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Alternatives: Time-Shares
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 May 1997 |
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Second-Home Living for Pre-Retirees By BRIAN McCALLEN
Senior Editor, GOLF MAGAZINE Not ready to take the real-estate plunge? Consider a time-share. While not an investment per se, a time-share provides "interval ownership" -- usually a week, a month, or more of guaranteed vacation time in a furnished condo at a resort. The entry of hospitality giants like Disney, Hyatt, Hilton, and Marriott has legitimatized the time-share vacation method as a viable alternative to booking a room at a resort.
Typically, buyers make a down payment of 10 to 15 percent, financing the balance over five to seven years. An annual maintenance charge (with a cost-of-living or inflation adjuster) is usually levied. Time-shares have built-in flexibility -- for example, a week at one resort can be traded for a week at another property on the other side of the world, pending availability and participation. Time of year purchased, location, recreational facilities, and company reputation determine the value (and elasticity) of a time-share. A caveat: It's best to sample a property as a paying guest before plunking down the dough for a time-share. You'll get a deed for interval ownership -- but not a mortgage with tax-deductible payments. A final note: Time-shares can be difficult to sell.
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