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[quote=Anonymous]They’re almost never worth it.  You’re essentially paying a high up-front cost, maybe $25k, plus $1-2k in annual maintenance fees, for the privilege of an annual stay at a resort that would otherwise cost around $5k.  You need to visit several times for the math to work out.  For instance, if you pay $25k + $1k annually for a $5k resort, you won’t be ahead financially until your seventh annual visit ($25k + $7k vs. $5k x 7), not accounting for interest.  I’ve stayed at some nice places but there’s nowhere I would visit seven years in a row.

Some timeshare programs let you change resorts but there are always restrictions that usually degrade the value of the program.  For instance, your points might be worth less at another resort or you might only be able to book six months in advance, after key dates are unavailable.

You also risk the collapse of the timeshare program, which isn’t uncommon.  Timeshares can enter a death cycle when demand declines and maintenance fees go up unexpectedly.  Once the maintenance fees approach the price of a non-timeshare booking, the timeshare essentially becomes worthless and you’re stuck with no easy way out, other than abandoning and losing your investment.

If you don’t pay cash for the timeshare then you’re really getting a bad deal.  Interest rates typically are 10-15%.  So if you finance a timeshare your annual payment—including principal, interest, and maintenance fees—will be about the same as a non-timeshare booking, except you’re locked in and have no flexibility.

The one timeshare program that is worth considering is DVC (Disney), assuming you actually want to visit a luxury Disney World resort at least 8-10 times.  Demand for Disney World isn’t going away and Disney won’t degrade the program since they want DVC members to spend at its parks.  [/quote]

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