Most people think of purchasing real estate as an investment in one’s future, when a family purchases a newly built home the plan is for the value of the property to increase over time thus allowing them to sell the home to move in to a bigger one or at least get some cash back for their investment when they sell. Even though lately this has not been the trend in the housing market in the long run this is the plan shared by most home owners. Timeshares are considered by many as pieces of real estate, however they do not follow the same pattern as other real estate properties and actually depreciate in value when purchased from the resort. Thinking along the same lines as the housing industry and applying the concept to the timeshare industry can get some people in trouble and make them believe that purchasing a timeshare directly from the resort is an investment when it is not.

Instead of behaving like other pieces of property a timeshares value will behave more like that of a new car when purchased from the resort. For example let’s say you visit a car dealership and find a car to purchase, once the car is driven off the lot it immediately depreciates in value. The reason for the immediate depreciation lies in the secondary market for the car you just purchased, there are other owners who have purchased the same automobile but now have decided to sell it for one reason or another. Obviously an individual will not be able to sell the same car the dealership is selling for a higher price or the same price so they must offer the car at a significant discount to prospective buyers to draw interest. The same phenomenon happens in the timeshare industry, when an owner has purchased a timeshare directly from the resort and tries to sell it they will find the offers they receive are significantly less than the amount they paid directly to the resort. Unlike purchasing a new car deciding to buy a timeshare resale provides the new owner with the same accommodations as the first owner or any other owner who has purchased a timeshare directly from the resort. When a person purchases a car in the secondary market they can not be sure how well the car was maintained, the car will have some miles on it, and there will be other subtle differences between the first and second owner. However the person purchasing a timeshare resale receives the same accommodations, same service, same week of travel and advantages the initial owner would have received when they purchased the timeshare.

Regular readers already know the advantages of purchasing a timeshare resale when compared to purchasing a timeshare directly from the resort. There are plenty of timeshares on the secondary market at this time and the deals have never been better. Rest assured the price of timeshares on the secondary market will begin to gain value again when the economy completely turns around, if you have been considering purchasing a timeshare the time is now.

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