The luxury vacation home co-ownership market is no longer a niche concept; it’s a booming industry that is fundamentally changing the way people own second homes. With this rapid growth has come a wave of new platforms, each with its own unique model, target audience, and portfolio of properties. For a potential buyer, navigating this landscape can be both exciting and overwhelming. How do you choose the right platform for your financial goals, lifestyle preferences, and travel dreams?
This guide is here to help. We have conducted a comprehensive review of the top 5 luxury co-ownership platforms, diving deep into their business models, their key offerings, and the type of buyer they are best suited for. Whether you are a high-net-worth individual seeking the ultimate in turnkey luxury, a group of friends looking to buy a home together, or a digital nomad building a global portfolio, there is a platform on this list for you.
The Contenders: A Head-to-Head Comparison
We will evaluate each platform based on a consistent set of criteria: their ownership model, price range, geographic focus, rental policy, and overall management approach. Let’s meet the top players in the luxury co-ownership space.
1. Pacaso: The Luxury Pioneer
The Model: Pacaso is the undisputed pioneer and market leader in the ultra-luxury co-ownership space. Their model is simple and elegant: they purchase single-family luxury homes in the most desirable vacation destinations and then sell them in 1/8 shares. Each share entitles the owner to 44 nights of use per year. Pacaso creates a property-specific LLC for each home, and the co-owners collectively own the property. The company handles every aspect of the experience, from acquisition and legal structuring to interior design, professional management, and a sophisticated scheduling app.
Best For: High-net-worth individuals and families who are looking for a premium, completely hassle-free, and private vacation home experience. The Pacaso customer values quality, convenience, and the peace of mind that comes with a fully managed asset.
Pros:
•Turnkey Service: The experience is seamless from start to finish.
•High-End Properties: Pacaso focuses on exceptional, multi-million dollar homes in prime locations.
•Strong Brand Recognition: As the market leader, Pacaso has a proven track record and a large inventory.
Cons:
•Higher Price Point: The focus on the ultra-luxury market means that even a fractional share represents a significant investment.
•Limited Rental Options: Pacaso’s model generally prohibits rentals to maintain an exclusive, owner-centric environment.
2. Fraxioned: The Flexible Innovator
The Model: Fraxioned operates on a similar 1/8th ownership model to Pacaso, but with a focus on providing a balance of luxury and value. They offer a range of property types, from beachfront condos to mountain cabins, in a growing number of vacation destinations. Fraxioned also emphasizes transparency in its pricing and fees, aiming to make the co-ownership process as clear and straightforward as possible.
Best For: Buyers who are looking for the benefits of co-ownership at a more accessible price point. The Fraxioned customer wants a high-quality vacation home but is also focused on finding a smart and efficient investment.
Pros:
•Growing Portfolio: Fraxioned is actively expanding its inventory, offering a diverse range of properties.
•Transparent Pricing: The company makes a point of clearly outlining all costs and fees.
Cons:
•Newer Company: As a more recent entrant to the market, Fraxioned has a smaller inventory and less brand recognition than Pacaso.
3. Plum Co-Ownership: The Tech-Savvy Manager
The Model: Plum CoOwnership takes a unique, technology-driven approach. Instead of primarily selling shares in homes they have already purchased, they often act as a facilitator and manager for groups of people who want to co-buy a property together. Their key innovation is an AI-powered scheduling app that ensures fair and equitable use of the home. They also provide a comprehensive legal framework (the SHARE Operating Agreement) that can be customized to the group’s specific needs, including rental policies.
Best For: Groups of friends or family who have decided to buy a vacation home together, as well as individuals who are looking for a more flexible and customizable co-ownership solution. The Plum customer is often more hands-on and values the ability to shape their own ownership rules.
Pros:
•Advanced Scheduling: Their AI-powered app is a powerful tool for managing a shared property.
•Flexible Ownership Structures: Plum can accommodate a wide range of co-ownership arrangements.
•Rental-Friendly: The platform is designed to support co-owners who want to generate rental income.
Cons:
•More Hands-On: This model may require more active participation and decision-making from the co-owners compared to a fully managed platform like Pacaso.
4. August Collections: The European Specialist
The Model: August Collections offers a distinct and compelling proposition: instead of owning a share of a single home, you own a share in a “collection” of four or five properties across Europe. For a single investment, you gain access to a portfolio of homes in destinations like the French Riviera, Tuscany, the Alps, and Mallorca. August handles the acquisition, renovation, design, and management of all the properties in the collection.
Best For: Travelers who have a passion for Europe and want a diverse range of vacation experiences. The August customer is looking for a lifestyle investment that provides access to multiple cultures and landscapes.
Pros:
•Multiple Properties: One investment gives you a portfolio of homes.
•Curated Collections: The homes in each collection are carefully chosen to offer a complementary range of experiences.
•Hassle-Free European Ownership: August navigates the complexities of buying and managing property in multiple European countries.
Cons:
•Higher Entry Cost: The price of a share reflects the value of multiple properties, so the initial investment is significant.
•Focused on Europe: This platform is not a fit for those who want to own property in the U.S. or other parts of the world.
5. Kocomo: The Marketplace Aggregator
The Model: Kocomo operates as a marketplace that brings together co-ownership opportunities from a variety of different developers, owners, and smaller platforms. It functions as an aggregator, providing a centralized place to browse and compare a wide range of fractional ownership listings. This can include everything from shares in a new development to resales from existing co-owners.
Best For: Buyers who are in the early stages of their search and want to get a broad overview of the market. The Kocomo user values choice and the ability to compare different models and price points in one place.
Pros:
•Large Selection: The marketplace model provides access to a wide and diverse range of properties.
•Comparison Tool: Kocomo allows you to easily compare listings from different providers.
Cons:
•Variable Quality: Because Kocomo is a marketplace, the quality of the properties and the professionalism of the management can vary significantly from one listing to another. Due diligence is essential.
Conclusion
The luxury co-ownership market has matured, offering a range of sophisticated and compelling options for a wide variety of buyers. The “best” platform is not a one-size-fits-all answer; it is a personal decision that depends on your individual priorities.
Before you choose, take the time to assess your own goals. What is your budget? Where do you want to travel? How important is rental income to you? How much involvement do you want to have in the management of the property? By answering these questions, you can identify the platform that is the perfect match for your needs.
The five platforms reviewed here represent the best of the best in the luxury co-ownership space. We encourage you to visit their websites, explore their listings, and take the next step on your journey to a smarter, more affordable, and more enjoyable way of owning a vacation home.
