Owning a vacation home has always been a dream for many people.
Immersing yourself in the captivating beauty of St. George, Utah, is a dream for many. While the prospect of owning a vacation home in this southwestern haven may seem reserved for a privileged few, the concept of co-ownership can turn that dream into a financial reality. In this blog post, we'll explore a detailed cost analysis, comparing the expenses of renting Airbnb's or hotels in St. George versus the substantial savings associated with co-owning a vacation home through Fraxioned.
Before diving into the financial aspects, let's celebrate why St. George, UT, is an irresistible destination. Surrounded by red-rock landscapes, with Zion National Park as its backyard, St. George offers a haven for outdoor enthusiasts. Hiking, biking, and exploring the natural wonders of the area make it a perennial favorite for vacationers. Many families find themselves drawn here multiple times a year for kids and parents sporting events and tournaments. The city's cultural charm, family-friendly community, and year-round appeal further enhance its allure.
When planning a vacation, many individuals turn to short-term rentals like Airbnb or traditional hotel stays. While these options offer convenience and flexibility, the costs can quickly add up, especially in a popular destination like St. George.
Consider the expenses of renting a vacation home for a week or more. Daily rates, cleaning fees, and service charges accumulate, often surpassing the initial budget. Additionally, the lack of long-term commitment means that you have to continually budget for accommodation expenses each time you visit, making it challenging to predict and control costs over the years.
Co-owning a vacation home provides an alternative that not only allows you to enjoy the perks of a second home in St. George but also offers substantial financial advantages. Let's break down the cost analysis using a hypothetical scenario of 1/8th co-owning a vacation home through Fraxioned.
- Suppose the total cost of a 1/8th share of your vacation home is $150,000
- Closing costs at this home cost around $5000 total
- So your total initial investment costs $155,000
- Fraxioned keeps the home perfectly managed and maintained, which costs around $2000 per year
- Property taxes, HOA costs, and other fees add up to around $1500 annually
- So you owe around $3,500 per year in annual dues
- Good news! At Fraxioned Collective homes, you can rent out some of your annual allotted nights and receive the profits.
- Say you rent out 20 of your 44 annual nights for an average of $400/night. Congrats, you’ve made $8,000!
- You can use the other 22 of your annual allotted nights for your own family vacations in St. George, and not pay any nightly rates.
- Subtract your annual dues ($3,500) from your rental income, and you’ve netted $4,500.
*Disclaimer: These are all estimated numbers based on generalized local data. It is not a guarantee.
Co-owning a vacation home in St. George, UT, emerges as a financially sound decision, providing substantial savings compared to renting Airbnb's or hotels over the long term. Beyond the financial advantages, co-ownership with Fraxioned offers the joy of consistent hassle-free access to a second home in a stunning location, fostering a lifetime of cherished memories. So, why settle for temporary escapes when you can invest in a piece of paradise that pays off in more ways than one? Co-own a Fraxioned home and let your dream of a St. George getaway become a reality.
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I honestly thought this place was too good to be true. Until we showed up! Everything was just like the photos, and there was so much to do INSIDE the house, that no one was ever board. We came in for our wedding and had out entire wedding party stay with us. Day of the wedding, i stayed on the 2nd floor playing games the whole time while the bride got ready on the 1st floor (since we couldn't see each other until the caremony). Everything was neatly laid out and the instruction on how to work the pool/check-in were very clear. This was the best Airbnb i've ever been too, and my friends/family loved everything about it!
What a dream! Ownership with Fraxioned is sensical and hassle-free. We just bring our clothes and get a clean, beautiful home fully ready to drive into our vacation; every time. The rental income has also been very nice to cover the expenses and has been an easy investment to track.
My husband and i had been looking for a good "starter" investment. We wanted to start and airbnb but it was just going to be such a big expense. Fraxioned was the perfect solution, because we were able to purchase 1/8 of a home, instead of the whole thing! Dan Henry sold us a share of a beautiful home in Bear Lake, and he was so nice and easy to work with! He was always available to answer questions and send over information. Definitely would recommend Fraxioned to anyone who is wanting to get into real estate investing, without having to spend your life saving to do it!
What an experience!! The ease of driving up and everytbing was ready for us. Not just a rental experience but the wonderful feeling of owning the property we vacation in. The team at FRAXIONED is so helpful and always available to handle any needs we have, big or small. we own three shares in two different properties and it is one of the best decisions we have made for our family.