29 May Equity Estates or Second Home Ownership?
Why Buy One Vacation Home When You Can Own Dozens?
What motivates a buyer to purchase a second or third home for their vacations? The National Association of Realtors (NAR) Investment and Vacation Home Buyers’ Survey determined that 42% of buyers are looking for a home base for personal vacations and a family retreat, 18% want to make the house their primary residence upon retirement, and 12% bought when a home was priced so competitively that it was “too good to pass up.”
If you’re considering a second home as a vacation residence, are you prepared for all the research, work, and costs (planned and unplanned) that can accompany such a long-term decision? Do you want to visit the same destination, year after year? Do you want to spend the first day of your vacation grocery shopping and getting the home up and running?
Costs Associated with Second Home Ownership
- Down payment
- Ongoing mortgage expenses
- Property and liability insurance
- Storm preparations (often at a moment’s notice)
- Remodeling and refreshes to keep the value of your investment up
- Cleaning services when the home is occupied and vacant
- Maintenance and repairs
- Property taxes
- Property management
- Décor and furnishings
- HOA fees, if applicable
- Time management of all helpers and vendors
Real Estate as an Investment
Luxury real estate is a strong hedge against inflation and a haven from volatility in the stock market, especially during times of great economic uncertainty. Luxury real estate has shown strong year-over-year growth, and is considered a lower risk, higher reward investment regardless of where we are in the economic cycle. Inflation plays a significant factor as well.
Considering these details and the liquidation timeline for Equity Estates Funds, we believe Equity Estates provides a better alternative to purchasing a second home of your own.
Pros of Investment with Equity Estates
- A diversified real estate investment – we take care of finding, buying, and selling the vacation homes
- Multi-touch concierge service that will take care of your every need like dinner reservations, private chefs, and pre-arrival grocery shopping
- Daily housekeeping so everyone can truly relax
- Best availability in the industry given we underutilize the homes so you can travel when the inspiration strikes
- A collection of 60+ luxury residences in more than 25 countries so you’re not stuck with just one destination year after year
- Achieve long-term financial goals
- A hands-off investment that you can actively enjoy before divestment
Equity Estates Fund shares the actual expenses of owning and maintaining the homes with all the investors evenly. Annual Dues cover these expenses and are typically a quarter of what you’d spend on a vacation home of your own. Plus, there is no surge pricing on using your Equity Estates residences during the holidays. Each investor’s Annual Allotted Nights are usable anywhere in the collection, anytime of the year. These savings are yet another factor in your return on investment.
Other vacation alternatives rarely include true equity ownership as our fund does, nor do they typically offer one-on-one personalized travel planning and concierge services. Our level of service and attention to detail truly makes traveling to your portfolio of homes both convenient and memorable.
Because we won’t make money on the sale of real estate until you do, you can rest assured that your investment is in skilled hands. We align with our investors and focus on their lifestyle needs and long-term financial goals. When we divest, proceeds are dispersed first to you, until 100% of your initial investment is returned, and then 80% of any appreciation thereafter.
We are real estate buying, property management, and customer service experts, highly experienced in caring for both our investors and the properties in their portfolios.
If you would like to review additional comparisons of Equity Estates to other vacation investment options, see our Comparison page.
Seeking Investors for Fund IV
In these times of stock market volatility, it’s a comfort to know that the luxury real estate market remains rock solid. When the markets rise and fall, we find buying opportunities that provide a return on your investment dollars.
Equity Estates handles every aspect of owning a luxury vacation home for you. Simply enjoy the perfect getaway and figure out where to go next. With close to 15,000 investor vacations under our belt and continued portfolio growth year after year, no other alternative comes close.
Fund IV is currently open to investors and slated to raise ~$50 million. The fund will acquire up to 12 vacation residences. A typical residence is located in a beach, mountain, leisure or city destination convenient to area amenities, attractions, and airports. Residences vary in cost from $2 million to $5 million and range in size from two to six bedrooms and 1,500 to 7,000 square feet.
If you’d like to learn more, please call our Investor Relations team at 404.445.8501 or schedule a time to speak (all times listed are Mountain Time).