Timeshare Trap

Timeshares are one of the worst investments you can make. This journal is to inform people who are thinking about purchasing a timeshare not to do so and help those trying to get rid of their timeshare.

Sunday, February 12, 2006

Another Timeshare Article

Our Comments: Another article on timeshares this time in the San Francisco Chronicle. While not as informative as the Chicago Tribune piece, it does highlight a few of the pitfalls of timeshares at the end of the article. While the article says that timeshares can work for cautious buyers, we'd say "extremely cautious buyers who know all the facts beforehand" which would mean that for most people timeshares being worthwhile would be the exception rather than the rule.


...Don't consider a timeshare an investment; the value of a timeshare interval almost never increases. If you like the idea, figure the buy-in price as a prepayment on future vacations, to be amortized over a period of years. Be skeptical about puffed-up claims for exchange opportunities in exotic locales. The most common complaint from timeshare owners is that they can't ever find an acceptable exchange interval.

Watch out for bait-and-switch or upgrade pitches. When owners complain about lack of exchange opportunities, promoters often urge them to upgrade to better located and more expensive intervals, which is supposed to expand exchange opportunities miraculously. Also beware of escalating management, maintenance and other fees. The developer/owner/manager may increase fees with no effective constraints.

If you like the idea, the best strategy is to buy a resale. Timeshares, like new cars, can lose 50 percent of their value as soon as you buy them. In the resale market, you can buy at 10 to 50 cents on the dollar of the original price. Check with a broker in an area you're considering, or go online to one of the many timeshare resale sites. Entire Article


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