this post was submitted on 08 Aug 2024
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It seems sketchy as hell.

They sell an apartment, that apartment in resort. The price is about typical normal apartment.

They said that I own that apartment, and can visit the resort few days a year, enjoying staying at that apartment. Just book your day and they handled the rest. I still not fully wrapped my head about this concept yet, but why not stay there forever but "book" ?

My aunt said this seems good deal. But I feel something fishy.

Is it a good investment compared to normal apartment in residence building ?

Can someone tell me more details on this type of real estate?

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[โ€“] [email protected] 24 points 4 months ago (1 children)

The worst is it's not even like you buy a share of a single unit to share and keep well maintained, it effectively behaves like a hotel you have a stake in and and get to go 1-2 weeks a year for free and they're usually quite poorly maintained too.

For some reason boomers thought it was a good idea, because gotta buy and own properties. I guess the idea was you could buy a vacation home but for only the few weeks a year you really want it.

It's such a con, if you inherit it from your parents it's really hard to get rid of it too, because nobody wants them now that it's well known to be bullshit. You might as well just rent an Airbnb, it's probably cheaper.

[โ€“] [email protected] 12 points 4 months ago* (last edited 4 months ago)

My parents bought one when I was in high school. I was so mad about it. Thought it was a huge waste of money.

Fast forward many years. I was right. Every year you have mandatory maintenance costs (like paying a subscription to keep something you supposedly own). The next part of the scam is that there are tiers of ownership; pay even more to get in a higher tier. Higher tiers get more "points" for booking rooms, and let you book rooms further in advance (12mo out instead of 11mo). If you don't upgrade, all the rooms you want are booked by the tier above you.

On the bright side, my dad is usually able to book rooms on big holidays, and then sell them for cash to cover the cost of maintenance fees. But the time share organization is aware of this practice and is trying to crack down on it, which seems like a breach of contract to me, even within their own scam.

Meanwhile, any time I travel, we just get an airbnb or vrbo and it's always at least 3x nicer for a similar cost, and I'm not on the hook for a bunch of debt and responsibility.