Are Timeshares Worth Buying Into?

Started by Newshound, August 07, 2005, 18:36:34

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Newshound

Are Timeshares Worth Buying Into?

Los Angeles, CA, USA (NAMC) - Since it's inception in the United States timeshares have grown in popularity. Vacationers have found value in buying into a timeshare as it has allowed them to have a vacation home without actually having to deal with the daily upkeep and maintenance of the home, condo or estate.

The biggest misconception that people have is that they view buying into a timeshare as an investment that may bring financial gain, but in fact buying into a timeshare is more of an investment in life. Allowing a family to be able to vacation somewhere they normally wouldn't be able to afford to vacation year after year. In a way it adds a life tile to their family unit.

Until recently if a person invested in a timeshare there was never a guarantee that if they had to sell it down the road that they would recoup their original investment.

A company by the name of Value Guaranteed Vacations Inc, a wholly owned subsidiary of RS Group of Companies, Inc, has changed the playing field by introducing their innovative "Affinity Program" to the North American timeshare industry.

Basically the programs benefit is a buy-back option that allows a timeshare owner to re-sell their timeshare interest to Value Guaranteed Vacations Inc at certain break points, 10, 15 or 20 years for upwards of 95% of their initial purchase price.

A program such as this may draw more long-term buyers into the timeshare market.

According to reports Value Guaranteed Vacations Inc has retained the specialty insurance provider Strategy Insurance Limited as the exclusive insurer for their "Affinity Program".


jgtragesser

This is another 'smoke and mirrors program' that you do a dis-service to your readers by presenting without doing due diligence as a reporter in gathering all of the facts... this is the same as buying a 'zero-coupon bond' that pays-out no interest but accrues interest to maturity... USA readers would recognize this as similar to Government E Savings bonds...

The developer merely takes a portion of the already inflated sales price and invests (ie. sets aside) an amount into a deep discount bond that matures at a later date sufficient to buy back the timeshare... an owner can do the same thing for less cost and greater return in his/her own investment account...

Joe Tragesser
http:jgtragesser.tripod.com

Jackiee

This all sounds a bit complicated to me.....but then I'm just a straight forward sort of person and I don't understand all the jargon being used in the last entry.

As far as I can see, the original topic was for information only, not to generate agro......[:(]
Jackie

tonyg

If Joe hadn't commented, I certainly would have. This is definitely another sales ploy which will probably not pan out for owners. Like some upfront resellers who guarantee your money back if they don't sell, there is no one out there that has had the program work. Guarantees are nice but they are only as good as the issuer, leaving the only proven guarantees to be death and taxes.

neiltilley

i never understood this thing that revolves around in cycles to con the public. next it will be equity timeshares and freehold part owned
i mean when you buy a car, you drive it for 5 years then give it back to the dealer for a guaranteed 95% of it's value do you??? yeh i said a car because just like a timeshare with usage,  wear and tear it needs maintenance, fuel, servicing, labour costs and so where is the money to give you back when it is continually saved, spent, reinvested, resold, bought back, then it must devalue or that depends on inflation so fiscal stuff can outwit us all etc... etc... so no guarantee!!!

All I want is a bloody holiday!!! Not a lesson in finance that sends me to a psychiatric ward!


bigfrank

If it sounds to good to be true then it is as others have said another trick to get you to buy. What happens after all the sales are done if if the company goes belly up. You lose everything and your time share will sell for 25% of what you paid.

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