Are you dreaming of owning a luxurious vacation home but find the cost out of reach? Well, a new trend in co-ownership might be the solution for you. Pacaso, a luxury vacation home co-ownership platform, is changing the game by offering co-ownership shares starting as low as $200,000. Previously, shares were upwards of half a million dollars or more.
Founded in 2020, Pacaso initially launched with multimillion-dollar homes listed for co-ownership. Now, the platform is expanding its offerings to include thousands of lower-priced listings, making vacation home ownership more accessible to a wider range of buyers.
The concept is simple – Pacaso lists shares of vacation homes, typically an eighth but sometimes larger shares, and then facilitates the purchase, including financing if needed. The company also manages the home and divides up the owners’ time through an app. In addition to facilitating the purchase, Pacaso takes fees for managing the property.
According to co-founder and CEO Austin Allison, co-ownership allows buyers to afford a larger, more luxurious home than they could on their own. With housing affordability becoming a challenge for many, co-ownership offers a more feasible path to homeownership.
Unlike traditional timeshares where consumers buy time at a resort, Pacaso owners have the potential to benefit from the home’s appreciation in value over time. Owners who have resold their shares have seen about a 10% appreciation in value, on top of what they paid for the home.
While Pacaso has seen success in the market, it has also faced backlash from some communities. Critics have likened the platform to an “Airbnb on steroids” and pushed back against its expansion in certain areas. Despite this, Pacaso has continued to grow and is now offering new services to help primary homebuyers access the co-ownership model.
Overall, co-ownership is becoming a popular option for buyers looking to afford homes they otherwise couldn’t. With Pacaso leading the way in the luxury vacation home market, more people are able to fulfill their dream of owning a piece of paradise.
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