What if you could have the perks of a luxury vacation home but at a fraction of the expense?
It may sound too good to be true, but it’s not. With co-ownership, you can own a second home at a fraction of the price, and enjoy a multi-million dollar vacation home in one-of-a-kind destinations.
These aren’t properties in the middle of nowhere either. You could even own one in Cape Cod. Homes for sale on Cape Cod under $300,000 may sound like a myth, but they don’t have to be. Here’s how to get one of your own.
What Is Co-Ownership?
Co-ownership, or co-buying a home, is when two or more people buy a property and share ownership. They invest in a luxury property and use it annually for a few weeks each year. Usually, there’s an exit strategy in place, so the property is eventually sold.
How Co-Ownership Works
There are a few different options for co-buying a home. First, let’s talk about previously used methods.
One is TIC or tenancy in common. This is when shares of the property aren't divided equally. Instead, the ownership ratio is in proportion to how much money each owner invests.
Another is JTWROS or joint tenancy with right of survivorship. In this arrangement, ownership is divided equally, regardless of how much each individual invests.
The right of survivorship refers to the fact that in the event of an owner’s death, the surviving owners automatically assume the remaining shares of the property. This allows probate to be avoided.
However, there are other options, such as forming an LLC (Limited Liability Company). That’s how co-ownership works with Lifestyle Asset Group. This LLC is the legal owner of the home and offers 5-10 partners to acquire memberships to the LLC.
Each partner pays their prorated share of the annual operating costs and management fees. In return, they are guaranteed 4-8 weeks of use per year, and they can also sponsor unaccompanied guests.
There’s also a 5-year exit strategy. At that point, your investment is returned to you, plus any appreciation. However, if you desire, there is an option to extend it to 7 years.
The Benefits of Co-Ownership
Co-ownership with us offers a lot of benefits that you’re not going to get with other ownership options. Here are a few of the benefits of co-owning a Cape Cod home.
An Investment That Appreciates
As previously mentioned, there is an exit strategy with a return on your investment. That’s not something you’re going to get with other fractional ownership options. It’s also only a 5-year exit, so your investment won’t be tied up for years.
The classic example is the timeshare. Timeshares don’t maintain their value, let alone appreciate as a vacation home does. Like driving a car off of the lot, the value of a timeshare decreases immediately.
You Own It Outright
Unlike a timeshare or hotel, your vacation home is yours and yours alone. You’re not in a building with dozens of other units.
Your luxury home is going to be spacious and comfortable, unlike many homestay rentals or hotel rooms. Plus you know exactly what amenities you are getting, and what you are paying. There are no hidden fees.
The final option is buying a second home and owning it wholesale. That may seem like a good option, but the reality is that many owners don’t use these second properties as often as they thought they would.
That means that these properties sit unused for the majority of the year, which can lead to them falling into disrepair. However, year-round occupancy is one of the benefits of co-ownership. Any repairs that need to be made can be made immediately - and yes, your annual fees cover repair and maintenance costs.
An Affordable Vacation Home
Co-ownership offers ownership of a second luxury home, but at a fraction of the price. With our co-ownership program, the LLC model allows you to keep your assets separate from the LLC. The LLC operates like a business, which means it has its own bank account and tax ID number.
This LLC ownership program is the perfect balance of mitigating risk and providing you with an affordable, luxury vacation home that other ownership types can’t beat.
Comparing Co-Ownership vs. Whole Ownership
Let’s look at two examples: buying a home on Cape Cod for less than $300,000, and buying a home there for less than $200,000. Either option is an affordable solution for your vacation home.
Homes for Sale on Cape Cod Under $300,000
An example of a property we have under $300k is our North Chatham property, 16 Captains Cove Lane. This is a 3 bedroom, 4.5 bathroom home with 3 floors, totaling 3,284 square feet. It comes fully furnished.
Some key features of this property include:
- 2 car garage
- Finished walk-out basement
- Outdoor shower
- In-ground irrigation system
- Expansive mahogany deck with an electric awning
- Central air conditioning
This is a $2.599 million dollar vacation home, but you can own it hassle-free at a fraction of the cost. A one-time LLC capital contribution of $298,000 grants you 1/10th share and provides 4 weeks of use annually.
Homes for Sale on Cape Cod Under $200,000
Another great property is our North Falmouth property, 9 Waterside Drive. This home is a 4 bedroom, 3 full bathroom home with 3,023 square feet of space, fully furnished.
Some key features of this property include:
- Newly upgraded kitchen, bathroom, appliances, and landscaping
- Central air conditioning
- Large backyard with patio seating
- Outdoor gas fire pit
- Open floorplan for living and dining areas
- Access to tennis and pickleball courts, miles of walking trails, and 2 private beaches via the Seascape Association
- Beach access is less than 500 feet away
A one-time LLC capital contribution of $199,500 grants you 1/10th share and 4 weeks of use annually.
Cape Cod Homes Are Great Year Round
With either our North Falmouth or North Chatham property, you’re getting a multi-million dollar home at a fraction of the price. As soon as you step through the door, it’s going to feel like home. Spend less time and money buying and maintaining a vacation home, and purchase a share in one of our Cape Cod properties.
No matter when you visit, you’re going to have a great time. Cape Cod may have a reputation for being a summer destination, but these properties are great any time of the year. Even during the off-season, there’s plenty to do in Cape Cod. Some even prefer it during the off-season, since that means fewer tourists, less traffic, and less noise.
If you’re a foodie, Cape Cod has excellent restaurants, such as Epic Oyster in North Falmouth, one of the best raw bars in the area. Don’t like seafood? That’s okay, Cape Code offers award-winning dining that’s more than seafood.
Añejo Mexican Bistro offers Mexican and Tex-Mex style dishes. Residents have voted it the best ethnic restaurant for 4 consecutive years. The Glass Onion offers elegant, romantic dining that features New American food paired with wines from around the world.
Families aren’t left out either. Knots Landing Bar and Grill, Chapoquoit Grill, and Fusaro’s Homemade Italian all cater to families.
What if I Don’t Want to Stay on Cape Cod?
Living in Cape Cod is great, but occasionally you will want to visit other destinations. You can also exchange your weeks for travel to other properties managed by Lifestyle Asset Group, within the Elite Alliance exchange service.
Or if you’re looking for co-ownership in other properties, we have destinations throughout the U.S., Caribbean, and Mexico. Check out our full list of destinations and view all of our available properties.
Make Your Second Home in Cape Cod
Co-ownership in one of our Cape Cod properties means you will have access to miles of stunning coastline, beautiful scenery, and a laid-back, relaxing lifestyle with a small town feel. Your vacation home won’t sit unused and neglected throughout the year, and you won’t have to worry about costly repairs. The partners in the LLC will own the real estate outright - we will manage the moving parts and operate the LLC, enabling you to enjoy your vacation.
If the idea of spending a few weeks every year at your second luxury home and enjoying the Cape Cod lifestyle sounds appealing, we can help. There are homes for sale on Cape Cod under $300,000, and they make for spectacular vacation homes.
If you’re interested in learning more about vacation homes for sale in Cape Cod, or our other luxury properties, call us today at 1-800-318-6966, or send us a message.