Is this true about equity?

Question

I've been wondering if you invest in a timeshare will you really start to see your equity increase.

Answer 1

I actually work in Financial Services for a timeshare company. There's no such thing as "equity" with these companies. For instance if you bought a share for 10k and paid it off. They will tell u that u have 10k in equity. But u can only use it to upgrade to something else. Even when u upgrade to another unit they just add ur "equity" to the sales price of the unit. For example, u want to upgrade to a unit that would normally sell for 15K, they would actually sell it to u for 15K+ your 10K "equity" to equal 25K. They dont even report your payments to the credit bureau but they will be quick to put you in collections for missing payments.

Answer 2

Not by much unless it's in a hot spot. Most people get a cheap one so they can call RCI to go somewhere else in the world on their week.

I guess you get "equity" in the benefit of not paying a whole lot in the first place, and spending when you are ready to go.

Time share is not really a bad deal if you think about it. It's just not about equity as you would normally think about equity.

Answer 3

I've never bought a timeshare, but I know several who have. They keep offering me free use of their timeshares because they never have time to use them, and would rather go somewhere new if they did.

Answer 4

As an active real estate investor, I would say no. I always tell people to stay away from Time Shares. My opinion only though. I just dont see the appreciation.