A recent piece floating around the internet lately entitled "The Top Five Reasons Why Timeshares Are A Bad Investment" has me hopping mad. I am SO sick and tired of listening to the same old stuff about how timeshares, whether tied to real estate or not, are poor investments.
If you buy a timeshare, any timeshare, as a real estate investment, shame on you for not understanding what you are buying. And if you sell timeshare, any timeshare, as a real estate investment, you should be fined and prohibited from selling it in the future.
I won't divulge the author of the article in question; he has done enough disservice as it is. However, I will rebut his points one by one.
TIME VALUE OF MONEY
If someone came up to you 10 years ago and offered you a deal whereby for $5,000 you could receive all the gasoline for all the cars you would ever drive, would you consider this a good deal? The answer for most of us would be a resounding "YES." Back when I started driving (in the Dark Ages), gas was $.74 a gallon. Today, I filled up for $3.76 a gallon.
Timeshare operates on the same premise. You are in fact pre-paying for tomorrow's use at today's prices. If, 10 years ago you were offered an opportunity to pay $5,000 for one week's quality vacation every year, forever, wouldn't you have taken it? If vacations were important to you, then you would have been foolish not to take this offer.