Timeshare Or Vacation Home-Which Is A Better Investment?

Q: My husband and I are debating whether to buy a timeshare or vacation home? Which is a better investment?  Beth, Riverdale, NY

A: That’s an interesting question, Beth.  When we compare a vacation home to a timeshare, the difference is essentially full time versus part-time ownership.

A vacation home requires full-time ownership which includes maintenance and upkeep year round but gives you more flexibility than a timeshare to use whenever you want rather than just on a particular week when you may not be available.

Although a timeshare has limits on when you can use it, timeshares tend to be more affordable than buying a vacation home and work best for you if you know exactly when you’ll take a vacation each year.  Timeshares do normally require you to pay annual management and maintenance fees, but if there’s a maintenance or repair issue, you typically won’t be responsible for getting the work done yourself.

The resale value of a timeshare is often lower than a comparable vacation home because the value of timeshares tend to depreciate over time more than vacation homes.  Ultimately, when you sell anything, be it timeshare or vacation home, your ability to find a buyer and get top dollar will depend on demand at that time.

Ultimately, you can make a powerful argument for either buying a timeshare or a vacation home depending your specific set of circumstances, needs and preferences.  Thanks for your question, Beth, good luck.  For more real estate tips and information, visit my blog at geraldlucas.com.