I would stay away from this market. I just sold a timeshare back to the company this past December. After we bought the place we found out there were so many things wrong with the timeshare. The seller kept telling us it was possible to stay at other timeshares across the country and they had an affiliation with other timeshares across the world.
After looking back on the timeshare, it was like I bought a used car from a used car salesman who talked the talk but didn't walk the walk. Everytime I tried to book a place they would tell us it's in the wrong color, we're full, or you need to upgrade your timeshare. Plus the monthly asociation fees didn't help. A timeshare may be good for some but there are many who wish they never bought one.
I would seriously stay away from this market. I wouldn't even put it in the category of real estate investing.
I have looked at this on and off for a few years. The math just never works. I have had offers for people to give me their timeshares for free and the numbers still don't work, so I think there is no hope. Only people who make money on timeshares are the sellers and developers.
Global economy is not at its best moment, and even if it was good, the truth is that nobody wants to waste his money in something that could be worthless. With the ever increasing fees, and the current financial difficulties, it seems almost impossible to maintain a timeshare. Because of the costs of owning a timeshare, many timeshare owners find it necessary to get rid of their fractional ownerships. Some of them try to sell them, some others try to rent them or even donate it, but the vast majority does it with no success:
I agree on many points regarding purchasing timeshare
We own several timeshares/points via
Wyndham foreclosure / repo auctions (purchased over the last 7 years)
“I wouldn't even put it in the category of real estate investing. “
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I would totally agree, it's more of luxury investing
“ monthly association fees “
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Monthly fees could range from $37 to $179 per month
( depending on the services and points plan you purchased )
“i have a time share (hilton). it makes me take more vacations “
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I totally agree – heck we got an Exec rooms in Florida for a great deal
Current market : I would invest my funds in Real Estate properties versus timeshares. Timeshares/points our hard to re-sell in today’s
market.
Timeshare/points is good for personal vacation usages.
Example: we sell 5/8 of our points on line auctions, which leaves
us a little profit to go over vacation maybe twice a year.
Regardless, we always perform or require a title search before closing
on timeshare purchases. ( due diligence )
Basically : purchase a buy-hold or flip and profit in today's market
From some of the articles I've seen about people trying to get out of their timeshares, I think you would be better off just paying for a hotel for your vacation. It should tell you something that people actually have to pay companies to take their timeshare from them.