One of the terms you'll probably hear thrown around at a timeshare presentation is "investment property.
" They will expound the benefits of the timeshare property, its amenities, its luxuries, the convenience and security.
All of these make sense.
But your mind will travel back to that one word "investment property.
" And for some out there, it's that one word that closes the sale.
Then the logical question: "Is a timeshare really an investment property"? The answer is both no and yes.
On the one hand, it is very rare that the timeshare you bought will increase in value in the same way a housing property would.
Usually, housing is based on a variety of factors, like income level, city growth, environment, employment opportunity, etc.
These numbers fluctuate, but over the long haul, your real estate investment is likely to see growth over the long term.
Timeshares, as you may already know, do not operate on the same economic playing field.
Timeshare buyers and sellers roughly exist in the same income bracket, and this income bracket has stayed the same throughout.
But let's say there are more people making more money five years from now? Wouldn't your property rise along with income levels? Not really, and it comes down to supply and demand.
There are a lot of timeshares are the market.
Supply is high.
Demand, while consistent, promises to always be lower than the supply at any given moment.
Simple economics say timeshares will not increase in value.
There is, however, a means of viewing it as an investment so that you may continue to reap rewards from other than a sale.
Back to the housing market.
A great number of home buyers do not view their home as a sellable property, but as a place to raise a family and grow old.
Essentially, enjoyment.
Timeshares offer this same kind of return on investment.
If you buy a timeshare cheap on the resale market, you'll be stuck with the yearly maintenance fees.
But you will also be guaranteed a week at your resort property for the rest of your life.
This makes vacations a breeze, a simple getaway to a place both you and your family can enjoy.
Timeshares function like an investment in the sense that it's yours to pretty much do with as you wish.
If you don't wish to use the year, you can give it to family members, rent it to friends or others over the internet, or engage in trades.
So, there are some key points to take away from this article.
If you're looking to buy a timeshare thinking it will increase in value, you are better off investing in a mutual fund or real estate.
If you're looking to buy a timeshare to invest in your vacation time, your family, and help make life more enjoyable, it's the right kind of purchase, and the right kind of investment.