You dream of owning a second home for vacation purposes but get discouraged whenever you think of the burden of additional costs, including mortgage payments, property taxes, utilities, and maintenance.
Great news! Co-ownership eliminates those obstacles as it lets you share the burden of homeownership with like-minded people. In this article, we describe Lifestyle Asset Group's model of co-ownership and discuss its benefits.
What Is Co-Ownership of a Vacation Home?
Co-ownership refers to a case where multiple parties own shares in a real estate property. In the case of a vacation home, the portion of the home that you own is equivalent to the amount of money you contribute towards its purchase and maintenance.
You can have co-ownership of a home through a limited liability company (LLC), tenancy in common and joint tenancy.
An LLC is the legal business entity that is utilized by Lifestyle Asset Group’s model because, among many other things, an LLC shields its owners from personal liability.
Lifestyle Asset Group's Innovation Model of Second Home Co-Ownership
Our model for co-ownership is based on paying cash, thereby eliminating the risks associated with using debt to buy a second home.
Following the Great Recession in 2007/8, the veteran management team of Lifestyle Asset Group used its decade-long experience in the destination club and shared ownership industry to develop its unique model for co-ownership.
Our executive team innovated co-ownership of luxury vacation homes in 2013 and the model is as follows:
Lifestyle Asset Group combines vetted, qualified partners, to co-own a preferred luxury vacation home via a limited liability company (LLC). Only the co-owners have an ownership interest in the home; Lifestyle Asset Group has no equity share in the property. Our sole role is to create and manage the LLC on behalf of the partners so that they can focus on enjoying their luxury vacation home.
Our co-ownership model via an LLC enables you to keep your assets separate from that of the LLC, which operates its own bank account and tax ID number with which it transacts and invests. Therefore, co-ownership via LLC is a smart and risk-mitigated way of buying and owning a vacation home.
Benefits of Buying a Home with Our Co-Ownership Program
During the early stages of developing our model, we carried out several tests, surveys, and focus groups to determine the needs of people like you looking to buy a second home. The extensive research unearthed several core needs that are common to all potential buyers of vacation homes. It is from these shared that the following benefits of co-ownership emerge.
1. Solid Investment
Co-ownership enables you to get hold of a low-risk yet profitable asset: a home. Real estate is an ideal investment if you prefer to take a conservative approach to investment decisions. It's also a sanctuary, a haven you escape to when you need a quiet environment to decompress. Suppose an accident happens on the property. The LLC protects the partners from personal liability if a guest gets injured and sues for damages.
In contrast, private property ownership would leave you open to personal liability. Additionally, owning a luxury vacation via co-ownership gives you a solid exit strategy because the co-ownership agreement outlines in clear terms when and how you get your money back.
2. Capital Gains and Rental Income
As unique and innovative as our model is, the form of wealth ownership on which the model is based has been around for ages. In fact, a sizable portion of second homes in the market are LLC-owned, especially those used for rental income purposes.
Co-ownership enables you to own a luxury second home that may otherwise be inaccessible to you. And, as an investment, the property may generate both capital gains and occasional rental income.
One of the biggest advantages of owning a vacation via co-ownership is the cost-benefit. You don't bear the full burden of the costs of the home because you share them with your partners. As a result, joint homeownership can substantially enhance your purchasing power because you don't need as much money to purchase your dream home.
This can be useful if you have good credit but lack the funds required to make a down payment for the luxury vacation home you want. Lifestyle Asset Group's co-ownership program lets you join forces and pool resources with others who share your aspiration of owning a second home.
Keep in mind that the cost of homeownership goes well beyond its purchase price. It also includes property taxes, home insurance, HOA fees, utility, and maintenance costs. The costs quickly add up and become burdensome.
Besides the financial costs of owning a vacation home, it comes with a lot of responsibility. For example, maintaining the home requires corresponding, traveling, and often meeting with maintenance contractors such as plumbers, electricians, landscapers, etc.
4. Real Homeownership
One of the main differences between co-ownership and fractional or timeshare arrangements is that the former grants you full real estate ownership rights. For example, you can earn home equity, sell your interests, and use the home as you please — within the terms of the co-ownership agreement. Like any other form of wealth, you can bequeath your interests in the LLC to your preferred benefactors. It's a straightforward process that does not require a new deed.
Privacy, too, is essential. You can secure it through LLC property ownership. When you buy a luxury vacation home through Lifestyle Asset Group's program, the deed, which is a public document, bears the name of the LLC rather than the owners' names. Whatever your reasons for preferring to keep your ownership of your second home private, LLC homeownership lets you do exactly that.
5. Year-Round Occupancy
Vacation homes often fall into a state of disrepair because the owner is absent most of the time. That is not the case with a second home that is jointly owned because you and your co-owners occupy the home at different times throughout the year. So, it's never neglected, as is often the case with traditional ownership of a vacation home.
The co-owners occupying the home at any given time will notice anything that needs repair and fix it in due time, ensuring the home is always in pristine condition. In that regard, co-ownership enables you to pay only for what you use, so you get value for your money.
6. Wonderful Vacation Experiences
Owning a vacation home offers a consistent vacation experience. It eliminates the hassle of looking for a vacation rental that fits your needs. Making a reservation for the period you want to occupy the home is far more convenient than visiting many prospective vacation rentals to identify the right one.
Purchasing a vacation home through Lifestyle Asset Group's co-ownership program also earns you automatic membership to Elite Alliance, which gives you access to 100+ resorts and luxury homes worldwide. This adds variety to your vacation experience by giving you endless options for vacation destinations.
Finally, the last thing you want to worry about during your vacation is issues related to property management. The services that Lifestyle Asset Group offers free you from this burden so that you can spend your vacation enjoying your luxury home. All you need to do is follow our easy process for making reservations.
Now Is the Time to Own Your Dream Vacation Home
You have been financially responsible and have saved up a modest nest egg to buy your dream vacation home. But the money is just not enough to make a down payment. We have good news for you. You need not delay your goal of owning a luxury vacation home. With Lifestyle Asset Group's revolutionary co-ownership via an LLC, you and like-minded buyers can own a second home in your preferred locations.
We take care of the LLC formation process and manage the property for you. Meanwhile, you can enjoy your vacation and get all the other benefits of real estate investment discussed in this article. Contact Lifestyle Asset Group today, and let's explore some vacation homeownership opportunities.