What You Need to Know About TimeShares

1. Timeshares are still a lousy investment. Forget what resort developers tell you. There's a glut of unwanted timeshares. Sell today and you can expect to get back only 30% to 50% of what you paid. But on the bright side, buying a previously owned timeshare could be a bargain because the largest depreciation has already occurred. You'll find listings of resale properties at Timeshare Users Group (www.www.eztimeshare.com; listings are free to view, but you must pay $50 for the first year of members-only information on local markets).

2. Selling agents may be of little help. You might be tempted to hire a company that promises to sell the timeshare on your behalf. But consumers have filed many complaints with the Better Business Bureau about companies that charge up-front fees and then fail to sell the properties. If reselling your timeshare is too much of a hassle, consider donating it with the help of the nonprofit Donate for a Cause. If you itemize, you can claim a federal tax deduction of the timeshare's fair market value (commonly $3,000 to $5,000), and the charity keeps nearly 65% of the proceeds of the timeshare sale.

3. Financing is a last resort. The cost of a one-week, two-bedroom timeshare in high season ranges from $10,000 in St. George, Utah, to $12,000 in Maui, Hawaii. If you can swing it, buy your timeshare outright. Banks are loath to lend money for timeshare purchases, and developers fill the breach with loans charging interest rates as high as 16%. Don't expect a tax write-off for your interest payments, either. These loans are usually unsecured, and interest payments on unsecured loans do not qualify for the home mortgage-interest deduction.

4. Trading spaces can be a headache. If you want to exchange your week for a week somewhere else, you could join a timeshare trading network. For example, Interval International lets you swap with about 2,000 resorts worldwide. Most such programs charge a membership fee of about $100 a year, plus a trading fee of about $150 per trade. Be aware that you may not get into, say, a Maui beachfront resort in January even if you plan a year ahead because such popular resorts are often overbooked. Luckily, trading networks offer an alternative: points that can be redeemed for hotel, cruise and other travel rewards.

5. A slice of a condo can be better than no condo at all. On the positive side, time shares are a convenient vacation option for many families. Condo-apartment time shares are roomier than many hotel rooms, and having a kitchen saves on pricey restaurant bills. What's more, timeshare resorts usually offer amenities, such as pools and tennis courts, that can make the average annual maintenance fee of $400 more palatable. Or you can enjoy those resort amenities without the commitment by renting a timeshare. In general, rental rates are cheaper than paying for comparable hotel accommodations. The largest timeshare rental listings site is www.eztimeshare.com.