Written by Julie Anderson| June 8, 2021 in Co-ownership 101
Imagine you’ve found your dream vacation home.
All you can think of are sultry summer nights and starry skies, inspiring your imagination. This could be a place where you, your family, and your friends can make memories that last a lifetime.
Unfortunately, there’s the matter of money. Taking sole ownership of any home, never mind a vacation property, is a steep financial hill to climb.
So, where are you to turn? How can you enjoy the vacation home of your dreams without taking on an impossible financial burden?
No--you don’t need to win the lottery. Nor do you need to throw caution to the wind on a timeshare. Instead, by partnering with Savvy, it’s possible to take on co-ownership of a home without the headaches of a timeshare.
Through Savvy’s services, owners of a vacation home enjoy legal ownership of real property. In other words, owners enjoy 100% ownership of the home. Savvy simply manages the property and provides the owners a white-glove experience.
People with a shared ownership interest in a Savvy property schedule reservation periods where you’ll enjoy exclusive use of the entire home. You book this time through the Savvy App, which supports the following two types of stays:
Planned stays (booked 8 days to 24 months in advance)
Last-minute stays (booked 1 to 7 days in advance)
Savvy’s concierge services are available to both you and your guests whenever you’re in residence. Also, co-owners have a storage area for personal items between visits to their home.
Co-ownership is different in several ways from a timeshare.
Owners Genuinely Own their Home
Unlike with a timeshare, shared ownership is how it sounds: you and your co-owners actually own the home. You’ll all own the property through an LLC. Ownership interests can be placed in a buyer’s personal name, trust, or corporation. Furthermore, ownership interests can be willed and resold.
Co-Owned Homes Appreciate Over Time Timeshares notoriously depreciate over time, whereas Savvy’s co-owned homes appreciate, just like other residential properties on the market. The above difference stems from the fact that timeshares often involve a lease contract, which can last up to 99 years. With a Savvy property, you can sell the ownership interest at any time after the first year -- and at any price you choose. Because the ownership interest is tied to the value of the property, you capture 100% of any gains if the property appreciates.
Selling a Savvy Home is Straightforward and Streamlined The sales process with Savvy resembles any other real estate transaction. You can even work with your realtor to market your ownership share. The home is listed on the MLS, just like any home. With timeshares - on the other hand - you end up dealing with questionable resellers and the market for timeshares can be difficult to reach.
Other Differences Between Savvy and Timeshares Here are a few more differences between Savvy homes and a timeshare:
Savvy shared homes are luxury residences, while timeshares are often condos
Since your Savvy home is owned through an LLC, you retain 100% equity. On the other hand, timeshares offer zero equity.
A Savvy home has anywhere between 2 to 8 owners versus the 50-plus people typically belonging to a timeshare.
Since there are fewer owners in Savvy homes, there are more available days to spend there:
Savvy offers 1/8th owners up to 45 days per year at their vacation home. And ½ owners have up to 180 days per year available for reservation.
The average timeshare offers those involved 1 week per year.
Co-ownership is different from whole home ownership in the following ways:
Co-owning a Savvy Home Lessens the Financial Burden of 100% Ownership. Taking part in a co-ownership means sharing the financial burden of otherwise expensive properties while enjoying the benefits of a vacation home. Keep in mind, you’re paying property taxes, ongoing mortgage, and insurance. Why not lessen the load and share those expenses with someone else?
You Won’t Feel Tethered to Your Co-Owned Home Whenever You Have Free Time When purchasing a vacation home on your own, you don’t give yourself much wiggle room with vacations. Failing to spend at least half the year makes it hard to justify spending that kind of money. That doesn’t give you much time to travel abroad or relax and take a staycation, for instance. Often people feel compelled to spend any free time at their vacation home. A Savvy home removes that pressure. Since you’re not paying only a fraction of the cost of ownership, you won’t feel obligated to spend every vacationing moment on your property. This way, when you do reserve through Savvy’s app, you’ll be excited to do so without feeling forced to make time.
Bills, Furniture, Yard Work, and Cleaning, Are All Handled by Savvy Buying a vacation home by yourself involves taking care of the yard work, bills, and cleaning. Alternatively, Savvy handles all of those tasks for you, so you can spend your time relaxing. Another deterrent with buying your own vacation home is the matter of spending on furniture and decor. Whole home ownership costs begin to skyrocket when furnishing a home. Fortunately, Savvy homes are furnished by a professional interior designer with a reputation for exceptional work. There are also complete audio-visual, linens, and kitchen packages included in the purchase of your home. Additionally, each of these co-owned properties includes two electric-assist bikes.
Savvy Has Limited Usage, but Enough to Meet Your Needs Now, you don’t quite have as much access to a shared home as you would a property that’s 100% yours. But there’s only so much available time to vacation per year. School, work, and other social obligations will always be factors getting in the way. The 45 days available to 1/8th-owners help you navigate those scheduling barriers with relative ease and freedom. Plus, those with vast amounts of free time (such as a retiree) with ½ ownerships can book 180 days per year. And you can own as much or as little of the home you want -- from 1/8 up to 1/2 -- making the home available to you for just the right amount of time for your lifestyle.
You Can’t Rent Out Savvy Properties When you own property all of your own, some freedoms come along with it, not just burdens--such as the ability to rent your property. Savvy homes cannot be rented for several reasons. The biggest reason is this: we want you to enjoy your vacation home to the fullest and enhance the ownership experience. This can't be easily accomplished if renters are treating your home like, well, renters. Because of this, Savvy homes are reserved exclusively for the owners and their guests.
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