trice01
TUG Member
Please excuse my business ignorance.
I always figured that by buying a timeshare resale, the inflated costs of marketing, promotion and developer's margin were already taken off the discounted resale price. Based on that assumption, I always figured that I would at least get back my discounted resale cost when I sold, maybe even a little inflationary increase. Using that logic, I assumed my cost of use was the opportunity cost of the purchase plus maint, taxes and other ongoing costs.
Now I hear Tuggers saying that we should accept depreciation as part of our ownership, and expect little or nothing after long ownership. Maybe I'm naive, but I have always expected well maintained real estate to appreciate over time. That's nearly univerally true of residential. I know it is normal business practice to depreciate biz assets for tax purposes, but in reality I think most business real estate is sold for a profit after inflationary increases.
Am I way off base here, or are other people just trying to justify a mysteriously sinking resale market?
I always figured that by buying a timeshare resale, the inflated costs of marketing, promotion and developer's margin were already taken off the discounted resale price. Based on that assumption, I always figured that I would at least get back my discounted resale cost when I sold, maybe even a little inflationary increase. Using that logic, I assumed my cost of use was the opportunity cost of the purchase plus maint, taxes and other ongoing costs.
Now I hear Tuggers saying that we should accept depreciation as part of our ownership, and expect little or nothing after long ownership. Maybe I'm naive, but I have always expected well maintained real estate to appreciate over time. That's nearly univerally true of residential. I know it is normal business practice to depreciate biz assets for tax purposes, but in reality I think most business real estate is sold for a profit after inflationary increases.
Am I way off base here, or are other people just trying to justify a mysteriously sinking resale market?