Buyer's Guide

How does sharing work in a typical vacation home?

The majority of shared vacation homes consist of a single unit shared through alternating usage, by assigned week, month or season, or by reservation. Sometimes, by mutual consent, owners trade allotted usage. Occasionally homes are sold with specific annual time slots. Homes with more than two owners are generally maintained and cleaned by professional property managers. These managers often manage usage schedules, renting the unit if the owners desire, and handle finances. Legal sharing agreements govern the collection and expenditure of funds for cleaning and scheduled maintenance which are generally handled through regular dues. Major maintenance and possible upgrades may be funded from a reserve or assessment system. Owners occasionally modify sharing agreements and maintenance standards when the sharing agreement comes up for renewal. Many properties offer individual APN numbers for each owner, which means that taxes are handled independently by each owner. Taxes may vary on each share depending on the assessed value of the share at the time of purchase.

Why share a vacation home?

Think dream vacation homes have become too expensive and aren't practical? Think again. As home prices continue to soar in many resort markets, shared ownership has become a compelling alternative to whole ownership. By sharing your vacation home, you can achieve your vacation lifestyle dreams.

There are many advantages to shared ownership:

• Fractions are more affordable: A slice is far less expensive than the entire pie. Suppose your budget is $250,000. That generally buys you very little in Tahoe and other desirable resort areas. However, with three other buyers, you can afford to buy one quarter of a more luxurious million dollar vacation getaway where you can entertain family and friends. Given that average second home owners spends less than 20 days a year using their vacation home, a quarter slice would provide a whopping 91 days per year to enjoy and potentially rent out to recoup expenses.
• Share the cost burden: Why pay for annual second home expenses yourself when you can split them with co-owners? Even with potential rental income, the burden of property taxes, management costs, mortgage payments and utilities can become overbearing. Shared ownership provides relief.
• 1031 exchange can be fractional: The IRS recently permitted the 1031 exchange of real property into fractional properties providing you added investment flexibility when re-investing in a 1031 exchange transaction.
• Diversify your vacation experience: If your budget is bigger, your options increase. Instead of buying a $900,000 chalet in the woods, you could purchase slices from several different properties to enjoy, perhaps in Tahoe, Hawaii and Costa Rica. This lets you diversify your investment for long-term appreciation while enjoying varied getaway locations.
• Improve your investment strategy: TIC (tenancy in common) slices are not timeshares. They are fully deeded interests in a property that come with the tax and appreciation benefits of a singly owned property. Timeshares tend to depreciate quickly. The track record of residence clubs has yet to be established. The small numbers of owners in a shared ownership property allow shared ownership properties to track similarly to the market of single ownership homes.

You may have concerns about sharing a property with others. However, a good sharing agreement and a professional management company make shared ownership a delight. Our highly qualified staff can review existing sharing agreements or create new legal documents to help ensure that you are properly set up to enjoy a worry-free vacation home.

How do I find the shared vacation home that is right for me?

DreamSlice has several ways to help you find your dream getaway. First, please check our readily available DreamSlice Exclusive Properties and then Featured Properties. If you do not find a suitable opportunity, try joining a buyers' group. Buyers groups may be formed to purchase a property that is offered for sale as a whole. Groups can be property-specific or not. We encourage you to post a free Property Seekers listing with important parameters for your dream home and sharing preferences. If you wish to make your group property specific, you may choose any non-fractionalized property that is on the market and add it to your listing. You may search for properties in the Tahoe Sierra region by using these links: North Tahoe-Truckee MLS or South Lake Tahoe MLS. Be sure to include the MLS number from your selected property. We will post your listing on our site, free of charge, to see if other people want to share it with you. Sellers of individual shares in specific properties may respond to us about your listing, or other buyers may join you to form a buyers group for a whole property.

Our exclusive and comprehensive DreamMatch™ system helps ensure that co-owners have similar investment goals and usage expectations. We have developed an information gathering process that enables us to understand the opportunities best suited to your needs as a buyer. We ask the right questions to ensure the compatibility of your group and can help guide the drafting of your shared ownership agreement.

If you want to get started, please begin by setting up your free DreamMatch Account . Not sure about all this? Do you have questions? Please email us or call: +1.800.896.1167.

Why employ DreamSlice to find my shared vacation home?

DreamSlice is the only brokerage of its kind. We are a small, forward-thinking company with a friendly and professional staff. Our staff thrives on helping you find the vacation home that suits your financial goals and exceeds your vacation dreams. If you decide to enter a buyers group, we will utilize our exclusive DreamMatch™ System to get you into a compatible group. We customize agreements to fit the needs of each unique buyers' group and property. Our in-house attorney will represent you with strong negotiating skills and ensure that your legal agreements are sound and your transactions are safe and secure. DreamSlice customers have the peace of mind of knowing that their business is being handled by smart people in a solid company.