Property investment is extremely exciting if you know what you’re doing. So many people think investing in real estate is simply as boring as watching paint dry. They think you’re just waiting for your property to increase in value year on year. However this is true but only to some degree. If you are investing in high-traffic real estate such as hotels, timeshares and apartments, then you are always in the thick of the action. We’re going to focus on timeshares because they are kind of a mix of all three. But what is a timeshare?
A timeshare is..
The first thing to know is, a timeshare is exactly how it sounds. For some time of the year, you have access and technical ownership of a property. But what kind of property? This could be any kind, but it’s where or who you get the property from. Some holiday resorts give timeshares, but so do some Airbnb hosts. You will have access to a property for a set number of weeks or months throughout the year. You may find that some contracts want you to have a fixed timeshare while others will have a flexible timeshare plan for their clients. So you may have access to an exotic resort home in the summer one year and the winter the other year.
Why invest in it?
You can rent your timeshare property however you wish. So for example, if you buy a timeshare in Jamaica, you can rent your timeshare out to wealthy clients looking for an amazing place to stay for their honeymoon. The catch is, you have to take care of the maintenance while you have ownership of the timeshare. This means you pay for the bills, the repairs and or the improvements to the property.
Having an exit plan
The one thing you do not have control over, is the location and what happens around it. One year the resort you invested in might be great. The next year, the resort might have been through a scandal and bookings are down. Well, you’re stuck. You will have to keep paying for your timeshare contract for as long as it is valid and suffer lower bookings and prices. This is why having an exit plan by working with top timeshare exit companies is highly recommended. Sometimes the company you bought a timeshare from didn’t properly disclose how much the maintenance costs would be, or if they would make changes to their properties. If so, you can opt to exit your contract even if they try to force you to stay in. You may be able to find a buyer of your timeshare or you can force the company to take up the extra costs that they didn’t disclose.
A timeshare can be lucrative but it just needs to be properly researched before you sign anything. The location, the property type and the type of customer you are likely to get should influence your decision to invest.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)