Florida's sunny weather, sandy beaches, and relaxed lifestyle have made it a dream destination for many Canadians, Americans, and people from around the world looking to own a second home in a beautiful location.

However, the price of owning a prime waterfront property can feel out of reach for many. Fortunately, there are smart ways to enjoy the Florida dream without breaking the bank. By leveraging co-ownership models and strategic investment opportunities, Canadians—and anyone dreaming of owning a piece of Florida—can dramatically reduce the cost of vacation home ownership. Here's how.

If you're not planning to use your vacation home year-round, rather than purchasing the entire property, consider co-owning a vacation home by buying a share of it. This approach allows you to own a luxury waterfront property in Florida for a fraction of the cost. Companies like Pacaso offer hassle-free co-ownership, giving you the benefits of a luxury Florida vacation home without the heavy financial commitment of sole ownership.

For example, if you're thinking of spending around $750,000 on a vacation home, a 20% down payment would allow you to purchase a $3,500,000 property—assuming you can handle the mortgage and ongoing costs. However, through co-ownership, you could secure a share of a $3,977,000 oceanfront home for as little as $684,000—less than the 20% down payment for the entire property—and own it debt-free!

This not only reduces your initial investment but also lowers your monthly expenses, potentially by up to 15 times compared to owning the entire property. The co-ownership model ensures you only pay for the time you use the home, while sharing the purchase cost, maintenance, taxes, and other ongoing expenses with other co-owners.

Now, you might be thinking, “Why not just buy a whole property for $750,000 and own it debt-free?” I understand that argument. But take a moment to check out this article and see if you can really find a desirable waterfront home at that price. You can also download my free book, where I explore this scenario in depth. One more thing—even if you find a property for $750,000, don’t forget to evaluate its carrying costs.

So, the example above shows one way to dramatically reduce expenses. Now, let’s explore another scenario.

Let’s say your budget is still $750,000.

Instead of buying a share of a $3,977,000 property, what if you bought a share in a $1,250,000 beachfront condo for $235,000 and used the remaining $500,000 to purchase an investment property? By purchasing a smaller share while still owning a waterfront home, you free up funds to invest in an income-generating property, such as a brand-new duplex in Florida.

FloridianHome.ca can help you acquire a new rental property that generates cash flow, further reducing your overall carrying costs.

The rental income from this property could offset the expenses of your co-owned vacation home, covering everything from maintenance and utilities to property taxes, insurance, and more. 

This strategy allows you to enjoy a luxury waterfront vacation home while your investment property generates income to offset your carrying costs, potentially making ownership hassle-free, debt-free, and cost-effective. Plus, you’ll own two appreciating properties, which could generate even more value over time!

To see the numbers in action, read this article or download my book for more insights.