Timeshare Real Estate - Investment Property?

Transcript:

Steve Luba - One of the things I wanted to ask you was -and I know that the folks that are watching this tend to think of- is whether or not a timeshare is seen as an investment property, or what the investment potential is? Can you address that?

Jason Tremblay - That's a great question. You know, one of the common misconceptions that people have regarding timeshare is that it is investment property.

True, it is most timeshares are deeded in a sense they are real estate but, unlike general real estate typically they don't go up in value. And, what you have to bear in mind is that the resort developers have a tremendous amount of expense that they have to incur in driving prospects to their properties to sell those timeshare units. So as a result, once a person has purchased a timeshare typically those properties are going to depreciate to some degree. To what degree they depreciate is going to vary depending on the property itself.

But the thing to bear in mind is that when you're investing in a timeshare, you are not doing it for financial gain. What you are really doing is investing in a vacation. You are locking in future vacations, years, decades from now at today's vacation prices.

What I tell people is if you purchase a timeshare and lifestyle changes happen - maybe the kids grow up, you no longer have a need for it - the good news is there is a resale market, it's fairly healthy, but it's typically not realistic to get the same amount of money for that property when you first made the purchase.

Go Back To Jason Tremblay Timeshare Tips And Advice Videos