by D. Raposa

Created on: January 27, 2009

You have been exclusively invited to have the unique opportunity to visit an amazing timeshare property which just happens to have (very few) weeks available for purchase. Hate to say it, but the invitation is sent to everybody on the paid-for marketing list, timeshares have been around for years, and weeks are available due to a huge supply and little demand. Before you sign on the dotted line, protect yourself against some of the mythology a timeshare salesperson may throw at you in hopes of making a sale.

Myth #1: Timeshares are a good investment.

"Investment" implies the ability to gain more than initially put into a project. That will not happen with a timeshare purchase. While you may save time and energy by already knowing where and when you will vacation each year, the best you can hope for financially is to break even. As long as the combination of yearly mortgage and maintenance payments always costs less than staying in a comparable unit at a resort hotel, the timeshare purchase is worth the money you have spent.

Myth #2: Color-coding weeks defines peak travel periods and ease of switching-out or renting the unit.

Color coding is meaningless since when to travel is based on personal taste and not necessarily on popularity of destination. Paying more money for a Florida "red" week (which just happens to be almost every week) during high summer may not be the best decision since the state is notoriously less-visited by tourists due to high temperatures. Conversely, a cheap "blue" week during extreme winter in Iowa may be just the ticket for someone who wants to sit by a fireplace and read a book. (Nobody really knows the significance of a moderately-priced "white" week, as they do not seem to follow any consistent pattern across holidays or seasons.)

Additionally, owning a prestigious red week does not guarantee that you will be able to "switch-out" (using a travel club for which you pay yearly dues) your unit for another high-end unit at a different resort. (However, you will consistently be offered one of the mysterious white weeks.)

Myth #3: Reselling the timeshare nets you a profit.

Every day, the internet showcases hundreds of owners trying to unload their units for pennies on the dollar. While most timeshares are deeded real estate, they DO NOT appreciate in value over time like a house does, due to there being no psychological or emotional attachment to a unit lived in for only one week per year. Additionally, due to overconstruction in the 1990s, supply far outweighs unit demand. Be prepared to sell very low.

It is very exciting to be treated like a VIP while discussing the possibility of owning a vacation home. However, what you are being told is a sales pitch designed to say anything needed in order to secure a nice commission for the salesperson. Enjoy the presentation, but keep in mind some basic truths about owning a timeshare before signing that check.

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