Investing is a great way to secure your financial future. Homeownership has provided stable and reliable returns through rentals and appreciation as an asset class. Owning a home is an important milestone in this fast-paced environment, but what about a vacation home? A place to escape during the weekends or visit on vacation, maybe a place to enjoy when you retire. A spot to forget about the stress of it all. Owning a second home is not as far-fetched a dream as it sounds.
There are two traditional ways to go for vacation homeownership: buying an entire property or opting for a Timeshare. The first option is typically only available to a few, given the high purchase price and continuous increase in value. On the other hand, Timeshares were created to give people priced out of vacation homeownership a way to access great vacation destinations. But this option only gives you time in a property, not real ownership.
A relatively new option is fractional ownership, which allows a buyer to build equity in a fantastic luxury vacation home in a high-demand destination for a fraction of the price. Fractional ownership, also known as co-ownership, has been around for decades, used mainly by families or friends to go in on a home purchase together. Now companies like Ancana are making this ownership opportunity available to everyone by simplifying the process and doing the heavy lifting of locating exceptional properties and finding and vetting co-owners.
Is fractional ownership a good investment?
Fractional ownership is an investment approach in which the cost of an asset is split between individual shareholders. Co-owners enjoy all of the benefits of the asset (income sharing, usage rights, and true ownership) while splitting the purchase price, expenses, and maintenance costs.
For these reasons, fractional ownership provides a great investment opportunity for those looking to purchase a vacation home in high-demand markets. Vacation homes prices have doubled in the past few years, and it’s estimated that prices will continue to rise. The pandemic created a considerable increase in demand for vacation homes, but there is not enough supply, which has pushed prices upward. Fractional ownership gives you the ability to buy a fraction, or share, of real property, allowing you to get the home you want at the price you can afford. Because you own part of the home, as real estate prices and the value of your home increase, so does the value of your fraction! You can choose to sell whenever you want at the price you choose. The gains are yours to keep, just like whole ownership.
What about management?
Fractional properties are often managed by a company or a property manager who handles all of the upkeep and maintenance. Ancana takes care of refurbishing and furnishing each of our homes prior to listing them for sale. We also handle all cleaning, maintenance, and repairs and pass the costs on directly to the co-owners, so you only pay for a fraction of the costs versus owning an entire home. This ensures a turnkey experience for all owners by removing all the hassles of homeownership. We can even go grocery shopping for you.
One of the main benefits of fractional ownership is that it allows a buyer to own only the share of the home they will use, meaning they aren’t paying full price for a property to sit vacant for most of the year. If an owner doesn’t use all their allotted weeks themselves, they can lend the property to family members, friends, business associates, and even employees. In some cases, they can rent out a portion of their remaining weeks to offset their monthly costs.
Fractional ownership is the best option for many to own a luxury vacation property. It can also be one of the best investments they make. Become the proud owner of the vacation home of your dreams.
Owning a vacation home has never been this easy.