At the time, timeshare was something that was offered to the popular classes as a way to have their vacation home at a much more affordable price. However, the scams at the time put an end to this. The new shared vacation properties combine technology with luxury, and are focused on a sector of the population that is not interested in owning a luxury vacation home, but is interested in enjoying it two or three times a year and who likes technology. This business had already been invented in the US, and now it reaches Spain.
Pacaso is a controversial US company that offers its clients to own part of a luxury home in a tourist location. This company has recently landed in Europe, starting with one of the most typical markets for European holiday luxury: Marbella.
Surely this will begin to see how it expands throughout the rest of Europe, where there are dozens of residential luxury places, Swiss and French Alps, Côte d'Azur, Greek Islands, Balearic Islands, Lago di Como in Italy, etc. But how does it work?
Pacaso's business
Pacaso buys a luxury home (in principle more than two million dollars, so as not to affect the homes of normal people) and reforms or decorates it as necessary. He leaves the perfect home to be enjoyed and creates a company in which he sells shares, eight in particular.
In this way the owners of the company can enjoy an eighth of the home, in this case 44 days a year. The houses are equipped and Pacaso for 199 euros per month offers an application that allows managing the times of use between the different co-owners. It also mediates in conflicts, and of course before selling it, it finds local companies that make it perfect between tenant and tenant (the maintenance cost is separate).
In El Blog SalmónAn image explains why pensions are not sustainable in SpainPacaso thus sells affordable luxury. Maybe you're a London banker who can't afford a house in Marbella like you'd like, but goes every year. In this way, instead of buying an "inferior" home or leaving an excessive amount every year to rent it for fifteen days, what you do is make an investment and pay a subscription. In addition, the stake can potentially be sold once it has been held for a while, with even the potential for revaluation. The London banker begins to add up the numbers in his head, especially when he can say that he “has bought a villa in Marbella”.
In addition, once the home has been sold, Pacaso does not maintain any type of ownership over it, it only offers the application and administration of the home. Owners can even walk past Pacaso and do without his services, but since it's hard to get five strangers to agree, it's pretty unlikely they'll do it.
In El Blog Salmón Four years have passed since the video of "A fixed rate" and it is still the best viral financial advice that has ever existedThey are not the only ones interested in exploiting the Spanish luxury tourist-residential market, recently a Spanish investor and entrepreneur commented on a similar idea in a podcast. Offering people who can spend thousands of euros renting a house for their vacations for fifteen days and are not interested in putting all the capital that such a house requires, the possibility of owning that house (and that in their heads it becomes investment) while giving them certain comforts such as certain personal belongings being there waiting for them when they arrive.
@cr00ster Thanks, that's the kind of info I'm looking for. This is a long-term career strategy for me. I'm not looking… https://t.co/IlpdZIUhuL
— Heisenberg_6205 Mon Jul 26 13:56:12 +0000 2021
This would not be a problem if it were not for the complaints from the neighbors of the Pacaso houses. In the US they say that sometimes they are buying lower priced houses, close to schools and increasing the gentrification of the neighborhood, which is becoming a kind of theme park for adults. They are also concerned that the continuous flow of neighbors who come and go will destroy the tranquility of the neighborhood in which they live.
In El Blog SalmónWhy a fixed price electricity rate without permanence is the best we can contract in 2022A few months ago we talked about Pacaso, its business model and how its initiatives were already controversial in the US, and would be when it decided to expand in Spain. Pacaso wants to get rid of that image of gentrifier, of predator of the neighborhoods that some residents of the US affirm. It recently made an alliance with the Global Gift Foundation, which builds houses for low-income people.
They also claim that they are more efficient by providing more use to second homes, which are empty ten or eleven months a year. Being full longer, they contribute more to the local economy. It is not the same to have some residents going to eat at restaurants more frequently than just a few days a year.
Pacaso in Spain
Spain has been the first country chosen by Pacaso outside the US to begin its international expansion, the next market in which they want to expand is the United Kingdom. Soon we will surely have news of how it expands in other countries of the world.
At the moment we have not found news about Pacaso's irruption being a problem in Spain, although it hardly has homes for sale. It is also true that the ones it has are in markets that are very accustomed to holiday demand, so it is possible that, as they say, this more intensive use of the properties ends up being beneficial for the local economy.
Ask the readers, do they think this type of business will be good or bad for the local economy?
In The Salmon Blog | This is how the super-rich buy housing
More information | The opinion of Malaga, James Edition
Image | Olli365Image | AJ_HobbsImage | On the roads of Malaga
