Believe it or not, owning a million dollar vacation home isn’t just for millionaires anymore. We’ll show you how to afford a million dollar home without breaking the bank!
We’ve all dreamed of owning a luxury vacation home where we can spend quality time with our friends and family and get away from it all. With rising real estate prices and an increased demand for vacation homes, this remains a dream for most people.
But here’s the dirty little secret about owning a vacation home: vacation home owners only use their home for 6-7 weeks per year on average! Even for the wealthy that is a lot of money to spend on a home you’ll only use a few times per year. Some buyers solve this by purchasing, or “co-owning” a home with friends or family to offset the high purchase price and ongoing expenses. This makes a lot of sense – why be on the hook for the costs of an entire home that you’ll only use for part of the year?
The good news is “fractional ownership” or “co-ownership” is no longer limited to friends and families; this model is now available to everyone. Let’s look at how co-ownership is revolutionizing the luxury vacation home market.
Co-ownership is a type of shared ownership in which a group of individuals collectively own real estate. Each person has the right to use the property for a certain period of time each year based on their ownership percentage.
The reality is you may not have the financial means to buy a second home outright. And even if you do, you might not be able to afford your dream home. Co-owning a home increases your purchasing power meaning that luxury real estate is now within the reach of those with a smaller budget. Instead of having to pay the full purchase price, each owner only needs to pay a fraction of the cost, making it possible to pay for a MILLION DOLLAR HOME on a $100k budget. Let’s look at an example:
Let’s say you find an exclusive beachfront property in Mexico that is valued at $1,000,000. Now, you could buy the home outright and it would set you back $1,000,000. But if a co-ownership agreement is set up and the ownership of the house is divided into eight equal fractions, each owner would only need to pay $125,000 to own a share of this beachfront home.
Let’s explore how co-ownership works and how it can be used to purchase a luxury home on a limited budget:
How Co-Ownership Works:
With co-ownership, each owner owns a specific percentage of rightful interest in the property, and each owner has the right to use the property for a certain period of time. You have real ownership rights through an Investment Trust, meaning you can sell it at any time and keep the gains, or pass it down to your children like any other real estate. If a property is divided into eight equal fractions, each owner would own 12.5% of the property and would have the right to use it for one eighth of the year or around 44 days. This is more than the average owner who buys an entire home uses their property!
Co-Ownership Benefits:
Affordability: As mentioned, co-ownership allows people to purchase luxury real estate on a smaller budget. This also means you can own a much nicer home in a prime location and these homes typically appreciate faster than a non-luxury homes.
Flexibility: Co-ownership allows you to use the property throughout the year, rather than being tied to a specific week or month. You choose when you want to go based on your schedule.
Shared Costs: With co-ownership, the costs of ownership are shared among all owners, making it more manageable. No more being on the hook for 100% of cleaning, maintenance, insurance, and property tax expenses.
Investment Opportunity: Co-ownership is also a great investment opportunity, as the property can appreciate in value over time. If you decide to sell your fraction, the gains are yours to keep.
Here’s the kicker: If you purchase a co-owned luxury home with Ancana, we handle everything for you! No more worrying about furnishing the home, or handling the cleaning and maintenance, or even renting the home for you when you can’t use it. WE TAKE CARE OF IT ALL, so you can focus on the reason you bought your home in the first place: to relax and make memories with those closest to you.
In conclusion…
Co-ownership can be a great way for people to purchase a luxury home on a budget. By sharing the costs, responsibilities and benefits of ownership with others, it is possible to own luxury real estate without breaking the bank. If you would like to learn whether co-ownership is right for you, our team is here to help!
Visit our website now and explore all the opportunities we have available to you.
Owning a vacation home has never been this easy.
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