why all the negativity?

Been a member now for all of two days but one thing is obvious, there is a lot of negativity about the timeshare resale market.

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I am just taking on this statement. I love buying timeshares on the resale market. I love owning timeshare and using them. The fees go up and up and up, and all of us pay for those who are not paying, but we get nothing back. It's also wrong for developers to sell to folks who have bad credit because they aren't going to change and pay their fees each year. They are going to walk away from their timeshare loan at 20%, or whatever that ridiculous interest rate is, and we will be stuck with THEIR fees each year until that week is sold to some other nitwit who may or may not pay.

The negative about timeshare resales for me has to do with the way they are sold, and the way timeshares are devalued BY THE DEVELOPER in the resale market. So you buy a timeshare for $40,000, and it's not worth a dime on the resale market because the developer doesn't pass the same benefits to the resale buyer. So what you bought cannot be resold for even 5% of the price paid to that developer. That is a huge issue.

Not all timeshares lose all of their value in the resale market, but even the name brand timeshares lose 75% of the worth you paid, ROFR plays a part. So some morons pay a company to divest their timeshare, and that seller gets $20K for an oceanfront Maui resort, but the developer can always take that back and resell it again for $80K. It's sick.

Starwood is builidng more and more resorts without mandatory Staroptions. Marriott now has a point system which excludes resale buyers from entry. And what is the point? To devalue their own product. It's nonsensical.

We bought oceanfront at a little resort on Maui with out lanai 50 feet from the ocean. Heaven must be like our view from the wraparound lanai. We got our 3 weeks on eBay (two even year, two odd year and one annual) for a total of about $5,000. Over $2,500 of that amount was the resort management's transfer fees. Most of the rest of the cost was excessive closing fees by the seller. So the management company, also the developer, takes $550 for each week through resale, regardless of even or odd year.

It's not fancy at Hono Koa. We have new stainless steel appliances and granite countertops but ordinary in almost every way. The furniture in the living room is so comfortable, as is the bed in the master.

The fees for 2015 are $1,579.13 per week. A huge portion of our fees are bad debt (those who aren't paying their fees).

hatrick said:

I totally agree with the fact the market is depressed and some units will never regain their value. The truth is they never had value to begin with. An ocean front unit in Maine is for sale now on ebay for a buck, but the fixed week is in the middle of the winter. The maintenance fee exceeds what you would have to pay for a weeks stay at that time of year in that location. There is no value there and I doubt there ever was; and fairly certain there will never be again unless something drastic changes. However, another unit listed on this site in prime season is also selling for a buck and that has value. The maintenance fee is 1/3rd the cost of a week at that same resort. I'm no Warren Buffet but to me that seems like a steal and a very good investment. Maybe a year from now I may feel differently but from my newbie perspective I see opportunity.

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Most of the people who would consider owning timeshare with an eye toward profit or investment are owning mainly to rent to others. You seem to have a level head about this. If you are interested in timeshare as business, you might enjoy reading posts by Ron Parise in the Wyndham section. He's only been buying resale points for a few years to rent but seems to like managing his rental of Wyndham/Worldmark. He got in when the market was bottomed, but I think he's saying it's turned now and he's talking about selling now. Here's a link to threads he's started, but you might look for other posts of his if interested. http://www.tugbbs.com/forums/search.php?searchid=7470758

There are others posting in the forum who use timeshare as a business as well, but, from my reading, it's a lot of work and worry. For me, we bought retail and won't recoup in value what we paid for it in our lifetimes.

The timeshare "cancer " has been going on for over 25 years.
It was all brought on by greed and always lying salesmen.
It is a good concept but slimy sales tactics ruined it for good honest people who want to have great vacations. I don't see the market changing because of decades of major rip-offs. The definition of "timeshare" is set.

taterhed said:

I find it quite 'profitable' to make my own drinks and meals while on vacation when I choose...

I think it an 'investment' in my happiness....

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That made me smile!

rickandcindy23 said:

The negative about timeshare resales for me has to do with the way they are sold, and the way timeshares are devalued BY THE DEVELOPER in the resale market. So you buy a timeshare for $40,000, and it's not worth a dime on the resale market because the developer doesn't pass the same benefits to the resale buyer. So what you bought cannot be resold for even 5% of the price paid to that developer. That is a huge issue.

Not all timeshares lose all of their value in the resale market, but even the name brand timeshares lose 75% of the worth you paid, ROFR plays a part. So some morons pay a company to divest their timeshare, and that seller gets $20K for an oceanfront Maui resort, but the developer can always take that back and resell it again for $80K. It's sick.

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This should be a sticky. All prospective owners (and guest of TS resorts) should read and firmly grasp this when learning about timesharing. People should cut it out and keep in their wallet just in case they succumb the the pressure to "learn about what we're offering."

Different strokes...

1950bing said:

The timeshare "cancer " has been going on for over 25 years.
It was all brought on by greed and always lying salesmen.
It is a good concept but slimy sales tactics ruined it for good honest people who want to have great vacations. I don't see the market changing because of decades of major rip-offs. The definition of "timeshare" is set.

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Timeshares have actually been sold in the U.S. since well before 1980 and earlier still. That's actually closer to 40 years by my math.

There is no question that developer prices are obscene and their lying, deceitful sales weasels lower than whale excrement on the ocean floor, but some people interested and energetic enough to "work" the resale market can (and do) obtain some great, affordable vacation options. Personally, I've found timesharing to be an enjoyable (and eminently affordable) hobby of sorts, as well as providing extensive vacation enjoyment opportunities.

You clearly have a very bitter taste and view regarding timeshares --- and you are absolutely entitled to your perspective and personal opinion.
That being said however, you might consider that there are indeed some other, very different perspectives too.

You really buy your timeshare for it's intrinsic value - which only you and your family can define. Personally, having younger children and the extra space with the ability to cook (versus eating out) is a MUCH better experience than staying in a hotel room and there is NO COMPARISON. Every time I travel for business or pleasure and I stay in a cramped hotel room, I remind myself how much I miss the large timeshare space.