Wyndham Shares Plunge, Marriot Lay Offs

We've been rigorously tracking the effects of the current economic downslide here at the Timeshare Relief blog. Back in August we reported that Wyndham published signs of a slump. Now the Forbes headline reads a full-on plunge:

http://www.forbes.com/feeds/ap/2008/10/06/ap5515025.html


Shares of Wyndham Worldwide Corp. plunged with the broader market on Monday after the hotel company announced changes to its timeshare business and restructuring charges.
Indeed, and the effect on earnings will only be ascertained after the quarter's end. What changes can we expect? One humorous comment on the article suggests that Wyndham will be taking refrigerators out of their timeshare rooms and replacing them with mini bars...

Wyndham plans to refocus its timeshare business beginning in the fourth quarter. The Parsippany, N.J.-based company will shift its sales and marketing efforts to consumers with higher credit quality and cut back on timeshare development.

So, in other words, we can expect more timeshare resales...

Wyndham said its timeshare business "performed well" in the third quarter with slight year-over-year gains in sales, tours, and volume per guest. The company said its consumer finance portfolio also continues to perform within expectations.
But the 4th?

Wyndham's stock has dropped more than 20 percent since Marriott International Inc. (nyse: MAR - news - people ) said Thursday that its timeshare sales have dried up amid the tight credit market and cutbacks in business and consumer spending.

Indeed, and the stock market's nervous activity in the last week certainly will not assist this.

Marriot has problems of its own:

http://www.etravelblackboardasia.com/article.asp?id=56113&nav=109

"Marriot Profit Plummets in Uncertain Times"
Marriott adds that its profits in 2009 will be difficult to predict in this current economic instability.


Don't forget that title transfers through companies like Timeshare Relief remain an excellent method of escape for individuals who simply cannot break free. With the economy crumbling around us, it will become even more difficult to make monthly maintenance fees on an unused timeshare, and many may find their property unsellable at any price. Timeshare Relief is here to assist these individuals who may be burdened by their timeshare.

Timeshare Presentations Still A Source of Humor

A highly relevant news item about Las Vegas was published by Reuters yesterday. Heading off the article:

Sue Garrett, in Las Vegas for a birthday party earlier this month, went to what she considers extraordinary lengths to hold down the cost of her trip.

"We decided to sit through one of those blasted timeshare presentations to get a free hotel room," said Garrett, who lives in Los Angeles. She turned down the timeshare but earned herself and her husband a stay on the Las Vegas Strip for her trouble.

If only others had the same will power! Nevertheless, the article details how Las Vegas is finally starting to feel the burn, as it were, of the recent economy downturn, and the development makes sense. As we've covered extensively in other blog articles, folks have less money to spend on gas and airfare to get them to vacation spots, and less money to spend once they arrive. To pick up the slack, many non-timeshare resorts are offering discounts and vouchers just to attract more travelers. For Las Vegas hotels, the emphasis is on gambling, and in order to keep the necessary cash flow pumping most hotels need their slot machines and card tables full of consumers.

The same is true of timeshares, but -- in the case of fractional ownership timeshares -- the individual is already paying for, and owns, a resort that they cannot use. It's a bit like being a business owner in a tough economy -- you live and die with the ebb and tide of money.

That's part of why Timeshare Relief exists...to give some hope to those investors who bought more than they bargained for. And by the way...we don't recommend Sue's method for a budget vacation!

San Francisco Timeshare Examiner

If you live in San Francisco and own a timeshare, or are thinking of buying one, you might be interested in a new column on timeshares by Mark Silverman. In the very first entry, Mark invites readers to write in with their timeshare-related questions and grievances.

He also makes this highly astute point about timeshare resales:

One of the most frequent inquiries is how to sell your timeshare. A couple of ways to address that – first, let’s look at the reasons you made the purchase in the first place. If your expectations aren’t being met, it could be you were over promised at the sales presentation. Or perhaps you have an unreasonably high expectation for what the program can do for you. Many frustrated owners simply are not working the system to the best advantage.

If you are committed to selling, we will focus on the best methods to do that. And minimizing the expense and inconvenience involved. As a general rule, you will not be happy with what you get for your timeshare – remember, it’s not what you get out of the sale – it’s what you get out of.

We couldn't have put it better ourselves, and many individuals turn to Timeshare Relief for precisely that reason -- it's not what you get out of the sale but what you get out of.

Hawaii = Safe Timeshare Harbor?

According to kauaiworld.com, timeshare sales have remained strong despite the flagging economy and its effects on the hospitality sector.

In their words:


Timeshare exceeded hotel occupancy by nearly 20 percent statewide, according to an American Resort Development Association’s Hawai‘i Chapter report last week. The association predicts Hawai‘i timeshare will continue to maintain its high occupancy figures throughout third quarter 2008, evidenced by the confirmed bookings through the month of September reported by Hawai‘i timeshare operators. Timeshare represents about 10 percent of the state’s total accommodations inventory, but is seen in a greater concentration on Kaua‘i.

“These figures demonstrate once again that even during downturns in tourism, timeshare continues to stand out as a reliable source of revenue for Hawai‘i’s economy and provide jobs for Hawai‘i’s people,” Mitch Imanaka, ARDA Hawai‘i chair, said.


There are a few issues with this however -- Hawaii is something of an anomaly compared to the contiguous US, being primarily a tourist economy. Timeshares in Hawaii are also more likely to retain their value than others in the contiguous 48, although the fact that Hawaii can only be reached by expensive airfare is likely to have some negative effect. In fact, the jury is still out on just exactly how the economy is changing the timeshare market. The numbers in Q1 of 2009 may tell an entirely different story.

Read the article.

European Timeshare Consumers Get a Hotline

That's right -- recent events in the UK timeshare industry have led to the emergence of a new consumer resource with an informative hotline. The OTE has joined forces with the TATOC (Timeshare Association of Timeshare Owners Committees) in an effort to crack down on scams and to promote consumer education and intelligence:

The Timeshare Consumers Advice Line (http://www.timeshareconsumeradvice.uki.net) has launched an advice line and web site for people buying or reselling timeshare properties

...as a member of the OTE, Timeshare Computer Link Ltd has setup an advice service beyond its normal timeshare resale activities. timeshareconsumeradvice.uki.net provides information on the best ways to buy or sell a timeshare property, along with, when ever possible, advice on getting the most out of timeshare holiday ownership.

More information can be found here www.timeshareconsumeradvice.uki.net alternatively you can call the advice helpline on 01926 84 42 42.

From PRWeb: http://www.prweb.com/releases/timeshareconsumeradvice/tca/prweb1231294.htm

Contradictions Abound: Wyndham Reports Slump

The timeshare industry has seemingly carved an all-but-unique bubble in the recent real estate downturn, floating unscathed to everyone's bewilderment. However, it was bound to slow at some point, and Wyndham Worldwide has just released what is likely the start of an industry wide trend.

We must bear in mind that Wyndham also franchises hotels, and their earnings are not itemized in the following reports. However, on the whole it is a safe assumption that US families are finding vacation time less and less crucial -- probably due to rising gas, food, and overall cost of living prices.

AP also reported that Starwood Hotels have seen a 28 percent decline in timeshare revenue during the second quarter of 2008. AP analysts "have expressed concern about timeshare sales, particularly after Starwood's second-quarter declines."

STOCK PERFORMANCE: Wyndham shares lost about 13 percent in the quarter, closing at $17.91 on June 30. During the past 52 weeks, the stock has fallen from a high of $36 last August to a low of $14.62 in mid-July.

http://money.cnn.com/news/newsfeeds/articles/apwire/8ff43b93985ca009455d544312a85fe7.htm

Timeshare Relief on "Eye on America" and "Today's View"

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Timeshare Sales...UP?

Apparently they are, but there's an explanation: timeshare resales are booming.

The blogosphere has been buzzing with this news lately, but Timeshares Daily has the scoop:

In a study released last week by the American Resort Development Association (ARDA), research prepared by Ernst & Young, LLP, shows that sales of new timeshares increased by 6 percent in 2007 over the previous year, totaling $10.6 billion in the US alone. Although gains were less than in previous years, the sale of new timeshare from 2003 to 2007 has increased by an amazing 66 percent.

But why?

Howard Nusbaum, ARDA president and CEO, says, "The continued growth of the timeshare industry in today's economy is a direct indication of strong consumer satisfaction and demand. Vacation ownership, with its flexibility and spacious accommodations, continues to be a preferred travel choice for American families."

The problem with this explanation, however, is that is doesn't make sense. Preferred choice or not, every area of the economy is feeling the pressure from recent issues, and travel seems a likely target for cut-backs -- especially considering the price of gas. But, Jason Trembley of Sell My Timeshare has another explanation:

"As good as the numbers sound for the sale of new timeshares, the report doesn't mention the huge segment of the timeshare industry that deals with timeshare resales, and that side of the business is really booming."

Of course. It would make sense that resale numbers are up, since owners are probably dropping extraneous expenses. Those that still can afford timeshare, then, are cleaning up in the aftermarket.

Information on the numbers of people buying resale timeshare is limited because the secondary market includes individual timeshare owner transactions as well as sales consummated by traditional industry specialists. In 2005, 7.2 percent of buyers bought timeshare from an existing owner, according to an ARDA profile of vacation owners. While this indicates a resale industry in the hundreds of millions of dollars, these figures are very conservative, as the survey did not include alternative sales methods such as the Internet.

We doubt the timeshare industry will be entirely immune to recent economic difficulties, but for now it seems to be carving out a pattern all its own -- which, for the industry, is very common.

The New Timeshare Relief Home!

We've recently updated our website and we invite you to take a look:

www.timesharerelief.com

The site is now more interactive, with registration functionality and a contact form for online support.

Paradise or Dystopia?

A Forbes article this week by Lisa Smith weighs the pros and cons of timeshare ownership, with plenty of great tips along the way. Much of it is along the lines of what we've been telling you all along, but it certainly bears repeating...

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Remember, timeshare salespeople are in the business of selling. But just because they tell you that you are getting a great deal, doesn't mean that you really are. Before you buy, take some time to research the property and talk to other timeshare owners. Don't make your decision in haste and never let the salespeople rush you.

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In addition to the monthly loan payment, which comes with a high interest rate when financed through the timeshare company, the annual maintenance fee will also set you back a few hundred dollars a year. Also, if the property needs a new roof or a new sewage line, a "one-time" assessment will be levied. Some properties also charge miscellaneous fees, such as a "publications" fee if you want to view other properties that may be available for trade, and additional fees if they help you sell your property.

While a lifetime of vacations sounds great, will the management company that sold you the timeshare be around three decades from now?

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Like any major purchase, the decision to buy into a timeshare is a decision that requires careful consideration. It involves a large amount of money up front and considerable recurring costs. You should ask plenty of questions, take your time before making a decision and as the Federal Trade Commission (FTC) says in its Facts for Consumers, "You should know that the value of these options is in their use as vacation destinations, not as investments."

Read it here

Branson Fights Back

According to a story published this morning in the Branson Daily News, Branson, Missouri is altering its solicitation laws to combat timeshare companies with allegedly predatory offers.

A few timeshare companies, such as Branson Highlites, bring in much of their business by standing outside their properties and offering passers-by free show tickets if they tour the units. This practice has operated in a legal loop hole, until now.

If only similar laws were passed in regards to larger timeshare companies and their "free weekend getaway" offers. As a company representative in the article mentions below, most timeshare business is snared in this manner.


[From the Original Article]


“All we’re doing is creating a definition that will bring in a free-ticket scenario,” City Attorney Paul Link said. “I think people were unaware of what the law was. Under the current code, if the person soliciting or the person solicited are on public property, it is unlawful.”

“If they change this, they might as well put a lock on our door,” said Jackie Stephenson, owner of Branson Highlites on Main Street. We stand in the doorway, we greet the people and we do have free tickets. They come in and get them. We do offer, ‘Hey folks do you want to go on a tour?’ They do say ‘yes’ or ‘no.’ Obviously, we have quite a few who say ‘yes’ or we wouldn’t have been in business for five years in this town.”

The city reevaluated its law based on complaints that salesmen were chasing shoppers down sidewalks.

“They believe it’s hurting their business because of that,” Branson Sgt. Sean Barnwell said. “They say they’re having issues not only with (customers) getting agitated, they’ll skip their store.”

Some downtown business owners say aggressive timeshare salesmen are bad for business.

In the short time she’s been in business downtown, Monica Rhodes, co-owner of Pinkiedinks Cupcakes, has seen potential customers flee from persistent salesmen, she said.

“I had to tell one of them — a guy on the corner — to stop,” Rhodes said. “People are trying to get away from them and they run right past our store. They aren’t even looking at our stuff.”

Alderwomen Cris Bohinc and Sandra Williams said they’ve both been harassed by salesmen downtown.

“I do not know what particular business is doing this,” Williams said. “I do know they have approached me several times, that they have followed me down the street. So if I was downtown to do any business, I didn’t do the business because I wanted away from them.”

Downtown Monday afternoon, Pat and Bob Eastwood of Cherry Hill, N.J., said all was quiet.

“We’ve been all up and down the streets and haven’t been approached,” Pat Eastwood said.

Stephenson said she’s fired renegade salesmen in the past.

“Dog gone right I have. We’ve let a few people go because they were too aggressive,” she said. “They’re not allowed to leave my property, ever.”

Stephenson said she realizes the timeshare industry is sometimes looked down upon but hopes she can keep doing business downtown.

“I know a lot of people don’t like my business, don’t like timeshares, but it brings a lot of business to Branson,” she said.

Quotes from "Branson defining ‘solicit’" by Chad Hunter

CNN: Are Timeshares Worthwhile?

It's very rare to see frank discussion of timesharing in the media, especially here in the US. And yet, it seems like in the last few months many national periodicals have published feature stories on the timeshare industry, and how it has inexplicably managed to survive the recent downswing of the housing market. Perhaps most surprisingly, many of the articles in question have admitted outright that timeshares are not great purchases for the majority of consumers.

CNN recently ran an article like this, entitled "Are Timeshares Worthwhile?". This article takes a question/answer format like many others, posing the inquiry "Are timeshares a good investment" and then offering a response.

A few notable points with TSR Commentary:


- "Timeshares can bring their owners substantial savings in time and money when planning vacations, but experts warn that they should never be viewed as a financial or real estate investment."

True - a timeshare is a prepaid vacation, not an investment.

- "They do have their drawbacks -- an owner hoping to sell a timeshare might end up taking a loss. And while there are laws protecting buyers who purchase a timeshare from a developer, they don't help someone buying from an owner."

Also true. In many cases a title transfer is the only option available to a timeshare owner.

- "Basically, if you take at least a week of vacation each year and don't like sleeping on grandma's couch, then this is a great deal," says Howard Nusbaum, president of the American Resort Development Association. "But if you're not a vacationer, then I wouldn't recommend this, just as I wouldn't recommend you buy a car if you don't drive."

- Prospective buyers might think that purchasing from a timeshare owner could seem like a steal, but Nusbaum warns, buyer beware. While there are consumer protections and regulatory oversight of the industry, that would not apply to a sale in the secondary market. Most important, the buyer should be sure that all of the rights to the property or access to the facilities would transfer with the deed. While a contract with the developer is government-backed, that protection may not extend to the person the timeshare is resold to.

Again, very true, and it is refreshing to see even the resale market fall under such careful scrutiny. While it is true that timeshares purchased on resale will save dollars, it is the opinion of many that a FREE timeshare is not much of a deal. The industry has issues from top to bottom.

Read the full article.

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RENT: Don't Buy

That's right.

There's an article about 3 Clever Ways to Save Money on Family Vacations. Amidst several other pieces of excellent advice there's the following suggestion:

"Rent a Timeshare

This option, I estimate, saves us anywhere from 30% to 50% off traditional resort accommodations.

We not only save money, but our lodging is more comfortable and roomy than typical hotel rooms. We typically enjoy a large, two-bedroom unit with a spacious kitchen. Ordering take-out food and making easy meals stretches our dollars.

You can find thousands of rentals posted by timeshare owners..."

It's true. Many timeshare owners are unable to vacation when they want, but they're still forced to pay for unused timeshare weeks. In order to minimize the financial loss they rent out the week for one-time-only bargain basement prices.

It might seem exploitative, but it's the way of the industry. Those who buy timeshares often regret it, leaving others -- such as prospective renters -- to benefit from unfortunate circumstances.

The people have spoken -- Don't Buy, RENT.

It's a Commitment

Another great timeshare-related news article comes our way this week from Europe. Originally posted on moneysmarts, user "Bianca" deconstructs the payoff that timeshares offer the ordinary consumer in simple terms:

"But believe you me, a timeshare costs an arm and a leg. It ranges from P250,000 to gazillions... It gives birth to other expenses – yearly maintenance fees (which went up from P2,500 to P4,000 in the blink of an eye), RCI fees, booking fees that could range from P2,500 (Asia) to almost P10,000 (outside of Asia). It does not include airfare, or the cost of food....

But it is not all bad, as we have found out in our two years of owning one.

With it, we only spend approximately P3,000 per night, and if the trip is stretched a week, the discount could be really substantial. Moreover, the accommodations are almost always one bedroom suites, and they say that if we are really kulit (translation: a charming *****) with the RCI agent at the other end of the line, or during low season (August to October), we could even be given a two-bedroom suite (good for 6 people). Match the hotel savings with really low airfare (through Clark, the other gateway to Hongkong, Malaysia, Singapore, Korea), it could satiate the wanderlust in anyone."

Satiating the wanderlust is a good way of describing the allure of most timeshares -- salesmen often claim that you can exchange your week for time at resorts all over the world. Who wouldn't want to be part of this exclusive club? Well, people who don't necessarily have the money to invest in the "savings" Bianca mentions above. She describes the unfortunate circumstances surrounding her parents' timeshare ownership, an event they deeply regret:

"They paid approximately P700,000 for both and they got seven days at a one bedroom suite at the back of the Flamingo in Las Vegas, Nevada (the sign on the wall says $1,000 per night and that was a source of a little comfort) and seven days at a one-bedroom suite at a manor near Legoland in California. Sounds plush, but however I do the math, it is not P700,000. They tried to save up their weeks and were planning to go to Europe but travel was put off year after year after year because the kids got married, houses had to be built, the farm needed to be farmed and so forth. The timeshares expired and they never got to go."

The timeshares "expired"? So they basically lost money and vacation time? This situations rings very true to us, we hear such stories all the time.

Bianca says it best here:

"A timeshare is a commitment. It is for people who love traveling with a passion, love to do research (for cheap airfare, great places, good food), and, at the onset, the temerity to haggle with the timeshare salesperson until that person buckles down and gives the lowest-value-for-money-price imaginable.

There will be hits and misses, we know. But we are passionately excited to see the rest of the world as a family, to hear the lyrical overtures of another language, introduce our daughter to life’s many wonders, and immerse ourselves in the magic of cultures so fascinatingly different from our own."

While we might disagree with some of the above we certainly agree that timesharing is a commitment -- and a large one at that. Individuals without any real estate experience should think twice before binding themselves to a contract where they'll be paying to vacation -- whether they do it or not.

Original article here.

More International Trouble

Timeshares are not only problematic here in the United States -- many Europeans also struggle with the same issues. Like here, the word "timeshare" is not always present in the sales pitch or the property being offered, but the business model is basically identical. "Holiday Clubs" across Western and Eastern Europe are quite popular, and scams are so rampant that last year the European Union organized a legislative crackdown that has yet to take effect.

We found this story from Malta's "Independent" on one of our many searches. Does the language sound at all familiar?

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A man who had a lucky escape from a timeshare con has warned others not to fall for the same trick.

The man, from Cowcliffe in the UK, who did not want to be named, was contacted by a Spain-based company that claimed someone wanted to buy his timeshare in Malta. He said: “They asked me if I was interested in selling and said they had a customer willing to pay a very good price for it. Then they said they needed a bond from me, and asked for my credit card details. That’s when I thought there was something wrong.”

The man contacted the consumer advice organisation Timeshare Consumers Association, which told him it was a fraud.

He said: “Somebody is going to fall for this at some point. People should be made aware of what’s happening.”

A spokesman for the Timeshare Consumers Association said: “This is a complete fraud. There are a lot of people who have a timeshare who want to get out but don’t realise it will be worth a fraction of what they paid for it.

“These companies, almost always from Spain, ring them up, having got their names and numbers from a stolen list, and claim they have someone wanting to buy. They then ask for credit card details for so-called security reasons.

“You should never send any money to any company on the promise of selling your timeshare – whatever reason they might give you.”

The original article.

Share of Paradise: the Canadians get it Right

We caught a fascinating article this week from the Ottawa Citizen that analyzes the pros and cons of timeshare owning. And while the author is Canadian, there are plenty of references to the US Market -- in fact, the same advice essentially applies to timeshares on either side of the northern border.

The author and his wife are happy timeshare owners, but even they admit that the market is severely flawed, teeming with corrupt sales representatives and scandals. An all too familiar story is recounted:


"We'd been listening to the pitch for two hours when we said enough's enough, and told the salesman we had to leave for another appointment. He ignored our pleas and continued to press on.

After several polite repetitions of the 'sorry, we must go' approach, I insisted we had to depart immediately. The salesman demanded to know what our appointment was. When I told him it was none of his business, his face contorted in rage, he shook his fist in my face and invited me to step outside to settle the matter.

In seven happy years as timeshare owners, this was the only such incident we experienced, and it's one we can now laugh off. Happily, it's not typical. Yet even timeshare's fans admit the industry's sales pitch needs a serious makeover.

'The product and the delivery of the service is exceptional,' said timeshare industry expert Jerry Sikes in an e-mail interview. 'It's the sales and marketing stuff that give the bad rap.'

Sikes, who is president of Professional Resort Operators Inc. in Scottsdale, Arizona, says that 'until the developers truly change the way they choose to market and sell the new product, the effort to change the public image will be just smoke.' "

While we disagree with one important point here -- that in many cases the product (timeshares) and the delivery of service is anything BUT exceptional and often empties consumers' pocketbooks on what are essentially worthless vacations, Mr. Sikes has a very valid argument. What worthwhile timeshares that do exist are essentially being ruined by poor sales tactics and an ugly reputation. Maybe if that ugly reputation didn't equal a multi-billion dollar industry yearly we would see some change; until then, it's up to the consumer to be on his or her guard.

Read the full article here.

Tips and Gyps

Searching for timeshare-related information online can be a tricky activity. One of the merits and drawbacks of the world wide web is that anyone, anywhere can upload virtually any content they want. So, the articles you read could be the fruits of years of experience, or some meaningless text generated using google searches for a corporate agenda. Furthermore, the latter category could appear cleaner and more appealing than the former, making distinction exceptionally difficult.

One of the most interesting formats for online information is the top five or top ten. These are nearly ubiquitous, and with good reason -- they are easy to write, and easy to read. They distill information into convenient enumerations of knowledge that seem, somehow, definitive. And yet, one could put the numbers 1 through 5 beside ANYTHING and make it seem definitive and complete. This is the impression the numbers themselves offer, not the information itself. And when speaking of timeshares, it's important to consider the subtleties that could potentially get neglected from any top 5 or 10.

One of the better top 5's we've read here is this one, "Tips on How to Sell Your Timeshare Successfully".

The author offers a number of worthy suggestions to essay when reselling a timeshare. For instance, attempting to get the original company to buy the property back (although this very often does not work). And consumers should certainly be wary of any upfront fees that a resale agent might demand, as the reseller's industry is fraught with utter scam. Selling online is an equally dubious prospect, and very often ends in theft or frustration.

And yet, there are a few details left out. For instance, it is mentioned that many timeshares are resold at 30-50% of the original price. It is not, however, mentioned that this is because timeshare companies inflate the prices of timeshares with overhead costs from presentations and "free weekend getaways". In fact, almost ANY timeshare can be bought for a fraction of the resort's price on the resale market. And the author additionally fails to take into consideration the fact that very few timeshares are ever sold at a profit. The article ends with this statement: "However, if done correctly, selling timeshares can be a rewarding and profitable undertaking." The profitable selling of a timeshare is truthfully less a case of accuracy and more of the luck of the draw and the status of the current market.

In any case, this is a good example of fair advice that misses a few crucial steps. To a prospective timeshare owner, it could appear as though a profitable exit strategy is the norm in the industry -- when in fact the exact opposite of that statement is true. Compare this article with many others online for a better portrait of what the timeshare resale industry really looks like.

What's Truth Got to Do With it?

With the staggering amount of falsehoods being printed about timeshares on a daily basis we're always a little surprised -- and encouraged -- when someone gets it exactly right. This week's honorable mention is William McNutt of the Chicago Daily Herald, whose advice could and should be distributed to anyone considering a timeshare purchase.

"It is easy to be caught up in the moment at a fancy resort with the knowledge that you will be able to visit an exotic place every year.

The sales pressure is polite but very firm, the goal is for you to buy a timeshare at this meeting without taking time to consider all aspects of such a purchase.

These plans may be good for nice family vacations but before attending any such sales talk, it behooves everyone to be aware of a few facts. These plans cost from $15,000 and more. They can be for one week at this cost, but you are required to pay 12 monthly assessments plus real estate taxes for this one week. The resale value on these is small and can be purchased much cheaper on the resale market.

Timeshares seem to be popular but none of us should make a major purchase of this sort on the spot. It is easier to say that some time is needed to consider this offer, free from pressure. Better this than to realize later it may have been a costly mistake."

Indeed, and what McNutt doesn't point out is that most consumers -- after having deliberated on the matter in the privacy and sobriety of their own homes and after completing even cursory research -- decide to pass on the timeshare. The goal of most timeshare presentations is to get you to purchase before leaving the room; a fact we should all bear in mind when exploring that territory.


The full article: Take Time When Buying a Timeshare