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Re: Marriott Newport Coast resales (by Beck):

royn16 wrote:

I am a very experienced real estate professsional ( commercial) and I believe that a timeshare is like a gym membership, if you have one you are likely to take more vacations. However, timeshares are not an investment.

You can amortize the cost over 10-15 years ( cost + annual expenses) and likely the cost will be less than renting a hotel and the timeshare units are much upgraded over most hotels.

If you bought it resale I agree that might be true. but if you bought direct, the math rarely works out. Buying direct, including the interest paid on the loan to buy (or interest lost on the money you no longer have) plus the ever increasing maintenance each year is unlikely to work out. Especially because the fallacy is comparing the direct sale purchase with the assumption the maintenance doesn't increase and that is compared to hotrel rates with the assumption those rates always increase.

The correct way to compare the direct purchase is to account for the annual increases in maintenance (plus interest costs) and compare that to the owner rental rates. The only way ownership works out is buying resale, or using a resale plus direct purchase combination to effect optimal ownership.