It seems like pitches for timeshares come in waves. You get mail and robo calls one month, and don't hear any pitches for perhaps several months. Then you get the pitches again. Its a game of marketing. It's crucial that the pitch hit you at just the right time. If you are constantly getting pitched, you easily develop a defense to it. But, when its been awhile and you happen to be thinking of how and where you could get away... that's when you're vulnerable. People ask me whether a timeshare is a good investment. If you listen to the pitches, it's the best deal ever... and right now! Hmmm. Not so fast.
It turns out that timeshares can be a good investment for some people, and a lousy one for others. One thing is for sure. The time to determine that isn't during a “free” visit that accompanies most pitches. Like many financial decisions there are two facets that should align. One is personal, that is, how will this meet your needs and expectations? There's a lot to consider in this. The second is cost, that is, how much am I paying for this experience. We usually factor in the entry cost, but don't accurately factor in the exit cost. Here's a tip. If you're considering a timeshare, take the time to investigate the secondary market. You know, the one where existing owners are trying to sell their timeshare. You may be amazed at the discount from original price. (you may also be surprised how many are up for sale).
Most of the time a timeshare should not be considered an investment. Instead, it needs to closely align with your personal interests. After that it's a matter of accurately assessing the costs both going in and getting out.
It turns out that timeshares can be a good investment for some people, and a lousy one for others. One thing is for sure. The time to determine that isn't during a “free” visit that accompanies most pitches. Like many financial decisions there are two facets that should align. One is personal, that is, how will this meet your needs and expectations? There's a lot to consider in this. The second is cost, that is, how much am I paying for this experience. We usually factor in the entry cost, but don't accurately factor in the exit cost. Here's a tip. If you're considering a timeshare, take the time to investigate the secondary market. You know, the one where existing owners are trying to sell their timeshare. You may be amazed at the discount from original price. (you may also be surprised how many are up for sale).
Most of the time a timeshare should not be considered an investment. Instead, it needs to closely align with your personal interests. After that it's a matter of accurately assessing the costs both going in and getting out.
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