Vacation home ownership is often considered by those looking for getaway time together or for a remote working situation with a different view. Still others look to luxury real estate as investment tool – one which provides a strong hedge against inflation and a haven from volatility in the stock market – especially during times of economic uncertainty.
If you’re considering a second home, are you prepared for all the research, work, and costs that can accompany such a long-term decision? Have you considered how much time you’ll actually get to enjoy it? Will you still travel to other destinations? Who will manage the home when you’re away?
Considering these motivations and questions, we believe Equity Estates provides a great alternative to purchasing a second home of your own or complementing other travel.
4 Differences between Equity Estates and Second Home Ownership
To start, let’s compare how Equity Estates greatly differs from owning a second home.
1. Location, Location, Location
When you purchase a vacation residence, you receive unlimited access to that home…but only that home. People who own 2nd (or 3rd) homes often feel obligated to vacation there. In fact, they tend to feel guilty for wanting to travel elsewhere. We’ve even had families that love variety purchase a vacation home, only to come back a couple years later and revisit Equity Estates. Their family members missed the ability to explore the world.
If destination diversity is important to you, Equity Estates might be the right solution. Our investors enjoy travel to dozens of residences around the globe in 25+ countries.
2. No Stress Maintenance & Upkeep
Owning a home isn’t always easy or as glamorous as one would hope – that challenge can be even greater for a vacation home. Unexpected repairs, landscaping arrangements, HOA fees, monthly utilities can be overwhelming from afar. Not to mention things like frozen pipes or hurricane preparations, which can be real nightmares. And if it’s been a while since you last visited your vacation home, don’t be surprised to spend your first day of vacation working on repairs or to find it dusty on arrival and in need of a deep clean.
Our investors enjoy the comfort, quality, and consistency they would expect from their own home, but without any day-to-day effort. Equity Estates homes are professionally managed. Plus, the actual overhead expenses of owning and maintaining our homes are shared amongst all investors versus on your own.
3. Service You Can Count On
Sometimes the hardest part of vacation travel is managing the logistics, research, and planning aspects of your trip. You are on your own. Before you arrive on vacation, it’s unknown whether or not things will be as expected.
Now, think of how different your trips might be with Equity Estates. No more making your own dinner reservations, no more spending the first day of your vacation grocery shopping. Leave the heavy lifting to us. We plan all of the details, we book excursions, activities, we’ll make the grocery run, and even private chefs. So when you arrive you start vacationing immediately.
We have dedicated Personal Travel Concierges to plan every detail, and Destination Managers who are experts in each location. Each of our residences also has a Local Host on site to welcome you…and who remains available for any emergency or other needs during the trip. Daily housekeeping is provided, of course, so you may maximize your time off with family and friends.
4. A Diversified Investment
We believe that luxury real estate is a great place to invest. But at the end of the day, when an individual buys a vacation home, they are still exposed to a degree of risk…because it’s still only one home in a single destination.
Choosing to invest in an Equity Estates fund gives you ownership in twelve homes across multiple destinations – domestic and international – with a defined path to liquidity. Of course, our investors stand to benefit from any appreciation of the real estate in their fund. We have designed a business model which operates on the belief that we should only profit when investors do, with a clear exit.
Similarities between Equity Estates and Second Home Ownership
Now, let’s compare some of the ways owning a second home is similar to Equity Estates.
Consistency & Quality
As a second homeowner or an Equity Estates investor, you get to avoid risking your time off. We know how important it is to have your expectations met (or better yet, exceeded). Our investors take comfort in knowing the quality of the home, the location, and the amenities will be impeccable every single time.
To assure our rigid quality standards, Equity Estates invests an average of $250,000 in furniture, fixtures, and equipment in each of our homes. Our investors can count on high-quality mattresses and furnishings, chef-grade cookware and appliances, luxurious linens, and immaculately kept homes in the best locations. Our investors are the owners, after all, and we know they expect their homes to be perfect each visit.
Enjoy a Well-Stocked Home
Nothing is more frustrating than arriving in a rental house and not knowing what items will be on hand. Will there be salt and pepper, basic spices, and shampoo?
Problem solved if you have your own vacation home…or if you’re an investor in Equity Estates. Each home in our portfolio is stocked with 85 consumables – from olive oil to tin foil to bug spray to back up batteries. Our investors travel knowing exactly which condiments, toiletries, and coffee will be there.
Click here to see a full list of Equity Estates consumable items in every residence.
Clear Path to Liquidity
With both ownership options – an investment with Equity Estates or privately purchasing a second home – there is a clear path to liquidity. Our investors appreciate that each Equity Estates fund has a defined period when we will sell all the residences. With second home ownership, well, that’s all up to you.
Learn more about Equity Estates
Overall, our investment model is very different than owning a second home. When evaluating which option is the best for you or your family, it’s important to consider your current travel habits, investment goals, and (most importantly) your available time for maintenance and upkeep.
It’s worth noting at least 40% of Equity Estates investors also own a second home, too. So don’t think you can’t choose both to add more variety to your travels if your financial situation permits it.
Are you looking for a consistently excellent way to vacation…while making a smart decision with your money? Schedule time to connect with our team or download our Fund VI Investment Overview to learn more.