Here in the Sunshine State, you’ll find a plethora of property investment types – including the ever-famous timeshare. With this form of real estate entity, a group of people have the right to use a vacation property, and in doing so, different times of the year are split up among all of the owners (typically in one-week slots for each).
In a timeshare deal, the purchaser does actually own a specific “unit” of the property – which means that it can be rented out to someone else for your week, and eventually sold (ideally for a profit).
But, even with the popularity of timeshares in certain areas of the country like Orlando, do these really make sense for real estate investors?
The answer here can depend on your situation. For instance, even though these real estate options have traditionally had a bad reputation for being poor investments – primarily because of their low resale value and high purchase cost – they could work in certain situations, provided that you have a good plan in place.
As an example, one of the primary keys to making a timeshares profitable is to not use the unit personally. In addition, when renting out this type of property, you will also need to ensure that the price it is rented for is higher than the amount of your outgoing costs.
Being the owner of (a portion of) the property, you will still be able to attain the same tax benefits as you would with other types of real estate, such as writing off your expenses. And, if you do end up selling the timeshare property at a loss, you may even be able to offset other investment gains.
Regardless of the type of real estate you own, managing the property and the tenants can be time consuming. If you’d like to pass off these details to an experienced property manager, while still benefiting from your investment, then you may want to consider hiring a property manager.
Need more info on how a property management team can be beneficial to you? Give us a call today.