What Expats Aren’t Telling You About Timeshares

Okay, I too have a bad taste in my mouth over Timeshares.  Yes, the free gifts are wonderful and nothing beats the cash money promotions.  BUT…….. I retired in Mexico about four years ago.  The first thing you notice during peak season besides more cruise ships coming to town is thousands of baby boomers arrive at the Puerto Vallarta International Airport headed to everywhere between Boca de Tamatalon to Yelapa, Sayulita and the small town of San Pancho, which means San Francisco in English.





 

I stay in Mismaloya year round, and my rent reflects this fact. As the months come and go, you meet people, and you notice the popular condo buildings occupied almost entirely by Americans.  Americans and the Canadians too, come for two, three and sometimes four to five months, each year.

So during the chit chat, you find out more than just a few seniors purchased their seaside condominiums units years and years ago under, wait for it . . . . .  Under a Timeshare plan.  Some baby booms started out with one week 30 years ago, now they’re up to 12 weeks and more a year.

Now, I don’t know about you, but these retired part-time expats are living rent free in paradise because they had sense enough to sign on the dotted line, when the rest of us, were too good for Timeshares.  We took the Timeshare gifts and promotional money and went to dinner.

The numbers never looked right to us.  We believed the entire industry to be fraudulent at best.  Now, we pay big bucks for hotels and Airbnb properties during peak season.

Let me say this. These baby boomers made a wise choice which is paying off big during their retirement years.  I’m not sure of all the particulars for the different Timeshare buildings, I just know the investment is working for many expat seniors in the Puerto Vallarta area.

When you bring up the subject of Time Shares, these savvy seniors join in with everyone else and say, “Timeshares are the worst.”

They know I know the truth, so I usually get a wink or two during these conversations.

Maybe it’s the Timeshare presentation that turns people off.  You know, they start by feeding you and showing you the property, then they want you to do the math and predetermine how much you’ll spend in hotels cost for vacations for the next twenty years




What if Timeshare salespeople said, “Look after you retire if you want to live in a beach front resort for two to three months a year, without an enormous cost, buy this stupid Timeshare.”

Once you actually live in a world famous resort destination like Puerto Vallarta, you gain insights into how middle-income people can afford beach front condos and villa units which are expensive in today’s economy.  Cheaper than the U.S., but still expensive for middle-income wage earners. Now that you understand what baby boomers before you have done, it might be worth your time to spend two hours of your vacation exploring a Timeshare.  The question is, can you find Timeshare deals that will provide you with a second home for certain months of the year at prices that you are willing to pay?   Continue below for the four types of  Timeshares

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Types of Timeshares

Basically, there are four types of Timeshares.
1.  Fixed Weeks – You own the rights to specific weeks.  This would explain how part-time expats were able to get certain months of the year here in Mexico.  Twenty to thirty years ago, Fixed Weeks were popular and affordable.  Boring, yes, but if you had insight, you were paying for your retirement while you were still young and working.
2.  Floating Weeks – Getting the exact weeks when you want to travel may not be that easy.
3.  Right to Use – The buyer leases the property for a set amount of money, time and years.
4.  Points Club – Similar to Floating Weeks, but you can buy extra points and upgrade and or stay at different locations around the world.
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So go ahead say yes to the Timeshare.  Schedule it in and then tell the IRS you were researching an investment.  Ask your tax accountant about writing off a percentage of your travel expenses.

About the author: Sandy

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