I have been thinking of buying timeshares for quite some time now and I feel it's the best way to go about vacations. I see a lot of pluses as to how timeshares are cost effective, useful, etc, etc. But there are a few doubts as well.
1. Does a timeshare appreciate in value over a period of time? That is - is it a good investment?
2. I've seen my friends struggling to sell their timeshares, for a long time. Why does it happen?
3. When it comes to timeshares, is it wise to buy cheaper ones as opposed to famous, expensive ones? Or is it the other way around?
I would love to get more info on these issues. Thanks very much.
Wow; so many informative replies. Thanks everyone. I really appreciate everyone for having spared your time. Thanks again.
Actually, when you put things in perspective, you can see that timeshare is very much profitable.
For example, let's say you buy a timeshare worth $12,000. You have an annual maintenance fee of $500. Add around $200 for things like exchange company membership and other things.
Now calculate the amount you would spend on the same resort if you didn't have a timeshare. Take into account everything from planning, preparation, stay, dining, wining, recreational activities, and sight seeing tours. It would certainly cost a lot.
Thanks to your timeshare, your stay in a premium resort becomes a lot cheaper. This apart, several resorts offer their timeshare members free breakfast, complimentary dinner, discounts, free access to recreational activities, and lots more. Altogether, your expenses are cut down to a large extent.
Now, if you use the timeshare for around five to six years, you would have recouped more than what you spent on your timeshare.
If you had bought a resale in first place, then it would have been even cheaper, making it the best bargain you could ever get.
Apart from all this, you could also rent your week when you are not using it and get some dough. I mean, could it get any better????
The reason why a lot of people get confused is that they consider timeshare as a piece of property, like real estate. They expect it to appreciate in value over a period of time, so that they can sell it and make huge profits, just as in the case of real estate. They NEVER take into account all the hidden benefits of using the timeshare.
So, when you come to think of it, timeshare is the best way to enjoy your vacations. So, keep timesharing, keep rocking.
Thanks Paradise. It was a very nice piece of info. It will help a lot of beginners get the right perception about timeshares.
Well; I see a lot of people raising doubts over the value of timeshare as an investment. Bob, your answer was very informative and had a lot of depth. Thanks for that. It cleared many a doubt for me. I hope no one ever comes up with that same question again. :)
1. I see this topic being addressed time and again. Let me make it very clear. "Timeshare is not an investment plan." Timeshare is a plan that offers cheap holiday offers, making your vacations cheaper and better. The USP of timeshare is the difference it makes to your holidays. Usually, if you stay in a Gold Crown resort or a five star one, it will cost you a fortune, whereas if you own a timeshare in the same resort, the amount you spend would be much lesser. So, the timeshare is most useful when you use it, as you stand to save money as and when you use it, not when you sell it.
In fact, this topic has been brought up so many times in so many places that the Government of Florida is even thinking of passing a law to prevent the sales people spreading this notion of timeshare being looked upon as an investment plan. The law would make it illegal to advertize timeshares as an investment plan.
So, it's time we started seeing timeshares the right way. Like I've said many times, you save money with timeshare vacations, you enjoy excellent flexibility with points system, you get to explore different countries and enjoy different cultures, and you spend some quality time with your loved ones. This apart, if you make money by selling/renting out your timeshare, it's a big bonus.
I think that clears all the doubts about timeshares, investment, etc, etc.
2. Selling a timeshare is not an easy joke. The buyers get so many offers that they tend to choose the one that fits them the most. So, the sheer number of timeshares available on the resale market makes it tougher to sell yours. But, it's not THAT tough. The right way to go about it would be FSBO (For Sale By Owner). You can select one of the websites offering excellent timeshare services and place an ad. This should attract lots of buyers who would be interested in buying your timeshare.
But the most important step in placing an ad is the price you quote. Timeshare owners often quote very high prices and find it very difficult to sell their timeshare. So, your price should be reasonable. Plus, you've gotta take care of all the fees associated with the timeshare before you sell it. And you should get everything in written, verified by an attorney if you can.
3. Buy the ones that you like. It's as simple as that. This question of buying cheap ones vs expensive ones arises only if you look at it from an investment's point of view. Once you take it off, it's very clear. You buy timeshare for your vacation, your enjoyment, so choose a place that you would love to go.
In future, you would be also able to exchange it for some other timeshares that you like, as there are lots of offers in the market for that.
Bob
Timeshare is not an investment. Like Shelia suggested, please check out that thread. It's something you can use to enjoy cheap holidays at different places.
If you have a timeshare in an excellent location (Caribbean etc), peak season, good amenities, etc, you can sell it in no time. But if you don't, then probably you have to play the waiting game. Wait for someone to come and pick it up, or make an offer which is good enough to make people buy it. Usually, if your timeshare payments are due, people will hesitate to touch it. So, pay your maintenance fee and other fees associated with your timeshare properly.
Another thing buyers are wary of is the tedious buying process. Prepare all the documents necessary and provide the buyer with all the details necessary to make the deal. If you sound transparent, the buyer will have no problems.
Your question of choosing one timeshare over the other cannot be answered in a simple yes or no. You have to take into account various factors. The location plays the most important role. If you are fortunate enough to be able to buy a timeshare in a prime location, rest assured your timeshare will have good demand even in the resale market. Another thing is your budget. For a budget like $10,000, you can't expect to own something in Disney or Hilton. You have to settle with something else. So, there are no hard and fast rules in picking your timeshares. Just make sure you like the place you choose, as this eliminates the possibility of you becoming disppointed if you don't get a good timeshare in exchange.
1. Timeshare is not an investment that gives you high returns. It's meant only for vacations, nothing else.
2. Depends on various factors. The "color" of the week, the location, amenities available, and the price that you quote. It cannot be generalized; differs for every timeshare.
3. It's not about being cheap or expensive - The timeshare should be good enough for the money you pay. Nothing more, nothing less. How do you define "good?" Again, that depends on the factors mentioned in point two. But it would be a good idea to begin with a resale, to begin with.
As far as the question of investment is concerned, I suggest you check out the "Timeshare costs per year" thread in this forum. Selling a timeshare can be tough sometimes, as the market is full of resale offers. However, it largely depends on the timeshare you own. If you own a red week at a prime location, you'll have no problems whatsoever selling it, anytime. I can't give you a definite answer for the third one, but still it's always better to buy timeshare in a location where you would love to go. Don't buy it just for the sake of investing. Coz even if you don't get good exchange offers, you can always keep it yourself and enjoy your vacations.