Timeshares.

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A few weeks ago I was at a shopping mall, and there was a promotion booth set up for a timeshare company. Not knowing anything about timeshares I went over to inquire about it.

After a few minutes of listening to the sales pitch, the concept did not sound good to me. I asked several questions in the lines of the practicality, convenience, and financial investment of being a timeshare owner. I did not get any good meaningful answers that would make timeshares sound beneficial for me. I was told there are monthly maintenance fees, on top of the mortgage, to pay for upkeep of the grounds, for something I would only use a week every year.

I asked the timeshare salesperson "why would I want to buy a timeshare and be stuck in a contract to pay monthly fees, if I could just use a hotel exactly when and where I want to vacation?"
Salesperson answered "because you have to book a hotel, and hope there is an opening when and where you want to vacation."
I said "well, if one hotel is booked I could just call another hotel in the area. Also, are you telling me that I am guaranteed a timeshare slot whenever and wherever in the world I want to vacation?"
Salesperson "we cannot guarantee that a timeshare will be available at any given date or location, or that a timeshare exists where you want to vacation, but we would conveniently call you and let you know when a time slot fits your requirement."
My head was spinning now, and I replied "so, after making a large down payment I would pay monthly maintenance fees, a mortgage payment, and I am not guaranteed that I can use the timeshare exactly when and where I want or need? I have to limit myself to places where you have timeshare locations. And, for my convenience you call me to let me know when I can vacation?
Salesperson said "we have thousands of timeshare owners that vacation all over the world, we have locations everywhere you could possibly want to be at. Timeshares are passed on from generation to generation in many families. Its a great investment in your families future."
I asked about two beautiful beach towns in Asia where my wife and I like to stay when we visit her family in Asia, and always have choices of several hotels; the salesperson said "they are not sure if they have timeshare properties in those small areas of Asia."

I know, I know, timeshares are not meant for everyone, and obviously don't work for my needs.But, today I talked about timeshares with co-workers and one of them said his neighbor lost a bunch of money on a timeshare when they went to sale it after owning it for just a few short years. The co-worker said his neighbor discovered how bad of an investment timeshares are shortly after buying it, and ultimately lost money when they tried to dump it. The other co-workers couldn't make any sense of timeshare concept either.

Though I have never personally known anyone that bought into timeshares, apparently a lot of people do buy them.
My question is why do people buy timeshares when there are plenty of hotels and resorts everywhere around the world. And you can haggle prices on hotels or just shop for best rates online. And, you use hotels for the night, week or month and you're not locked into a contract of fees every month. I'm sorry, but to me, it sounds like the scam of the century.
 
Timeshares are a rip-off!!! As a former Realtor, I know this to be true.

You get pennies on the dollar when you try to sell them. Its an absolutely BAD INVESTMENT!
 
People usually get suckered into them through a high pressure sales presentation. As you figured out, they generally don't make much sense.
 
The only way (maybe) is to buy out someone who already has one. (See above, pennies on the dollar...)

But buying "new" really doesn't make sense.

Makes even less sense with services such as AirBnB popping up.

oilBabe and I rented an efficiency apartment in Cambridge for 1/2 of what a hotel costs via AirBnB. We made our own breakfast each morning and then toured the city. We were about a 5-10 minute walk from public transit.
 
A simple math of time share value - marketing profit: A 2 bedroom condo somewhere in Orlando value at $150k converted to timeshare can be sold for $10k/week for high season(30 weeks total) and $6/week for low season(20 weeks total) with 2 weeks off for cleaning.

The total selling price of timeshare of 50 weeks is $420k vs $150k value. Timeshare promoter profits $270k before expense(s), and probably no less than $150k after all expenses.

All values above are example, not actual numbers. If just means to show why there are many timeshare promoters everywhere. They are willing to give $100-200 to attend 1 hour demonstration to anyone.
 
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I would imagine that timeshares for pennies on the dollar might be an ok deal if the maintenance fees aren't too expensive.

I'm not interested in buying, but people I know (a couple coworkers) like them. However, the coworkers are married with no kids. That probably helps, a lot.

But I can't see paying the amount of cash to buy one new.

The person we ran into selling them at someplace (Hawaii perhaps) tried to make it appear so "high end", and how it's a "lifestyle"...
 
The wife and I stayed at a Westin in Key West. They had a time share sales spew in the conference room. My wife and I attended it and abruptly walked out on it. We spent $700 to stay there for two days.
 
Why?

"There's a Sucker Born Every Minute" - P.T. Barnum

Talk about a financial black-hole, constantly seeking SUCKERS! Not to mention a shark-infested industry constantly seeking BAIT.
 
When the real estate crash hit you could buy a timeshare on eBay for very little. My brother bought two. One at a ski resort and one a rv beach resort. Of you're very careful, buying second hand can make sense. Never pay retail.
 
Originally Posted By: JHZR2
I would imagine that timeshares for pennies on the dollar might be an ok deal if the maintenance fees aren't too expensive.


The maintenance expenses are about the same as what a hotel room would cost you for the equivalent amount of time.
 
I only know one person who has been satisfied with his timeshare purchase. On the other hand, I've heard a lot of horror stories from people who got swindled, who couldn't swap properties like they expected and who couldn't sell them when they wanted out from under.

And as an investment, they may be appropriate if you like losing money. Like someone else posted, run away.
 
Worse than a timeshare is a "vacation club". You buy in for $20K to $30K, get a couple weeks of free vacation at the company's resorts, then a good discount off any future vacations for the next 20 years. But is the discount off list price or what I can get it on BOOKIT.COM.

If the company goes belly up, what do I own?

This was offered at Secrets/Now hotels in Mexico. Love the hotel but not interested in a "vacation club".

Wife is an asst. attorney general. She reads the fine print.
 
Time share's were big in the 80's, a lot of people here got suckered via high pressure sales (and a free meal
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The math just dosent add up.

Plus, there is no guarantee that up-keep will be maintained over the years.

We have used a friends TS in Hawaii, we pay just the maintenance fee (maid fee) for the time we use it, but honestly, it's still no great deal.

Air b&b can be a much better deal.
 
It's a worthless investment and actually a liability as they are not typically sellable except maybe free.

Basically you are signing up/prepaying for a commitment and yearly fees to go on vacation at same spot every year or play some lottery for another. If you don't go you still pay.....

Anyone who says it a great deal was sold down the river and cannot face reality they were ripped off.
 
They are a rip off, as is IMHO buying vacation property. I'd rather rent, its cheaper and more flexible.
 
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