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Shared Ownership Homes: Luxury Vacation Homes at a Fraction of the Cost

Posted by Tim Roberts on Dec 7, 2023 4:57:10 PM

Outside patio and pool of a shared vacation home overlooking Cote de Azure

Have you ever wandered through a coastal town during the off-season, observing the multitude of luxury beachfront properties lying dormant? Many of these vacant beauties belong to affluent second-home owners, used sporadically throughout the year. This begs the question: isn't there a more optimized way to enjoy these homes? If you've often found yourself daydreaming about owning such a luxurious retreat but have been held back by the thought of paying for year-round maintenance on a property you only visit occasionally, the concept of shared ownership properties might just be the answer you're looking for.

The shared ownership model offers a balanced solution to the dilemma of wanting to indulge in a vacation home but not wanting to waste money on something you're not actually there to enjoy regularly. Now you can (partially) own a second home and have the added benefit of sharing the cost and responsibilities with others.

While the concept may evoke initial reservations about shared decisions and usage rights, rest assured that dedicated housing associations are providing a well-structured arrangement that promotes both individual interests and collective harmony. With clear legal agreements in place, co-ownership ensures co-owners get their fair share of time at their respective properties while enjoying the benefits of luxury vacation homes for less investment.

The convenience of professional property management and maintenance (handled through shared vacation homes companies) as well as the option to earn rental income or explore international home-swapping adds to the allure. All things considered, many find that the benefits of shared ownership vacation homes form a significantly attractive prospect as an inviting gateway to high-end living that doesn’t strain your finances.


Shared Ownership Home vs. Timeshare Properties

Luxury fractional home on tropical beachfrontWith co-ownership, rather than buying a property outright, you're purchasing a certain percentage of a vacation home. Often these property agreements will state that the proportion of your share of the property you own determines your access to the home. (For example, a 25% stake allows you to inhabit the home for 25% of the year.) Frequently it’s also agreed that if circumstances change or if you choose to invest elsewhere, you have the freedom to sell your share in the future (which means that if the property value increases, then it becomes a sound investment, too). Fractional ownership vacation homes can also be an excellent way to get onto the property ladder.

Shared ownership infographic

This concept is especially compelling when you consider the nature of vacation homes. Realistically, how much time would you spend there in a year? A month? Two, perhaps? Why bear the financial burden of 12 months for a home you'd occupy only a fraction of the time? Conversely, if you buy a shared ownership home, you are only paying for what you use.

Of course, there's the counter-argument of renting out the entire property when you're not using it if you own the whole thing. Being a remote landlord comes with its own set of complications such as dealing with tenant issues and navigating expensive platforms like Airbnb and some housing associations might be more than you're willing to take on. A property manager can help mitigate the stress, albeit for a significant cut of the profits.


Why Consider Shared Ownership?

Shared vacation home with deck overlooking ocean

Economical Upscale Living

What if you could have a $1 million vacation home for just a $250,000 investment by dividing the cost with like-minded individuals? Recurring expenses including property taxes, utility bills, and maintenance charges would also be divided among the owners, making this aspect of a luxury lifestyle significantly more attainable.

Structured Flexibility

A prevalent concern about shared ownership is the potential for scheduling clashes. This is where third-party management steps in. Many shared ownership models come with professional management, ensuring that usage schedules are set fairly and equitably, sidestepping potential conflicts or the dreaded holiday season tug-of-war between co-owners.

Profitable Ventures

The shared ownership model doesn't shackle you. On the contrary, it provides flexibility. Depending on the shared ownership property agreement, when it's not your turn to use the home, you can often rent out your share, providing an income stream. Alternatively, you could potentially engage in thrilling global home swaps, introducing you to a variety of cultures and travel experiences. Furthermore, if the house prices increase from the current market value, you can sell your share for a profit (and if you own two shares, you can sell one while keeping the remaining share).


Utilizing Home-Swaps

Home-swap ski chalet lakeside

The home-swap concept is an ingenious and cost-effective approach for owners of vacation homes to explore new travel destinations. In essence, home swaps involve exchanging the use of your vacation home for that at another homeowner's property, allowing both parties to enjoy a change of scenery without the costs associated with renting a holiday home. This unique method of vacationing offers a plethora of benefits, and several companies specialize in facilitating these exchanges, ensuring a seamless and enjoyable experience for all involved.

THIRDHOME is one such company that has turned the concept of home swapping into an exclusive travel club for luxury second homeowners. The company offers a unique ‘key system’ where members can earn keys by listing their homes and then use those keys to book stays at other luxurious properties around the world. With a portfolio that includes stunning homes in more than 90 countries, THIRDHOME is a treasure trove of unique vacation experiences.

The advantages of home-swapping through platforms like THIRDHOME are numerous:

  1. Cost Savings: By swapping homes, you eliminate the purchase price needed to pay for accommodations.
  2. Luxury Living: THIRDHOME's exclusive focus on luxury properties means you can enjoy high-end living and unique experiences in some of the world's most coveted destinations.
  3. Authentic Experience: Staying in a local home rather than a hotel gives you a more authentic and immersive experience of the local culture and lifestyle.
  4. Increased Security: Knowing that a responsible homeowner is occupying your property can provide peace of mind and increased security for your home while you're away.
  5. Personalized Recommendations: Homeowners often leave recommendations for their favorite local restaurants, attractions, and activities, providing you with valuable insider tips.
  6. Flexible Timing: While some home swaps occur simultaneously, companies like THIRDHOME allow for non-simultaneous swaps, providing greater flexibility in planning vacations.

Home-swapping is a compelling alternative for vacation homeowners seeking new travel experiences without the high costs of traditional accommodations. By leveraging platforms like THIRDHOME, you can unlock a world of luxury travel opportunities while enjoying the comforts and conveniences of a home away from home.


Venturing into a Shared Ownership Property with Trusted Partners

Three people sitting on plush sofas discussing co-ownership arrangement inside a luxury home

One of the first questions that comes to mind for those researching how to buy a shared ownership vacation home is how all the logistics work, particularly surrounding the legal side of things and how to manage a shared ownership vacation home.  Navigating the fractional ownership landscape can be daunting, but partnering with seasoned fractional vacation home companies can smooth the journey. These entities provide end-to-end support, from handling intricate legalities to managing co-owner calendars, shared ownership costs and even brokering a shared mortgage. Having a management company is also essential for keeping things even with your fellow shared owners.

Other factors a third-party fractional ownership provider can assist with:

  • Costs involved including lump sum and any ongoing monthly costs
  • Legalities, essential repairs and home improvements
  • Service charges
  • Minimum initial share
  • Mortgage lenders and smaller mortgage applications
  • Getting the full market value
  • Local councils/HOAs
  • First-time buyers



Shared beach house in the Hamptons

A visionary in the shared ownership space, Pacaso offers many shared ownership properties that include luxury homes nestled in sought-after destinations like Aspen, Napa Valley and the Hamptons. Specializing in the shared ownership homes of high-end properties, Pacaso simplifies the path to owning a piece of paradise in some of the world's most coveted destinations. From wine country to the chic islands and picturesque mountains, Pacaso's carefully curated portfolio caters to the discerning tastes of those seeking a luxurious retreat.

Pacaso's innovative ownership model is designed with flexibility in mind. Recognizing that everyone's needs and schedules differ, the company offers various ownership fractions, starting as low as one-eighth ownership share. This means that you can choose an ownership share that aligns with your usage needs and financial situation.


The Registry Collection

pexels-taryn-elliott-3889843 (1)

This global giant brings a diverse palette of shared ownership vacation homes, with properties spanning Europe, the Caribbean, and the United States. The Registry Collection provides discerning travelers with a luxurious home away from home, coupled with the benefits and flexibility of fractional ownership.

Beyond its diverse range of properties, The Registry Collection is known for its commitment to exceptional quality and service. Each property within its portfolio is meticulously curated to ensure it meets the highest standards of luxury, comfort and amenities. Co-owners enjoy not only the privilege of a stunning vacation home but also a host of tailored services to streamline the whole experience, including handling rentals the rest of the time when the property is not in use.


Savi Residential

Luxury beachfront condos in Miami

With a keen focus on American jewels like Florida, California and Hawaii, Savi Residential is making waves in the shared ownership arena. Savi Residential offers a slice of paradise to those looking to own a luxurious vacation home. As a shared owner, you get to enjoy your time at these beautiful properties while having the peace of mind that comes with expert property management. Savi Residential handles everything from property maintenance to scheduling, allowing you to relax and immerse yourself in the unique experiences each destination has to offer.


Storylines MV Narrative

An apartment on residential ship MV Narrative

Storylines is building a luxury residential ship that will continuously circumnavigate the world. The company is now offering a limited number of fractional residences aboard, for a truly exclusive global lifestyle. Instead of a static property, imagine a residence on a lavish, sustainable ship, the MV Narrative, that continuously explores the world's wonders. Not only do you enjoy all the benefits of shared ownership, but you do so in a home that travels the world.

Full ownership is also an option while select residential units on the ship are reserved for 25% shared purchase, and limited 50% co-ownership options for residences are being introduced as well.

Here are a few highlights:

  • 50% co-ownership provides an exclusive opportunity to purchase half of a global residence, which means you can live onboard and travel the world for six months every year
  • For the 50% fractional shares, prospective residents can choose from any of the residential unit types.
  • Choose whichever two seasons of the year you prefer and swap seasons with your co-owner at your leisure.
  • You can now co-own a luxury vacation home that travels the world. One summer in the Mediterranean, the next in the South Pacific.
  • You can sell your fraction of your home at sea anytime and each share holds promising appreciation potential.
  • Can’t make it one year? You can rent out your residence (managed by the Storylines team) to help offset the ongoing annual all-inclusive living costs.

Here, your vacation narrative evolves with each journey – from soaking in the Caribbean ambiance one year to diving into the pristine waters of the Maldives the next. The entire world is your playground.

If you’re interested in more information about co-ownership offerings from Storylines, please fill out our short contact form here and a residential advisor will reach out to get you all the answers you need.


Discover Storylines

Embark on a voyage of discovery with Storylines – a harmonious blend of luxury, exploration, and sustainability. As a community of global citizens, we prioritize genuine experiences, cultural immersion, and responsible travel. Dive into our world, and let's chart new territories together. Dive deeper into our story here.


Topics: Fractional Yachts & Homes, Luxury travel

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