8 Investment Mistakes That Will Make You Broke

5) Vacation Home or Time Share

A vacation home or time share can be a nice way to spend a couple weeks a year with the family, or for many…away from family. The way a time-share works is you pay a one-time fee, and generally yearly fees to occupy a vacation property in the same place every year. This can be nice for several reasons, as if you are not able to enjoy the time share one year you can let your family or friends enjoy it, or you can participate in affiliate programs to enjoy your vacation elsewhere in the world. A vacation home is simply a home you own away from your primary residence.

There are perks to both of these, however, making money as an investment is not one of them. Sure, you may be able to rent out your vacation home, but for most people renting out the home simply pays off the mortgage. If you own a timeshare, you are likely to never recover the amount of money you put into it.