How Second Home Co-Ownership is Different to and Better than Timeshare
Shared ownership of luxury vacation homes is set to be the real estate shift of 2025 for Greece, following the recent launch of the first co-ownership marketplace, OWNERS, in the country.
But while co-ownership has been rapidly gaining popularity as the latest trend in international real estate for over three decades, a considerable proportion of the public are still confused about how this new model of secondary home ownership is different to timeshare, the shared-holiday ownership model that dominated the niche in the last half of the 20th century.
New ownership model blooming worldwide
In the USA, the biggest real estate market in the world and where the vacation home co-ownership model started in the 1980s, the concept is blooming. According to reports, even the ultra-rich prefer buying secondary homes in this new way.
Pacaso, the San Francisco–based property broker spearheading the sector, claims it reached unicorn status as a startup faster than any other company in the US. Founded in October 2020, Pacaso’s valuation rose to 1.5 billion US dollars in September 2021 and was active in nearly 50 markets in the US, Spain, the UK and Mexico by March 2022.
Its funding came from investors and debt financing, while it makes its profits from purchasing residential properties and then selling shares of the home to up to eight co-owners; the company earns a service fee on the sale of a share in addition to an ongoing monthly asset-management fee.
Co-ownership vs timeshare
Pacaso’s success story stands as proof of the dynamics of the co-ownership model and how it revolutionizes vacation home ownership for the first time since timeshare.
In a few words, the core difference between the two models lies in the fact that in co-ownership each buyer actually acquires a stated percentage of the actual real estate property, which then translates into their respective shared usage per year—whereas in timeshare owners only buy a specific amount of “time units” per year to spend at a property that they never really own any of.
This seemingly innocuous variation affects several essential aspects of the property usage; legal rights and obligations, flexibility, property quality and management.
In terms of financial investment, timeshares lack a fair cost-to-value correlation, which, in combination with the complexity of timeshare contracts, also makes their resale difficult and problematic. Market experts explain that the total price-per-unit paid by timeshare buyers is often more than twenty times the fair market value of the unit, thus creating a huge gap between the per-share price and the market value of the home.
The large numbers of average owners per timeshare unit (estimated at over fifty in the US) by contrast to small co-ownership groups, is another significant point of comparison and is considered important in keeping the property attractive while also preserving that homey feel for every owner.
Flexibility and freedom of vacation home co-ownership
In general, co-ownership offers much more freedom of movement to buyers compared to timeshare.
In the major matter of shared usage, co-owners have more flexibility than timeshare buyers as they are able to choose different weeks or split their time into multiple shorter stays, while they can give shorter notices for arrival.
Greek co-ownership marketplace OWNERS, for instance, has created an app through which owners can book their selected dates for exclusive use of their property from two days to 24 months in advance.
For a monthly fee, the company handles the legal and financing process for the acquisition, the stay scheduling, cleaning, property management, taxes, insurance and details like utility bills, while a dedicated manager is responsible for equipping the property with each owner’s requested amenities or booking special services like nannies, chefs, or restaurant reservations.
On the contrary, timeshare members usually have little to no control over operations and costs, let alone assistance with any services they may need for their stay.
And, since co-ownership offers higher quality properties and amenities than timeshares, their legal agreements outline the rights, responsibilities, and terms of usage of the property per owner much clearer.
High potential of co-ownership model in Greece
In Greece, the latest emerging European market for shared ownership of luxury second homes, the model was only introduced to local buyers in the last quarter of 2024.
Since the launch of OWNERS the response from buyers has been overwhelmingly positive, says company co-founder Kostas Pappas.
“As more people learn about co-ownership through OWNERS, interest continues to grow steadily. What excites them most is the seamless ownership experience we offer, from the high-quality properties to the management services that eliminate the typical hassles of owning a second home,” Pappas describes.
“Greece is a top destination and looking ahead we expect greater awareness and adoption of this innovative model for the upcoming months, especially with the new properties that will be on our platform from Chalkidiki, Tzia and Crete,” he concludes.
PR Newswire
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