The Pros and Cons of Timeshares as an Investment

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The most important thing to understand about buying into a timeshare is that it’s a real estate deal. So if you’re using it as an investment opportunity that just happens to give you a few weeks in desirable locales each year, you need to know that there are both pros and cons to consider. A timeshare is a special type of investment because the value is based on a number of factors that may change over time  and it can be largely subjective.

Additionally, it can be challenging to get out of a timeshare opportunity once you are in one. Unfortunately, many bad companies do this purposefully, so you simply quit. As a result, it gives the industry a bad name. But don’t worry. Reputable timeshare exit companies are willing to lend a helping hand and do the complex work for you.

So before you go ahead and sign up for that timeshare in Cabo, here are
a few things you may want to consider.

First, timeshares can be good investments. People with stressful jobs and disposable income tend
to like vacationing as a way to escape from the harsh realities of their daily lives. But they may not
necessarily want to deal with the additional stresses of booking hotels, dealing with noisy tourists in
surrounding rooms, and paying through the nose for each and every night of this torture. So you should
have a ready marketplace when you go to sell your timeshare down the road. Of course, it doesn’t hurt
that you get to enjoy your shared property in the meantime.

The other bonus is that you’ll share all the expenses of ownership. So not only will you save on hotels
in most cases, you also won’t have to foot the entire bill for upkeep of a residence. And since the other
people involved in the timeshare will also be using the residence throughout the year you should never
have to arrive to a house that is covered in cobwebs (assuming everyone does their part to keep the
place clean). This is a great selling point that is undeniable. The cost of maintaining a property from
afar can be astronomical if you’re doing it on your own. But when you enter into a timeshare, you’ll
know about all such fees up front (including yearly inspections and repairs, the cost of a management
company, housekeeping or gardening services, and so on) and you’ll split the amount with everyone
else. When you are ready to get rid of timeshare, make sure you list it in as many places as possible.

Of course, it’s not all wine and roses, unfortunately. Timeshares fill a very specific niche in the travel
market, which means they can sometimes be difficult to sell. For instance, if you have a Timeshare in El Cid Vacations Club and El Cid Resorts, sometimes the maintenance fees, consistent bookings might be troubling you.

But if you do your homework you should
be able to avoid common pitfalls. For example, you need to consider whether you really want to go
in on part-ownership of a private property such as a house or villa. There are plenty of vacation clubs
that could offer you similar benefits without having to sign a deed. But
if you’re looking at it from an investment standpoint, you’ll never see a return on the money you spend
on a club, whereas property can be sold down the road.

And remember that location is everything in real estate. You want to find a timeshare that is in a
desirable tourist destination, for one thing. It needs to be close enough to attractions and amenities
that visitors can easily take advantage, but far enough away that vacationers are removed from crowds.
The house should feel like a home away from home, but incorporate elements of the spa resorts
that most tourists prefer. In short, you need to approach your timeshare as a commodity. If you’re
smart about what you buy you can have an enjoyable retreat for a while and still see a return on your
investment down the road.

Evan Fischer is a contributing writer for Ritz Carlton Club, a members only luxury vacation
club.