Is Timeshare a Good Investment

Is Timeshare a Good Investment?

While I can’t tell you how many times I have been asked that question, it was certainly the most frequently asked one by friends and family as well as clients during my 20 year tenure in the industry. I’m not sure why this question is always the first on the subject of a timeshare purchase, perhaps it originated back to the day when tough guy salesmen wearing thick gold chains high pressured people into buying, promising them a “return on their investment”. Which incidentally is also why timeshare got its bad rap, and decades later, timeshare companies are still having to defend their credibility as a result. But, nevertheless, it IS a valid question. So, is timeshare a good investment?

The question is certainly worthy of discussion, although it is difficult to offer a simple yes or no answer. there are a number of answers, all valid in their proper context. Yes, it is a good investment, in your family, in your health, for your marriage, your lifestyle, your dreams… but in my experience, I would have to say “no” if you were to add just one word to the question .

Is it a good financial investment? Most argue your money could be better invested and I would not disagree. True, you get more vacations out of your dollar over the years if you buy early enough, but don’t count on reselling it when you’re through using it. 9 out of 10 timeshares are going to be difficult, albeit impossible to resell, throwing out the window the very convincing rent vs own sales pitch given to you during your sales presentation which may have prompted you to purchase. This is of course precluding any deeded week in Hawaii, or a fixed ski week perhaps in Vail or Tahoe, but more often than not, reselling your timeshare is more than difficult for a number of reasons. (More on that in another blog.) The key to the logic of buying timeshare lies in use. Hopefully your sales agent didn’t focus his or her presentation on the financial logic of owning, but offered other reasons to consider in your decision making. Still, there are many reasons to buy, however financial investment is not one of them.

So why buy a timeshare if it is a bad (financial) investment? First, the quality of your vacation in a timeshare is most likely a huge improvement over that of a hotel or motel. Timeshare resorts offer kitchens (which can save a family A LOT of money adding to the financial sense of a purchase). And, timeshare resorts offer a lot of amenities for families; in some cases you may not want to leave the resort! Case in point, a week at the Orange Lake resort in Orlando FL when my son was 8; the resort offered so much in the way of activities and amenities, my son was more than content in staying onsite the whole week, even refusing to go to Disney world or Epcot !

A forced vacation is a good enough reason on its own to buy. I have no doubt that I would not have spent every birthday travelling the Carribean with my mom if it hadn’t been for our timeshare. Without a timeshare ready to “expire”, many families don’t make the time and their health and marriages suffer as a result. How often does “we’ll do it next year” turn into five, or even ten years later? And after all, what could be so bad about HAVING to take a vacation every year? Especially in an amazing location like Maui or Kauai, where I spent a good part of my timeshare career. In fact, the feedback I got from my returning clients reinstilled any faith I may have lost in the product from those bad wraps out there; my clients thanked me each and every year they returned, insisting if it weren’t for their purchase, their marriage would have long ended, they would have had a nervous breakdown or heart attack, or at the very least, they would never have returned to Hawaii, and would more likely be vacationing in Atlantic City, New Jersey or Branson, Missouri or some other popular but inexpensive and depressing tourist destination.