Why buy a cow when you only want a Bottle of milk?
03 June 2008
Timeshare due to its bad image, the way it is and has been sold has puts many people off and understandably so.
Published at 20:51 Comments (1)
But consider this, for most people taking vacations for more than 4 weeks a year is a dream not a reality and yet they buy an overseas property with all its incumbent expenses and leave it vacant for large parts of the year.
Why? because it is an investment!!! But is it? purchases in Spain and other countries in the last few years have seen these investments fall not rise, then there is the cost of getting in on a typical property of 250k thats a staggering 30k of unrecoverable money, add to that it now takes on average 4 years to sell a resale property in coastal Spain plus the furnishing cost ave 10k and you now have a a cash cow plus a continual commitment to return to the same place each year and to spend time doing essential maintenance whilst on your annual holidays, any of this sound familiar?
Consider then you had invested the same amount of money (40K) in a quality time share (Brand names) you could have secured 4 weeks in a 5 tar resort at various times throughout the year, exchanged to other countries anywhere in the world or banked the time to have an even longer break one year.
Compare the fact that if you wanted to sell either of the above, Real estate currently running at a loss up to 4 years to find a buyer (sur in english) plus annual costs.
Time share, you will probably only get back about 50% of the purchase price but you have had 16 weeks top quality Holidays together with the maintenance fees to be paid to maintain the resort in top condition but you didn't have to do it.
The average 5 star holiday for 4- 5 people is in excess of 2k per week so thats 32k you would have spent anyway.
If you were to sell at 50% you are still getting the equivalent of 52k and you get to walk away.
Now I own both and have been trying to sell my house in a great location for about a year with no joy. Obviously I need to wait 3 more years so I am reluctantly renting why reluctantly? more later.
Most investments in holidays or homes require an exit strategy but when was the last time you got a rebate from all your foreign holidays?
I can tell you that I am not looking at selling my timeshare weeks, why because when times are difficult like now; I can still have a couple of quality holidays a year and only need find the airfare.
Another benefit is that any year I have not wanted to use my time my family and friends have purchased from me, not for a profit just the cost of the maintenance, when you have your own home you can do the same of course but you have to be able to charge friends and family enough to cover utilities, cleaning etc never easy and arrange for someone to look after the property, attend to repairs whilst they are there, the list goes on.
Your views, I would love to hear from you, perhaps your experience is different to mine, all I know is this!!!! I could get out of my timeshare now and be happy with the above result but I cant get out of my holiday home investment.