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Financing A Second Home – What You Need To Know

Securing finance for a second home is now more attainable, courtesy of diverse financing options, favorable interest rates, and our innovative HOTELA Ownership model. However, before diving in, it's essential to grasp the nuances of second home financing.
With careful research and understanding of potential costs and loan requirements, you can make savvy financing decisions, paving the way to a blissful second home experience, free of regret.

Unmasking Hidden Costs Of Second Home Ownership

Typical Cost of Second Home Ownership:

Home Essentials: Furnishing a home can be a significant expenditure.

Insurance: Often not included in standard financing, a separate expense to remember.

Property Taxes and Fees: HOA and other taxes may apply.

Utilities: Routine costs like heat, electricity, internet, and water.

Maintenance: Regular upkeep and unexpected repairs need a cash reserve.

Community Fees: Homes within communities might have additional fees for shared amenities.

Uncovering these hidden costs helps you plan financially, ensuring your second home ownership is a pleasure, not a burden. In the next section, we will show you how HOTELA simplifies this process.

How Is HOTELA Ownership Different:

HOTELA redefines the second home experience, significantly minimizing hassles and costs. With our program, your luxury residence is always 'guest-ready' — adorned with tasteful furnishings, meticulously cleaned to 5-star standards, and expertly maintained by our dedicated team. The annual maintenance fee, based on your  HOTELA Ownership share, covers all operational costs, from property management to premium services. By sharing the home's expenses with other co-owners, you gain access to an elite lifestyle that might have previously seemed beyond your reach. HOTELA transforms luxury into an affordable reality.

HOTELA Maintenance Costs Explained.

1.  Home Appliances: The fees contribute to upgrading, replacing, and repairing all essential appliances in the home.

2.  Interior and Exterior Upgrades: We invest in upgrading furniture, bedding, dinnerware, painting walls, updating wallpaper, replacing carpeting and rugs, and maintaining the exterior of the home including the roof, facade improvements, window and door upgrades, and more.

3.  Amenity Upgrades: Amenities such as spas, saunas, security systems are not only maintained but replaced from time to time with state-of-the-art alternatives. In addition, we plan to add new off-site amenities within your HOTELA neighborhood to enhance your stay experience and your HOTELA Ownership share value.

4.  Services: Depending on the location, owners can expect services ranging from 24/7 concierge, 24/7 security, daily room cleaning, laundry and dry cleaning, spa and beauty services, VIP transport airport pick up, local 24/7 transport, personal fitness trainers, 24/7 room service, and much more.

5.  General Expenses: Property taxes, utilities, insurance, repairs, landscaping, and other general upkeep and related expenses are covered.

6.  Preventive & Routine Maintenance: This may include pool maintenance, snow removal, air-conditioning and heating servicing, landscaping, gutter cleaning, and more.

7.  Linens, Towels & Toiletries: We maintain and replace linens and towels and provide all required toiletries

8    The 24/7 HOTELA Service Guarantee: Unlike HOTELA that operate on revenues from guests, HOTELA is able to maintain operations and services even during recessions and pandemics.

This comprehensive property management system helps not only maintain but ultimately increase the value of your HOTELA Ownership over time.

Financing Options For HOTELA Ownership

HOTELA redefines the second home experience, significantly minimizing hassles and costs. With our program, your luxury residence is always 'guest-ready' — adorned with tasteful furnishings, meticulously cleaned to 5-star standards, and expertly maintained by our dedicated team. The annual maintenance fee, based on your HOTELA Ownership share, covers all operational costs, from property management to premium services. By sharing the home's expenses with other co-owners, you gain access to an elite lifestyle that might have previously seemed beyond your reach. HOTELA transforms luxury into an affordable reality.

Overseas Buyers: HOTELA provides financing for qualified local and foreign residents alike

HOTELA Direct Loan: Making second home ownership even easier with HOTELA Direct Loan. HOTELA is introducing our direct financing option with low interest rates to qualified buyers. HOTELA’s financing option may change at any time. To find the latest financing options, please go to the property's buy page.

Traditional Loan: Opting for a traditional loan may also be a suitable choice if you have limited assets and prefer not to extract equity from your primary residence. However, it's important to note that loans for second homes often come with more restrictions compared to loans for primary residences

Cash or Cryptocurrency Purchase: Paying for your HOTELA in cash or cryptocurrency allows you to enjoy a mortgage-free ownership experience. Alternatively, this approach lowers your monthly payment and grants you instant equity in your HOTELA.

Cash-Out Refinance: This option involves tapping into the equity of your primary residence by refinancing your mortgage for an amount greater than the remaining principal. The additional cash obtained from the refinancing can then be used to finance your HOTELA. This approach is advantageous when interest rates are lower than your current mortgage rate.

Trade-in Your Existing Home for HOTELA Ownership: At HOTELA, we offer the unique opportunity to trade-in your existing home towards a HOTELA Ownership share in a HOTELA residence. This innovative financing option, currently available in select locations within the same country as your desired HOTELA residence, allows you to leverage your current home's equity. Our team is dedicated to facilitating this seamless transition, providing professional appraisal services and expert guidance throughout the process.

HOTELA Ownership offers an attractive alternative to traditional second home ownership by eliminating many of the hassles and hidden costs associated with it.

Navigating Second Home Mortgages

Heftier Down Payments: Traditional second home mortgages often require substantial down payments - typically starting at 30% based on your credit score, and even reaching 50% for overseas residents.

Elevated Credit Score Demands: Second home loans usually necessitate a solid credit history. However, higher down payments may allow some leeway for lower credit scores.

Increased Interest Rates: Financial institutions perceive second home mortgages as riskier, given borrowers' propensity to prioritize their primary residence payments during financial strains, leading to steeper interest rates

Extended Approval Process: Loan approvals can vary geographically. For instance, in Niseko, Japan, our inaugural HOTELA location, traditional loan approvals may take 2-3 months, influenced by factors like residency and local assets.

HOTELA Direct Loans Simplified

The HOTELA Finance Edge: HOTELA revolutionizes this loan process with the HOTELA Direct Loan, capable of approving loans in a as little as 5 business days.

Our approach offers enhanced flexibility on criteria such as residency and income, generally qualifying.

With HOTELA, the path to your dream home becomes simpler and more accessible.

If you require a loan, the application will be done at the same time.

To purchase HOTELA Ownership shares, individual background checks are required.

  • Individuals

  • Corporations

  • Non-profit groups

  • Government organizations

To apply:

1.  Contact HOTELA directly and apply on the phone.

2.  Once your application is completed, the approval process takes 5 business days. 

Note: All applicants understands that the HOTELA premises cannot be used for any activities that are unlawful, including but not limited to, any activities related to organized crime in Japan, or other unlawful organizations, and illegal activities in general. Any applicants that are a member of, affiliated with, or has associations with such groups shall be rejected.

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