Some sellers of timeshares tout the investment value, and the possibility of reselling the timeshare for more than you bought it for.

Generally, timeshares are not good investments. Consider that you might pay $15,000 for a week at the timeshare. So you own 1/52 of the timeshare. But another 51 people own chunks of it too. $15,000 times 52 is $780,000. $780,000 for a place that maybe cost $250,000 to build. Don’t forget that you will have to also pay annual fees to cover maintenance, utilities and taxes (whether or not you actually use the property).

While the sellers of timeshares may give you some examples of people who sold their timeshares for more than they paid for them. But not many people actually make an money when reselling thier timeshares. The FTC Web site warns, “You should know that the value of [timeshares] is in their use as vacation destinations, not as investments.” The state of Florida even considered passing a law that would make using the phrase “investment opportunity” in a timeshare sales pitch, illegal.

Statistics show in the timeshare resale market, there are typically more sellers than buyers. You likely have to pay a brokers fee which may be 20%. Also, if you bought your timeshare at a presentation type thing, you probably paid additional premiums. So if you resell a timeshare you will likely onl get a fraction of what you paid for it.

If you are looking at timeshares for a vacation property, you need to consider the costs, and whether it wil be worth your money. If you looking at buying timeshares as investment, then forget it!

Books on timeshares:
Timeshare Vacations For Dummies

Simplifying Timeshare: Vacation Ownership-the Complete How to

Developing Timeshare and Vacation – Ownership Properties

Surviving a Timeshare Presentation

Blaggers: Adventures Inside the Sun-Kissed but Murky World of Holiday Timeshare