<p>I’m considering buying a fairly inexpensive timeshare. I do not own a home, so technically it isn’t a second home. Does anyone have any information on whether this could have any negative impact on my daughter’s finaid package at a UC?</p>
<p>Are you considering a “fee simple” or a “right to use” time share?
See: [eBay</a> Guides - Timeshares Buying Guide](<a href=“http://pages.ebay.com/buy/guides/timeshares-real-estate-buying-guide/#1]eBay”>http://pages.ebay.com/buy/guides/timeshares-real-estate-buying-guide/#1)</p>
<p>I suppose this would be “other real estate” on the FAFSA, depending on the answer to calmom’s question. The EFC hit on parental assets is pretty minimal, from only 5% to 0% depending on your allowances, exceptions, moon phase, etc. So even if it is included it won’t change your EFC much.</p>
<p>Am I the only one bothered that in our bankrupt state the system allows for a portion of our taxes to go toward UC tuition in cases where a family has significant discretionary income? At the same time I realize that it doesn’t matter much, since cash in the bank and equity in a timeshare should/would be treated the same way for EFC purposes, and that it’s the same rules for all residents.</p>
<p>vossron, we don’t know what wecandothis means by “fairly inexpensive”. I Googled “inexpensive timeshare” and found web sites where timeshares were being sold for a few hundred dollars. I personally am not a fan of the timeshare idea – I think its a bad investment and people can get locked into making payments for years on a property interest they don’t really want — but I can see where someone might think that spending $600 on a timeshare was valuable, as a kind of pre-paid annual vacation. </p>
<p>So I wouldn’t assume that someone has “significant discretionary income” – in fact, I think the whole time-share idea caters to a somewhat more downscale market – people with moderate incomes who can’t really afford expensive vacations in pricey hotels, so the sales pitch for the time share looks good for them. (I do know that there are also very high-end, high-priced timeshares as well – but a wealthy person is more likely to buy a vacation home than a timeshare.)</p>
<p>What do you really own with a timeshare? Time? Property?</p>
<p>Timeshares as an asset are dubious at best. And even if they are considered an asset, their assessable value drops dramatically at the moment you purchase them.</p>
<p>So how in the world do you asses a fair market value against something that you can not sell for anything close to what you purchased it. </p>
<p>I’d be hesitant listing the timeshare as additional assets or property. But if you do list it, the value is going to likely be 25% to 50% of what you paid.</p>
<p>Yes, I thought “significant” could be an issue, but I also thought that an insignificant amount wouldn’t make any difference at all, such that the OP wouldn’t have asked the question.</p>
<p>My parents were happy to get someone to takes theirs off their hands at any price, in order to get out from under the maintenance fees.</p>