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A timeshare is not an investment

By: giljo9

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Timeshares are not a worthwhile investment because the fact of the matter is that timeshares don’t have a very strong reselling market. A good investment increases its value or at least holds its value. A timeshare does not hold on to it’s value, in fact, once you buy a timeshare, it’s value drops to somewhere between 50%-30% of their original value the minute you sign on the dotted line.

The sales people will tell you that the price of timeshares has steadily gone up. The fact of the matter is that there so many websites on the internet selling pre-owned timeshares at a rate about 50%-30% lower than the original price. The reason for this is a timeshare is not ownership of a piece of property but rather ownership of a piece of time itself, one week to be exact.

A timeshare is not an investment. Timeshare salesmen used to push and describe timeshare ownership as an investment. They used to group it together with stock, bonds, and real estate. But this is false advertising, and pushing a timeshare or pitching it as such is now actually illegal based on the Consumer Protection for Unfair Trading Regulations act of 2008. It is false to claim that a timeshare is a good investment when the secondary market price is only a fraction of the selling price.

Timeshares do not appreciate or increase in value over time; they depreciate or lose money over time. There is no way you’re getting or earning money by buying a timeshare off of a hotel. So it is a fallacy for these salesmen to refer to a timeshare as such.

An investment is something that generates capital for you. A timeshare doesn’t generate money for you; you would actually lose money if you buy one. Therefore, a timeshare is not an investment.

A timeshare is a means to an end; it is just a luxury, a vacation. A timeshare is supposed to be a means to a vacation, so you can rest and de-stress. It is not supposed to be a problem that would cause you to fall into debt.

Aside from the original cost of the timeshare, timeshare owners are charged every single year in maintenance fees, but the amount that is owed is unpredictable on an annual basis and almost always increases every year.

Timeshares don't provide for any kind of freedom. You pay every single year without fail. You have no control over how much will actually be charged for you. That is what the fine print says. Resorts reserve the right to assess their owners with any kind of fee for renovations, natural disaster damages, and even a bad economy. Purchasing a timeshare with a hotel gives them the right to base charges on whatever they deem fit. How many people can actually say that they will go on vacation once a year without fail?

A timeshare is a luxury commodity; something that does not do well in times of economic turmoil. How many people can actually afford to take a luxury vacation yearly? That’s what a timeshare practically is: a vacation that you’re obligated to pay for, year after year, regardless of whether you enjoy it or not.

Article Source: http://depositarticles.com/

For more travel and timeshare related articles and news updates, please visit the Direct Transfers blog.

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