Shocking Re-sale Market
"At the centre of the timeshare industry's smoke screen is the fact that literally no timeshares will ever make a monetary return on investment or a capital gain."
Simply put, there is an overwhelming number of timeshare owners who are actively seeking a solution to dispose of their unwanted, unused and in many cases worthless timeshares. Most of those we speak to have paid thousands of pounds "up front" to either; sell, cancel, give away, get a tax write-off or rent out their timeshare. Most are disappointed.
We know most just want a way out of paying rising annual maintenance costs - we know many have not used their timeshares in years - some owners are contractually obligated to pay rising annual maintenance, special assessments and property taxes "in perpetuity" these are usually called Legacy Timeshares. Note: In (or for) perpetuity - means until the end of time!
The timeshare industry offers the following unsatisfactory disposal solutions:
1) Return it, surrender it or deed it back.
Your timeshare must be fully paid for, and all current fees paid up to try giving it back to the Resort. You must send an email to the resort’s loss mitigation department saying you would like them to take back your timeshare, and why (e.g. financial hardship, medical condition) and it's a voluntary surrender. They review your case and decide whether to accept or reject it. If accepted, they send you some paperwork with instructions. You follow the steps and pay them a fee per contract. They take back your timeshare. After the process is finished, you are no longer the owner.
2) Resell your timeshare
Most of those who paid upfront fees to re-sell their timeshares are sadly disappointed. Sellers "vastly outnumber" buyers and if a buyer can be found for your specific timeshare, the buyer would often get 90%+ discount. To date there is NO organised, centralised, secondary market for timeshare. The timeshare re-seller business is highly fragmented and is sadly littered with many crooked miscreants demanding upfront fees. Many owners have divvied up and lost millions in upfront fees that only enriched the crooks. The clear majority of re-sellers never see a sale, a closing or a refund.
3) Rent out your timeshare
Owners receive many unsolicited calls from marketing companies offering the promise of rental income on timeshares and exchange guest certificates. Again, many owners have divvied up millions in upfront marketing fees. Predictably, most owners have never seen a penny in rental income or a refund, and more than a few exchange members/owners have lost their exchange guest certificate membership rights!
4) You could try to give it to charity and get a huge tax write off
"Not so fast" warns the IRS. While timeshare owners may be tempted to claim a five-figure value based on their original purchase price or what the resort is asking for similar units, the amount you can legally deduct depends on the "fair market value" — what a "knowledgeable buyer" would pay, not what a friendly appraiser says it might be worth.