Everyone is looking forward to their upcoming holidays. This is awesome and could be a recipe Anti-fatigue. And make no mistake: people are Back to vacation Now that Covid is somewhat visible in the rearview mirror. In fact, ValuePenguin research shows that more than half of Americans are Planning a trip In the near future. However, knowing where to stay can be a sticking point. For many, vacation shared ownership provides an attractive alternative.
What makes determining the perfect place to hang out for a week so difficult? Despite the proliferation of sites like Airbnb and VRBO, finding budget accommodation in a prime location isn’t always easy. Many travelers end up as if they are not getting the best possible accommodations for their money. As a result, many individuals and families are considering purchasing vacation properties or looking for time shares.
Get a break…without breaking the bank
However, there are problems with these two solutions.
Investing in a house, apartment, bungalow or cabin in a tourist hotspot can be expensive. This is why so many people rent out their vacation properties. Unfortunately, the most profitable rental times are the popular times of the year. Accordingly, many property owners give up the opportunity to enjoy their vacation homes during peak seasons.
Timeshares aren’t necessarily a better option, which may be why so many people are Unloading timeshares collectively. Although the timeshare cost seems lower up front, it is very limited.
In addition, the timeshare “owners” only own the time. They don’t actually invest in real estate. Therefore, they cannot benefit from a timeshare arrangement, which makes it a poor choice for budding investors.
What should individuals and couples who are eager to go on the same vacation do after vacation? Serial entrepreneur Matt Williamson asked the same question a few years ago. His answer became the seed for his startup, Plum CoOwnership.
Simplified street to own real estate vacation
Williamson built the Plum so vacationers can get off their “Where Should We Stay?” rollercoaster permanently through a co-ownership agreement. Shared property ownership is exactly what it sounds like: several people or couples buy one property together.
For example, four friends may want to purchase beachfront cottages individually. However, each friend can only buy a home with a maximum of $250,000. That’s not enough to get close enough to hear the waves, let alone enjoy a great view.
But if they work together, they have the buying power to buy properties listed in the million dollar range. If they invest in this kind of high-end real estate, they can spend 13 weeks there annually while saving.
Not only do they share property ownership but they have a place to stay in a location they love. They own the entire property rather than pay a third party entity for their time.
Shared ownership is certainly not a new concept. In fact, there are more than 2 million vacation homes that are jointly owned. However, it can seem daunting for groups interested in buying vacation homes.
After all, there are many considerations, including how to set up a shared ownership pool, find the right realtor, and set up fair use tables. Williamson’s brainstorming platform, Bloom, aims to remove the biggest barriers to shared ownership, making vacation property ownership possible for those interested.
A plum approach to simplifying shared ownership for the holidays
backed by Advanced technologiesPlum serves as a launching pad for aspiring co-owners to realize their vacation home dreams.
Individuals can create Plum accounts for free to start their journeys. If they don’t have a group in mind, they can advertise for other real estate investors to join them. Once a group is created through Plum, the site’s intuitive system guides the group through the co-ownership process.
Here are just a few of the benefits for Co-Owners who benefit from Plum.
1. Joint ownership groups can become LLCs through Plum.
Instead of enlisting outside legal assistance, co-owners have the option to let Plum help them form an LLC. The LLC then becomes the entity that officially owns ownership.
LLC support protects individual owners and makes the experience safer and more satisfying. The LLC’s stature also makes it more efficient to create a joint bank account that is transparent to all members of the LLC.
Although Plum recommends that only a few members be given access to money transfers, full and transparent access to monthly statements and all transactions should be available to everyone.
2. Co-owners can state their basic and negotiable needs on Plum.
It is critical for participating property owners to define everything from house rules to maintenance schedules. And the earlier this happens, the less likely there will be surprises in the long term.
The Plum System guides groups through the process of negotiating all responsibilities. The final results are put into a document. Ideally, the document will be created prior to bidding on a vacation property to reduce the chance of misunderstandings.
3. Co-owners can bring real estate to the negotiating table or research Plum.
When Williamson first began his in-depth investigation into shared ownership, he realized that some people already own vacation properties. But they were interested in dividing the property into shares to spend less per month on mortgage payments, taxes, etc.
Plum allows these types of owners to find other owners to form co-ownership groups. For groups that don’t have a property in mind, Plum offers a property search feature. Additionally, Plum can suggest condominium property owners and lenders interested in selling to condominium groups.
4. Users can rely on Plum for the financial management of the property.
After investing in a property, joint ownership groups have every reason to keep the property running smoothly.
Bloom ensures this happens by including a reserve fund in his original financial projections. Every month, the co-owners transfer a certain amount of money to the reserve fund. In this way, the fund can grow and support the costs of routine and emergency maintenance.
In the end, the property stays in better shape and the co-owners have fewer unbudgeted expenses.
A plum future for people interested in buying vacation properties
Even though Plum was just launched, it was getting a great deal of notice.
Recently, it was Bloom Appeared in Entrepreneur Elevator show. The result was a $175,000 investment from the former CEO of Netflix. Williamson and his team plan to use the investment dollars to further improve the site’s benefits for users.
Plum, meanwhile, offers an attractive way for people to finally achieve vacation home ownership with less stress. After all, stress is the opposite of what travel should be like! With Plum, everyone can spend their vacations relaxing in homes they not only love, but also own.
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