Vacation timeshares are expected to fall 30 percent this year, according to the American Resort Development Association, a trade group.
â€œTimeshares are just very, very discretionary items,â€ says Chris Woronka, an analyst at Deutsche Bank Securities in New York. â€œItâ€™s the perpetual vacation. I am prepaying for the ability to take a vacation every year. Under the current circumstances, people are more reluctant to pay for that.â€
Marriott International Inc., which is cutting prices and stopping development of new units, predicted that sales are unlikely to turn anytime soon
Woronka says one of the major issues facing the industry is tight credit, which is reducing the pool of customers by preventing sales to people with lower credit scores.
Source: Bloomberg, Nadia Brandt (09/29/2009)
I don’t think that I would ever purchase a timeshare. They do not appreciate like true real estate, and there is very little secondary market for them. I speak from experience because my sister and I inherited a timeshare from my Mother when she passed away.
It’s a great deal in Oxnard, California at Harbortown Marina, and in the ten plus years that the timeshare has been owned, I don’t think anyone has actually stayed at Harbortown. You see, each year my Mother would exchange the week to go some other place, which is one of the benefits of a timeshare.
My personal opinion is that a timeshare could be a great deal, or it could be a great burden. I love to go on vacation as much as the next person, but a timeshare means that I have to vacation every year in the same place – the place that I bought the timeshare.
Of course, proponents of timeshares will say that you can always exchange and use the timeshare in another location, which I have done. My sister and I pay about $550 per year in maintenance fees to the actual location where the timeshare is owned. And when you think about it, a weeks vacation in an apartment in Oxnard California for $550 is a pretty good deal.
But if you want to exchange, you must belong to a company that provides that service. Add the cost of that membership and an exchange fee of $100 – 200 in order to use the timeshare week in another location, and you’re up to almost $1,000 for the week. International exchanges are more, but we have not done that yet.
Our experience with the timeshare is that it’s almost a burden to actually use the weeks, and we go on vacation a lot. Just not to the places that have timeshares we can exchange with – for example, we wanted to go to Vancouver to visit a friend, and the timeshare locations that we can exchange with are way outside of the downtown, and not convenient to actually seeing our friend. We have found this in a number of cases where we’d like to exchange, but can’t because the location isn’t optimal for what we want to do.
Am I too picky? Is there something I’m missing here about the benefits of a timeshare? Since there is no secondary market for the timeshare, we’ll probably keep it and keep “banking” the weeks to exchange someplace else, but overall my experience has been pretty neutral on timeshares.
Bennington VT, Personal