Some clients in Cincinnati have recently approached me about their hesitation to purchase real estate in the resort markets for fear of making a bad investment. If you turn on the evening news it seems that these days all you see is negative press about the stock market, gas prices, the lending industry, and the plunging housing market. Many people are concerned about where to put their money to keep it safe.  Alot of investors are seizing the opportunity to capitalize on the high inventory of properties that are on the market right now. One of those types of properties are resort properties: condominiums and timeshares on the beach or in the mountains.

If you are thinking about investing in a timeshare, here are some things to consider:

1) Are you buying specific weeks or do the weeks vary each year?

2) Who manages the property and do they have other properties that you could trade your weeks in to go to if you want to vacation in another location?

3) If you sell the property, is there a specific agency that you must use? (many times you are bound by one company, so watch out for this one)

4) Is there a board that oversees the management and how they make decisions for the property?

5) What are the amenities that the timeshare offers and how do they compare to other properties (condominiums, timeshares) in the area. This is important because if you need to unload the property you want to be sure that your property is a commodity that will be easily sold for at least what you paid for it.

6) If you are unable to use your weeks in a particular year what are the rules and fees involved with renting them? Can you rent them yourself or do you have to pay a fee to the management company to rent them for you?

7) Are there annual fees for owners of the timeshare or service fees when you stay at the timeshare?