We essentially have two types of people in today’s economy: those that are looking to increase their net worth wealth and those that are tired of the rat race and want to enjoy life, but don’t necessarily want to buy a second property to do so. The solution for many, is timeshare resales. At first blush, you might be wondering how I can make such a statement. After all, timeshares have gotten a bad rap over the years as they were the back end pitch to all those “free” vacation prizes we’ve all won at some point. But, stop for a moment and consider that in a time where many people are struggling to not only ensure that they have a good live but also can actually go and enjoy it, timeshare resales actually make a lot of sense from both the consumer and investor standpoint.
For the consumer, many of whom are always looking for a chance to get away but who may not have the means to go for long periods of time or buy a vacation property, this makes perfect sense, as it allows them to plan their vacation without needing to worry about finding accommodation or paying inflated prices that, depending on the time of year, resorts and hotels can charge. Another benefit to the consumer is that, unlike hotels or resorts, you have more privacy and for the time you’re there, the property is yours. Finally, timeshare resales are something that you as a consumer can work into the family budget. They are much more economical then trying to come up with a down payment and mortgage every month for a summer home for instance.
But, what if you’re looking to invest in timeshares as a form of additional income? Here again timeshare resales make a lot of sense. The reason of course, is the current economic climate. Think back a few years: we were told that company such as Lehmann Brothers were “too big to fail” and were also told that real estate was a bubble that couldn’t burst. Now of course, we know that no company is too big and that there are many wouldn’t be real estate investors seeking to divest themselves of properties that for whatever reason are costing them, rather than making a profit. The same is true for the timeshare market. The key to investing wisely is to find desperate sellers, those people that badly want to get rid of their timeshares. This means that as a new investor, you can walk into what essentially is a buyers market. The key is in finding this market. Just like stocks, you need to ensure that you do proper research and take the necessary time. Another thing to do is listen to your gut when considering results that you have found as in most cases it is right. The same goes for the consumer. Never make a snap decision just to be done with it. Take the time and do the research required to ensure that you have the right thing for your family, schedule and budget.