Yes! They absolutely are, but the real question is: is it right for you? A timeshare can be a great asset and a guaranteed vacation every year. Timeshares work by splitting the cost of an often expensive property, in an idyllic setting, amongst multiple buyers (investors) and then breaking up the amount of time (and times of year) that each investor gets to spend enjoying the property.
Regardless of whether you are able to use the time you are allotted for your timeshare, you pay for it. Lots of people try to rent their timeshare spaces that they can’t utilize to friends and family, but it’s often difficult. If you have a hard time getting time off of work, or don’t have a lot of disposable income to invest, this may not be a good real estate strategy for you.
Having a property you can jet off to and rely on is a great thing. Since its an investment that you pay off monthly (unless you can afford to pay it outright) its like constantly putting a little bit away each month toward a vacation. You are never shelling out a huge lump sum. Additionally, you don’t have to stay in a hotel, deal with restaurant food non-stop or worry about reservations. A timeshare means you have your own house or condo with a full kitchen and all the other amenities of home.
If you buy…
Buy smart. Although it may be tempting to think of it as just a vacation property, it’s a property that you have a stake in. This means that you have to think about things like the potential for flooding, and the threat of natural disasters. For tropical locales this could be an annual issue with hurricane/storm seasons, etc. Do your research, from the property itself to the location and surrounding economy. Knowledge is a good thing!Posted by Gurpreet Ghatehora on