Timeshare vs owning vacation rentals

[Jeff R.]

Would you consider purchasing a timeshare(being that your an investor) or would you just purchase vacation rental property?

[Jay Hinrichs]

timeshare is NOT an Investment on any level.. any one telling you that it is well not sure why they would.

Now if you can buy them USED for very cheap them re market them and make a few bucks I see that.

But walking into a Hilton Grand vacation setup and buying from the developer and thinking that is an investment that's not the case..

I know many that own them I have owned one.. its a forced vacation at best. but if you buy one were you go multiple times a year it can be a savings over rack rates , really depends on your job and vacation schedule

[Jeff Graves]

Jeff...I would agree with Jay.  I own a timeshare at Daytona Beach in Florida...although we bought it about 14 years ago...$10,000 for 1 week...and it has been paid off for 4 years...we could probably sell it and break even.  

However, having the time share has worked out really well for us as we have traded it every year (never been back to Daytona) and continue to do so and stay at some great resorts.

Not an investment for monetary return...but it does get you to take a vacation every year...and not at the same location.

[Jeff R.]

I probably didn't phrase this the best..

Being that you guys are investors and view real estate in a certain light would you get a time share or would you always look to purchase a property and use it as a vacation rental??

[Jeff R.]

@Jeff Graves if you could do it all over again would you take the same money and attempt to purchase a vacation property?

[Jeff Graves]

I do own a vacation rental and from an investment perspective it's a much better deal than a Timeshare.  With a VR you can expect it to appreciate...most timeshares don't.  You get a much better tax write-off with a VR than a timeshare.  A timeshare won't make you money...a VR will.

I hope that helps.

[Jeff R.]

thanks @Jeff Graves

[Jay Hinrichs]

@Jeff Graves  my dad bought 2 weeks and the Kuleana ( lower road just north of Kanapalli beach.

in 1970ish. when the concept first sprouted I think.. you bought the weeks you used those weeks.. trying to trade them can be tough depending on were you buy and how good your home unit is.

but it did force my dad the work a holic to go to Maui for 2 weeks every year and as the son we got to come along  LOL.. so I have spent some great years on Maui before it really blew up.

the West airport was right on the beach back then.. we would fly to Honolulu grab the little Cessna 414's they flew in there and land right on the beach 1 mile from out place  .. grass hut and all. !!!

I was back there for Thanksgiving and stayed both at Kaanaapali and at the Aston in your area. like I said its really grown.

there is an out fit there called the Maui flight academy and if I can put in a shameless plug.. this Is the greatest value for a tourist... I fly Cirrus aircraft so going with them I get to pilot and I got to land at Kalapapa ( spelling) on the back side of Molikai and then over to Lanai  across the straight circle molakini  then back .. its way cool check it out and for those that want something that is really cool I highy recommend it.. you can customize your flights depending on weather you can go circle the big island.. the time before I landed at Honolulu so I have that in my log book. !!!

Time share has its place I just don't think one should look at it as an investment.

[Ayodeji Kuponiyi]

@Jeff Graves I agree with @Jay Hinrichs. I wouldn't get a time share. I would focus on buying cash flowing assets that would provide me the funds to travel wherever I want. I would find a vacation rental and buy it at a discount, rehab it, and rent it out. That's much better than buying a timeshare.

[Jeff Graves]

I agree...it all depends on Jeff's objective, real estate investment or Timeshare, they are not the same.

Aloha

[Mark Miles]

it's really difficult to rent a timeshare, i'm not gonna lie, some resorts sells you nothing but lies, telling you that when you get tired of the timeshare, or when you cannot pay it anymore they will help you to rent it, but it never happens :/

in my experience, i just can give you a good advice and it's trying to rent it by your own, but in case you are looking to hire someone specialized, just make sure that they're not going to scam you asking for upfront payments! Here's some articles that might be helpful for you:

http://www.timesharescam.com/blog/191-how-to-verify-if-a-timeshare-rental-company-is-legitimate/

http://www.timesharescam.com/blog/57-timeshare-rentals-timeshare-fraud/

http://www.timesharescam.com/blog/131-timeshare-rentals-by-owner/

Good luck!!