Timeshare through rose colored glasses (conclusion)

November 28, 11:14 AMTimeshare ExaminerMark Silverman

It's the salesperson, or closer, that hammers the whole “investment in real estate” aspect of timeshare.
And it just isn't. True, the ownership is often conveyed via a deed in trust in perpetuity, the same way we own our homes. But that's where the similarity ends.

Timeshare, whether deeded or not, represents an interest in real estate, but it is not generally going to be a product that appreciates the way we generally expect our home to go up – recent events notwithstanding. The interest is just too small, supply to great, to allow that, in most cases.

Just as significantly, the marketing expenses for the developer can be 50% or more of the purchase price, and that's a big nut to overcome.

So to the extent the sales sides positions timeshare as an “investment” they are shortsighted. It should be put in a similar category as cars or computers. Nobody expects the car they bought 5 years ago, or the computer they bought 5 days ago, to be worth anything like the initial purchase price. Doesn't impact their functionality – the car, properly maintained, likely will get you from here to there for years. And after you move onto to newer and better, the car you unloaded will provide years of service to someone else.

Not quite as true for the computer, which often is obsolete in a few years. After a certain point, there is no repairing, maintaining or upgrading – there's just replacing.

Timeshare, even if it doesn't retain significant resale value, retains the same level of usability, and, actually, even more. The resort you purchased ten years ago could be traded for, perhaps 1,500 hundred resorts. Now it can be traded for twice that many.

The fixed week you've owned for 20 years can be converted to the flexibility of points through RCI, if you are so inclined, and a member of RCI.

The value of timeshare is not in its potential for appreciation, its in your commitment to providing your family the opportunity to travel together, which they may appreciate.

Timeshare is not perfect, and it is not without fault for its image problems. The industry needs to do a better job of teaching the owners what they can do even after they've left the presentation.
The salespeople need to do a better job of not over promising.

The owners need to do a better job of figuring out what all the buttons and flashing lights do on their pricey new toy.
Insert photo caption or credit here