winter and spring, with intense summers. European destinations like Paris and Tuscany offer a rich spring and autumn experience. Think about how you want to spend your time at your second home. If skiing and mountain scenery are priorities, Aspen, Vail or Jackson Hole are the right fit. If beaches and outdoor water activities are your focus, Miami, San Diego or Hilton Head deliver. For food, wine and cultural experiences, Napa, Tuscany or Paris offer something few other destinations can match. Review the Consider how often you realistically plan to use the home. If you expect to be there four to twelve weeks a year, whole ownership means paying for 52 weeks of upkeep for a fraction of the use. If you're evaluating the best places to buy a vacation home in the world, there are additional factors to keep in mind: Pacaso is a smarter way to own a luxury vacation home in the destinations that matter most to you. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a fully managed luxury home through a Pacaso takes care of everything: With homes across destinations mentioned above, including beach markets in Florida and South Carolina, desert retreats in Arizona and California, mountain towns in Colorado and Wyoming, California wine country, and urban destinations in Europe and Mexico, Pacaso makes it possible to own in the place that fits your lifestyle. Explore

Yes, there are no legal restrictions on foreign nationals buying residential property in the UK. Whether you are an American, a European citizen, or a buyer from anywhere else in the world, you can purchase a freehold or leasehold property in England, Scotland, Wales, or Northern Ireland without any ownership cap or special government approval. Foreign buyers can also apply for UK mortgages, though lender requirements vary and can be stricter than for UK residents. Visa status, residency duration, and the length of time you have held a UK bank account can all affect your mortgage eligibility. Hiring a UK-based solicitor is strongly recommended; they handle the legal and conveyancing process and ensure all documentation complies with UK regulations. SDLT is calculated in progressive bands where you pay each rate only on the portion of the price within that band. How much you pay depends on three things: the purchase price, whether the property is your only home or an additional property, and whether you are a UK or non-UK resident. If the property you are buying is not your only home, whether it is a holiday home, a buy-to-let, a pied-à-terre, or a second residence in town, you trigger the Higher Rates for Additional Dwellings (HRAD). This means you pay standard SDLT plus a 5% surcharge on the entire purchase price, applied from the first pound. The surcharge took effect at 5% on 31 October 2024, up from the previous 3% rate. It applies even if the other property you own is located overseas. Since April 2021, buyers who do not meet UK tax residency requirements pay an additional 2% surcharge on top of all other applicable SDLT rates. For SDLT purposes, you are considered a UK resident only if you were physically present in the UK for at least 183 days in the 12-month period ending on your completion date. This is purely a physical presence test, separate from income tax residency rules. For overseas buyers purchasing a second home or holiday property in England or Northern Ireland, the 5% additional dwellings surcharge and the 2% non-resident surcharge stack on top of standard rates for a combined 7% surcharge above standard SDLT. If any one buyer in a joint purchase is non-UK resident, the surcharge applies to the entire transaction. Note: Scotland uses Land and Buildings Transaction Tax (LBTT), and Wales uses Land Transaction Tax (LTT). Both have their own rate structures and additional dwelling surcharges. Consult a local solicitor if you are buying in either country. SDLT is the most significant tax at purchase, but overseas buyers should also be aware of the following ongoing and exit taxes. Yes, foreign nationals can obtain UK mortgages, though the process is more demanding than for UK residents. Here is what to expect: Pacaso provides an alternative financing pathway for buyers who want co-ownership in the UK. Pacaso partners with banks and acts as a corporate guarantor, helping buyers qualify for financing of up to 70% of the property's share value, meaning you put down just 30% and finance the rest. This can be significantly more accessible than going through the standard UK mortgage application process as a foreign national. For buyers specifically looking for a luxury second home in London, Pacaso has curated a portfolio of fully managed co-ownership properties in central London neighborhoods including Mayfair, Belgravia, and Chelsea. View current The UK property market offers a range of home types, each with different ownership structures and price points. The UK buying process differs significantly from what American and international buyers may be used to. Here is a step-by-step overview. The entire process from offer acceptance to completion typically takes two to four months, though it can take longer for complex transactions or in slow markets. You will need proof of identity, proof of address, bank statements, proof of income, and any relevant visa or residency documentation ready throughout. When you co-own a Pacaso home, we are your trusted advisor throughout the buying process, helping you skip the mountain of preparation needed to buy property in the UK. Our local expertise and resources, combined with our innovative co-ownership model, make it easier to afford, buy and manage your home abroad. For overseas buyers who want the lifestyle of a UK second home without the full weight of sole ownership, 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. Each home is professionally designed, fully furnished, and managed end-to-end, so you never have to coordinate maintenance, cleaning, utilities, or vendor relationships from across the Atlantic or wherever you are based. The financial case is compelling, particularly for buyers looking at the luxury end of the UK market. Here is how co-ownership addresses the key challenges outlined in this guide. Pacaso's London portfolio includes properties in Mayfair, Belgravia, and Chelsea, among the most sought-after addresses in the world for international buyers. To explore available co-ownership homes, visit

Whether you’re planning a hiking trip through the Rockies, a ski resort adventure in Switzerland or island hopping in the Caribbean, you’ll need to prepare for how much it will cost you. If you expect your old vacation budget to go as far as it did in past years, you may be in for a surprise. According to Daily average cost of a vacation per person The daily cost of a vacation varies widely depending on your travel style and destination. A budget trip in the U.S. costs around $121 per day, a mid-range trip averages $325 per day, and a luxury trip can reach $925 per day.  Compare the breakdown of typical daily spending (excluding long-distance airfare) for each travel style below: Additional vacation cost: Airfare Airfare is typically the single largest one-time expense of any trip. The average domestic flight in the United States costs Cost of travel by group size The cost of a vacation heavily depends on how many people are traveling. While solo travelers cover all expenses themselves, couples and families can split certain costs — like lodging and rental cars — to lower the per-person price.  That said, larger groups also come with additional expenses like extra flights, bigger accommodations and more meals. Below is a breakdown of what to expect by group size for a one-week domestic trip. Average couple's vacation cost Traveling as a couple offers some of the best per-person value of any group size. The average vacation cost for two people is $3,982-$4,550 per week, double the solo rate, since couples share lodging, but each still pays for their own flights, food and activities.  Where couples save the most is on accommodations. A double-occupancy hotel room or vacation rental, divided two ways, immediately cuts the single biggest daily expense in half.   Average family vacation cost A family of four spends an average of $7,964 on a one-week domestic vacation. International travel raises that figure substantially — a mid-range For families, the vacation tax often comes from convenience — eating out because there’s no kitchen, or booking two hotel rooms to get enough space. This is where co-ownership in Co-ownership directly addresses these family travel hurdles. By owning a 1/8 share of a luxury home, families secure the space and kitchen use they need without the recurring convenience fees of hotels. It transforms the way families budget for travel, trading high-cost rentals for the predictable expenses of a permanent, shared second home. Key vacation cost drivers No two vacations cost the same, and the gap between a budget trip and a luxury one can mean thousands of dollars. Understanding what moves the needle on trip expenses is the first step toward building a realistic budget.  The main factors that shape how much your vacation costs are: 8 tips for budgeting on vacation A good vacation budget is less about spending less and more about spending smarter. Apply these tips while planning your next trip: Get ahead of average vacation costs with a second home in your favorite destination Instead of giving in to rising vacation costs, consider the long-term benefits of vacation home Pacaso’s

What is a workcation? A workcation sits squarely between a full vacation and your regular workday. Unlike a traditional vacation, where you completely disconnect, a workcation keeps you on the clock. Unlike a regular workday, your surroundings are anything but ordinary. The concept is simple: you relocate your work setup to a more desirable location for a period of time, typically a week or more, and enjoy the lifestyle benefits of that destination during your evenings and free time. You still answer emails, hit deadlines, and join meetings. You just do it with better scenery. A few things that set a workcation apart from similar concepts: Is the workcation trend here to stay? The workcation trend has moved well beyond a pandemic-era novelty. Remote work became a permanent fixture for a large portion of the workforce, and the flexibility it provides has fundamentally changed how people approach travel. An estimated one in four Americans now works remotely at least part of the time, creating a growing population of professionals who can genuinely choose where they work. Employers allowing workcations have become increasingly common as companies recognize the morale and retention benefits. Rather than risking talent burnout or resignations, many organizations now support temporary remote work from alternate locations, particularly for employees who already work from home. In parallel, a growing number of countries have introduced a What are the benefits of workcations? The benefits of workcations extend beyond simply enjoying a prettier view while working. Research and widespread experience among remote professionals point to several concrete advantages: Which jobs are a good fit for a workcation? Not every role is suited to a workcation. The strongest candidates are people whose work is primarily computer-based and internet-connected. This includes: Professionals in technology, marketing, finance, design, consulting, writing, and other knowledge-worker roles are generally well positioned. The same applies to self-employed individuals, freelancers, and anyone who already works from home regularly. Roles that require frequent in-person interaction with clients or colleagues, hands-on equipment, or physical presence at a specific facility are harder to adapt to a workcation setting. If your job falls in that category, even a short workcation may require creative planning or partial compromise. For hybrid workers, a workcation during a stretch of remote-only weeks is often the easiest option, since no policy change or special approval is required. What are the best workcation destinations? The best workcation destinations share a few core qualities: reliable high-speed internet, a comfortable workspace setup, enough space to separate work and leisure, and compelling things to do once the laptop closes. Here are some of the top options across different vacation styles. Aspen, Colorado Jackson Hole, Wyoming Miami, Florida Sonoma and Napa Valley, California San Diego, California Park City, Utah International workcation destinations For those with the flexibility for an international workcation, a number of cities have risen to the top of global rankings for remote workers. What should you look for in a workcation home? Choosing the right accommodation makes or breaks a workcation. A workcation hotel can work for a few days, but most remote professionals find that purpose-built homes offer a far more productive and comfortable experience for stays of a week or longer. Here's what to prioritize when evaluating any workcation home, whether that's a short-term rental, a workcation Airbnb, or a co-owned second home. Workspace setup A dedicated workspace is the single most important feature to look for. Ideally, this means a separate room with a door, somewhere you can close yourself off from family members or guests and maintain focus during work hours. At minimum, look for a home with a proper desk, an ergonomic chair, and enough desk space to run a full work setup. Workcation Airbnb listings and short-term rentals vary widely in this regard; always check listing photos carefully and ask hosts about their workspace setup before booking. Internet speed and reliability Reliable, fast internet is non-negotiable. Before confirming any workcation accommodation, ask the host or property manager for the actual internet speed (not just "fast WiFi"), and confirm whether the connection is fiber-based or cable. For video-heavy workdays with frequent calls, a minimum of 100 Mbps download and strong upload speeds are the baseline. Some workcation hotel packages and short-term rentals now advertise their speeds upfront, which is a useful signal. Space to separate work and leisure One of the underrated advantages of staying in a full home versus a workcation hotel room is the ability to truly separate your physical work environment from your living and relaxation space. When your desk is in the same room as your bed and couch, the psychological separation between "work time" and "off time" breaks down quickly. A home with at least a dedicated office, guest house, or private den resolves this. Amenities that support recovery The best workcation destinations and homes offer amenities that make after-work time genuinely restorative: a pool, outdoor deck, proximity to hiking or beach access, a quality kitchen for cooking your own meals, and outdoor entertaining space. These features matter more on a workcation than a standard vacation because you're spending more time in and around the home itself. Proximity to essentials Consider the home's distance from a grocery store, coffee shops, and good restaurants. When you're working a full day and don't want to spend your evenings driving long distances, having local amenities within easy reach is a meaningful quality-of-life factor. How do you plan a successful workcation? A workcation without structure can quickly slide into either overworking or underperforming. These steps make the difference between a disjointed experience and a genuinely productive one. 1. Get employer approval in advance Even if you already work remotely, give your manager adequate notice of your travel plans. Be direct about where you'll be, your availability during standard hours, and any time zone considerations. Come prepared with answers to likely objections and reassurance that your core commitments will be met. 2. Set and communicate a clear routine Establish your working hours before you arrive and communicate them to both your team and anyone traveling with you. Resist the temptation to answer messages outside those windows. A clear schedule protects both your work quality and your leisure time. 3. Secure your workspace before you go Confirm the workspace and internet setup at your accommodation before you leave, not after you arrive. A poor desk setup or unreliable internet connection on day one creates unnecessary stress that's difficult to recover from mid-trip. 4. Build in leisure time deliberately Schedule specific after-work activities and local experiences, especially early in the trip when motivation to explore is high. Workcations work best when leisure time feels as planned and purposeful as work time. 5. Separate your physical work and living spaces Keep your work equipment confined to your designated workspace. Don't let your laptop migrate to the couch or the bedroom. Physical separation reinforces the psychological boundary that helps you actually relax when the workday ends. 6. Plan a buffer day at the end Avoid scheduling your return travel or re-entry to the office on the last day of your workcation. A buffer gives you time to decompress and transition back without the whiplash of going from vacation-mode straight back to peak productivity. How does Pacaso co-ownership enable the workcation lifestyle? For professionals who regularly return to the same destination, the workcation math eventually shifts in favor of ownership over renting. Workcation Airbnb rentals, short-term rental platforms, and workcation hotel packages all involve paying premium nightly rates with no equity built and no guarantee that the property will be available when you want it. Pacaso offers a different model. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a For the workcation lifestyle, Pacaso homes have several distinct advantages over the alternatives: Pacaso destinations particularly well-suited to the workcation lifestyle include Aspen, Sonoma, Miami, Park City, San Diego, Jackson Hole, and a growing portfolio of international markets. Explore the full

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 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 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,

There are both personal and financial reasons to buy a vacation home. On the personal side, owning a second home gives you a familiar retreat, a place to build memories with family, and a home base for exploring destinations you love. Financially, a vacation home can generate rental income, appreciate in value, and offer meaningful tax advantages. Here's a closer look at the top 10 reasons why buying a vacation home could be the right move. 1. Enjoy your own personal retreat 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 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 at your 4. Relish familiar settings Owning a vacation home means having a true home-away-from-home. Equip your space with luxury amenities, such as a heated pool, home gym, and dedicated workspace, and arrive ready to relax from the moment you walk through the door. 5. Embrace a new community Purchasing a vacation home can open doors to a new community. Strike up conversations with neighbors who share a love for the area, explore local shops and restaurants, and gain a deeper appreciation for the region's culture and hidden gems. 6. Cultivate a sense of adventure A vacation home serves as a springboard for deeper exploration. With a home base in place, you can explore nearby towns, hike or bike scenic trails, and discover hidden beaches. The possibilities grow far beyond the typical tourist itinerary. 7. Create a healthier lifestyle A vacation home can be a catalyst for a healthier way of living. Many vacation destinations offer opportunities for outdoor hobbies like hiking, biking, and swimming. Inside your home, 8. Pass down an asset to your children A vacation home can become a cherished part of your family's legacy, a gathering place for future generations and a valuable asset you can pass down as an inheritance. 9. Choose a location close to activities you love Finding a second home in a place that supports your interests can significantly enhance your lifestyle. Whether it's lakeside fishing, beach kayaking, or a cozy ski cabin, choosing a location tied to your passions means every trip feels intentional. 10. Take advantage of unique financing options When buying a vacation home, you can access The benefits of buying a vacation home can be significant, and for many owners, they far outweigh the challenges. When you own your vacation accommodations, you always have a great place to stay, even on a busy holiday weekend. You can keep all the comforts and necessities on-site so you can get away at a moment's notice. If you don't want your vacation home to sit vacant when you're not using it, you may be able to list it as a Whether you're using your home for personal enjoyment or passive income, your property may increase in value over time. Like a primary residence, a second home can build equity and appreciate in value. Adding real estate to your portfolio is a smart way to diversify and hedge against market volatility. Always consult a financial planner before making such an investment. You can deduct mortgage interest paid on up to $750,000 of principal mortgage debt, including your vacation home. Other Your second home likely won't be close enough for you to stop by frequently, and home repairs and regular maintenance can become a hassle. A potential solution is to If you plan to rent out your vacation property, be prepared for income fluctuations between high and low tourist seasons. Plan appropriate nightly rates and budget for the possibility of low-season vacancies, and factor in marketing and advertising costs to attract consistent bookings. Many towns are passing ordinances that prohibit short-term rentals or require homeowners to pay significant fees to list their homes as rentals. Check local laws before relying on rental income as part of your financial plan. Once you invest in a vacation home, you'll likely want to use it as much as possible, which means spending more time in one Buying a vacation home is an exciting endeavor, but several important factors will shape whether it's the right move for you. Getting clear on your preferences, finances, and the property's unique requirements will give you an accurate picture of the true cost and commitment involved. The total cost of a property doesn't stop at the mortgage. Plan for ongoing expenses including taxes, insurance, utilities, HOA fees, and repairs. A useful rule of thumb: set aside 1% of the home's purchase price annually for maintenance. For mountain or coastal homes, which face higher material costs and climate exposure, consider setting aside 2–3%. Frequency of use is one of the most important factors in determining a vacation home's value to you. For example, if you spend 5 nights a year in a vacation home costing $30,000 annually, you're paying $6,000 per night. At 40 nights per year, that drops to $750. Be honest about your work schedule, proximity to the property, and life commitments before you buy. Renting can bring in meaningful income, but it requires knowing whether there's genuine demand in the area. If you're considering short-term rentals, verify that they're allowed in your city, county, and HOA. Research comparable rental rates, noting whether pricing is strong year-round or only during peak seasons. Zoning laws may place conditions on how you use and rent your home. HOAs may restrict short-term rentals or ban them entirely. Review city ordinances and HOA documents carefully to understand exactly what's allowed before purchasing. Location is one of the most critical things to consider when buying a vacation home. Ask yourself whether the area's amenities, community feel, and long-term desirability align with your goals. Check the history of property values in the area, explore local shops and restaurants, and talk to residents to get a genuine sense of the neighborhood. An up-and-coming area may offer strong appreciation potential, while an established destination may offer stability. Think carefully about the home's age and condition. Older homes have charm and character, but may require more maintenance investment. Consider whether the size fits your actual needs: a home that's too large creates unnecessary upkeep, while one that's too small may not accommodate family gatherings comfortably. Think through the There will come a time when you may want to sell or transition out of the property, so it's wise to consider resale potential before you buy. Is this a desirable destination? Do similar homes nearby have a track record of selling well? Keeping resale in mind from the outset protects your investment and ensures you're not locked into an asset that's difficult to exit. It's typically harder to Deciding between full and co-ownership comes down to how much time you'll actually spend in the home. Full ownership means you're responsible for all finances and maintenance, so it makes the most sense if you plan to use the property frequently.  Co-ownership through a model like Pacaso spreads financial obligations across multiple residents and includes Whether buying a vacation home is worth it depends on how often you'll use it, your financial goals, and your appetite for ownership responsibilities. Renting offers maximum flexibility with no long-term commitment or upfront costs, but you don't build equity, you can't personalize the space, and costs add up over time if you visit the same destination repeatedly. Buying makes the most financial sense when you plan to use the home regularly (at least several weeks per year), have a clear handle on total ownership costs, and are buying in a market with solid appreciation potential. For those who want the benefits of ownership without the full financial and logistical burden, There are tradeoffs, though. Financing a vacation home through an LLC can be more complex, as many lenders require commercial loan terms rather than residential mortgage rates. You'll also face ongoing administrative responsibilities like annual filings, operating agreements, and separate banking. Consult with a real estate attorney and tax professional to determine whether an LLC structure makes sense for your situation. While there are nearly a dozen reasons to buy a vacation home, the initial cost and ongoing maintenance can feel daunting. 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.

The primary difference between a vacation club vs. timeshare is the ownership structure. A timeshare typically gives you the right to use a specific property for a set week or season, while a vacation club is a points-based membership that offers access to a network of different resorts. Both models offer a consistent way to travel, but each comes with its own benefits and trade-offs. Read on to compare timeshares and vacation clubs and see how they differ from each other and from a co-ownership model like What is a vacation club? A For example, programs like Marriott Vacation Club or Inspirato allow members to redeem points across a range of destinations and accommodations. How does a vacation club work? Vacation clubs typically operate on a membership model that gives you access to a curated portfolio of properties. Instead of owning real estate, you pay an upfront fee and or ongoing membership dues to unlock booking privileges within the club’s network. From there, how you book depends on the provider. Some vacation clubs use a points system, while others charge nightly rates or offer preferred pricing on stays. This structure gives members flexibility to choose different destinations, travel dates, and home types each year, without the long-term ownership commitment of a traditional timeshare. Many vacation clubs offer an online booking platform that works similarly to a hotel reservation site, allowing you to search for available properties, compare options, and redeem points for specific stays. Here’s a closer look at the details.  How much does a vacation club cost? Vacation club membership costs generally fall into two categories: What is a timeshare? A How does a timeshare work? How a timeshare works depends on the type of contract you sign. Here’s a closer at the options.  How much does a timeshare cost? Like vacation clubs, timeshares require an initial investment followed by ongoing costs.  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 options has led predatory companies to take advantage of vacationers seeking a good deal. Timeshare ownership doesn't end with the purchase price. In most cases, owners are contractually responsible for ongoing maintenance fees and related costs, even if they don’t use their allotted time. The third option: Pacaso co-ownership If A second home should be a sanctuary, not a series of resort restrictions. Unlike a vacation club or timeshare, owning a deeded share of a Pacaso allows you to: When you buy a Pacaso second home, you co-own a Find a vacation home option that fits your needs The best model for your family depends on your travel style and budget. But while you're weighing the pros and cons of a vacation club vs. timeshare, consider the long-term value of owning the place where you make memories. With integrated financing for up to 70% of the purchase price, luxury ownership is more attainable than you think.  Try our