A Smart Alternative to Timeshare? The August Co-Ownership Model

Typical Vacation Home Models

Before we talk about August’s approach, let’s touch on the differences between the most popular ways to obtain a holiday home. Timeshares, co-ownership, and private residence clubs all offer the opportunity to travel abroad for a number of weeks per year, however the concepts differ dramatically. Before embarking on your journey to shared ownership, it’s important to understand these distinct nuances along with the associated benefits and challenges.

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What is a timeshare?

Timeshares involve multiple individuals sharing a vacation property, typically divided into specific time periods. Usually in large resorts rather than single homes, timeshare owners purchase the right to use the property for a set amount of time each year, often one or two weeks. Agreements guarantee ‘time’ at the property, with traditional fixed week systems having progressed into more flexible ‘floating week’ and point-based systems in recent years.

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The challenges:

• Lack of Clarity: With timeshares, the main question around ownership remains. What do you really own, and what control or visibility do you really have? Behind every timeshare is a vault of complications with respect to ownership, titles, trusts, blind trusts, secret trusts and offshore companies.
• No True Ownership: The entire system is messy in respect to jurisdictions and legal arenas. The simple reality is that there is no true ownership or gained equity. In other words, owning a timeshare negates you from the usual real estate advantage that is equity. ‍
• Resale Issues: Supply outweighs demand, with over 200,000 timeshare units available in the US market at over 1,500 resorts. This significantly impacts resale value and the likelihood of selling your timeshare can be very low, especially at the same price you initially paid plus annual management fees, maintenance and other taxes.

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What are Private Residence Clubs?

Private residence clubs are fractional ownership models that offer ownership interest in shares of luxury holiday homes. However, private residence clubs, frequently operated by luxury hospitality chains, add amenities typically found in high-end hotels. These clubs often sell condominiums that have access to the club’s golf courses or ski resorts, along with maid-cleaned rooms and turndown service. Owners also gain access to other properties in the chain’s portfolio.

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The challenges:

• Inflated Pricing: Entry-level prices start at around £50,000 at the lower end of the market, and can easily exceed £200,000. 
• High Maintenance Costs: These models often offer 4 to 6 weeks access to the properties and have very high annual fees often exceeding £15,000 for just 4 weeks a year. ‍
• Lack of Control: Like with timeshares, owners often have little visibility over the management of the properties and minimum holding periods are often imposed on buyers who cannot sell their shares during the first 4 to 6 years.

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What is Co-Ownership?

With co-ownership, multiple parties jointly purchase and share ownership of a property. This allows owners to enjoy the benefits of property ownership - such as equity building and personal use - with a reduced financial burden. Co-ownership provides greater flexibility, allowing owners to customise their usage periods and manage the property collaboratively. That’s where August comes in, using this co-ownership framework for its innovative shared ownership model and timeshare alternative… 

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Introducing The August Model

At August, we know finding the ideal holiday homes takes time. We know it's a long term commitment from when you decide to buy the home, to finding it, renovating it, furnishing it and managing it. This is why we created our own, unique pathway to owning second homes, removing all of these stresses, allowing you to simply arrive, unpack and enjoy. 

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How does it work?

• True Real Estate Ownership: We set up a UK Limited (LTD) Company specifically designed for co-ownership which allows for real title ownership, streamlining the legal process and minimising the hassles while giving complete transparency and ownership to the co-owners. Timeshare and other fractional ownership models don’t allow for real title ownership. ‍

• Transparency & Control: Unlike other models, August co-owners have full transparency on all budgets and expenses which are voted every year by the co-owners themselves.

• ‍Unique and Private Homes: We buy, renovate and interior design homes to the highest standards single properties in the best location which will be yours and for your own use only. ‍

• Not One But Five Homes: Ownership with August invites you to be the owner of a ‘Collection’ of up to five beautifully designed homes in the best locations in Europe. Easy to get to destinations and homes you will be proud to call your own.‍

• Effortless Booking System: Online point-based system that allows families a fair way of booking holiday time with an average of 3 months per family. A lot more time than Timeshare and other fractional ownerships.‍

• Hassle-Free Ownership: You never need to worry about the buying process or maintenance of your homes. August handles everything while giving you full transparency. The homes are regularly renovated in order to keep them in great condition and maintain the value of your ownership.‍

• Lower Management Costs: Compared to just owning just one of these properties on your own with zero markups on items such as property management and repairs.

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How does the August co-ownership model compare?

We provide full transparency and dramatically help reduce the cost and complexity of purchasing, allowing you to own five holiday homes in the best locations. See how we compare in the table below…

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We have spent time defining the best structure and process to streamline and modernise co-ownership of second homes in order to help maximise the positives. Don’t just take it from us. Our homeowners regularly share their feedback. Click here to read just a few testimonials from existing members of the August co-ownership community.

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In the meantime, why not schedule a call with one of our Advisory team today to understand more about the August model, and how it could help you on your way to securing a second home effortlessly…