Taking out a home equity loan to buy another house (pros + cons)

International real estate has its benefits, but the complexities can be intimidating and risky. From navigating legal regulations and language barriers to working with local vendors and securing financing, buying a home abroad requires careful consideration and expert guidance. If you’re an U.S. citizen looking to Reasons to search international real estate Just like owning a second home in the United States can pro vide benefits like equity appreciation and having your personal retreat, so does owning an international second home. Below are some benefits  for Americans 1. Travel and exploration Buying property overseas instantly provides you with a place to call home in a new destination, whether that's a flat in London or a beach escape in Mexico. Overall, property ownership lets you explore a new culture and way of life. Rather than coordinating expensive hotel stays every time you want to travel abroad, buying a house in another country means you have your own place to stay.  2. Cost savings compared to the U.S. market The U.S. housing market can be extremely competitive and expensive, so buying a house abroad may save you money. Many countries have lower property prices, allowing you to stretch your budget. This can make it possible to own a luxury home in a foreign location for roughly the same price as a starter home in the United States.  3. Lower cost of living Aside from lower property costs, things like groceries, dining out, utilities and transportation can also be lower than in the United States. This means that owning a property abroad could allow you to enjoy a more comfortable lifestyle for less than you’d pay back home.  4. Fast-track to residency Some countries offer residency programs specifically for foreign property buyers. If you own property that meets certain criteria, you may have an easier time gaining residency, allowing you to spend extended time in your home abroad. This can be a great option for those considering retiring abroad or wanting to make their Tips for buying property abroad U.S. buyers of a home abroad need to consider both tax regulations and  financing. Foreign buyers often face obstacles in securing a loan because they can be perceived as high-risk by local banks and international home loan lenders.  Pacaso’s LLC ownership model is structured to minimize tax burdens and ensure compliance with local regulations. While we recommend you consult your tax professional for more personalized advice, our team can work with them and provide general guidance on 1. Consult your financial advisor Before buying international real estate, consult a financial advisor specializing in foreign real estate. They can help you take a holistic approach, considering your financial goals, and the risks and rewards of owning a home abroad. An advisor can also guide you on currency exchange rates, tax implications and estate planning considerations.  2. Research the country’s real estate process Every country has its own real estate process, from property search and negotiation to closing and ownership transfer. Always research the specific process in your chosen country to know what to expect. Things to look into include local customs, legal requirements and tax implications. Also, find out about any specific documentation or permits that may be required.  3. Find local representation Learning how to invest in 4. Review residency requirements If you plan to spend extended time in your vacation home, you’ll want to understand the country’s visitor and residency requirements. Some countries may have specific visa programs for foreign property owners, while others may restrict your stay without obtaining a visa. Research the residency options available or ask your local agent to help you find the option that best suits your needs.  5. Discover other options to finance an overseas property While Pacaso offers financing options for our properties, you can finance an overseas property in other ways. Consider exploring options like cash purchases or private lenders that may provide financing for foreign purchasers. Research your options and lean on your local agent and financial advisor to determine the best option for your financial situation.  Things to consider with foreign real estate Consider the following factors when learning how to buy a house in another country. Laws and eligibility It’s crucial to understand the local laws and regulations governing international real estate. Research the specific requirements and restrictions for foreign buyers before making any decisions. Your local agent or financial advisor can also guide you on property taxes and any other potential restrictions to be aware of.  Language barriers Unless you’re fluent in the local language, think about how you will communicate in your country of choice — especially with agents and local authorities during the purchasing process. You may decide to hire a translator to assist with things like negotiations and paperwork unless you find a local agent who speaks your language.   Difference in currency Investing in foreign real estate involves dealing with different currencies. Fluctuations in exchange rates can impact the value of your home and potentially increase or decrease your return. Stay informed about currency trends as you navigate your purchase.  Culture  Understanding the country's culture where you plan to buy a second home is essential. Research things like the country’s political stability, social customs and overall feel for various regions or neighborhoods. Be aware of cultural faux pas or scams targeting foreign buyers.  Confidently buy a vacation property abroad with Pacaso Ready to find your dream vacation home? Contact our team to explore our curated

The holidays are a time for family and reflection, and Pacaso is making it easier than ever to invest in those moments. Pacaso will cover the first three months of operating expenses for select homes purchased by Dec. 31st, 2024. Life doesn’t wait, and neither should you. There’s something magical about the holiday season — the way it brings people together, creates space for traditions, and gives us the chance to slow down and appreciate what matters most. A chance to look ahead and think about the next year just a little better. Life doesn’t wait. This season, make the choice to invest in time and in the experiences that truly matter. The perfect time to start living your best life is now. What does that look like for you? Cuddling up by the fire in Vail, surfing in La Jolla, or taking in the sound of ocean waves with friends and family on Kiawah Island? Wherever your dream escape lies, Pacaso makes it easy to turn that vision into reality. To make memory making even more seamless, we’re offering 5 ideas for where new traditions can begin This one-of-a-kind retreat features breathtaking views, newly remodeled amenities and privacy in one of Cabo’s most exclusive communities.  Immersed in the beauty of Colorado’s Rocky Mountains, this Vail Townhome boasts lush surroundings and updated amenities.  Nestled in the heart of Park City’s Old Town, this cozy, modern home is perfect for après ski relaxation with its central location and thoughtful design. Step into this newly remodeled oceanfront villa on Kiawah Island, South Carolina’s coastal treasure, for the ideal seaside escape. Resort-style living meets the comforts of home in this San Diego treasure, complete with panoramic ocean views and elegant indoor-outdoor spaces.

Recent interest rate cuts by the Federal Reserve have spurred enthusiasm in the real estate market because even small changes can have a significant impact on real estate purchasing power.  The Fed cut rates .5% in September and .25% in November, lowering its benchmark borrowing rate by three quarters of a point in 2024. While the Federal Reserve does not directly set mortgage rates, the changes in its benchmark rate does influence real estate borrowing. With this lower benchmark target, first and second home buyers should have more purchasing power and the ability to capitalize on real estate purchases. For Pacaso clients, who purchase shares of a luxury vacation home through our co-ownership model, lower borrowing rates translate directly to more affordability, better financing options and a generally enhanced ownership experience. In general, a lower Federal Reserve benchmark rate means lower borrowing costs for real estate buyers. Pacaso’s model already excels at supercharging buying power, making high-end properties accessible by splitting the purchase price and ongoing costs among multiple co-owners.  The recent cuts amplify this affordability. For example, rather than buy 100% of a $10 million Aspen home that you might only use 1-2 months a year, Pacaso enables you to purchase ⅛ to ½ of that same home, for a fraction of the price. You get the same enjoyment of the home, without the large price tag, and Pacaso tackles all of the headaches associated with owning the home.  Additionally, buyers can finance their purchase. Lower borrowing rates lead to smaller monthly payments. And with direct financing, Pacaso is already offering great financing options. With lower rates, your potential savings extend over the life of the loan, translating to more luxury living for a smaller price tag.  Pacaso gives buyers Pacaso also offers financing directly in order to make the purchase, and your ownership, as seamless as possible. You may be able to find a loan with your bank to purchase a second home, but the rates you find through Pacaso will likely be even more competitive and affordable than a traditional loan.  This is in large part due to our lending partnerships, and our growing experience in financing hundreds of vacation home purchases. Plus, Pacaso closings can happen in as little as one day so you can start enjoying vacation home ownership right away. One of the biggest advantages of decreased interest rates is the reduction in monthly payments. This can make owning a share of a luxury property more cost-effective than ever before. Lower monthly expenses allow buyers to allocate more resources to other important priorities while still enjoying the benefits of ownership.  For example, let’s take a $500,000, 7-year loan. At 10%, the total interest for this simple loan would amount to about $197,000. At 9%, even just 1 percentage point lower, the same borrower would save about $22,000, a roughly 11% savings, over the course of the loan. This shows how even small changes in borrowing rates significantly impact the overall price of a loan.  Timing of these cuts presents an opportunity for those looking to enrich their lives. In a recent The value of spending time with family and friends in combination with dollar maximizing strategies position Pacaso to serve you and your goals. From reduced monthly costs to enhanced financing, your buying power is truly amplified, and the benefits are clear. Pacaso’s

Many people dream of owning a second home, but the thought of an extra set of taxes, utility bills and maintenance responsibilities snuffs out any hope of making that dream a reality. But what if you could share the financial load (and workload) of home ownership with someone else? Read on to learn more about what joint tenancy is and how it can protect your rights as a homeowner.  What is joint tenancy?  Joint tenancies involve rights of survivorship. This means the ownership of the property passes straight to the surviving tenants upon the death of a deceased owner without going through the probate or court systems. Joint tenancy falls under the umbrella of joint ownership — when more than one person owns a share in a piece of real estate. In a The three main types of joint ownership are joint tenancy, How does joint tenancy work? Any two people can form a joint tenancy; they don’t need to be married (though this is  common). With joint tenancy, co-tenants have equal interest in property ownership, and each co-tenant has full access to the property. Tenants may occupy the property together or separately.  What are the rights of survivorship?  Rights of survivorship exist within a joint tenancy agreement. This means that if What are ownership rights?  Property ownership can look different depending on the legal conditions laid out in your agreement. Broadly speaking, Benefits of joint tenancy Unlike a This includes but is not limited to earned equity in the home, the right to sell (as long as it’s in keeping with the joint tenancy agreement) and free use of the property according to your share.  Affordability The cost of a home doesn’t end with the purchase price. Insurance, taxes, maintenance, utilities and HOA fees stack up, and having one or more joint owners to share costs can significantly lighten your financial load.  Plus, rather than shouldering the full cost of a home, joint tenancy of property lets you cut that cost in half — or even more. This can greatly increase your buying power and help you get more home for less money.  Protection Joint tenancy lets you share the less-than-fun tasks of home ownership and maintenance with Plus, if the property is occupied regularly, it prevents maintenance issues that arise from neglect. Someone is more likely to be around to notice when there’s a leak or a crack, or a fallen branch that needs attention. Easier legal process Surviving co-tenants don’t have to deal with probate, the drawn-out legal procedure the court system utilizes to validate wills due to the right of survivorship. Regardless of whether the decedent made a will, the surviving co-tenant(s) have instant access to their part of the property without having to go through probate.  Convenience Joint tenancy can also offer a consistent vacation experience. Rather than scrambling to find open dates in a rental with good reviews or stuffing yourself and your luggage into a questionable hotel room, joint tenancy in a second home gives you the freedom for last-minute trips and packing light.  Cons of joint tenancy The strict regulations of joint tenancy can protect you if a co-tenant tries to profit from your investment, but those same conditions may make it difficult for you as well. Co-tenant relationship challenges Difficulties may develop if the relationship between co-tenants alters. Co-tenants must agree on decisions regarding the property, and this can be increasingly difficult if disputes arise. Without the expressed consent of all co-tenants, nobody can sell their portion or the entirety of the property. For example, if a married couple shares joint tenancy of a property and decides to divorce, they will still be held accountable for paying all debt until the person who receives the full stake of the property refinances.  Increased responsibility  If a co-tenant falls under financial hardship or loses employment, the other tenants must agree to continue keeping up with mortgage payments to avoid the property going into default.  Joint tenancy vs. tenancy in common Joint tenancy and tenancy in common both involve property ownership and provide similar The most significant difference between joint tenancy and tenancy in common is that joint tenancy provides equal shares for all parties, whereas tenancy in common has unequal shares and various interests. Interested in a more hassle-free way of owning a second home? View Pacaso

Picture this: You’ve been researching Although the luxury real estate market continues to change due to economic factors like inflation and interest rates, your dream of owning a luxury home doesn’t have to. Read our guide to learn about the top eight luxury real estate trends of 2023. 1. Small homes are becoming more luxurious Smaller homes are becoming more popular among luxury home buyers, with small luxury houses selling Smaller homes may also be cheaper and easier to buy with cash. Downsizing into a smaller primary residence or 2. Luxury houses are in a seller's market The housing market as a whole has seen impressive growth over the last couple of years, but the luxury real estate market still managed to surpass the lower tiers. In May 2023, the luxury real estate market saw a sales ratio of One explanation for this growth is that wealthy Americans are less affected by volatile job markets. Being able to work remotely without interruptions to their income has put them in a prime position to take advantage of lower mortgage rates. 3. The luxury real estate market becomes more globalized Due to a strong U.S. dollar, international real estate purchases are expected to increase in 2023. In fact, Meanwhile, foreign investors are taking an interest in states like Texas, California and Florida. China was the biggest investor, purchasing over 4. Large market luxury home median prices are increasing Metropolises like Los Angeles and Austin are experiencing higher median prices for their luxury listings in 2023. In fact, over 24% of Austin homes are being listed at The increase in luxury home prices is redefining what the luxury market will look like in desirable locations across the United States. For example, the small luxury market of East Honolulu may lack the volume of buyers that big cities have, but 5. Buyers are paying for luxury homes in cash All-cash sales comprised 26% of transactions in November 2022, up from 24% a year earlier, according to Since luxury real estate is a highly desirable and competitive market where buyers often face multiple offers and bidding wars, paying in cash can give them an edge over other buyers who need to finance their purchase with a mortgage.  This, coupled with recent 6. Rising interest rates are causing fear in the luxury real estate market The current state of the economy is causing some buyers to hold off on their luxury home prices, with Over 7. Luxury second home ownership is on the rise Many people have avoided Now that more people aren’t tied to one specific location for work, they feel they can get the most out of their money with a second home. In fact, The luxury home market is also seeing gains in And with a 8. Investors are adding to their portfolio In 2022, there was a Luxury real estate has the tendency to be less volatile and more resilient than other types of real estate, especially during economic downturns. Investors can also create a cash flow opportunity from these properties by turning them into luxury vacation rentals. High-end real estate often appreciates faster and higher than average properties, due to their scarcity, exclusivity and desirability. Investors can benefit from capital gains and equity growth over time. The luxury real estate market is no stranger to change, and 2023 has a lot in store for high-end home seekers. Whether you're searching for a new primary or secondary residence, our insights can help you find the

Travelers seeking adventurous stays without the hotel price tag enjoy the convenient features Let’s find the best option for your next vacation. Sonder vs. Airbnb rental types Sonder, on the other hand, is a boutique-style hotel found in over 40 cities across the globe. Guests only have the option to book entire units and are supported by Sonder staff rather than individual hosts. Sonder generally caters to short-term stays and provides hotel-style amenities like bathroom supplies and coffee. Sonder vs. Airbnb user interface Both vacation rental websites have convenient apps you can download on your mobile device. While searching for a place to stay, both rental sites offer these filter options: Given the appeal of Airbnb’s unique stays, not all rental units have Wi-Fi, television or even electricity. However, guests can browse through extensive accessibility features and choose to stay somewhere that meets their needs. All Sonder stays are equipped with high-speed internet and contactless check-in. Sonder does not currently offer Sonder vs. Airbnb selection Given that Airbnb has various rental types in almost every country in the world, guests in need of a stay right away may have better luck on Airbnb. The rental site also specializes in exotic vacation destinations for travelers eager to get off the beaten path.  If security and a seamless check-in experience are your priority, Sonder has you covered. Since its listings are only available in major cities, Sonder vacation rentals can be a great option for those visiting tourist destinations. Sonder vs. Airbnb prices and fees Sonder charges a set rate for every unit it lists. This fee includes the price of lodging, cleaning and administration. The only other fees guests will be responsible for are tax and cancellations.  Sonder offers a Flex Rate at checkout that offers guests free cancellation and a full refund on their booking for a premium. However, bookings canceled within three days of a reservation do not qualify for a refund or free cancellation. Airbnb, on the other hand, charges a service fee for using its platform and a cleaning fee that can vary depending on the host. Guests can choose the Refundable Rate at checkout for free cancellation within 48 hours and a partial refund a week before the scheduled stay. AirCover by Airbnb is a free comprehensive coverage plan that guarantees all guests a similar or better booking in the event that they cannot check into their accommodation, the host cancels on them within 30 days of their booking or their unit isn’t as advertised. If a similar or better unit is not found, guests will be given a full refund. Sonder vs. Airbnb reviews Airbnb offers both guests and hosts up to 14 days to leave a review. A review is not mandatory for either party, and only hosts are able to respond to reviews left on their listings. Since guests have up to two weeks to share feedback, you may not have access to the most recent experiences of previous renters. Unlike Airbnb, Sonder does not have a rating or review system on its website. Since the platform chooses to operate like a hotel, each listing shares what guests can expect when they book the unit. Third-party reviews, however, are readily available on mainstream travel sites such as TripAdvisor and Booking.com, similar to hotel stays. Sonder vs. Airbnb customer service The Sonder app grants guests access to 24/7 customer support, and in-person attendants are available if virtual communication is unable to resolve the issue. Customer service at Sonder is able to provide guests with fresh towels, coffee refills and no-contact check-ins and checkouts. The customer service experience at Airbnb depends on the listing and the host’s level of involvement. Airbnb provides 24/7 virtual chat services to all guests under its AirCover coverage plan, however, in-person representatives are unavailable. Hosts may be available to help resolve issues, although this depends on the listing and is not consistent within the platform. Sonder vs. Airbnb safety Sonder emphasizes security and health safety within each of its buildings, and guests can select listings with a doorman for an additional layer of comfort. Contactless check-in helps keep guests safe while traveling and units are cleaned after each booking. Airbnb allows guests to share their itinerary with family and friends, which is especially helpful for solo travelers who prefer to stay in remote areas. It is the host’s responsibility to clean and maintain their listings,  the hygiene standard can vary across bookings. Contactless check-ins are available but are not standard. Another option for long-term stays: Second home ownership Sites like Airbnb and Sonder offer convenient booking options for occasional adventures. Travelers who find themselves drawn to the same destination, however, have another option that can save them money in the long run. Rather than wasting time and money looking for vacation rentals, you own a home that you can return to year-round and enjoy a consistent luxury experience. As a co-owner of a Pacaso, you can choose the amount of ownership that's right for you and schedule stays in your home. Pacaso acts as the property manager, taking care of the interior design, furnishings, cleaning and maintenance, as all you have to do is show up and enjoy. So when it comes to Sonder vs. Airbnb, both rental websites offer guests a convenient way to travel internationally. But is one better than the other? That depends on what you need out of your vacation rental. However, if you frequent a particular destination and are searching for a secure and comforting way to enjoy your favorite place, owning a

1. Get an experienced real estate agent Don’t underestimate the value of hiring an experienced real estate agent who knows how to sell million-dollar homes. The process for selling a luxury home is significantly different than the process for selling an average-priced home in a typical suburb, and it’s important to have an agent who understands what buyers are looking for and how to showcase it. Experienced agents can not only help you prep, list and market your home, but they can also use their connections to reach out to other agents and brokers to find buyers who are looking for homes like yours. 2. Know your property’s strengths Pay attention to what buyers are looking for in your area, and be sure to highlight those features in the sales listing – especially if they’re rare. For example, if you live in a city and your home has a large yard, that can be a huge draw for buyers. Features like extra closet space, wine cellars, fireplaces, swimming pools and rooftop decks can also spark interest in a property. An experienced local real estate agent familiar with your competition can help identify your home’s standout features. 3. Make your home irresistible  Most luxury home shoppers aren’t looking for a project property, so make sure your home is move-in ready. Simple updates can make a huge difference: a fresh coat of paint, new high-quality fixtures, freshly polished floors, new carpeting and professional landscaping. To take things up a notch, hire a professional to stage the property with upscale furnishings and decor. Stagers help draw attention to the home’s best features, like having plush towels by the sauna or dinner party place settings on the dining room table. Their work helps buyers envision what it’s like to live in the home.  4. Create stunning visuals  Once your home is looking its best, your agent will arrange for top-quality photos and video footage of the property. Remember, the quality of your listing sends a distinct message about the quality of your home. Consider drone photography and video footage that includes life and movement, like a luxury car coming down the driveway or someone relaxing by the pool. You’re not just selling a home, you’re selling a luxury lifestyle. In addition to all major real estate listings sites, you can post photos and video on your social media channels.   5. Educate potential buyers  Your home and community likely have hidden perks that buyers won’t know about unless you tell them. In listings and social media posts, be sure to highlight home features like smart security, home automation, central vacuums and heated floors. You might also want to share your favorite area restaurants, parks and other points of interest. These little extras can give your listing the added boost it needs to make it to the top of buyers’ lists. You may also want to host an invite-only party (in addition to agent open houses) to give brokers and potential buyers the full picture of what your home has to offer. 6. Price properly It may be tempting to pick the real estate agent who’s promising the highest list price for your property, but agents who know how to sell million dollar homes know that “comps” are key. Make sure your agent is basing your list price off competitive market analysis research, and have them explain their numbers. Keep in mind that listing strategies vary by market; sellers in some markets do well with bidding wars while others know it’s better to ask for top dollar up front and negotiate down. Again, an experienced real estate agent will know the ideal strategy to sell your home quickly for the best price.  7. Know when to list Mother Nature can be one of the best marketing partners you’ve ever had – or your worst enemy. If you’re selling a mountain lodge close to a ski resort, listing in the snowy season gives buyers the opportunity to see their future million-dollar home looking like a picture-perfect winter wonderland retreat. Likewise, sparkling water views sell great in the heat of summer, but if they’re in a hurricane zone it’s safer to aim for spring instead. Use your area’s climate and your home’s character to choose a season that will showcase your property’s best features. 8. Be patient  When it comes to knowing how to sell million-dollar homes, one secret the pros don’t always share is this: It takes time. Again, it’s a niche market, and it’s kind of like dating – just like you have to kiss a lot of frogs before you find your prince or princess, your home might have to have a lot of walk-throughs and showcase parties before it finds its future owner. In the meantime, trust the process, work with your agent and stay the course.   

When it comes to buying a house — whether it’s a primary residence or a vacation property — doctors are in a unique situation. Many doctors are considered high earners, but it can take years for the hard work to pay off. What’s more, many younger doctors are saddled with a large amount of student loan debt, which can make qualifying for a mortgage trickier than it might be for other buyers.  Whether you’re just considering buying or are thinking of adding a second home to your real estate portfolio, here are a few things doctors should consider, from how much you can afford to how to approach the process.   What salary do I need to afford a million-dollar home? Conventional wisdom says that you need an annual salary somewhere around $200,000 to afford a million-dollar house, but it all comes down to your individual financial situation. If you’ve managed to save a large down payment — 20 percent or more — your monthly mortgage costs will be lower than if you have a meager down payment. Interest rates also play a big role in home affordability. What was affordable with the historically low interest rates of 2020-21 may be more of a stretch with rates that are significantly higher.  You’ll also want to consider monthly costs above and beyond your mortgage payment. This includes things like HOA dues, utilities, maintenance, insurance and property taxes.  When is the right time for a doctor to buy a home? Buying a house is a big financial commitment, and it can take a significant amount of time to gain enough equity to offset the upfront purchase expenses like closing costs, repairs and moving expenses.  It’s common for doctors who are just starting out to move frequently, in pursuit of a specialty program, new opportunity or fellowship. In this busy career phase, renting may make more sense until you land a long-term position.  Buying a first house during residency Deciding to buy your first home is a milestone for all kinds of buyers, but physicians have a couple of additional financial realities to address during the application process.  If you’re a newer doctor, your loan debt may be high and you likely haven’t secured the salary of more established colleagues. This hurdle is specifically high for those buying a house during their residency.  A core part of getting approved for a mortgage loan is meeting the debt-to-income ratio requirements, or DTI. This is a calculation that compares your monthly debt obligations to your gross income. It’s a way lenders can be reassured that you’ll be able to repay your loan without defaulting.  Most medical school graduates have significant student debt. According to the Association of American Medical Colleges, anywhere from Enter the physician mortgage loan. Also called doctor loans or medical professional loans, these mortgages are specifically designed for doctors whose highest earning years are yet to come. These loans may have low (or no) down payment requirements, no requirement for private mortgage insurance (PMI) or more generous qualification criteria. Ask your mortgage lender for more information about this loan option.  Purchasing a second home as a doctor  As your career progresses, you may want to consider buying a second home. Being a physician is time-consuming and stressful, so it’s nice to have a place of your own to relax and unwind. Imagine cozy weekends in a mountain cabin, summer vacations in a sunny lakefront retreat or watching an ocean sunset from your private patio.  Pacaso is a great solution for busy professionals in a wide range of occupations to buy a second home. Ownership is shared among up to eight co-owners, which means that your upfront investment is lower. And we have homes in Co-owning a second home with Pacaso is a smart option for busy doctors, as it gives you the benefits of second home ownership without the work. Your dedicated property manager takes care of maintenance, repairs, cleaning and making utility, insurance and tax payments. That means that every time you’re ready to relax, you can just show up, unpack and unwind.  Our