Timeshare overbuilt areas

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

I have read that most timeshare experts feel that Orlando, Branson, Williamsburg are overbuilt. What is the thinking about Las Vegas and Hilton Head? There seems to be a lot of resorts in these areas and they keep on building. Any other areas that you think are overbuilt?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Add Massanutten to the overbuilt list, and in Europe the Costa Del Sol and Canary Islands.

I have seen speculation that Las Vegas was on its way to being overbuilt, but I'm not sure it is there yet. I have seen similar speculation about Hawaii.

Hilton Head is usually an easier trade than many east coast beach areas, but I'm not sure I would classify it as overbuilt yet.

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

What about Lake Tahoe?

[bigfrank Administrator Find all posts View Profile Close bigfrank]

Orlando, HH and Williamsburg are over built but they are in high demand. Orlando is in demand all year long.HH and VA are not that easy to get in the Summer unless you search in advance with a good trader.

[Dave_H Junior Member Find all posts View Profile Close Dave_H]

Hawaii is not that easy to get either so I wouldn't classify it as overbuilt. I think the same is true of Lake Tahoe although it is much more seasonal and off season wouldn't trade well while winter and summer would.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Overbuilt depends on your point of view. If you are exchanging, then overbuilt is the right label. It's overbuilt from a supply and demand point of view for exchanging because there is no incentive for the developer to balance supply and demand for exchanging as they build and sell new units.

However, overbuilt is completely incorrect from a rental point of view. Take Orlando, as an example. There is so much rental demand for Orlando that owners should simply not deposit their weeks and rent them instead. As long as their maintenance fees are reasonable, you can make a decent profit on a decent Orlando timeshare.

This is something that nobody really discusses in detail because they don't have the data to support it. I now do.

So, the best way to make a good return on investment is to find disenchanted owners in "overbuilt" areas that also have strong demand for accommodations, in general. Then, buy them for cheap and rent them for 15% return on capital or more.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

From and exchange viewpoint...I would say Tahoe is overbuilt in the medium to low end timeshares and underbuilt for the upper end (Marriott and EVR). To further qualify I would also say this is for the winter and summer periods. Supply is more than enough for the swing seasons.

What about Lake Tahoe?

[Spence Super Moderator Find all posts View Profile Close Spence]

However, overbuilt is completely incorrect from a rental point of view. Take Orlando, as an example. There is so much rental demand for Orlando that owners should simply not deposit their weeks and rent them instead. As long as their maintenance fees are reasonable, you can make a decent profit on a decent Orlando timeshare.

This is something that nobody really discusses in detail because they don't have the data to support it. I now do.

So, the best way to make a good return on investment is to find disenchanted owners in "overbuilt" areas that also have strong demand for accommodations, in general. Then, buy them for cheap and rent them for 15% return on capital or more.

I'd love to see your data if it was in some sort of format that was understandable. From a layman's point of view there are so many timeshares and houses available to rent in Orlando that you are competing with, it is almost impossible, in my opinion, unless you have some sort of free advertising to some large church congregation or large workplace association.

I have an Easter week in Orlando this year, very reasonably priced, and it has yet to see an offer of interest. There's just too much out there to compete with. I do buy for very cheap and normally get 50% return (not 15%) on capital invested. But I normally steer clear of Orlando.