Buying a Timeshare - Is it Really a Good Relieving Investment? By Erick Cornwell

There are some people who can stash a hefty amount of money for their vacation plans and would prefer to be relieved by the luxury of timeshare ownership. However, the current state of the economy is calling for a life of frugality. With companies getting bankrupt and employees getting laid off many people are restrained from spending and even crossing out vacation on their itineraries.

What people need to do these days is to invest in something that would give them immediate returns. Timeshares, as advertised are good investments. Maybe or maybe not! If you are planning to buy one it would be better that you arm yourself with information first about what you are getting into before scribbling your signature on that timeshare ownership contract. This article may provide you the information that you are looking for.

First thing that you should know is that timeshare properties aren't always a good investment. Even though you own a certain property like a timeshare, it is not like real estate where the value of the unit increases over time. With timeshares, the value does not increase and is often stagnant.

When we say investments, they provide returns. Although, timeshares can be sold or rented out, the market is not that friendly and accommodating for timeshare resale and rentals. Reason being, the timeshare market is very crowded with timeshare owners who wants to sell or rent their timeshares. Also, timeshare companies themselves are keeping up with the competition, resulting to a surplus of timeshares in the timeshare market. Looking at the demand of timeshares especially in today's economic climate, there are only few recorded purchases as more and more people are finding it impractical to own a timeshare.

Furthermore, do not overlook the expenses you will have to pay for when you buy timeshare properties. You have to be aware that annual fees are subject to arise each year, real estate taxes and maintenance fees are but a few of the things you have to pay in keeping your unit. Timeshare companies can issue you special assessment fees when special circumstances arise. This alone can cost you hundreds and thousands of dollars.