Re: Clubs with a vacation focus - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 06, 2003 at 09:09:21:
It seems to me that you are all over the map with post.
I have no idea about “self-run vacation owner(time)share type clubs.” I have never heard of the concept. I don’t know what you are talking about.
In general time shares are a terrible thing to get involved with. Most sell for very little money except from the promoters. Look at e-bay under “real estate” for time shares. See the prices bid for the timeshares there. click on the “completed” sales and see how many do not sell at all and how many sell for a very low price. Jack Reed had an article in his newsletter three or four years about investing in timeshares and renting out one’s time. He mentioned Palm Springs, CA, as I recall.
If you are interested in doing anything like what he suggests, I suggest you buy on e-bay or at county tax auctions. There are lots of time-shares that come up for sale at tax sales, as the owners don’t want to continue to pay the property taxes. In most states the tax sale will eliminate any mortgage on the property. That is true in CA, where I have seen many timeshares available on tax sales. There are some some taxsales in CA now on the internet–especially the timeshare ones. Check with Riverside and San Bernadino Counties.
There are “exchange” clubs whereby, if you own timeshares, you can, for an annual fee, join the exchange “club” and then trade your timeshares for times at other timeshares around the world. I don’t know much about them except that they exist. I’d suggest doing a google search on the concept.
I did meet a couple of couples at a tax sale in Calaveras County, CA, a few years ago who bought some time shares there. They used the exchange clubs to stay in a castle in England, and resorts in Spain. They were happy with the program.
I don’t understand your concept of “The properties have an investment/community-use value.” Could you elaborate on that.
“Any thoughts on investment 2nd home tax ramifications in such cases.” I don’t know what you are talking about here. I doubt seriously if the federal tax laws related to second homes would have anything to do with time shares. But, I don’t know that for sure. Why don’t you do some research on the topic with google and other resources and report back on that?
Good InvestingRon Starr****