I recommend that people take a very short term view of timeshares. 1-3 years. Keep rotating your portfolio. That's because the developer is always depreciating the products. Always jump on the new product that is being subsidized by the Developer to make it appear to be cheaper than it is. When it isn't any longer, sell it and move to the next one. There is always a next one.
This is assuming that you're not buying to own a particular resort. While it may be a good strategy for buying to exchange, I don't see that it would be profitable when buying for personal usage.
In our case, we've always purchased a timeshare because we believed one of two things. 1. We were going to use it and 2. we liked the system. Of course, over time usage may change.
We were just gettting ready to dump our Polo Towers timeshares and move onto something different in a different destination when DRI bought out Sunterra. Suddenly, with the advent of DRI's points based internal exchange system, what was old was new again. Granted $2,995 might not seem inexpensive to join I still calculated it as being less expensive, quicker and producing the same results I was after than selling and buying something new.
There is no fool proof method to timeshare ownership. As you've pointed out, it is important to understand the rules of the game, know which rules can change and that they WILL change, then take advantage of the contracts until you can no longer see a good return for your money and move on.
We're fortunate in that we are extremely pleased with the two Marriott resorts we own........so far. We purchased them to use and use them we have. I did purchase the particular unit type based on an expectation of possible future needs (proximity to Orlando, Florida Club membership and 3 bedroom unit) and, to some extent, trade potential (full 1 bedroom LO with the 3 bedroom Grand Chateau unit). So in our situation we do enjoy mixed usage with both personal and exchange usage.
Now comes Marriott with potentially a new product. It's going to be hard to say whether this product will benefit us or not. If it does, will it be affordable? It it's affordable, how will it benefit us? What will the rub be to added flexablity? These are all things no one can answer right now. Speculation is good but getting overly excited about it is like tilting and windmills.
Then there's the resale value that Perry is shouting about. All I can say is, with timeshare, what resale value? Marriott propped resale values up for years with ROFR. The economy collapsed, Marriott appears to have figured out a way around the expense of ROFR and things are going to change. I feel sorry for those that purchased contracts based on non-guarenteed benefits such as Marriott Rewards points but, I'll also point out they were foolish to believe the gravy train would go on forever. If you don't have it in writing, then it's going to change. Things like MR points will only continue so long as it's mutually beneficial to both parties. When it's no longer beneficial to Marriott, Marriott is going to take the offer off the table. The fact that anyone would be surprised or upset about making a decision based on their inability to examine what's in writing always amazes me.
The most important thing about timeshare, as far as I'm concerned, is to understand your contract and to work that contract to your advantage. Be ready for change. Change is inevitable. It will come sooner or later. The only thing you can do is prepare for it. Because change is inevitable, my stance has been, and remains, buy in a location and at a resort where you are happy to take vacations. In this way you'll always be happy.
