The economy has suffered a hit, and the timeshare industry has taken a hit as well. Many industry insiders, however, don’t feel that there is any need for alarm.
I myself am actually on the side of the industry. In this case, it seems to make a lot of sense. If you’re buying timeshare asset-backed securities, or if you’re invested in a company that sells timeshares, I think you stand to gain. The industry was hit unexpectedly hard in 2008, with revenues dropping billions of dollars. But the upside to the story is this: those who couldn’t afford their timeshares are now out of the market. Those that didn’t think they could buy in the downturn held off. Now that the upper-middle class has stabilized in both its investment strategy and its feeling about the economy, timeshares and other luxuries will make a comeback. It’s true that America is facing a rather austere period, the likes of which it hasn’t seen since the 1970s. But just because a lot of Americans will be tightening the belt doesn’t mean that those with money will be doing so as well.
Like all markets, the timeshare industry has to bottom out. By no means will it disappear, so all those who have decried the death of the vacation industry will have to keep waiting because it’s not going to happen any time soon. Timeshare are at a bottom, and at the bottom, there is nowhere to go but up.
What does this means for you? Find some way to invest in timeshares, either through asset-backed securities, or companies that sell timeshares. You will most likely find that you will make some money on this investment. I am not a financial expert, so don’t hold my feet to the fire, but it simply makes sense. Those with more money are spending it. And I’d wager they’re going to spend it in these fields.
What should you NOT do: Don’t think that you can unload your timeshare with ease, or make money off of it. Remember, those investing in the timeshare industry are not investing in the property, and the reason for this is simple: there is more money to be made elsewhere. Timeshare sales, as a whole, will be better than resales. I would anticipate the number of resales to drop, as timeshares were sold to those making $60k, not those making $200k.
Plan wisely and take advantage of the timeshare industry’s bounce.
