Never Buy A New Timeshare
The Wall Street Journal, my favorite newspaper, wrote this week that Marriott International is not only halting development of all time-share projects, but will also put on sale its unsold inventory.
Having closely studied time-share business models, there are very few scenarios under which it makes any sense to buy one, even discounted.
Let me first tell you where it might make sense. When Water’s Edge in Westbrook, Ct., became a time-share, I purchased one off season week for $7,000 because the resort had a policy of permitting unlimited use by owners.
That meant that I could drive there every weekend with my children and hang out on the beach and its in-ground swimming pool. It made it worth my while whether I used the week or not.
So if you live close to a resort that has time=shares, and it permits unlimited use of its amenities for owners, and you want to use it, it might be worth checking out.
Otherwise consider these potential issues: the resort can go belly up, you might not be able to sell your share but you have to pay an ever larger maintenance fee each year, you might have to pay someone to take over your share.
Same thing with fractional ownerships and hotel condos. Stay away from them. The only people that make money are the developers and sales people. Customers get taken.
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