For many people, owning their own holiday property is a true dream – a place for creating precious memories with family and friends, where they can return time and again to escape everyday life and find relaxation. However, buying a holiday home often represents a significant financial burden and involves considerable effort, especially when the property is only used for a few weeks each year. There are, however, various models that make owning a holiday property more flexible both financially and in terms of usage. In this article, we introduce five common models.

Different Models for Owning a Holiday Property

a) Buying it yourself (Sole Ownership)
The traditional model is to purchase a holiday property in sole ownership. In this case, you acquire 100% of the property and take on all the associated costs, such as acquisition, maintenance, taxes, and insurance, as well as all the responsibilities for management, upkeep, and communication with authorities. You have full control over the property and can use or rent it out as you wish, provided you have a rental licence.

Advantages:

• Full control and flexibility in usage.

• All decisions (e.g., interior design, furnishings) are made by the owner.

• 100% of any potential capital appreciation benefits the sole owner.

• Opportunity to rent the property and generate income.

Disadvantages:

• High purchase costs.

• Ongoing maintenance and management costs are borne entirely by the owner.

• The owner is fully responsible for management and maintenance.

• The property often remains empty, as it is typically only used for a few weeks each year.

b) Time-Share
With the time-share model, you acquire the right to use the holiday property for a specific period each year. This model is more like prepaid rent, as you do not own an actual share of the property.

Advantages:

• Lower costs compared to sole ownership.

• Fixed usage times, providing certainty for planning.

Disadvantages:

• No real ownership – you only have a usage right, which is essentially a consumption expense.

• Limited flexibility, as usage times are often predetermined.

• No say in decisions regarding maintenance, furnishings, or management.

c) Co-Ownership
With the Co-Ownership model, 2 to 8 co-owners share a property, each acquiring one to four shares. Care is taken to ensure that each co-owner can use the property largely according to their own preferences. Co-owners share the costs of purchase, maintenance, and management. Unlike time-share, this involves real property ownership that benefits from potential capital appreciation and can be resold flexibly after one year.

Advantages:

• Unlike time-share or rent, you acquire real property ownership through a share deal, secured by the land registry.

• The costs of purchase and upkeep are shared according to the shares purchased.

• Ownership with potential for capital appreciation.

• Compared to sole ownership, Co-Ownership involves less administrative effort. Professional management takes care of maintenance, repairs, and administrative tasks, so you don’t have to handle these yourself.

Disadvantages:

• Approximately 44 days of usage rights per share per year, limited by the reservation system. Therefore, there is no guarantee of being able to use the property during popular times (e.g., holidays) every year.

• Limited say in decisions regarding furnishings, decor, and management, which are overseen by central management.

d) Holiday Property Crowdinvestment
Another model that has gained popularity in recent years is crowdfunding for holiday properties. In this model, you invest in a holiday property along with other investors but do not have direct access to use the property. Instead, the model focuses on generating a return through renting out the property.

Advantages:

• Low capital investment is required, as shares can be purchased in small amounts.

• No obligations or costs for maintenance or management.

• Potential for regular returns from rental income.

Disadvantages:

• No personal use of the property is possible.

• The investment risk lies entirely with the investors, and the returns depend on the rental performance.

Which Model is Trending Right Now?

Currently, Co-Ownership is experiencing significant growth, especially in Europe and the USA. The model originated in the 1960s when it was first used for yachts and private jets to share the high purchase and maintenance costs among multiple owners. This principle was later applied to holiday properties, as many owners realised they only used their homes for a few weeks each year, yet bore all the costs themselves. Today, Co-Ownership is particularly common in highly sought-after holiday regions such as the Alps, Mallorca, the Côte d'Azur, and Florida. It is also growing in popularity in European countries like Sweden, which is known for its "sharing-friendly" economy. Companies like MYNE are expanding into these markets to make holiday properties in prime locations accessible at affordable prices.

An EY study has shown that Co-Ownership provides access to holiday properties for 19 times more people than sole ownership. Additionally, the study shows that shared ownership could reduce the vacancy rate of holiday homes from the current 80% to 40%. The model offers not only financial benefits but also ecological and societal value, as it increases property utilisation and boosts the economic benefits of the regions. Thanks to digital platforms and increasingly sophisticated management models, Co-Ownership is becoming more attractive and easier to manage. With flexible financing options and innovative reservation systems, Co-Ownership strikes the perfect balance between ownership, flexibility, and affordability.

Conclusion:

Each of the models presented has its own advantages and disadvantages. While traditional sole ownership offers full control and flexibility, models like time-share or Co-Ownership provide more affordable options while still offering a degree of ownership and usage. Particularly, Co-Ownership and fractional ownership are currently trending due to their flexibility and cost-efficiency, making them an attractive alternative for holiday property buyers.