Real Estate Investment Purchases Outweigh Vacation Home Purchases in 2015

By Tommy Robinson


Why choose? You can have both a return on investment and a return on enjoyment with Lifestyle Asset Group

A recent survey conducted by the National Association of Realtors (NAR) found that while vacation home purchases in 2015 were the second strongest in a decade, there was a 18.5% decline in buyers who were purchasing a second home purely for enjoyment. The big increases came from people who are buying resort real estate for investment purposes only.

The 2016 Investment and Vacation Home Buyers survey found that in 2015 vacation home purchases declined by approximately 200,000 units down to 920,000 purchases from their 2014 peak of 1.13 million.  During the same period investment home purchases rose to 1.09 million up from 1.02 million the year before; the increase was the first in five years.

Lawrence Yun, chief economist for the NAR says that sales market cooled off due to “tighter supply and fewer sales (which) caused the price of vacation homes to rise.”  At the same time Yun noted that the increase in investment purchases for the first time in four years was driven by “increasing home prices and strong rental demand appear to be giving more individual investors assurance that purchasing real estate will diversify their portfolios.”

Real Estate products, like those being offered by Lifestyle Asset Group, can harness both the enjoyment and investment market and are poised to take advantage of this trend.  

Lifestyle Asset Group, LLC has two such products on the market right now that capture both the enjoyment of owning a vacation home as well as the Return on Investment everyone is looking for.

Second Home Portfolio Offering

The innovate “collective asset ownership” concept allows 50 LLC shareholders to own an equal interest in not just one vacation home, but six stunning vacation residences, each valued at $1.5 m - $2m. The portfolio includes three residences on the east coast and three on the west coast:

New York City | St. John, USVI | Seabrook Island, SC | Lake Tahoe | Los Cabo, MX | Hawaii

Each shareholder pays 15,000 per year in expenses related to the operating, maintenance and usage costs associated with owning a second home of this caliber. This is a dramatic savings over owning your own $1.5m - $2m residence that cost upwards of $75k - $100k annually.

Each shareholder uses the homes for up to 35 nights per year, driving their per night costs to vacation down to under $500 per night , without factoring in appreciation.   If you used your own second home 35 nights a year (the average use for second homes), your annual cost per night is closer to $2,500 per night.

The LLC holds onto the residences for seven-year period and after that time the homes are sold and the shareholders divide up the proceeds and profits from appreciation.

This portfolio already has over $1 million in appreciation since its inception in 2013.  Continued appreciation of just 5.25% annually, as an example, applied against the yearly ownership costs,  drives down the average cost per night in this model to drop below $200 per night.

If annual appreciation climbs higher than that, the shareholders returns could make the cost of enjoying these homes absolutely free, or even produce positive returns.

Half Jimmy Buffett, Half Warren Buffett

Lifestyle Asset Group CEO Richard Keith has termed this concept “half Jimmy Buffet half Warren Buffet” due to the appeal to both those who want to vacation and have a good time and to those looking for investment returns.

While many enjoy owning and traveling to a diverse group of properties, there are just as many people interested in a single, beloved location where they can spend all of their leisure time.

Single Destination LLC


Our second offering is the Single Destination LLC which admits only 8 shareholders who own and have available for their enjoyment with family and friends a stunning $2m beach front vacation home. Like the portfolio offering, this LL provides each shareholder with 35 nights of use per year and annual expenses of $12,0000. The LLC will hold the residence for a 7 year term at which time the property will be sold at its highest market value and 100% of the proceeds will be distributed back to the eight shareholders.

The debut Single Destination LLC offering is along scenic highway 30A in Northwest Florida with new destinations being added in 2016, including Miami, Turks and Caicos Lake Tahoe, Carmel, to name a few. 

To find out more, please contact Karla Jones at Lifestyle Asset Group:

Phone: 800-318-6966


Learn more about investing in luxury real estate »


Topics: Luxury vacations, Real Estate Investment, Why Lifestyle Asset Group?, Collective Asset Ownership Model, Fractional Investment