Investing

What is a timeshare property investment? When you invest in a timeshare property, you purchase the rights to use a unit in that property, often a hotel or res...
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Is buying into a timeshare property a good investment?

Buying a timeshare property can be a low-cost way to initially invest in a holiday home, but there are often hidden costs that are not always immediately apparent. If you’re looking into a timeshare investment, make sure to consider the following:
  • There may be extra costs other than those associated with purchasing your timeshare rights. These might include hidden fees, levies that rise over time, and future obligations to fund repairs and maintenance. Make sure you understand all the costs involved before signing anything.
  • Do not expect to make money reselling your timeshare rights. While it is possible these will increase in value in some instances, it is not a common occurrence.  Many owners lose up to half of their investment when reselling.
  • Some timeshare purchasers end up even worse off, because the value of the property they have invested in depreciates drastically over time. Make sure you understand how long your investment will last, along with the obligations property owners have to reinvest in the property.
  • In an economic downturn, demand for your timeshare period may decrease, particularly outside of peak holiday weeks. As money gets tight, people tend to take less holidays, not more.
  • While timeshare sales people may try to sell you on the benefits of being able to swap your timeshare rights for those in different properties, make sure you investigate how active the exchange market really is. If the swapping process is difficult, inconvenient, or costly, or there are not enough participants willing to swap, then the promised benefits may never materialise.
  • Make sure to investigate the quality of any properties you wish to swap your rights to, and make sure they are of comparable quality and desirability to the one you are investing in.
A well run timeshare scheme can provide a low cost and flexible way for you to access a holiday home, especially in prime tourist locations.  If you're looking for an investment that offers a positive return or capital gains, consider other options. 
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