It’s common for timeshare owners to believe a timeshare is an investment, but unfortunately, timeshares are not financial assets. Timeshares don’t appreciate and have little to no resale value, and since maintenance and other fees are ongoing, a timeshare is actually a liability.
Sadly, it is when consumers try ending their timeshare ownership that many first discover their timeshare is a liability and not an asset. This is because timeshare sales representatives often mislead buyers at the time of purchase into believing their timeshare is an investment that appreciates in value or can be sold on a secondary or “resale” market.
According to Newton Group’s Timeshare Exit Study—based on over 9,000 timeshare ownership experiences—OVER 60% RESPONDED THAT THE TIMESHARE SALES REPRESENTATIVE(S)/PRESENTATION DECEIVED THEM AS TO THE INVESTMENT VALUE OF THEIR UNIT.
SO WHAT IS THE VALUE OF A TIMESHARE?
For the truth, you can find it somewhere in the voluminous timeshare resort owner manuals or master agreements. Here is an example of language taken directly from a U.S. timeshare resort’s public offering statement that is over 249 pages in length:
“The purchase of a Unit Week should be based on its value as a vacation experience or for spending leisure time, and not considered for purposes of acquiring an appreciating investment or with an expectation that the Unit Week may be resold.”
YES, ANY VALUE YOUR TIMESHARE HAS IS NOT FINANCIAL, RATHER, ITS VALUE IS ONLY AS A VACATION EXPERIENCE OR LEISURE TIME.
This begs the question, if the resorts clearly state all this in public documents and timeshare contracts, why does it come as a surprise to so many timeshare owners? Discover why by reading the full blog: “Your Timeshare is a Liability, NOT an Asset”
And to learn more about how Newton Group and our partner law firm are using the Timeshare Exit Study as a tool in the exploration of claims against timeshare developers and related entities in the industry, visit “You May Have a Claim”.