This video shows John Adams talking about the good, the bad, and the ugly of timeshares. He openly admits that he is entirely against timeshares. They are not a good real estate investment, even though it seems like they should be. John Adams talks through the process of how timeshares work and why it is not financially savvy.
Adams has four significant problems with timeshares.
The first is they are complex and not standardized. You need reputable timeshare lawyers to understand the process, and even then, it may not be clear.
Second, you are signing a contract for a specific place for a specific week every year for the rest of your life. What sounds good today may not work for you in a few years. Third, they do not generate any income and do not accrue any equity. You have no leverage as a result of the timeshare. You end up losing money on timeshares.
Lastly, they are not easy to sell at all. There is a huge resale market, and no one wants to buy it. The market is flooded.
