And just so that we can pinpoint it because every time people ask me why I’m a real estate investor, I it’s time share. I’m like, dude, that’s not, you’re not an investor. You just got suckered into a deal, but I can never explain. I can’t explain to myself. I just walk up upset and frustrated my understanding it’s because.
When people buy a timeshare, they not only is it expensive. And when you figure out the cost of ownership that you do, like a life cycle cost analysis, it doesn’t start a good deal. But also you get into these nasty arrangements where you have annual maintenance fee, and then you have a termination fee since like negative equity.
If you can explain that a little bit, it’s ultimately a timeshare was once sold as an embed. And there was a resell market now because of Airbnb. VRVO the internet consumer confidence in being able to plan a trip short notice and having a condo with accommodation, similar to the timeshares where you have a kitchen and space, there’s just no, you know, resale market for it.
That’s gone. So, what you have is it’s basically a prepayment of vacations and it can be really quality vacations. I actually believe there can be some value in the ownerships. If you use them now, getting back your original upfront investment that’s as you’re speaking. With auto purchases that certainly buying resale would be much more advantageous.
You don’t have that 30 grand or whatever to recoup from the upfront. It can be a good value. I always tell people at our seminars or whatever, don’t feel bad, 10 million homes in America owned timeshares. And, or you bought this because you wanted to spend time with the people that you love and a beautiful place.
Right? If it gave you those good memories, you probably wouldn’t trade those for the money. That being said, it’s really not a good investment because at this point you can jump online, make reservations for anywhere in the world for this weekend and pay less than what the maintenance fee .