Updated: May 13
These days, more people than ever are buying into shared vacation homes.
For many, the luxury of owning a second home is an unaffordable dream. However, owning 10-20% of a vacation home can be a much more realistic goal. Many buyers are teaming up with their friends, family members or even complete strangers in order to share the expenses of owning a vacation home.
Why is this property ownership option so much more desirable?
This decision can be advantageous for a lot of reasons. Let’s take a look at some of the motivations behind why many people are choosing fractional ownership over owning a vacation home entirely to themselves.
Cost of Acquisition is Lower
Of course, one of the biggest and most obvious advantages of shared vacation home ownership is the reduced initial cost. Rather than having to invest the cost of a full property, you’ll only need to pay a fraction. Additionally, any costs associated with renovating and outfitting the property will also be split.
So, if saving up enough money to buy an entire vacation property on your own seems like an insurmountable goal - this may be a way to make it more achievable. Rather than waiting for years to gather enough money, you may be able to start investing right now. This can be a huge advantage, especially since members of the current generation often find themselves priced out of owning a second home.
The lower cost may even allow you to buy a much bigger and better property than you could ever afford on your own. Or, you may also be able to buy a property in a much more desirable location.
Reduced Ongoing Operating Costs
When you own a property, there will also be ongoing operating costs such as property tax, insurance, maintenance, utilities and much more. This can be even more complex in the case of a vacation property, because it will be used intermittently by many different people.
Another advantage of fractional ownership is that the operating costs will also be split between the different owners. In many cases, the property owners may use a local management company to handle any repairs and other ongoing maintenance. This lightens the financial burden on everyone and makes owning a home a lot easier.
Or, some may choose to buy a property in a planned community, where maintenance and the pool are part of the common charges. This makes managing the ongoing operating costs simpler as well.
Diversification of Investment
As you may have heard before, the key to successful investing is diversification. In other words, it’s smart not to put all your eggs in one basket. You will be able to spread your money over several investment properties in different real estate markets. This lowers your risk, especially since you can combine these investments with other types of investments in your portfolio.
When you invest in portions of properties in many different locations, you’ll be less worried when one of those destinations experiences a drop in tourism. Also, you’ll have more diverse options for where to vacation every year.
Possibility for Rental Income
In many arrangements, vacation home owners advertise the property as a short term rental when it is not occupied by the owners. This creates the potential for the investment to be a source of ongoing passive income.
If you work with a local management company who deals with maintenance, cleaning and facilitating guests, this becomes relatively stress free. Fractional ownership offers many of the benefits of renting out your vacation property, without the hassle and the risk.
Shared Enjoyment of the Rental Home
Of course, let’s not forget about the benefit of actually using the property yourself!
When you co-own a property, you’ll often be part of an arrangement that allows you to stay at the property for certain weeks out of the year. Over the years, this can make much more sense than staying at a hotel every time you go on holiday.
You’ll be sharing it with multiple people, so you’ll be able to figure out a schedule that works best for everyone. (Of course, since only one owner can use the home at any one time, scheduling will be a very important issue you’ll need to figure out. This is especially true if the home is located somewhere that has a short tourism season.)
You may be able to leave a small amount of stuff behind at the property when you are not using it, if there is a storage closet or spare room suitable for this purpose.
Plus, if you share your vacation home with people you know - such as friends or family members - you’ll have the possibility of staying there together. You can enjoy a group vacation where the kids play and entertain each other while the adults chat, sip wine and watch the sunset.
Partbnb Makes It Easy to Share Vacation Homes
These are just a few of the reasons why so many people are choosing to share vacation homes rather than buy an entire home on their own. With flexible fractional ownership becoming so much easier and so many options opening up, you’re sure to find a solution that works for your needs.
In fact, with fractional ownership offering so many advantages - it’s almost surprising that these arrangements haven’t become even more popular over the years!
If you’re interested in sharing a vacation home, Partbnb makes it easy. They offer a chance to buy a portion of a property and manage your investment online. Beautiful vacation properties in desirable destinations in the Caribbean are split between up to 8 owners. Anyone can invest, whether you are an accredited or non-accredited investor.
This makes it easier for investors from anywhere to own a piece of paradise. You can manage your investment online in the easy to use platform. Plus, you’ll earn rental income and Partbnb will pay monthly dividends directly into your digital wallet.
To find out more about Partbnb and how it works, click here.