Are Timeshares Overrated?
Timeshares are a hotly debated piece of the vacation real estate world. My parents actually own two which will be passed 
down to my sister and I eventually. They’ve never had any problems, but they have bought into Marriott resorts in Orlando and Hilton Head. These two can be traded in exchange for points toward a stay at any international property owned by Marriott or a partnering company. It’s been a lovely experience that allowed them to begin taking lovely vacations.
So why have timeshares gotten such a bad reputation? Well, here are a few of the pitfalls to watch for:
Low resale value: These properties are a lifelong investment, because resale will result in a financial loss of up to 3/4 of the property’s initial value.
Unpredictable future: The vacation industry has a changing nature. If your company sells the resort you bought into, it could result in higher maintenance fees or a change in the level of customer service, etc.
Disreputable companies: Timeshares can be a good deal, with careful research. Owners should not be subjected to things like blackout dates - that’s a red flag. You want to deal with a reputable company with plenty of properties worldwide. Everything should be in writing and try not to get locked into visiting only one place. Try to find a flexible exchange system so you can experience different vacations by trading in your standard week in the mountains or by the sea, etc.
Aggressive sales tactics: We’ve all heard of that person who took the “free vacation” and listened to the sales spiel with no intent to buy, yet somehow returned home with a new addition to their “investment portfolio.” First of all, timeshares are not an investment. They are good for people who like to vacation a lot, but they are not going to reap a profit down the road. That is, unless they are inherited and then sold. Secondly, timeshares can be purchased for pennies on the dollar from people who are desperate to escape their contract.
Before acquiring a secondhand timeshare agreement, inquire as to why the seller wants to sell. It may be that they simply don’t travel enough to make the timeshare expenses worthwhile, or it might be that their company is not ideal. Never fail to research the company, no matter the purchase method. And research timeshares in general to make your buying and ownership experience pleasant.
