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.