Posted by Mike on July 07, 2003 at 16:11:52:
I’ve been told some of the high end time shares can be a great investment. I haven’t been involved with any but there’s a company called Intrawest that’s had some real hits in places like Whistler in Vancouver, BC: http://www.greatplaygrounds.com/resorts/index.asp
Clubs with a vacation focus - Posted by Orlando
Posted by Orlando on July 06, 2003 at 07:38:01:
Hi everyone, I’m new to the group. What little I’ve seen of the postings has impressed me. Sounds like a great community!!
I’m just now thinking about an investment property and started wondering along this line. Has anyone come across self-run vacation owner(time)share type clubs? I’m wondering whether the concept of timeshares morphed into an exclusive private investment type club exists. Perhaps the members decide where a next property is purchased. The properties have an investment/community-use value. There is a more flexible arrangment in the use of the property. I’m sure there are probably lots of them , they probably spring up spontaneously and are small word of mouth ventures. Any thoughts on investment 2nd home tax ramifications in such cases.
thanks,
Re: Clubs with a vacation focus - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 06, 2003 at 09:09:21:
Orlando------------
It seems to me that you are all over the map with post.
I have no idea about “self-run vacation owner(time)share type clubs.” I have never heard of the concept. I don’t know what you are talking about.
In general time shares are a terrible thing to get involved with. Most sell for very little money except from the promoters. Look at e-bay under “real estate” for time shares. See the prices bid for the timeshares there. click on the “completed” sales and see how many do not sell at all and how many sell for a very low price. Jack Reed had an article in his newsletter three or four years about investing in timeshares and renting out one’s time. He mentioned Palm Springs, CA, as I recall.
If you are interested in doing anything like what he suggests, I suggest you buy on e-bay or at county tax auctions. There are lots of time-shares that come up for sale at tax sales, as the owners don’t want to continue to pay the property taxes. In most states the tax sale will eliminate any mortgage on the property. That is true in CA, where I have seen many timeshares available on tax sales. There are some some taxsales in CA now on the internet–especially the timeshare ones. Check with Riverside and San Bernadino Counties.
There are “exchange” clubs whereby, if you own timeshares, you can, for an annual fee, join the exchange “club” and then trade your timeshares for times at other timeshares around the world. I don’t know much about them except that they exist. I’d suggest doing a google search on the concept.
I did meet a couple of couples at a tax sale in Calaveras County, CA, a few years ago who bought some time shares there. They used the exchange clubs to stay in a castle in England, and resorts in Spain. They were happy with the program.
I don’t understand your concept of “The properties have an investment/community-use value.” Could you elaborate on that.
“Any thoughts on investment 2nd home tax ramifications in such cases.” I don’t know what you are talking about here. I doubt seriously if the federal tax laws related to second homes would have anything to do with time shares. But, I don’t know that for sure. Why don’t you do some research on the topic with google and other resources and report back on that?
Good InvestingRon Starr****
Re: Clubs with a vacation focus - Posted by Orlando
Posted by Orlando on July 06, 2003 at 13:29:41:
Thanks for the reply. It’s true I am all over the map because of lack of information. My gut instinct is that timeshares are not a good value. That being said if I pooled money with others and we bought a vacation property with investment value, not a flip but something that would appreciate over time 3-5 years, and we all had use of the property that sounds somewhat appealing. I am beginning to do research in this area and will post a summary of findings in the future. I know this is very vague, more of ruminations.
Good Investing