Why a Timeshare is a Terrible Real Estate Investment
Buying into a timeshare is not a smart way to invest in real estate. There’s probably a better real estate investing option if the goal is to earn a return on your investment.
On this episode of Big Money Real Estate, Ilyce answers a question on using a timeshare as an investment to help reduce taxable income. While losing money on an investment can indeed provide a way of reducing your tax bill, it rarely – if ever – makes good investing sense to deliberately lose money.
The biggest issue with timeshares is finding an exit strategy. Although it may make short term financial sense to buy a timeshare instead of a vacation property, it could turn out to be a bad choice in the long run because timeshares are so difficult to sell. Meanwhile, a vacation home that costs a lot up front could end up costing less overall if it appreciates in value and you’re able to sell it without too much trouble.
So watch this video to learn more about why timeshares are among Ilyce’s least favorite real estate investing strategies.
And check out Ilyce’s Intentional Investor Series to learn everything you need to know to become a successful investor in real estate.
Looking for more of Ilyce’s real estate and personal finance tips? Read her blog, see her tweets and follow her on Facebook.