Thinking of Investing Into Time Share? Do Not Even Think About It
When you are trying to go into real estate investments, you have to be extra careful. This is because real estate is unlike any other investments. The stakes are higher than other common investment models like funds, stocks and so on. But if done (with research and opportunity at the right time) properly, real estate investment could very well be your most profitable investment. However, there are two types of real estate investments that you should stay away from. The mentioned real estate is time share.
What is time share?
Time share is a type of right or ownership you can have over a property. Usually, the said property is a resort condominium unit. But at the same time, there are other parties who have their rights to the property. The result is there is only a specific time in which an owner can use the property. People often utilize a resort condominium for vacation purposes.
Disadvantages of time share
You should avoid this because of the obvious reason; unreliable investment. It will cause you to lose money. That is for sure. The way it works is like this. With a time share, you will be purchasing an ownership (a period of one or two weeks) or a usage of a particular house or condominium per year.
For example, if you are paying $10,000 a week with the miscellaneous fees included, you are actually paying for more. If compared another house or condominium unit nearby, you could often find them to be lower priced. What have you paid for? You have just paid for various commissions that belong to salespersons, administrative department and the developer.
So why is it that people keep buying time shares? This is because they are lured into the idea of buying one. This often occurs when a person is on a leisure trip or in a stress-free environment. Therefore, during vacations, salespeople are more likely to score a victory in their sales pitches. People on vacations are more likely to spend and this is true. In fact, most salespeople would even lure the potential “relaxed” clients by offering them a free stay at the particular unit they are offering to sell. They often do this in their presentation. Therefore, this might raise a red flag whenever a salesperson talks about free night stay or related offers.
If you still insist on time share, then you should consider buying a second-hand one. This would mean a used one. This is because you will find good deals from buyers who had already lost a good amount of money. Therefore, you can easily buy from them at bargain prices.
Time share also lets you take your vacation in other places (not your particular unit they are selling to you). But you should be warned. This is a great inconvenience. What happens is you will be charged extra fees. Your choice is usually limited when it comes to suitable schedules.