Tips On Timeshares
Timeshares are often marketed as an investment, but they are one of the worst investments that you can make. The reason they are marketed this way is simple - it's much easier to sell something that sounds like it will make or save you money than something that will cost you a lot of money. An investment is supposed to increase in value, yet timeshares typically lose 50% to 80% of their value as soon as you purchase it. While the sales person will give you all kinds of reasons that it will supposedly save you money, in all likelihood it will cost you much more than you could have ever imagined. Here are 7 important facts that the timeshare sales person will likely forget to mention:
1. Timeshares are simply a terrible investment.
2. Whatever the fees are now, they will increase and special fees will be assessed.
3. Unless you have a prime vacation date, trading will be nearly impossible (which means you'll have to vacation at the same place each year).
4. Financing a Timeshare means you pay double digit interest rates.
5. It costs money to travel to a timeshare (when they add your costs to vacation they will include the travel costs, but those costs will mysteriously be left out of the cost of the timeshare).
6. For most people it makes little sense to buy a timeshare (and if you do, you should always buy used, not from the resort sales agent).
7. It will be extremely difficult to get rid of your timeshare.
If you currently own a timeshare, sit down and run the numbers of what it is actually costing you. You may be surprised at how much that week really costs and if that is the case, the sooner you get rid of it, the better for your personal finances.
Comments
My boss has a theory on timeshares. He buys them on the secondary market. So, he buys in after the 50-80% drop.
Timeshares are only a "terrible investment" if you don't know what you are doing. I have purchased and sold several timeshares at prime, 5 star destinations on the secondary market and have never regretted it. For example, I purchased a unit in Palm Springs (prime weeks) at a 5 star location for $3000 from the original buyer. She paid $18000 to the developer for the same unit two years earlier. Yearly fees have not increased in 8 years, and because it's a prime destination, I can trade my unit for one in the best resorts the world. Again, you have to be knowledgeable about the market.
What planet are you from? Timeshare has not been sold as an investment since the 1970's.
What planet are you from? Timeshare has not been sold as an investment since the 1970’s.
hmmmm, you're not the only one to ask me that question about the planet ;) - while I agree that most do not try to sell timeshares as a "pure investment" if you go into a timeshare presentation, they will market it as an "investment for vacationing" or some other similar tactic. What many do is try to position it as an investment of some type and you will often hear the word investment in their presentations.
Have any suggestions on getting out of a timeshare you no longer want and nobody will buy??
Have any suggestions on getting out of a timeshare you no longer want and nobody will buy??
Unfortunately this is a big problem with a lot of people. For your options, a lot depends on the particular circumstances of the timeshare you own. If you have it fully paid off, you might want to consider donatin... it to charity. If you still have a loan on it, this will not be an option, but you might want to try and get someone to simply take over the loan. Try ebay. Take out ads in local newspaper in the area where the timeshare is located. If you decide to go with a reseller, just be sure not to hire a reseller that charges an upfront fee - these services are a complete waste of money.
[...] A Timeshare Ia A Terrible Investment - Sound Money Tips discusses how timeshares are one of the worst investments you can make. [...]
We sat through a timeshare presentation in February. Not only were the travel costs omitted from the cost side of the cost/benefit analysis, they were included in calculating the money we'd save off of vacations elsewhere. After crunching the numbers, I concluded that timeshares are an excellent investment ... for the developer, the companies that buy and resell used timeshares and the banks that finance the loans on them.
Timeshares make sense if you buy them used.
Timeshares are a pain in the neck.Period. I bought mine a few years back and could not sell it or give it out. Finally last year, I gave it away to Timeshare Solutions, LLC, and now they are not paying the fees on the timeshare and I may need to sue them if the they don't pay the fees.
I am also having a problem with Timeshsre solutions not paying fees. What was your outcome?
Kris, we are having the same problem. How did your situation resolve?
Reading this post makes me feel much better about my decision to not purchase a timeshare during my recent trip to Cabo. I was feeling like they were giving me the best deal ever, but realize now that buying used or renting on an as needed basis is a much better idea.
we too are having problems with a company known as Timeshare Solutions. Our contact people there are Bill Ellis, Bill Armstrong, and Bob Downey. Please-do NOT do business with this company (and I use that word VERY loosely) We have paid them $800.00 so far-and now we are not getting any response from them. Most times their voice mail is full so that you can't even leave a message for them. complete Fraud!!! barb-wisconsin
fuck timeshares
TIMESHARE SOLUTIONS SUCKS !!!!!!!!!!!! DON'T BE TALKED INTO ANY DEALS. THEY STEAL MONEY FROM PEOPLE. STOLE 400.00 FROM US. FRAUD FRAUD FRAUD