Need advice, own a holiday home for £2 a day? hows that work

mrknuckles

Hi,

I got this leaflet a few days a go, from some company saying i can own a share of a holiday home in turkey or spain, for £2 a day. Now it turns out thats just in turkey at that price, the spanish one costs more. But I cant figure out whether its a timeshare or ? what? It sounds like it is. In that you buy a 2 week share, which u use for 14 years. But u get a pay off after the end of the scheme.

Im just wondering where the catch is?

nico26

This is my theory on it. It is a time share scheme.
Ok if you are paying £2 per day totals £730 for 1 year for 14 years = £14,600 multiply that by 26 of you = £379,600. paid into the pot by buyers over the 14 year term.
The pay off I would presume will be if they have any money left in the pot after fees and everything else you might get a split.They might even try to sell it.
Do not listen to figures from them as nothing is guaranteed.You might not even get good weeks. Somebody will make money but would it be you? Do you need to pay for upkeep etc or is that included? Are you able to get the same weeks every year for holidays? Do you want to go to the same place every year. Different if you own an apartment or house.You can go when you please. What happens if you want to withdraw? What happens if you get made redundant and cant afford it. These people tie you in and you only have to read some of the horror stories on timeshare forums.

mrknuckles

Yeh apparently theres upkeep. This off the site.

I picked the weeks 28th feb - 14th March
Purchase Price: £1990

Maintenance Cost: £3567
Total Cost: £5557
Not Renting Property
Property Appreciation: £7128 (based on inflation)

Estimated Return: £7128
It says you can rent out your weeks or swap them with a company called RCI.
Not sure about exit. Theres a bit about a trustee on the site. I cant post a link so heres what it says

Passing your share to a family member or selling your share is allowed under the scheme. There is a small administration
charge of 2% for doing so. However to pass to immediate family members is free of charge.

Should you transfer your share, the new owners will benefit from the usage of your weeks as well as the proceeds at the
end of the term.

bandraoi

£2 a day is £730 a year.
You can get two weeks pretty much anywhere for that.

mrknuckles

£2 a day is £730 a year.
You can get two weeks pretty much anywhere for that.

lol yeh, i guess. the site says i can get a £7128 return after 12-14years not sure. tho.

bandraoi

Well if you put £1990 and £200 every year into an account into an account now at 5%, you'd have £8055 at the end 14 years.
That'd leave you an additional £530 to spend on accommodation anywhere you wanted to stay.

isplumm

Hi,

If you are interested in this - then why not look at the 2nd hand timeshare market .... in Spain you can get lots of places for very little - but remember that there is a reason for this ... high maintenance costs ...

Just be aware that you'll struggle to sell it on, you'll have little control on maintenance fees .... and if you use RCI (which is where you can swap your timeshare weeks) you have to pay more fees.

If you are interested, make sure you buy a physical week - not points ... with a phyiscal week you can go there, as long as you pay the maintenance fees - with points, you can only go where your points will allow you - one year you might be able to go to a certain resort, but the following year, they might require more points, so you cann't go there.

Timeshare must work for some people, as there are numerous people who own them.

Hope that helps .. Mark

mrknuckles

Sounds way too complicated/ expensive. Im out .lol

mrknuckles

Ok proper confused, rang up.

Own 2 weeks in Turkey for 12 years at £1,999.

For a fully furnished two bedroom apartment. Plus maintenance fees, of about £200+ a year. Which goes into a fund that covers any costs, such as refurbishment and cleaning between weeks.

The whole unit is split into 25 shares. After the 12 years the whole unit is sold, you get the value of the share. Plus anything left in mantenance sink fund is split with the whole unit.

dzug1

Of course it's timeshare - just presented in a slightly novel way.

There's nothing wrong in timeshare in principle - it's just that the way it's been packaged and marketed has led to it being hideously overpriced new and virtually worthless secondhand. And these days you never know whether it's honest or not.