A time share, or “vacation ownership,” may seem like a good idea. Potential buyers view it as an investment – in your family, friends, financial rewards, etc. After all, who wouldn’t want to own their own vacation spot, rent it out to make money on the side, all for less than the price of what they spend on coffee during the year? In theory, it sounds like a steal! However, investors should beware. Timeshares are rarely all they’re made out to be.
For example, in addition to the original purchase price, owners are responsible for yearly maintenance fees, upkeep of the property, unexpected maintenance expenses, etc. All of these, combined with a wide variety of other possible but unanticipated fees, can turn your timeshare into an immediate cash drain. Additionally, timeshare sales are largely commission-based, meaning the salesperson and the developer make a lot of money. But that money is never passed along to those who purchased the timeshare, as they’re left stuck with an asset they can’t sell. Ironically, many timeshare owners never intended on purchasing a timeshare – making it that much harder on the purchaser’s financial situation.
If you’re considering purchasing a timeshare, or if you’re interested in learning more about the pitfalls in vacation ownership, read our article, “Timeshares not worth your time or your money,” in Columbia Daily Tribune.
As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.
If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free.
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This article is the property of Clarity Financial LLC.
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