If A Timeshare Goes Under, What Does That Mean For You?
Timeshare Agreements, Timeshare Impact on Credit Score
3 min read
The investment itch is something most of us get at some point in early adulthood and we cannot scratch it, especially as we get started in looking into buying homes, stocks, maybe growing a business or setting up your retirement. Real estate is a great area to invest in because it’s usually steady and you own something that cannot disappear. The rule of thumb is that you can never lose all your money in real estate, just some of that. As we learn more about investing we learn that’s not exactly true but there are always exceptions to the rules we’ve learned over the years. One of those rules is that you have to own the property you’re making money off of. Actually, that’s not true either and a great example of this is people who invest in timeshares.
These people have invested into the property and grabbed their locations at specific times of the year. They rent out these units every year for a profit and those who grabbed great locations and time could make a very comfortable living simply on that alone. Think of someone who owns a timeshare in New Orleans the week of Mardi Gras? There are advantages and disadvantages to everything and here are some facts and myths you need to know about before you get started.
Fact: People Make Money Investing In Timeshares All Around The World
Yes, this statement is true and it’s covered earlier in the article. The trick is that you have to have a very nice location near a major city or where an event takes place and you need to also own that unit during that event. Using the Mardi Gras example again, it’s great to own a timeshare in New Orleans, but if it’s the week before or after the big event, what good is it?
Myth: All Timeshares Are Scams And Steal Your Money
While we as consumer advocates do not recommend that anyone gets their own agreement with one of these resorts, there are companies that actually run things the right way and give their customers a fair shake. They are the ones who have learned how to do business the right way and their customers are happy. You should be able to tell them from the scam companies based on reviews and information you find online.
Fact: You Can Invest In Multiple Units As Long As You Want
Yes, there are no limits to how many units you can have and rent out as long as everything is being done correctly and all laws are being followed.
Myth: Most Resorts Don’t Allow You To Rent Out Your Units
Some resorts may have policies that require you to go through them if you want to rent out a unit you own. It would be the same as renting out a condo and having to make sure that the renter is approved by the association. Not every property does this as most simply do not care because it’s part of the appeal of owning a property and they do not want to interfere.
There are plenty of other myths and facts you can learn about investing in timeshares. The best and smartest thing to do is to take your time and research what you are interested in so that you know everything about the company, the area and so forth. The more information you have going in, the better prepared you will be and find a quality return on your investment.
How to choose the right company to get me out of my timeshare
We know how stressful timeshare contracts can be. What once sounded like a dream resort package turned into a nightmare. When you don't know where to turn, look to PMG to relieve you of your timeshare burden. We pride ourselves on open, honest, and frequent communication with our clients.
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