Timeshares are a bad investment for so many reasons, but the main reason would be that an investment should be something that you know there is a market and buyers for. The reality with timeshare is that they have little to no resale value. People who already own timeshares often make the argument that regardless of the resale market, they've already gotten themselves into it, so they might as well stay in the contract. Although that response is certainly understandable, it is also completely ridiculous and naive. If you were to invest $15000 into the stock market and it only continued to cost you money over the next 10-15 years (all along with no 'resale' value) would you keep yourself in that situation? The best financial advice that anyone can give you is to "never lose money, because you don't have to." There are so many other ways that people can invest their money without the risk of losing it all. Certainly there is a time and a place for take-risk type investments, but a timeshare is certainly not one of them.
Not only do timeshares cost owners money every single year in maintenance fees, but the amount that is owed is unpredictable on an annual basis and also almost religiously increases every single year! Avid timeshare owners would again argue that these maintenance fees are not wasted and that they in fact go towards paying for a vacation rather than spending $300 a night at a 5 star hotel. Our response? Great...you also spent $15,000 to purchase that $800 a year benefit. Ultimately it does cost you $300 a night.
Timeshares don't provide for any kind of freedom. You pay every single year without fail, but how many people can actually say that they will go on vacation once a year without fail. When times get hard, people stop going on vacations in order to save money but to also make money and stay at work. Life is unpredictable so you can't invest so much of your hard earned money on things that last forever, cost you money forever, and don't provide any sort of return in times of emergency.
Many financial advisers have discussed the topic of timeshares and always come to the same conclusion. If you haven't bought a timeshare yet, keep it that way. If you already own a timeshare, find a way to get out of it and quick! (companies like