Timeshare Examiner Classic: Do not purchase timeshare (conclusion)

December 2, 10:25 PMTimeshare ExaminerMark Silverman

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Readers of my column may get the impression that I think every body should own timeshare. Couldn’t be further from the truth. Vacation ownership is not for everybody, and here are some ways to tell that timeshare is not for you. At least not yet.

1.    If you have only gone camping in the past. Perhaps you simply love the outdoors; maybe it's budgetary. Even if you think its time for a change do not, I repeat, do not make a ten thousand-dollar investment on spec. Instead consider a sampler program; some showrooms offer it as an exit program. They tend to vary, but as a general rule, they provide an opportunity to visit a resort, lock in price and incentives, and enjoy many of the other perks of ownership. The cost, usually under than two thousand dollars, is less than it would cost to rent - usually the entire amount can be applied to a future purchase.

2.    Do not purchase timeshare if you see it as a means to finance your retirement or put your kids through college. Yes, you can rent your time out, but unless you have access to a pool of willing renters it can be more bother than it is worth. There can be advertising expenses; dealing with credit cards, and potential damage to the unit. As the owner, you would ultimately be responsible if your renter caused damage.  You could hire a management company. In fact, many properties offer that service, but that means splitting the income. Of course, 70% of what the management company earns may generate more income than you can make on your own. And there’s always the very real possibility that the time will come and go with no tenant. That means you didn’t use it, you didn’t make any money on it, but you're still paying for it. The only possible exception I'd make is if you own the French Quarter of New Orleans, during Mardi Gras. Even then you might need to rent it out every year for more than ten years just to break even.