Fractional Vacation Homes: The Future of Ownership?
Summary
This article discusses fractional vacation home ownership as a potential investment opportunity. Pacaso, a company offering fractional ownership, is also offering shares in their company until Sept 18th. Hosts should be aware of this trend and the potential market impact, but also consider the risks associated with luxury real estate and community resistance to this model.
Key Insights
- •The article highlights a $1.3 trillion opportunity in the fractional ownership market.
- •Disposable savings hit record highs, ranging from 12% to 32%, potentially fueling the demand for fractional ownership.
- •Pacaso is letting the public buy stock directly in Pacaso until Sept. 18.
Action Items
- ✓Consider the potential impact of fractional ownership on your market and the possible resistance from local communities.Effort: lowImpact: medium
Watch Out For
- ⚠Luxury real estate is historically the first to get hit in downturns, which could leave fractional shares stranded without buyers.
- ⚠Some towns, like St. Helena, California, are pushing back against rotating owners because they fear the “ hotel-ification ” of their neighborhoods.
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