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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com

September 8, 2010

Are Timeshares Truly Related to Real Estate Investing?

Hi Folks,

   Hope you are having a good "shortened" week so far.

   A request from our mighty mailbag has asked about the relationship between Timeshares and Real Estate Investing, and we spoke to a few people "in the know" about this.

   Lisa Ann Schreier, a consumer advocate with "The Timeshare Crusader", says that, "While buying a timeshare in the United States generally involves a deeded piece of real estate, that’s really where most of the similarities to general real estate end.", and that it should only be thought of as an investment in future vacations, since the value of a timeshare, "drastically decreases the moment it is purchased" and is not a very liquid purchase.

   Peter Giamalva, a partner with Creative Impact, says that, "A timeshare purchase can complement your overall real estate investments since you choose a timeshare to meet your lifestyle vacation needs", and suggests that you, "buy in locations where supply is limited and demand is high to maximize exchange value and improve your future selling options." Giamalva continues to say that, "like any good investment strategy, beneficial real estate investing requires diversification, and as you broaden your investments, you want to be active in different locations and different markets (annual versus seasonal for instance).”

   Schreier, however, points out that most timeshares are real estate based, and that consumers must know "that they are dealing with licensed real estate agents when purchasing or selling timeshare; whether on the primary or the secondary market." She warns that the secondary timeshare market is "rife with unlicensed organizations and persons charging an upfront fee, which is NOT the way real estate must be handled."

   Alan Brody, a Timeshare Owner, says that, "There are companies that actually charge you $2500 - $4000 to get RID of your timeshare because of the succession issue in timeshare contracts".

   "For consumers looking to buy a timeshare", says Schreier, there are "three basic questions I advise them to honestly answer before making any purchase:"

1. Do you understand the product (weeks, points, floating, fixed, etc.)?
2. Will you in all likelihood use the product?
3. Would you pay that amount of money “anyway” on future vacations?
.....Additionally, she says that, "any one 'no' is a deal-breaker for me."

   What are your thoughts on the timeshare market? Do you Agree or Disagree? We'd love to hear your opinion.

Have a Great Day, and Happy Rent-to-Owning !!

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