Timeshares - Sell or Rent?

With the supplies seemingly more than the demands for Timeshares nowadays, would it be better to just "hold on" or "rent" one's Timeshares even if the MFs are increasing each year instead of trying to sell it?

Also is there a possibility in the future that Timeshares values would increase or is that just a false hope/dream?

cristinay2 wrote:

With the supplies seemingly more than the demands for Timeshares nowadays, would it be better to just "hold on" or "rent" one's Timeshares even if the MFs are increasing each year instead of trying to sell it?

Also is there a possibility in the future that Timeshares values would increase or is that just a false hope/dream?

That would have to be a personal decision on your part. It's much easier to buy a timeshare than to sell a timeshare.

Renting is also not easy unless you own at a high demand resort during a high demand time period. If you don't desire to use your timeshare, exchange it or rent it, then your decision might be to sell it.

Resale prices will probably never increase except maybe for some of the very high end timeshares (Marriott, Disney, Westin, 4 Seasons, Hiltons etc).

Resales for all other timeshares will garner only about 1/3 to 1/4 of what was paid the developer IF it can be sold at all ... some timeshares are just not market worthy (supply and demand).

You have to remember that a developer has very high overhead which is the reason for the very high price paid initially.

cristinay2 wrote:

With the supplies seemingly more than the demands for Timeshares nowadays, would it be better to just "hold on" or "rent" one's Timeshares even if the MFs are increasing each year instead of trying to sell it?

Also is there a possibility in the future that Timeshares values would increase or is that just a false hope/dream?

There are no "one size fits all" answers to your questions. Geographic location and seasonal demand are vitally important factors in the value of (and the demand for) ANY timeshare, whether for sale or for rent. That has always been true, it's true today and it will be true into the future. Some timeshares hold their (resale market) value well, some perhaps even increase very slightly in resale market value. Developer-direct purchases will almost always be worth only 25% of the original purchase price when subsequently offered in the resale market. Some timeshares in low demand seasons and /or in overbuilt locations can become (...some already are) very nearly worthless when annual maintenance fee obligations are taken into account.

In truth, the only single general statement which can be safely and correctly made in collective regard to ALL timeshares is that in a weak economy, timeshare ownership and/or rental is a luxury which will be increasingly scrutinized as discretionary (and expendable) by both current and future owners or renters.

That's a hard question, and one I've been dealing with too. The market is so crazy right now. I have a timeshare on the beach that I hardly ever get the time to go to. I've been thinking lately of renting it out. I wouldn't want to give it up entirely, though, because when my family visits it's wonderful to have the space. I see similar places up on http://www.gatheringguide.com/ec/event_venues_wedding_sites.html being used as short term rentals for parties and weddings, and I am leaning towards that as a compromise for right now to bring some money back in. That is my thought on the matter.