How Buying a House in Florida is Different than Owning a Timeshare
The Florida real estate market is thriving, particularly in areas that are popular with vacationers. Some people who enjoy Florida's beaches and sunshine might be wondering whether they should buy a house in Florida or own a timeshare. There are some pros and cons associated with each—and much depends on your lifestyle, future plans, and financial situation. If you are thinking about investing in Florida real estate, be sure to consider the following.
Florida Timeshares
A timeshare is a convenient option for people who enjoy vacationing in the same place—and during the same time of year. A timeshare provides you access to a well-maintained abode for certain times of the year. Most real estate experts would not consider it an investment, however, since selling a timeshare slot is invariably difficult and often done so at a loss. While buying into a timeshare is immensely cheaper than buying a Florida vacation home, it has its restrictions. For instance, you're locked into your time slots and you share the space with others, so it cannot be personalized.
Florida Vacation Home
Purchasing Florida real estate can be a great investment, especially as property values are increasing. If you spend considerable time in the sunny state, homeownership may make more fiscal sense than a timeshare. However, if you only have a limited amount of vacation time, you'll need to consider who will maintain the home? Will you rent it? Even so, when selling your Florida home, if you no longer want it, you're likely to recoup and even make money on this investment—unlike a timeshare. Selling your house might not be a priority, but when you make this type of decision, you'll want to think about how difficult it may be to exit an investment if your plans wind up changing.
Benefits of Florida Home Ownership
When your purchase real estate in Florida, you can personalize the house and visit the property as often as you like. However, if the idea of a timeshare entices you because of the lesser expense, you might consider renting out your vacation home during various times of the year when you don't intend to use it. You may want to consult with a real estate agent about listing your rental property and helping you find renters. If you’re searching for houses for sale in Florida in a prime location, you may have little trouble finding people to rent your house—thus, generating income.
A timeshare is generally a hassle-free option for people who vacation in the same place on an annual basis. There is an annual fee (on average, about $600) for your portion of the property's maintenance and considerable inflexibility involved.
Say, for instance, something comes up for work and you can't get away for your scheduled week in the timeshare. That's a turn-off for many. On the other hand, settling down and buying a house is a more substantial investment, it's also one where you're likely to make money if you ever plan to sell the house. Keep these differences in mind as you contemplate where to hang your hat when you're vacationing in Florida.
