How to buy a co-ownership share in the United States

What you would actually own

You own a real share of the home — an eighth, a quarter — not a right to use it. You can sell it, pass it on to your heirs, and it rises and falls in value with the house. The legal set-up is arranged by our partner for each home and walked through with you before you buy.

What you need before you start

Identity and source of funds, for KYC. No foreign tax number is required of a US buyer. A non-US buyer should expect additional documentation and should take US tax advice specifically on the disposal side before buying — the rules for foreign sellers of US real-estate interests are their own subject and we will not summarise them here, because getting them approximately right is worse than not answering.

A view on how tax works for your share. Much of the US tax treatment — whether mortgage interest is deductible, whether a 1031 exchange is even theoretically available — depends on the home's legal set-up, which our partner explains before you buy, and on your personal-use versus rental-use percentage. Ask early, and take independent advice.

The steps, in order

Four to eight weeks for a cash buyer is normal. Financing adds four to eight weeks. The seven steps in detail are here.

What it costs

Share prices in the United States start at $68,000, across the 117 homes we list today, and every listing shows its own price. The range is wide: the same market covers a modest Florida condo and a trophy house in California or the mountains.

Running costs are shared between the owners: each owner pays their share of the home's real annual budget. We send you the figures for any home you're interested in — ask for the current budget and last year's actual, before the reservation rather than after.

Closing costs depend on the home's legal set-up, which our partner explains before you buy. Ask for them alongside the annual budget.

Tax, honestly

This section is general information, not tax advice. How tax works depends on the country and the home's legal set-up, which our partner explains before you buy, and on facts specific to you. We recommend independent advice: engage a CPA before you sign.

Mortgage interest deduction. Possibly available, depending on the home's legal set-up, on whether the property qualifies as a second home for your purposes, on your personal-use versus rental-use percentage, and on how the mortgage is secured. It is not a yes or a no in the abstract. The variables are set out here.

1031 exchange. Possible in principle but structurally complex, and most shares held primarily for personal use do not cleanly qualify. Whether yours could depends on the home's legal set-up, on investment versus personal use, and on the replacement property. If a 1031 is central to your plan, settle it with your CPA before you reserve, not after. What it turns on is here.

Property tax on the home is shared between the owners. How it is billed depends on the home's set-up, so ask for it with the annual budget.

When you sell: capital gains tax may apply to any gain; how it is calculated depends on the home's legal set-up and on your own situation. More here.

Going the other way? If you are an American looking at a home in Europe, see buying a holiday home share in Europe as an American.

Nights, and the thing the US does better

Many of the US homes we list set no cap on total nights, which is the most generous usage model in the market anywhere. Advance stays can be booked well ahead through the app, and short-notice stays sit on top of those rather than counting against them. There is no annual allocation to run down.

For an owner who lives within driving distance and is willing to book late, that is worth considerably more than a fixed allocation of around six weeks. It is the strongest single argument for the US model.

A few homes work differently, with fixed seasonal blocks of nights that co-owners can exchange between themselves. Less flexible, and usually cheaper. We will tell you how the calendar works for each home.

Letting, which you cannot

The US homes we list cannot be let out by owners. If your reasoning includes covering the running cost by letting the home when you are not in it, the US market we list will not do that for you. Europe is where the homes that can be let are, and even there the local licence rules bind first. We will tell you the rule for each home.

Financing

Cash is common. Financing may be available depending on where you live; ask us for the current terms rather than relying on a figure published last year.

Where to buy

Many states, and the concentration is in California, Florida, Colorado and Utah, with homes in several other states too. The most affordable way in is a handful of Florida homes; at the other end, the same market reaches houses in Napa, Palm Springs and the Rockies. Tell us where you want to be and how you will use the home, and we will send you the ones that fit.

Every US home we list is here.

Common questions

How much does co-ownership cost in the United States?

From $68,000, across the 117 US homes we list today; every listing shows its own price. Running costs are shared between the owners; we send you the figures for any home you're interested in.

How many nights a year do I get?

It depends on the home. Many of the US homes we list set no cap on total nights: advance stays can be booked well ahead and short-notice stays sit on top of them. A few work with fixed seasonal blocks of nights, exchangeable between co-owners.

Can I rent out my US co-ownership home?

No. The US homes we list cannot be let out by owners. If letting income matters to you, the homes that permit it are in Europe, subject to local licensing.

Can I deduct the mortgage interest?

Possibly, and it depends on more than one variable: the home's legal set-up, whether the property qualifies as a second home for your purposes, your personal-use versus rental-use percentage, and how the loan is secured. Settle it with a CPA before you buy rather than assuming either way.

Can I 1031-exchange a fractional share?

In principle, but it is structurally complex and most shares held primarily for personal use do not cleanly qualify. It depends on the home's legal set-up, on investment versus personal use, and on the replacement property. If a 1031 is central to your plan, resolve it with your CPA before you reserve.

What exactly do I own?

A real share of the home — an eighth, a quarter — not a right to use it. You can sell it, pass it on to your heirs, and it rises and falls in value with the house. The legal set-up is arranged by our partner for each home and walked through with you before you buy.

Which states can I actually buy in?

Many. The concentration is in California, Florida, Colorado and Utah, with homes in several other states too.

Is it cheaper to buy in Europe?

Usually. European shares generally cost less, though the American homes are generally larger. The trade-offs the other way are a more flexible booking calendar on many US homes and no Schengen limit on how long you may stay. Running costs are shared between the owners; we send you the figures for any home you're interested in.

Does buying through Co-Ownership Property cost more?

No. The share price is the company's price and is identical either way. We are paid a commission by the company on completion, never by you.