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Timeshares Can Make Cents (by NoOneYouKnow):

Assuming the resort is located in an area that has sufficient vacation lodging demand, timeshares can make cents.

Our most recent ownership (30 years @ several resorts) is at a SW Florida beachfront resort. Ignoring the usual picky-unish thoughts about resort quality, it is sufficient for what it is, a week on a beautiful beach in a beautiful area, with a decent pool, a nice hot tub, a chickee hut with gas grills, beach furniture, walking distance to a beautiful state park and restuarants/nightlife.

Right away, one's thoughts go to this probably costing $25K a week, with $1500 annual fees. But, that's not the case.

A week can be purchased for a realistic price of from $500 to $2000 dollars. The annual fee is $533.

Owners can rent extra weeks, also for $533. Owners can deposit weeks they don't use in the Owners Rental Program. Weeks rent to the public for $1000, low for the area, so very competitive. The resort takes 25% ($250), and the owner gets $750 (yes, a profit over the annual fee).

So, the resort makes $533 from an owner, and another $250 when they rent an owner's week.

As I've mentioned elsewhere, ever organization will have declining membership as a natural phenomenon, and this resort does, too, owners who no longer wish to be involved. This resort takes those weeks back through a less-expensive non-judicial foreclosure process, rents them out ($1000 to the public, $533 to owners), and replaces them with new owners at a real market price, $700-ish.

So, whether they replace week that's been taken back with a new owner, or not, there is no loss in revenue.

This is a 38-year-old resort in a 60 year-old facility, that has handled the Sunset Clause, maintained itself adequately, and has HUGE cash reserves.

No, no greedy corporation feathers it's nest, and no shady sales people pocket $100 grand a year, but the concept is viable.