Traditional real estate investors don’t typically look at timeshares as a good investment, but people still buy them. You can’t go to a resort area today without running into a free breakfast for listening to a brief pitch about some hotel or development. That said, Kiplinger Magazine just put out a guide for What You Need to Know About Timeshares.
1. Time shares are still a lousy investment.
2. Selling agents may be of little help.
3. Financing is a last resort.
4. Trading spaces can be a headache.
5. A slice of a condo can be better than no condo at all.
Basically, if you read the full article you’ll find information like:
“There’s a glut of unwanted time shares. Sell today and you can expect to get back only 30% to 50% of what you paid” OR “consumers have filed many complaints with the Better Business Bureau about companies that charge up-front fees and then fail to sell the properties”
I say – Save your money. Invest in some real property and get a true equity stake worth something. Book your vacations ahead of time, and avoid the free buffet breakfast at all costs.
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Article Author: Joshua DorkinJoshua has written 568 articles for us.
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Joshua Dorkin (@jrdorkin, Google+) is the founder and CEO of BiggerPockets.Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
Joshua Dorkin
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Great points Joshua. You’re right, buying timeshares through the resort are very poor investments and owners looking to sell their properties are going to run into a lot of different problems if they don’t choose the right company to help them sell. They’re already going to be losing about 50% of whatever they spent and to add to the trouble, there are a tons of dishonest resale companies online looking for upfront fees without providing any results. Anyone looking to sell their timeshare should look for a company with licensed brokers who won’t charge anything until the property is sold. If time is not an issue, some people choose to go and try to find buyers on Ebay or Craigslist on their own but sometimes weight of the annual expenses don’t allow for such patience.
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