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It's the purchase cost thats lost
Where the scam portion of timeshare ownership is far more likely is in the purchase price not the on going fees. As shown here it is easy to track where the money goes each year and the results (or lack of them) if they are mismanaged or under funded (poor maintenance, no upgrades and dissatisfied owners/guests if too low). On the other side the purchase cost is lost money. Buying a timeshare for $1 or $25,000 does nothing to make the overall experience better. In fact the higher the original expense the more you begrudge the necessary on going fees that will actually make your resort better. That purchase money paid to the developer only covers the original cost of construction and their profit. The resort is already "using up" those investments from the day the doors open and needs cash flow to sustain itself going forward.
Now no one should think that a developer doesn't deserve a fair profit from the major risk involved in building a resort. But the model that has evolved that requires 50% or more of the original purchase cost to go to marketing and other lost expenses means that few if any timeshares make sense to buy at retail. But it also opens the door to the knowledgeable buyer who swoops in after the depreciation kicks in to pay pennies on the retail dollar and then the true cost - the annual fees which are the same for both types of buyer. The timeshare concept is a great one especially if you buy a good resort or resort group at resale pricing.
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