September 3, 2016It's not new news....exiting a time-share is tricky business, is not easy to do, takes time to accomplish and sometimes risky. Stacey Johnson started Money Talks News in 1991. It is a "personal finance TV news feature that airs within the local news of about 80 network affiliates nationwide as well as on major websites including MSN, Yahoo, and of course, this one (MoneyTalksNews.com)!" Mr. Johnson was asked by a member of his audience "How Can I Get Out of My Time-Share Without Being Robbed?". You can read his answer by tapping the following link: http://www.moneytalksnews.com/ask-stacy-how-can-get-out-time-share-without-being-robbed/
First of all, in general, Mr. Johnson is not a big fan of time-shares for many reasons:
- Time-shares are a product that’s often foisted on the gullible with high-pressure sales tactics.
- When it’s time to sell, there’s often no way to do it, especially when there’s a loan involved.
- Time-shares depreciate radically the moment they’re purchased.
- Buy a time-share at retail from a developer, and odds are good you’ll be left twisting in the wind.
- An inactive secondary market.
- High monthly maintenance fees.
- A supply that eclipses demand.
- Most lose a huge chunk of their value the instant they’re purchased.
Our takeaway from Mr. Johnson's article is the following:
- Time-shares are long term commitments for prepaid vacations.
- Be sure you like the location and facilities.
- Understand there is little to no resale value to time-share interests.
- Understand the ramifications of borrowing to buy.
- Understand that all loans will have to be retired before a sale can be closed.
Although Mr. Johnson admits he is not very high on buying time-share interests, we feel comforted that our purchases from Grupo Vidanta have exceeded our expectations. Use of the facilities is always looked forward to by ourselves, our children and grand children. We have never expected a return of our money through the sale of our contracts. Finally, if we do not use our weeks, there is no penalty or requirement to "catch up" in order to return to using our weeks again.