Would you invest in a Timeshare?

Question

If yes what are the criteria's you would look in to?

How much would you invest?

How profitable should it be?

How is easy is it to sell Timeshares?

Answer 1

If you are thinking about investing in a "Timeshare company"

that is a great deal.

But if you are thinking a timeshare "week" is an investment then is a horrible idea.

Answer 2

I completely agree with Rabbit. Good answer. I have talked to a few people who have successfully invested in timeshares, but it's a difficult venture. Most people buy them very cheap either by forclosure or on ebay and resell them for about $1000 or so above what they purchased. It's very difficult and the profit margain isn't that great.

Overall, I would not recommend viewing timeshares as an investment.

Answer 3

biggest rip off in the world - not an investment - you have to pay broker several $100 up front when trying to sell  and they are all overpriced

Answer 4

"Invest"? In a timeshare? Hmm, no.

First, they tend to be high maintenance. You have a Disneyland obligation to keep things shipshape, as in cruiseboat, not tramp steamer.

Second, to keep things stocked, booked rather, you have to have a very active and focused sales and service staff.

Third, they have to stay trendy. If the timeshares down the road are doing something newer or better, then you need to do it too or that fadish among your clientele will be leaving you.

Now, if you are thinking of taking that sleep over tour and buying a fractional unit for vacations (and renting out when you won't take one there this year or that), this is hardly an "investment". I've twice come really close to signing up for such, but I just don't vacation that way so there is no advantage.

As for selling a timeshare, there are serious problems. If you are talking about the whole resort that you wanted to invest in, then with the gas crunch travel is currently down, so profits will be too, so buyers will not pay much for unprofitable, or potentially unprofitable businesses, especially ones with high overhead and expectations (see points above). If you are talking about that personal fractional thing, where you "bought" two weeks each year, ahem, look at all of those sales outfits that are bragging about how cheap you can get into one through them. They may be selling them cheap because they bought them all the cheaper.

Sorry dude, the resort as an enterprise is an investment, and this is a time to be making a list for when things are worse and the shakeout happens so you can get them really cheap. There just isn't enough blood in the water to go buying, but when things are just starting to be looking up again (the 'darkest before the dawn' concept) then you will get your best bargains.

If you are buying a fractional use share, that isn't an investment.

Answer 5

No, I wouldn't.

The time period involved is too long and the system itself is fraught with ambiguities.

Answer 6

Timeshares are not an investment.  They are an expense.  The resale market for timeshares is awful, with many people just trying to get out of them and just have someone take over the maintenance expense obligations.

To answer your questions:

I might pay $3,000 for a good one, but it would have to suit my needs and it would be second hand, not from the developer.

It will not be profitable.  Period.  I mean it.  You are paying for the right to vacation somewhere.  

It is not easy to sell timeshares at all, as I mentioned above.

Answer 7

No No No...These are not considered valuable realestate investments.

Answer 8

Are you just asking questions or have you read any of the answers in this forum?  The word "Timeshare" and "investment" should never be used i the same sentence.  Read some of the answers from others that have fallen into the investment trap.  Timeshares are inherently a bad idea, unless you get a spectacular deal on the secondary market, as a vacation route, but as bad as they are for a vacation they are many times worse as an investment.  Look somewhere else for you investment dollars, something that doesn't come with a flush handle.

Answer 9

My experience with time shares is they keep you from doing other things.   You are obligated to go there and no where else.  Just save your money and take nice vacations where you rent instead.  That's what my spouse and I do and we get to go wherever we want.

My parents inherited a time share in N. Myrtle Beach.  Its a nice place, but they only go once a year for a few days.  They just rent it out cause they are sick of going there.  It was purchased in 1982 and has only increased in value about 3Xs the initial purchase price.  They could have done much better in the stock market.  The rental income mostly just pays for maintenance fees and taxes.  It is not an investment.