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Is the sky REALLY falling? (by KC):

alfredc37 wrote:

Believe me the internet is getting the word out that for the most part Timeshares are bad bad business. The cheaply made buildings are going to require more and more maintenance and upkeep. There has to be end. I don't see the silver lining. Yes, the "sky is falling"!

In the timeshare world, there are few (if any) accurate "one size fits all" conclusions or observations to be made. The industry is just much too diverse to be so easily and casually summarized.

The Internet CAN be a valuable and helpful resource, but it is also a source of uninformed opinions, unsubstantiated conclusions, and "information" which is often just plain WRONG. One particular regular contributor to these RedWeek forums repeatedly demonstrates and proves that fact on a fairly regular basis...

It is certainly true that there are (some, not all) facilities of exceedingly poor quality in their original construction. There are others (some, not all) that although well built originally, now show perceptible signs of too much "deferred maintenance". There are lots of places and conditions to found at hundreds of places in between.

It is also true that in a "down" economy, some owners (some, not all) choose to (or, unfortunately, have to) default on some legal obligations (including timeshare fees, home mortgages, etc.). In the case of defaulting timeshare owners, other owners have to "pick up the slack" --- on this there can be no question and at some point can be truly problematic.

Based upon my own several decades of ownership and observation, I just don't personally believe (or see signs) that the industry as a whole is going to collapse, implode, explode or otherwise fall apart. Yes, some large timeshare companies are in big financial trouble. But, many small independents are in the best shape ever. There is a whole lot of room to be found in between. Personally, I think it has little to do with "beachfront value" (no argument there), but there are certainly lots and lots of healthy, viable timeshare facilities in many different inland locations which are alive, well and financially healthy. It all likely (imho) has a lot MORE to do with competent and fiscally responsible management, an attentive and owner-oriented BOD, and an owner base that WANTS the facility to survive and thrive.

Timeshare is a supremely lousy "financial investment", on that much I'm sure that EVERYONE can agree. Aside from buying a brand new car, I can think of no more profound example of a "depreciating asset". Timeshare ownership as an "investment" is a fool's errand, plain and simple. Some ownerships are literally worthless (except for their vacation "value" to the owner). It has always been so and it will forever be so.

I certainly don't know or have (or claim to know or have) all the answers here. I'm merely weighing in with a personal viewpoint and perspective, based upon my own active participation in the timeshare world as an owner and occasional BOD member for several decades now. Your opinion (and / or mileage) may vary....