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Re: Huge Difference Between Purchase and Resale (by Orville F.):
Ken;
If you could see a turn in sight or on the horizon, do you believe timeshares would be selling for nothing right now?
Like I said, I'm no fortune teller. Sometimes all you can do is look at the fundamentals and have faith.
This seems to be a sudden stop time for timeshares, for no really good fundamental other than alot of people wanting out, not buying or whatever. I think this appearance is due a great extent to the sudden ability to easily get rid of a timeshare via the internet. (Therefore, a sudden surge in supply) However, there is no shortage of people wanting to use these resorts.
When resorts lose profits, owners, or people become more particular, it would make sense that banks and investors will no longer spend the money to develop these properties. If there is less demand for a product the supply will naturally slow. Obviously, I would agree with location, location, location and to a slightly lesser extent "season"
Therefore, I would conclude a "Whiplash" in the current market. Again, I don't know. My experience just leads me to "believe".
Also: If and when there seems to be a turn around in sight or on the horizon, people will be much less likely to give away their timeshares and some people will look at it as an investment and start buying those that are cheap. Wouldn't you agree?
Perhaps some people purchased entirely on the premise of renting out in the first place. If so, they are the most likely people trying to sell now for nothing or rent out for only their maintenance fee. What will happen when timeshares are owned by people planning to use them? If there are less units for rent, wouldn't there be more competition?
I think that for every person that bought and decided to stop going on vacation there are at least five more people deciding to start going on vacation. No facts, just a feeling.