Everyone's Different
You need to see what works for you.
We bought a primetime, week 31, lockable into two one-bedrooms timeshare that we have never used on week 31. Not sure if we ever will.
Last year we exchanged for two weeks in Hawaii. This Christmas we also exchanged a one bedroom for a three bedroom in Orlando. We exchanged one week for a week in Breckenridge, but we exchanged one week for another summer week on the same resort--so that cost us an extra $169. We have bonus weeks, and have stayed at the resort five times in late May or early September--never more than once a year. In 2009, we didn't stay at all. That's when we went to Breckenridge and two weeks in Hawaii.
Three years ago, the maintenance fee was about $300 ($150/unit), but has now increased to $525 ($262.50 each). The Orlando unit had a $900 MF, and the Breckenridge MF was $1,000. One of the Hawaii units had a $850 MF. The other was about $500. So even with the exchange fee, we're better off than had we owned in Hawaii, Orlando or Breckenridge. And I would not want to go to Hawaii, Orlando or Breckenridge often.
I think you can buy a local resort if:
1. it has good exchange power,
2. the maintenance fee is reasonable,
3. you won't be tired of going there.
We recently bought at the same resort a four-bedroom in mid-June, the time we prefer. August is too hot. We bought this more for ourselves, than for exchanging, but it can be separated into two two-bedrooms. And the resort is one that we love vacationing.
I have never rented. Exchanging is easier.