Many people use timeshares as a way to have a vacation home without having to buy the entire property. Some investors are now using limited liability corporations as an alternative, according to the Boston Globe.
By starting an LLC, the different owners of a property get the liability protection and tax benefits of a corporation, according to the paper. But as opposed to a timeshare, the home’s “shareholders” actually own a piece of the property.
“It’s perfect for people who don’t want the hassle of owning a place on their own,” Leesteffy Jenkins, one woman selling shares in her second home, told the Globe. “And it lets people get a nicer place for the money they can afford to spend.”
But financial advisors also told the paper that the complexity of the deal could make it more difficult for potential buyers to find financing for the LLC than they would for a traditional second mortgage.
Vacation homes are purchased for a number of reasons. CBS Moneywatch reports most of the purchases are motivated by family vacations, property investments or future retirement possibilities.
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