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Affordable Co-Owned Vacation Homes: Exploring Timeshare and Co-Ownership

by | Nov 1, 2022

Owning a vacation home has always been a cherished dream for many Americans. Whether it’s a beachfront oasis, a mountain retreat, or somewhere in between, the allure of having a second home where cherished memories can be made with loved ones is undeniable. However, the traditional notion of individual ownership has often been out of reach for most due to its high cost. Over time, vacation home ownership has evolved, leading to the emergence of alternative options such as timeshare and co-ownership models.

Individual Ownership

In an ideal world, individual ownership would be the top choice for everyone. Who wouldn’t want an exquisite vacation home exclusively for themselves? Unfortunately, the reality is that individual ownership is typically affordable only for the affluent. For the longest time, it remained the sole feasible option for owning a vacation home.


To address the affordability issue, the concept of timeshares emerged in the early 1960s. Timeshares introduced a shared ownership model where multiple individuals could enjoy the use of a vacation property through a “time-sharing” agreement. This innovative approach made vacation homes more accessible. However, timeshare owners did not possess true ownership of the property, as control remained in the hands of a management board. Essentially, timeshare companies sold the right to use the property for a specific period, rather than actual ownership.

Premium Co-ownership

In recent years, the timeshare industry has witnessed a decline, giving rise to the popularity of the Premium Co-ownership model. Under this approach, co-owners typically purchase a 1/8 share of a limited-liability company (LLC) that owns the vacation home. The cost of acquiring a share usually ranges from $500,000 to $1.5 million. Successful companies like Pacaso have embraced this model, allowing for true co-ownership. However, this investment level remains beyond the means of the average American.

Plum’s Model

At Plum CoOwnership, we’ve observed the evolution of vacation home ownership and have learned from its successes and shortcomings. Inspired by these insights, we’ve developed our unique co-ownership model. Similar to premium co-ownership, we utilize the LLC structure, but with added flexibility. Plum allows for 2-12 co-owners, making co-ownership more affordable and accessible. We invite you to compare more of the details around timeshares and fractional ownership models here. Co-owners have greater control over the property and form a cohesive group. If this innovative co-ownership concept intrigues you, explore our range of affordable Plums today!

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