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Why a timeshare is a BAD investment

 

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Question:

That sales guy told me buying a timeshare is a smart move. I'd get a foot in the hot real estate market and could even make profit renting it out. I'll even imrove my credit history by making regular payments.

Answer:

The last part about building credit is true. The rest - in most cases - is not.

Facts:

  • The developer pays staff (on commission) to lure you into a sales presentation. Who pays that commission? Right, you, the buyer.
  • To entice you to listen to their 60 minute presentation, you get a GIFT. That can be a $50 - $150 value, typically some sort of coupons. I've once received $100 in casino money. Let's say 20 people come into that sales presentation - that's $2,000 in gifts. Who pays for that? The one person out of the 20 who signs the paper.
  • All the sales people at the presentation wear Armani outfits and drive big BMWs. Who pays for that again? Right, you, the buyer.
  • A good investment increases its value or at least holds its value. The sales people will tell you that the price of timeshares has steadily gone up. What they do not tell you is that there are web sites where people *desperately* try to sell their "used" timeshare - typically for 30%- 50% of the "new" price.
    I once brought the resale market up when I spoke to such a sales person and they dismissed it as "USED" (as if it was a 10 year old car).

Note:
On the right hand side you'll see some ads for timeshare resales at a fraction of what the developer asks for. Go check them out.
At those prices, a timeshare actually may make a lot of sense, depending on your personal situation.


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Comments:

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2006-05-10, 23:36:25
anonymous from Canada  
How to cancel a timeshare. We bopuight it on May 3 2006 at 3.00 p.m. at Orlando but we live in Canada.

My e-mail: channan@telus.net
2006-09-20, 13:26:38
anonymous from United States  
I just off'd my timeshare albatross with a company called Timeshare Relief. I went every route imaginable to get rid of it but this was the only way I found to get the title completely transferred out of my name and put an end to ever-expanding maintenance and assessment fees. I searched high and low and this was the only honest to goodness way out I was able to find. Good luck to you. I realize you posted some time ago but if your experience is anything like mine I'd guess you're still trying.
2006-09-27, 19:16:14
anonymous from United States  
I also got rid of a timeshare with Timeshare Relief. They are definitely worth talking to. You can find them at: http://www.timeshar..elief.com/
2007-04-15, 19:40:54
[hidden] from United States  
Please give info on validity, and trustworthiness of TIMESHARE RELIEF>
2007-06-04, 18:45:31
anonymous from United States  
They have a good rating with the Better Business Bureau of which they are a member. They scored a B, which is high for a new company and is reputable by the BBB standards. So they're reliable as far as the BBB is concerned. Another website you can check out for more information is http://www.timeshar..group.org/
2007-07-23, 14:34:24
anonymous from United States  
rating
Of course sales guys will tell you timeshares are a good deal. They are...to the sales guys who collect commissions on them. The article is correct in directing timeshare-interested individuals to resale markets, where you can collect a timeshare for a fraction of what any corporate rep will sell it for. But in general timeshares are a bad deal all around.

A few of the other comments mentioned Timeshare Relief. I personally have never gone through them but some friends of my parents found them very helpful. They might be an option worth investigating for those who have no other way out.
2007-07-24, 08:57:05
anonymous from Houston, United States  
rating
The salient point here seems to be not to believe everything a sales pitch tells you. If you vacation a lot to the same area or would like to try your hand at timeshare exchanges, purchase one on the resale market. There's no reason not to. You'll get the same timeshare (sans the sales pitch) for around a quarter of the price, typically. That being said, be prepared to hold on to your timeshare for a long time, since the resale market is what it is. It's not an investment, people. It's a vacation property.
2007-08-06, 10:49:36
anonymous from United States  
rating
There's a lot of misleading information out there about timeshares being impossible to get out of. It's actually more simple than we are lead to believe. I found this instructional video about title transfers, a means byb which timeshare owners who want out can have their deed transfered out of their name: http://www.vmix.com..o/976089/
2008-08-07, 02:42:16
anonymous from India  
good info
2009-01-29, 12:04:27
anonymous from United States  
rating
I love timeshares! No, I wouldn't ever buy one, they are an awful deal, but for my last several vacations, my wife and I have used them. We go to their little presentation and tell them NO! and for that we get 2-3 nights free on the timeshare or in a local hotel and they also give us several tickets to shows in the area and such. Probably costs them $200+, but doesn't cost us a thing except our travel to get there and whatever else we spend there. Of course, I wouldn't recommend this is you have trouble getting sucked into high pressure sales presentations, but if you can keep saying no, you are golden. Also, sorry to all you people who did buy them, but your fees and such are paying for my vacations now!
2009-04-16, 08:34:25
anonymous from United States  
TIME SHARE SUCKS!!!
2009-12-30, 21:53:56
anonymous  
I always heard that timeshares were a rip off. But I'm like one of the previous bloggers. My husband and I got a deal to vacation in HAWAII for 5 days and 4 nights, 5 day rental car and Lau tickets for 500.00 just to view a 60 min. presentation. We are already prepared to play the game and tell them no!!! I know we will not be buying a timeshare.
2010-04-03, 15:09:20
anonymous  
My husband and I bought a time share back in 2002 when we went on vacation to Virginia Beach. The time share finally was paid of last year, however, we have an outstanding maintainent fee of $1,850.00. The company offer us $500 plus the maintenance fee to buy it. That's roughly a quarter of what we paid for it. We haven't used the timeshare since we bought it and it hurts my heart to see all that money we spent. I wish we would have done our research before we bought it.
2010-04-03, 23:01:03
anonymous  
My husband and I bought a time share back in 2002 when we went on vacation to Virginia Beach. The time share finally was paid of last year, however, we have an outstanding maintainent fee of $1,850.00. The company offer us $500 plus the maintenance fee to buy it. That's roughly a quarter of what we paid for it. We haven't used the timeshare since we bought it and it hurts my heart to see all that money we spent. I wish we would have done our research before we bought it.
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