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Should I buy a Timeshare?   Nov 18, 2008.

I don't think Timeshares are a way to spend your money. It has to do with the 5 "highs."

Possible Graphic

            High Pressure

            High Cost

            High Interest Rates

            High Fees

            High ly unlikely you will want to vacation like this years ahead.

High Pressure sales tactics are employed - used car salesmen on steroids.

High Cost - consider property value.  You pay $15,000 for one week.  That amounts to $780,000 a year.  Is the place plus the pool plus activities really worth that much?

High Interest Rates - Mortgage interest on Timeshares seems can be very high.  20%.

High Fees - Maintenance fee and taxes typically run $6-$800 a year..  Fees rise 2.5 times inflation.  Then there is a fee to join the exchange organization and another fee to make the exchange.  This could add another $400.

High-ly Unlikely That You Will Want to Vacation Like This in Years Ahead - You are stuck with the concept of one week per year.  This might be OK when the kids are toddlers.  But will it work when they are teenagers or you are empty nesters?  And some of us take more than one week per year.

            Timeshares are hard to sell.  Most of the time people talk to me about Timeshares, the question is "how do I get rid of it?"

            Timeshares are definitely NOT an investment.  If you try to sell your $15,000 Timeshare, the offer might be $2500, an 85% drop in value.

            Fee for one week of use might total $1200.  Add $3,000 if you pay over time.

Alternatives to Timeshares

            Rent someone else's Timeshare for $400-$600 a week.

            House exchange programs.

            Educator's B&B.  $40 per night.

            Do it yourself.  Our favorite place in Bulgaria was $250 a week.  You have to do the math:  $250 for an adventure or up to $4000 a week for a Timeshare.

Bottom line:  Timeshares are like boats.  It is not a good idea to own one, but it is a good idea to have a friend who has one.

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