Often described as ‘investments’ and with their buyers just as often referred to as ‘timeshare investors’, do timeshare in actual fact provide a viable and profitable investment?
To answer that question, here is the skinny on the reality behind timesharing, and what you can hope to accrue, financially speaking, from being a timeshare ‘investor’.
Is a timeshare Actually Financial a Viable Investment Option?
For something to be accurately describable as an ‘investment’ it needn’t promise a financial return upon resale. After all, if it did we’d all be millionaires. That said, for something to be accurately describable as an investment it must, by definition, provide the potential (at the very least) of a financial return – and one larger than that originally spent in order to purchase it.
Then, and to directly quote the experts at the Timeshare Consumer Association: ‘[t]imeshares cannot be considered as financial investments’ because they provide no actual or legitimate financial investment potential in 2017. Rather, the term ‘timeshare investment’ at best refers to the non-financial benefits awarded those who enter into a timeshare agreement and at worst, and in most cases, it is simply a misnomer.
To learn more about why timesharing is not describable as a financial investment as well as read the article from which the above quote was taken, refer to the Timeshare Consumer Association article: Timeshare is not a Financial Investment. Meanwhile, to learn more about why timesharing provides no real or actual investment potential, read on.
Timeshares Are Assets, But…
…timeshares are, at best, a depreciatingasset, as echoed via the Timeshare Trap blog article: Is a Timeshare An Asset Or A Liability?. This means that ‘investing’ in a timeshare is more like purchasing a car than a property due to the reality that timeshares depreciate in value over time.
There are many reasons why timeshares depreciate in value over time rather than accrue it. Part of the reason timeshares depreciate in value is due to the fact that often those who buy timeshares are infact buying a stake in a lease attachedto a property rather than the property itself. Consequently, as the lease reduces year by year so too does the value of said timeshare. This is only one of the more obvious and simple reasons why timeshares don’t just make poor investments, but in fact do not make viable investments what-so-ever.
The Timeshare Resale Reality
Anything fairly or even accurately describable as an ‘investment’ come the time when its investor(s) wish to resell it must offer some hope of a potential financial gain. This is the most central reason why timeshares are not a viable investment and should never be advertised, marketed or sold as such, despite remaining to be described as such.
As starkly stated via the Independent Newspaper article: Safe Escapes From the Timeshare Snare, for every person looking to purchase a timeshare there are approximately 400 times that amount looking to sell theirs. Then, it doesn’t take a Wall Street mogul to realise that the return a timeshare ‘investor’ in 2017 can expect or even hope to make is, well, quite frankly nonexistent at best.
To discover the myriad of further reasons, why timesharing does not provide a savvy investment option continue your reading and research via the Investor Junkie article: Why Buying a Timeshare is a Bad Idea.