Most of us wish to have a vacation home, however when making the decision to buy one, many questions come to mind.
How often will I use it? How close to my home should it be? How much am I willing to spend? Will the investment and maintenance cost be worth it?
Location is key for many, maybe there is a place you go often for holiday and dream about owning a property there, for second home buyers it is very important to understand the real estate market conditions in their dream location. Then there is also the local costs of, taxes, insurance, utilities and general maintenance. When adding it all, the total cost of home ownership can give you cold feet from what’s supposed to be a relaxing and pleasurable experience.
What most people do, when facing the complexity of owning the tradicional second home is to consider other options, including:
Short-term rentals weekly, monthly or seasonal: Home-sharing through rental platforms such as Airbnb have been very popular. But prices on these vacation home rentals can be crazy, especially during peak seasons, because property owners ask premium rents.
You might also be disappointed if the property doesn’t live up to the expectations. The property’s condition and cleanliness may vary widely from home to home. Since Covid 19, concerns over health and hygiene, the high volume of people coming and going makes these kinds of rentals less appealing to some people.
Timeshares: These “right-to-use” can work for buyers who have identified a vacation spot in a resort community they want to return to regularly. But the expense of buying into a hotel or condo timeshare can be misleading, annual fees can be high, and use restrictions can be surprising. At the end you don’t own anything, but time.
Another downside: It’s notoriously difficult to recoup your purchase costs. Timeshares don’t appreciate like real property, a timeshare owner can lose as much as 30-50% of the value once the time comes to sell.
Set up your own co-ownership: where family members or friends own property together. This arrangement can be a cost-effective way to share ownership of a property, but if not set up and managed correctly, it can lead to legal or personal disputes.
Fortunately, an updated version of the co-ownership model offers the cost and usage benefits without the pitfalls of the DIY approach: fully managed LLC co-ownership.
LLC co-ownership with Suomma: is an innovative way to own a second home. In Suomma´s co-ownership model buyers purchase ownership of the home, from 1/8 up to 4/8, and have the right to use the home for up to six weeks each year per share. On average, owners stay in their second homes six or seven times each year for about a week at a time.
The buyer decides to buy one share or several, and will have true property ownership of a home and the right to access throughout the year without extra costs. There are flexible financing options available, and owners split monthly operating expenses (such as utilities, taxes and maintenance) proportionally.
Buyers are looking for smarter ways to get the vacation home they want, without high risks and overhead. Suomma´s co-ownership model makes second home ownership possible for more people.
Suomma makes it easy to enjoy your second home by handling the typical ownership headaches. Some benefits include:
- A booking system that is easy to use, equitable for owners based on the number of shares owned, and reflective of real-time home availability.
- No management hassles, we care and upkeep of the property. The home is cleaned and sanitized to our high standards, ready for you and your loved ones.
- If you have unused weeks, we will help you rent them out.
People want better ways to own a second home without high risks and overhead. Suomma´s co-ownership model makes second home ownership possible for more people.