What is the real value of a timeshare?
Does it rise in value like property?
Many timeshare owners were lead to believe at the point of sale that their timeshare would grow in value similar to property, THIS SIMPLY IS NOT TRUE. The owners would have been convinced of this through the salesmen likening the timeshare to property which in the majority of cases these days is not the case as timeshare is usually based on “a right of use” rather than 1/52 of the property. Even if it were based on 1/52 of the property you would still have the problem of persuading 52 owners to agree to sell all at the same time!
The property element is only a percentage of the price
The property element, known as inventory, in the retail price of timeshare is only a percentage of the price, consider a typical price construction of a timeshare:-
20% Inventory (property cost)
10% other costs (such as exchange and maintenance fees)
50% marketing & sales costs
20% profit margin
The real value of timeshare
The real value of timeshare is in its use, it is in the actual fun of the holidays, it is not in the fiscal value, timeshare is not in any way a fiscal investment
What is the re-sale value of a timeshare?
The real re-sale value of a very desirable timeshare is between 20% and 30% of the retail price for owners with less desirable weeks, you may have to consider that you may not be able to get out of the timeshare at all and in the cases that a sale may be made you need to be prepared to accept less than 10% of the retail price
Subscribe to:
Post Comments (Atom)
I have owned a timeshare for almost 12 years now and i have seen my fees rocket in the last 5 years or so , its annoying because i dont even use it hardly these days , i called my resort and asked if they would sell it for me , they said they will put it on the resale list , but no joy as yet (in fact i dont believe they will ever sell it) , i also like a fool paid a resale company £800 to sell it for me because they said they had a buyer in the states , the phone line has now gone dead , after all this heart ache and pain , i have come to realize that the damn thing is worthless , in fact its a liability as nobody wants it , not even for free . So the question i ask is "what resale value ?".
ReplyDelete