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Is this the right time for good investments?


This article is solely dedicated for anyone out there that's looking to retire overseas so outside of North America looking to purchase a home invest in property whether it's a single-family home or condo or doing a huge multi-unit mixed-use development or like a hotel so anyone out there that's looking to do anything overseas this is the podcast for you so just like any or every format is we want to start in the beginning with the most frequently asked questions and this is a question that I don't get as much but certainly.

 I certainly get enough emails where I should address this which is will I'm interested in in timeshares what is your opinion on time shares here's my opinion time shares it is horrible first of all just like a car lease I hate car leases never done it and it's a bad investment is I as you know I have a financial background and I don't like to pour money into anything that I don't own at the end so if you don't your research everyone knows that a car lease is a horrible investment yes you have a lower car payment but in 24 to 36 months you're giving your car back you're putting all that money to a vehicle for what to not own anything for the privilege to use it that's stupid and I don't and I just you know sorry to drop the f-bomb but it's a bad investment time shares are almost as bad time shares is the same exact concept is a timeshare basically in a resort you have a lower cost to get in so for an example let's say resorts in Mexico and this timeshare basically sells that cup of that unit 50/50 two times so every single week is sold as one timeshare so you out there.

If you're shopping for one let's say that you're gonna buy at week 12 and that week 12 is going to cost you maybe 20 to 30 forty thousand dollars and you have the right to use that timeshare for one week that specific week so you have no flexibility you have to go and use it that we if you don't use it you lose it and here's the bottom line you never own it so the 20 or 30 or even 10 years that you have the right to use it at the very end you give it back so and again what is the point of paying all that money for a piece of property you have to get back so it's a bad deal so here's an alternative investment or if anyone out there is looking at at a timeshare that likes the idea the timeshare but once a better investment look at fractional ownership and fractional ownership really became popular I would say over the last 15 years and a fractional ownership is very very much a saint's concept as a timeshare but the difference is is that you are actually whether you're 1/12 owner 1/10 owner of a piece of property so to me give an example let's say there is a beautiful beach home in Costa Rica that cost 1.2 million dollars fully furnished gorgeous overlooks the ocean panoramic ocean views infinity pool filled with beautiful furnished but 1.2 million dollars is a lot of money you can't afford that and also you're telling yourself I'm only going to be a Costa Rica maybe 2 or 3 weeks or a month out of the year so if that piece of property was in a fractional ownership for 1.2 million basically there will be 12 owners and 12 owners would own basically a month of that timeshare or that fractional ownership but unlike a timeshare you're not giving a bath because unlike a timeshare timeshares have never appreciated they never appreciate look in the the secondary market or the the the market for our time shares someone who paid thirty thousand dollars they're trying to resell it at 15 someone paid $15,000 our timeshare they're trying to resell for two or three thousand dollars it's just a bad investment because as the property appreciates you don't get that appreciation and again most timeshares are not needed so on a fractional order ship is deeded you own it you own 1/12 of this Costa Rican property and as that property appreciates and you decide to sell your flow your fraction or your share you will actually get to recoup your investment that you put in and then some because you get the benefit of appreciation so fractional ownerships by far is a great alternative is a better investment and timeshares please stay away from timeshares it's just a terrible terrible investment and also to stay with and Carly says it's a bad deal so in addition to this compass see this need they see this need of people that wants to basically purchase these type of units in foreign countries like in Costa Rica or Thailand or Philippines.

All the different countries that we're at so I want you to know that in about I would say that about a year from now about twelve months from now we will be offering fraction ownerships and a great thing is as everyone knows out there we're working with compass we really specialize in homes that are affordable for everyone for the 80% we're not we're not selling you homes that are one to two to three million dollars or seven hundred eight hundred thousand dollar condos we the majority of our portfolio our developers that we work with works basically we're selling developments or units homes that's affordable everyone was under a hundred thousand dollars or to mid one hundreds of a high to hundreds it'll split financing so you can afford it so what is our fractional ownership gonna be like we're going to have places in Southeast Asia where fractional ownerships are going to be as low as five or ten thousand dollars you'll be 112th owner will have fractional ownerships in in beautiful Costa Rica and again you'll be one to wall thrown up I'll get to that in just a bit you'll be 112 owner you know be as low as 20 or $30,000 so how are we going to put this together and how is our fashion ownership couldn't differ from everyone else's so it's 1/12 owner what that means is is each owner so for an example let's say that let's say we fractionalize one of our units and Elka Beale Elka be located playa hermosa and let's say a fully furnished unit is and make numbers easy it is about let's just say three three hundred and fifty thousand dollars so three hundred fifty thousand dollars divided by twelve and we just whip up my calculator because unlike most Asians I'm actually not very good at math so where's my calculator okay so I found my calculator and let's say that the unit in L qabil which is basically two bedrooms and a loft fully furnished at let's say $350,000 so three hundred and fifty thousand dollars divided by twelve owners basically comes out to roughly about $29,000 I'm sorry turn my phone off so comes down to roughly about $29,000 so instead of putting 350 thousand dollars down on a vacation home all you need to put down is roughly about $29,000 and you to be 1/12 owner so it's going to you and 11 other owners and each owner is going to have one month but unlike a timeshare and unlike other fractional ownership companies where you are really only you're only buying into that specific month maybe it's a January or February or March. 

Whatever or high season like a November December everyone is going to have the opportunity in our fractional ownerships to basically have first pick so for an example.
Ff I were to be one of the twelve owners of this unit that no qabil in Playa Hermosa Costa Rica let's say I have first pick this year and my first pick is going to be December so that means that the next year I have last pitch in a person that had it was number 11 is what I see was number two would have first pick next year so does that make sense so everyone just kind of just kind of moves up the line every single year so eventually you will always have first pick and here's the other thing to that want to do our idea is to basically put together and humidity is one of the biggest complaints that I get that we all get is where they live whether it's in North America Washington North America or Canada or Europe they don't know their neighbors nobody knows each other nobody talks to each other and people miss that sense of community so we want to do is we want to bring that back so we're gonna create a closed Facebook fan page for your Facebook group for this a single unit and all 12 owners you're gonna get to know each other you're going to you're going to develop a relationship with those other owners eventually they they may become your new best friend and your need to communicate with one another you'll be able to trade you know months or weeks for an example. 

If I if I own December but I'm only going to be there for half of December maybe my other co-owner wants the first half of December I'm willing to trade that with him for hit for half a month in in his may so we're gonna develop his community gonna be able to communicate one another and get to know each other so that's a tremendous benefit and that's what we're offering in our and our fraction ownerships not just a fact that it's gonna be extremely reasonable it's gonna be deeded to you so you own it you're going to recap or get to recoup the depreciation should you decide to sell your fractional ownership and the fourth thing is is that we're developing community so stay tuned for fractional ownerships if you have any questions or if you want to be put on the waiting list because it is we do have quite a bit of lists of individuals that have always thought about investing in a timeshare so we have a big list of individuals so let us know that you're interested in fractional ownerships contact anyone and Compass Group international or any of our affiliate partner on a real estate brokers side and we will put you on the list so let me roll this out you'll be the first to know that you know this you tremendous opportunities coming out to you so thank you for joining us and I'll talk to you soon
Is this the right time for good investments? Is this the right time for good investments? Reviewed by Top Mountains in the world on September 15, 2020 Rating: 5

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