Timeshare Ownership? The Naysayers, Right Or Wrong? It Depends On Your Vantage Point

In the 1970s, the time-share fantasy dream vacation was just a dream for most people

but by now it has exploded into an almost 10 billion dollar industry available to everyone. Back in the "70s, many naysayers were quoted as saying, "if it"s too good to be true, it usually is". But we were a country on the move, with more disposable income per capita than ever before in the history of mankind. We deserved the best, our families deserved to see, do, and experience the world, as we had never before been able to. Enter the new world of globetrotting and investing in our futures. Our goal was simple; we can have and do it all.

In 1975, there were 45 resorts with about 1,200 units; by 2008, there were 1,660 resorts with 194,000 units -- approximately six million people had signed on the dotted line. A chunk of money is deposited up front and a commitment is made to maintain your timeshare for various lengths of time, sometimes for life! Your share will be passed onto your heirs and most importantly, they will be obliged to meet the financial obligation for the upkeep and maintenance during their lifetime.

There was so much growth in beautiful, exotic places by all the top resort hotels that the competition war began. Each one offering more amenities, more incentives, painting unrealistic pictures of happiness for you and your family if you "just" purchase from us. The happy unsuspecting couple is invited to a beautiful resort to listen to an opportunity of a lifetime to purchase more happiness than they ever dreamed of. Sales people are very experienced in guiding the couple to make the decision to spend $15,000 or more for a one-week interval at the resort with an annual maintenance fees ranging from $300 to over a $1000. Most of the timeshare owners we spoke with didn"t think twice about the purchase. The sales people are so well trained on keeping the purchase focused on emotions, painting a picture of the perfect family, in a perfect setting, spreading joy and feeling good. There was no "let"s sleep on it" or do some research on timeshares, the pressure to buy was so intense you were almost captive until you signed on the line.

However, it did not take long for the honeymoon to begin to fade. The naysayers were indeed saying, "I told you so". With the beginning of the collapse of the honeymoon, all sorts of issues began to come into focus. The fine print on the contracts, the difficulties of changing vacation weeks, as well as the costs involved. Some owners were required to pay assessments. It was extremely difficult to resell a unit. Hundreds of fraudulent, bloodsucking companies sprung into action at the first sign of desperation by owners to get out from under the debt, for $2000 they would find a buyer for your timeshare. No buyers appeared.

Today, there are thousands of lawsuits involving the companies claiming to be able to sell the units, as well as the timeshare companies who have committed unlawful tactics in obtaining sales.

By all accounts from the foremost financial experts, all concur that timeshares are not an investment and that less than above board sales methods are used in the sales room. The rules are always changing and there are countless stories of people who have had bad experiences with timeshares.

Still there are many supporters; fans enjoy their week"s vacation waiting for them every year, there is ease in planning a trip as well as exchanging venues, which allows them to see new places. A large portion of their vacation is prepaid and there are many people who have more than one timeshare and would not vacation any other way. A great many of these owners are financially set, so that the ebb and flow of the economy does not affect them.

Unfortunately, the people I see and the lawsuits I read about are the ones on the other side of the spectrum. The 80/20 rule of Pareto"s Principle applies, 20% may be happy with their timeshare, yet 80% are not, and wished they had never purchased a timeshare. Are the naysayers right or wrong?

by: Susan

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