If you are a real estate investor, building a diverse portfolio sounds like the wisest approach. Residential properties, commercial rental, and land are the conventional options. But you may want to think outside the box and invest in timeshare ownership. It sounds like an exciting one to explore because you can use the investment as a vacation home. But with a timeshare, you don’t actually own a place. You only buy the right to use it for a set period once a year. The deal isn’t worthwhile, no matter how alluring it seems on the surface. Here are some reasons you should skip timeshare as an investor.
No Investment Value
Sales reps will convince you to buy a timeshare with slick sales talks and pitches. You will have to shell out thousands of dollars to close the deal, but there’s no substantial return. All you get is a week in the sun every year. You don’t own a conventional home, so you cannot expect equity to build up over time. It is advisable to look for better options for investing your hard-earned money.
Maintenance Costs Pinch Your Pocket
While you cannot expect a timeshare to grow in value, it is also a burden on your wallet with hefty maintenance costs every year. Even worse, the maintenance costs may increase exorbitantly without any warning. You end up spending on a place once and shelling out more every year. It is the worst way to invest your money because you pay out of pocket rather than get returns.
Reselling Can Be a Problem
When you buy a timeshare, you will probably want to get rid of it sooner rather than later. Even a yearly vacation at a posh resort like Grand Miramar doesn’t sound alluring once you know the pains of owning it. But reselling can be a problem, considering that it comes with heavy baggage like the rising annual fees. Fortunately, you can cancel Grand Miramar Timeshare with the help of a timeshare exit company. But make sure you read the reviews of the company to ensure it is a credible one.
A Lack of Flexibility
The lack of flexibility is another reason you may not want to be tied down with this option. After all, it isn’t a great idea to travel to the same resort year after year. At some point, you will expect to explore a different destination on the fly. Timeshare ownership limits your travel options, which is the last thing you will want if you love seeing new places.
You May Not Even Use Them
Another reason timeshares do not make an ideal investment is that you may not even use them. While you may buy with a yearly holiday in mind, life is unpredictable. Imagine how the current pandemic has disrupted travel plans for everyone. You may be unable to travel due to changing financial status or a physical disability. It does not make sense to pay for something you may not even use later.
Timeshare is clearly not a worthy investment, no matter how incredible sales reps make it sound. As a wise investor, you must look for better opportunities that yield good returns without hurting your yearly budgets.