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1 year, 8 months ago

Are timeshares a good investment?

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coltech88 | 1 year, 8 months ago
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In a study provided by Dr. Martin Hovey from an Australian university he says "In most cases in regulated markets timeshare is sold as a consumer product. It is not sold as an investment and no financial advice is given."

The problem is two-fold when considering timeshares as investments: (1) valuations of properties fluctuate with market pressues and (2) costs that are passed on to the timeshare owner, including cost of sales, maintenance and exit costs. The problem with the market price fluctuations is that this is a speculative market and this is a lousy economic environment. As far as costs go, the timeshare industry has done a poor job of reducing their costs, thus making timeshare purchase as an investment much less attractive to the wider market.

Courts in the U.S. have ruled that timeshares cannot be considered a security. But purchases do have risks as do securities, that includes marketability if the owner decides to sell, loss of liquidity in their assets, and rising costs of things like maintenance, operational costs and taxes imposed by local governments. These are the most outstanding risks of timeshare purchases.

There are formulas provided within this report that you can use to calculate the investment potential as compared to room purchases at resorts and hotels if you wish to pursue this further. If you are seriously considering a timeshare purchase, then I highly recommend reading this document which is cited below.

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magmatic | 1 year, 7 months ago
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In short, no...they are NOT good investments. Well, unless you're the one coaxing the suckers to buy from you.

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ginamichellesattic | 1 year, 8 months ago
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Interesting question. I just recently sold two time shares for my Mom and ex husband and it was a bit surprising to see how much each had lost it's value.

The one they spent $15,000 on and we ended up selling it for just $1200. Big loss. I did alot of research prior to listing them and it seems that si the general consensus. At this point, where the economy is, they have lost their value.

On the upside, if you want a timeshare not as an investment, but to simply take vacations and utilize it yourself, it is a great time to buy a timeshare. You can get awesome deals. Check Ebay first. I listed Mom on my own and cut out the middle man. Be sure to check their feedback first. See how many transactions they have had. I look for 100 or more transactions and atleast a 99.2% feedback.

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megane | 1 year, 8 months ago Report

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radar01 | 1 year, 7 months ago
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If your looking at timeshares as an income producing investment, there terrible. You'll take a loss the day after the purchase. If, however, you want it as a means to provide yourself with a vacation destination then they may be beneficial under some circumctances. Will you be able to travel to the location of the timeshare. I have a nieghbor who purchased a timeshare in St. Marteen, used it 2 times then needed to sell it because they could no longer afford the airfare. Selling it resulted in a 25% loss. If the travel is not a problem, you still need to be concerned about the other shareholders, the monthly fees your required to pay and any gaurantee that the unit(s) are available when you want. Consider also the cost of staying at a quality hotel in the same area as the timeshare. You may find that that option is actually less expensive than a timeshare. In general I'd advise against a timeshare as an investment. If you want a reasonably secure investment vehicle I'd recommend investing in Gold, Silver or Platinum.

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jentyree | 1 year, 7 months ago
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I say - Maybe.

It depends on alot of factors...
Can you afford it?
Will you visit / stay there often?
Do you have the money / time for it?

If you plan on going there often, and its affordable, and in a place you like to be, then by all means, go for it.

If you want to just because your curious, then I say wait.

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Owls | 1 year, 8 months ago
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I think they outlawed new timeshares over here in Hawaii.

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fgual | 1 year, 7 months ago
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They are a bad investment. The market is flooded with people wanting to sell their timeshare, because either they don't have time to go there, got tired of it, they are unhappy with what they got, and more.

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sherperki | 1 year, 7 months ago
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A timeshare can be a good investment. If you are the type of person that takes a yearly vacation or likes to just get away on the weekends. If you can pay cash for it, it's an even better deal. But, if you purchase it and don't use it it is like anything else and not a good deal. So, do your research, some timeshares work on weeks, some on points, some you can rent out or trade up or down so really research. I have taken several vacations and stayed at some really nice timeshares. I just call the timeshare and tell them that I am interested in buying but would like to try it on first. They usually give you a free weekend or a huge discount. You are required to go to a meeting but that is the information you want to make an educated purchase. At the end of the meeting hold your ground and say you are not just sure about purchasing. That you really like or dislike where your staying but would like to check out some of there other locations before you buy. They will usually offer you a huge discount on a package deal to another resort. We paid $500 to stay in a beautiful 2 bedroom resort in Orlando, FL for 14 days with a balcony overlooking the pool. The company even threw in 4 free passes to Busch gardens and Seaworld. It was a great trip. We did have to do another meeting but I held my ground on we just needed to think about it and that another timeshare had offered discounts much larger than theirs. They gave us a whole bunch of stuff at that point like t-shirts and free golf. I eventually, did buy but not from the resort. I found the one that I wanted to be involved with and bought it from an individual for a whole lot less. We have enjoyed many great adventures and it is a relief to not have to hunt down a good hotel deal every time we travel.

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bobfirestone | 1 year, 7 months ago
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No a timeshare is a horrible investment.

You pay to buy it. You pay to maintain it. The resale value is pennies on the dollar.
Your annual fees can be just as expensive as renting a hotel room for the week.

If you vacation in the same place the same week every year and buy used you can get a deal that is not too bad but never expect a timeshare to create a return.

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