Real Estate Investing

Timeshares are a hotly debated piece of the vacation real estate world. My parents actually own two which will be passed down to my sister and I eventually. They’ve never had any problems, but they have bought into Marriott resorts in Orlando and Hilton Head. These two can be traded in exchange for points toward a stay at any international property owned by Marriott or a partnering company. It’s been a lovely experience that allowed them to begin taking lovely vacations.

So why have timeshares gotten such a bad reputation? Well, here are a few of the pitfalls to watch for:

Low resale value: These properties are a lifelong investment, because resale will result in a financial loss of up to 3/4 of the property’s initial value.

Unpredictable future: The vacation industry has a changing nature. If your company sells the resort you bought into, it could result in higher maintenance fees or a change in the level of customer service, etc.

Disreputable companies: Timeshares can be a good deal, with careful research. Owners should not be subjected to things like blackout dates - that’s a red flag. You want to deal with a reputable company with plenty of properties worldwide. Everything should be in writing and try not to get locked into visiting only one place. Try to find a flexible exchange system so you can experience different vacations by trading in your standard week in the mountains or by the sea, etc.

Aggressive sales tactics: We’ve all heard of that person who took the “free vacation” and listened to the sales spiel with no intent to buy, yet somehow returned home with a new addition to their “investment portfolio.” First of all, timeshares are not an investment. They are good for people who like to vacation a lot, but they are not going to reap a profit down the road. That is, unless they are inherited and then sold. Secondly, timeshares can be purchased for pennies on the dollar from people who are desperate to escape their contract.

Before acquiring a secondhand timeshare agreement, inquire as to why the seller wants to sell. It may be that they simply don’t travel enough to make the timeshare expenses worthwhile, or it might be that their company is not ideal. Never fail to research the company, no matter the purchase method. And research timeshares in general to make your buying and ownership experience pleasant.

So over the holidays, the subject of the dreaded family vacation came up. I, being one of the few family members with a toddler, have decided to find my own lodging near the “big house” that is expected to hold as much as 20 people. It’s a matter of peace and sanity, and keeping the 2-year-old on his sleeping schedule, which of course ties back in to peace and sanity.

Planning a vacation may be considered one of life’s more befuddling tasks, at least for people like me who don’t deal well with minutiae and things like numbers. Below are some tips on things to consider when researching vacation property:

Proximity to beach, mountains, etc. Will you have a car? If not, your lodging arrangements ideally need to be within walking distance of the main attractions, unless there are ample public transportation options available.

Are pets and smoking allowed? This will be important in more ways than one. Even if you are a non-smoker or travelling without pets in tow, a place that allows these things may smell bad, for starters. Also, the presence of pets tends to have an effect on the quality of furniture and flooring.

Time of year. Alas, my family vacation will be in the peak of summer. With your vacation, however, you might opt for August 1 or later, or perhaps some time in May. The rates are much more affordable in off-peak seasons.

House or condo? There are many more options available nowadays in the area of vacation rentals. Research the benefits of each. Condos may be more affordable, but may not offer ground level entry. In that case, are elevators available? Never underestimate the value of personal interaction in finding and negotiating good vacation deals.

Open floorplans are the “it” thing in today’s market, right? But what about tomorrow? If you really want to create a formal dining area, will that space help or hurt your resale value down the road? Would buyers rather have a larger living space or kitchen than a formal, walled dining room? Homeowners who wish to create the living space they desire without the expense, hassle and relative permanency of a home renovation project may want to consider movable walls.

This is an ideal solution for parents whose children are maturing from free-running toddlers to private, withdrawn adolescents who need their individual space. Or perhaps a working parent needs to define space for a home office close to where the children play. It is also ideal for studio apartments or condos. Sliding wall panels or pocket doors are definitely coming back en vogue.

This trend has been at the center of studies by the Department of Housing and Urban Development, according to HGTV. Indoff Inc., one manufacturer of movable walls, lists reasons to choose the product. The reasons include less mess, fewer technicalities, faster installation that is friendly to “weekend warriors”, and, believe it or not, durability and acoustical privacy.

Whether your home needs to be open or sectioned off, you can achieve that look while still leaving the possibilities open down the road. Your home’s value can skyrocket by adjusting to the market trends upon selling time. You can have your cake and eat it too!