Timeshares Are Not Investments

Timeshares are definitely not considered as investments. A good indicator of such is the fact that a considerable number of timeshare owners today are wishing to get rid of their timeshares. Purchasing timeshare real estate is not in the same nature as buying traditional real estate properties. The reason is that timeshares always depreciate in value over time. Its value over time is similar to cars as both of them lose value as time passes.

Potential timeshare buyers must not view their timeshare acquisition as an investment. Prospective buyers should consider their timeshare purchase as more of a lifestyle choice instead of a real estate venture. In fact, timeshare properties should not even be considered as real estate properties at all. Timeshares do not appreciate in value as they age in contrast to “real” real estate. More so is the fact that in purchasing timeshares, owners are not given outright possession of the property but are merely granted rights to be in possession of the property at a given span of time each year.

Hence, timeshare presentations advertising timeshare purchases as sound investments should be ignored by would-be timeshare buyers. One of the more popular advertising strategies portraying timeshares as an investment is advising potential timeshare buyers that they can rent out their timeshares. Renting out timeshares to other users is possible yet rental fees are a far cry from the original acquisition price of the timeshare as well as the costs of periodic maintenance fees. Thus, more existing timeshare owners choose to seek relief from timeshare liabilities instead of renting them out.

A lot of timeshare owners today are displeased with their timeshare purchases and are taking steps to get rid of their timeshare vacation packages. Most of these timeshare owners purchased their timeshare vacation packages with the mistaken conception that purchasing timeshares are a lucrative form of investment. However, the truth is that timeshare properties are the worst investment that anybody could ever possibly make.

Many are mistaken over the fact that timeshare properties are the same as any conventional real estate. This is a very wrong assumption as timeshare properties have very different characteristics compared to regular real estate properties. The most critical difference between the two is that timeshare properties do not appreciate in value through time. Contrarily, timeshare properties lose value over the years. As a matter of fact, most timeshare properties lose almost half their value from the moment the ownership is conveyed from the developer to the timeshare owner.

In addition to this, most timeshare properties in the resale market today cost only a fraction of their original prices. In fact, a huge majority of the timeshare properties circulating in the timeshare resale industry cost only as much as 30 % of their original prices. Worse, a casual search on eBay would turn up any number of timeshares with greatly ludicrous prices of about $ 10 US dollars or even less.

For this reason, those who would like to invest in timeshares as a lucrative form of real estate venture should desist from their intended speculation. Would-be investors would be better off investing in more risky ventures with small chances of worthwhile gains. The existence of a small chance to profit is a lot better than no chance of profit at all. Plus, the difficulty in selling timeshares today has coerced a lot of existing owners to seek different modes of timeshare relief—another sign that timeshares are no investments at all.