Resort Developers Fight Suffering Financial Market Sign of Good Things to Come

Resort Developers Fight Suffering Financial Market Sign of Good Things to Come May 22, 2009

Posted by John Copain in : Marriott Timeshares, News & Events, Timeshare Resale, Timeshare Resource , trackback

Timeshare Companies Prevail Despite Languishing Financial Economy

The United States’ economic recession and the subsequent global credit market decline has affected nearly every commercial business and every industry on every level. Finding a light within this dim economic time is not easy, especially for business owners – and in the timeshare industry, resort developers. But news from the timeshare financing sector of a couple major developers is just that, a bit of optimism amidst the unrelenting negative talk of recessions and depressions.

The collapse of several American and international banks have thrown a wrench into the real estate markets and lending institutions. Interest rates have gone up and property values have gone down. Amazingly, this did not immediately affect the timeshare industry. It wasn’t until the fall and winter of 2008 that the timeshare financing, property loan, and timeshare mortgage systems of major timeshare resort developers began to slip. All of a sudden timeshare companies weren’t making money from selling their product because there was no way to monetize consumer debt – in other words selling timeshare units based on money lending was no longer profitable. This meant that timeshare companies were looking for cash transactions, which is unrealistic for most prospective timeshare owners.

The good news arrived last month when it became evident that both Starwood and Marriott were going to continue to offer financing for new timeshares, which is a lot harder for resort developers to do than it is for timeshare resale companies to do because the units are so much more expensive – this is one of the reasons BuyATimeshare has managed to evade the financial market crash.

For giant corporations there is a higher risk because this type of property financing relies on mortgage-backed securities this is a sign that the left-for-dead securities market is starting to move again. That is quite a bit more positive than most economic news you’ve heard today, isn’t it? No one has predicted a full recovery overnight, but if this is a sign of things to come than the ailing property and financial markets may finally begin to recover.

It’s going to be a long road to recovery for the US economy, but it has to start somewhere. If Plato was right then once we’ve seen the light we will be reluctant to return. Let’s hope he was talking about vacation ownership!

Share and Enjoy: