Why co-ownership is more efficient than being the sole owner or renting an equivalent property

The idea of having a beach house sounds amazing: a place of your own to get away, enjoy the sea and spend time with family. However, when we look at the real costs of maintaining a second home, we often find that the investment is not as efficient as we imagined. This is where Legria's co-ownership model comes in as a smart alternative, letting you enjoy a second home in the most efficient way.

The hidden costs of being the sole owner

When considering buying a second home, people often think only about the purchase price and not about the maintenance costs that come with it. Let's look at the main expense items:

• Property taxes: Periodic tax payment on the property, based on its assessed value.
• Insurance: Protection against damage, natural disasters or theft.
• Utilities: Monthly costs of essential services such as water, electricity, gas and now even internet.
• Common expenses (if applicable) and maintenance: Fees for the upkeep of common areas and security, as well as the preventive maintenance and repairs any property needs.
• Cleaning: Regular services to keep the property in top condition.
• Housekeeping: Property management, including maintenance coordination and problem solving.

Maintenance costs as a sole owner

If, for example, we ran the numbers for a relatively new house (less than 5 years old), located in a gated community in one of Chile's main beach towns, of say 150 m² with 4 bedrooms and 4 bathrooms, we could arrive at the following monthly expenses:

• Property taxes: CLP 125,000
• Insurance: CLP 133,333
• Utilities: CLP 304,167
• Common expenses and maintenance: CLP 454,167
• Cleaning: CLP 166,667
• Housekeeping: CLP 400,000

Monthly total: CLP 1,583,333

If an owner uses their second home 6 weeks a year (the average use of second homes), the real cost per week comes to CLP 3,166,667, which is equivalent to CLP 452,000 per night.

What is the Legria co-ownership model?

Legria's model allows up to eight people to co-own a second home, sharing both the use of the property and the maintenance costs fairly. Each co-owner gets their proportional share of the usage time and only pays their fraction of the operating expenses, which avoids wasting money on a property that, in most cases, is used only a few weeks a year.

How does co-ownership make maintenance more efficient?

In the Legria model, all expenses are split among the co-owners, which significantly reduces the individual financial burden. Let's see how the same costs are distributed for a Legria co-owner:

Monthly maintenance costs as a Legria co-owner (1/8 of the property)

• Property taxes: CLP 15,625
• Insurance: CLP 16,667
• Utilities: CLP 38,021
• Common expenses and maintenance: CLP 56,771
• Cleaning: CLP 20,833
• Housekeeping: CLP 50,000
• Legria Program fee: CLP 91,667
• Monthly total: CLP 289,583

Since a Legria co-owner is also entitled to use the house 6 weeks a year, the real cost per week would be CLP 579,167, equivalent to CLP 82,700 per night.

Comparison with nightly rentals

If, instead of buying a property or joining a co-ownership model, someone decided to rent a beach house in high season, they would face a cost of roughly CLP 350,000 per night or CLP 2,450,000 per week.

It is also important to note that renting is 100% expense, while with Legria co-ownership, besides reducing costs, you keep an investment that can grow as the property appreciates.

Results of the analysis

Conclusion: co-ownership = economic efficiency

The numbers speak for themselves. Being the sole owner of a beach house may be a dream, but it can also be a heavy financial burden, especially if the property is used only a few weeks a year. On the other hand, renting in high season may seem flexible, but it is extremely expensive in the long run.

Legria's co-ownership model offers the best balance of efficiency and cost-benefit: it lets you enjoy a second home at reduced costs, without sacrificing comfort or quality of life. With Legria, you pay only for what you actually use and share the fixed costs with other co-owners, making the most of your investment.

If you are thinking about a second home, maybe it is time to rethink the smartest way to do it. Discover more about Legria and how co-ownership can transform the way you enjoy your vacation home!