Not only a fun destination and place to get jazzed up or unwind, Las Vegas is also the seat of a thriving accommodation market place, and in this article, analyst Tim O’Reiley looks at timeshares in Vegas and across the U.S.
You don’t have to read the whole thing, but if you’re interested in the intersection of timeshare and economic growth, it’s an interesting perspective. O’Reiley talks about how increased travel nationwide is giving timeshare developers a new life after the 2009 market fall. What’s worrisome, however is his point that “many developers tap Wall Street to bundle their sales contracts into securities that are sold to investors, similar to what happens with home mortgages.”
While that’s not exactly breaking news, what it means for the timeshare industry (and people who want to buy a timeshare), is that buying from the developer is potentially dangerous, much like the housing market of 2008-2009. O’Reiley also reiterates that the gain from the developer is the 18% interest rate on financing a new timeshare purchase.
Cities like Orlando and Las Vegas are tapping into the increased travel rates of Americans and building new units at a rapid pace. Hilton is expanding Trump International Hotel, Grandview at Las Vegas is building a new tower, and the expansion of Marriott’s Grand Chateau will add over 200 units to its Vegas property.
What this means for timeshare shoppers that you’ll find higher prices on a new unit at the Grand Chateau or Grandview. What it means for timeshare resale buyers is you may have to wait a year for those units to come on the resale market, but they’ll eventually make it here, and when they do, that developer overhead will be drastically reduced.
Buying timeshares resale makes so much more sense than paying for “new” timeshare units from the developer. By purchasing on the resale market, not only do you get up to 60% off developer prices, you avoid the massive risk of an 18% interest loan and can plan for maintenance fees that you will be able to afford every year. And with Premier Timeshare Resale, nobody pays upfront fees. Ever.
Get in touch with us today to find out more about whether buying a timeshare could be right for you.
