Owning a luxury second home in a beautiful destination truly enhances the vacation lifestyle. But a second home also comes with the hassle and stress of maintenance. Or at least it used to.
Co-ownership, one of the fastest growing trends in the real estate market, is becoming the smartest way to vacation. It is the ultimate way to simply show up and relax in the comfort of your own home.
It is no surprise that according to the Luxury Portfolio International's 2022 State of Luxury Real Estate (SOLRE) report, 27 percent of luxury homebuyers seeking a second or vacation home are interested in co- ownership. Additionally, this is significantly higher for luxury buyers than non-luxury buyers.
Co-ownership opens up fantastic opportunities for homeowners and agents alike. It’s a trend that we can all expect to grow.
This new and emerging model is taking the promise of service to the luxury level. Although some might have heard the term ‘co-ownership’ before, it is completely new or unfamiliar to many others.
In a co-ownership model, companies select and purchase the ideal home and then allow co-owners to purchase shares at a fraction of the whole home price. There already are companies servicing the luxury market - vacation home experience companies that provide high-end, professionally designed vacation homes in destination locations.
Homes frequently come with private amenities such as pools, hot tubs and entertainment spaces, plus value-added benefits such as dedicated owner storage and high-end appliances and finishes.
“Co-owned homes allow you to enjoy the convenience of nightly rentals with the economic benefits of true ownership,” said James Sukhan, cofounder of Ember – a company providing services like that on the market.
“Our model provides completely turnkey residences that are professionally designed and furnished at a fraction of the home’s total cost,” he said.
With homes like these, companies like Ember take care of everything and make the choice of when clients to spend time in their home easy. There are thoughtfully-designed apps so owners can log in, view the calendar and schedule a stay up to 24 months in advance — the epitome of convenience for many busy professionals.
Luxury co-ownership streamlines vacation home ownership by stripping away the burdens of a second home and instead providing white-glove property management. With a luxury service, each home includes a designated property concierge.
The home’s co-owners can forget about lawn care, pool maintenance and cleaning. The property concierge manages every detail of the property and is available around the clock.
Each state-of-the-art vacation home is ready the moment a party arrives. The professionally designed interiors are fully furnished. The custom landscaping is picture-perfect. Owners enjoy a complete audio- visual setup, fresh linens and a stocked kitchen with all the dishes and cookware needed to host a festive dinner.
Throughout the stay, the concierge is on call and ready to fix leaky faucets, Wi-Fi outages or appliance issues should they be needed. And after the visit, the home receives a professional cleaning top to bottom. The pool and lawn are maintained. The gutters are cleaned. And any needed repairs are completed.
End-to-end concierge services and top-notch amenities are not just about simplifying logistics and providing an immaculate stay. Homeowners who choose to invest in a vacation home with all of the bells and whistles are instead choosing to focus on the real investment — spending quality time with their family and friends. Now that is what a vacation should be.
Co-owners can typically purchase between one and four shares in their dream vacation home, which grants them exclusive access from 45 to 180 nights per year — all while enjoying the benefits of real homeownership. This model perfectly aligns the availability of the buyer and the desired ownership share.
In fact, the average vacation home is occupied for just five to six weeks per year. Many experienced buyers do not like the idea of their prized vacation home being empty and collecting dust for more than 80 percent of the year. Now, families can purchase one- eighth of a home, spend one- eighth of their time there and only pay for one-eighth of the home’s value and ongoing costs.
This co-ownership opportunity may not be for everyone, but the research shows that the affluent second home or vacation home buyer is open to this exciting new intersection between luxury living and the common-sense logic.