Investment - Individual

Is buying into a timeshare property a good investment? Timeshare schemes are a type of investment known as ‘managed funds’. Generally this means that the scheme...
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Is buying into a timeshare property a good investment?

Timeshare schemes are a type of investment known as ‘managed funds’. Generally this means that the scheme operator must hold an Australian Financial Services Licence and must give you a product disclosure statement.

To find out if the company managing the investment holds a AFS licence before buying into a timeshare scheme, check the ASIC professional register.

There are several financial obligations for your consideration:
  • There can be extra costs, hidden fees and taxes in some schemes
  • Very rarely do timeshare owners make money on the resale of their property shares
  • Some timeshare purchasers end up worse off because the value of the property depreciates drastically over time
  • In slow economic times timeshare purchases are almost impossible to give away  
  • Unless you join an active network that has dozens of interested swappers every day, you might find this swapping process difficult and inconvenient, as other locations could be undesirable, poorly maintained and have fewer amenities.
If you are looking for an investment that will give you a return, you may wish to consider other options.
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