Fractional home ownership. One-eighth ownership. Basically a timeshare. What could go wrong? Santa Barbara real estate enters residential fractional home ownership.
Disruptor Pacaso, is a Bay Area-based company that buys homes and then sells fractional interests in them to second-home buyers. After the sale – in which the company makes a profit – the company then manages the home, and the co-owners use Pacaso’s technology to schedule time in the home.
Kelley Mahan Herrick reported in the Montecito Journal that, “The company has acquired two homes in the Santa Barbara and Montecito areas: one on Las Alturas on the Riviera which sold for $1,085,000 for a 1/8 share and one on East Valley Road in Montecito, which is selling for $1,294,000 per 1/8 share, with six shares already sold. Some neighbors of the Las Alturas home are not happy, and recent articles in other local publications tell of disgruntled neighbors who complain that the home is being utilized as a place for owners to vacation, have large parties, and not have ties to the neighborhood or community.”
The fireworks have just begun. For more from this article visit, Montecito Association Discusses Pacaso.
Fractional Home Ownership in Santa Barbara sparks controversy Source: Noozhawk
Santa Barbara Neighborhood Rises Up Against Fractional Ownership Property Source: The Independent
Pacaso is turning houses into Corporations and the Neighbors are fighting back Source: Planet Money
