Timeshares are a popular option for vacationers, and they offer many benefits. But they also come with some drawbacks, so it’s important to understand how they work before you make a decision to buy one.
Time Share Facts
Essentially, a timeshare is a type of vacation property that’s marketed as a deeded ownership. This type of timeshare is most common in the United States and Europe, and it allows you to own a portion of a resort property for a fixed period of time each year.
There are several different types of timeshares, and each has its own unique set of rules. Most are located in popular vacation destinations and often feature a certain activity, such as skiing or golf. These properties are also managed by major hospitality brands, such as Marriott, Wyndham, and Disney.
They’re expensive
In the United States, the average cost of a timeshare interval is $21,455, according to ARDA. These costs include the upfront purchase price, yearly maintenance fees and special assessment fees, as well as property taxes and utilities. They can also include airfare to and from the resort, which could add hundreds of dollars each year to your bill.
They don’t increase in value
A typical timeshare can lose a significant amount of its value after you buy it, and it tends to resell on the secondary market for far less than its initial purchase price. It’s a common misconception that a timeshare will increase in value, which isn’t true.
They’re not an investment
Even if you do own a deeded timeshare, it’s important to remember that you aren’t buying real estate, and you aren’t buying something with a high return on investment (ROI). You’re paying for a lifetime of vacations now to be used in the future, and the value of your timeshare will decline unless it is resold on the secondary market.
They can be intimidating and frustrating
When you’re shopping for a timeshare, salespeople are going to show you their best and most expensive offers first. They’re also going to push hard for a sale, and they’re likely to use fear, pressure and intimidation to sell you on your decision to buy.
They’re not a good fit for you
A timeshare isn’t the right choice for everyone, and they can be intimidating and frustrating to navigate. You may end up feeling stuck with a timeshare that you don’t want or that doesn’t fit your lifestyle, and you may be surprised at how much it will cost to maintain it.
They can be a great option for people who travel frequently, or for families looking for a reliable and comfortable place to stay each year. But they can also be costly and complicated to manage, which is why it’s important to know the facts about them before you decide to purchase.
Timeshares are not for everyone
Many people end up getting trapped in a timeshare they don’t like, because of the way it’s marketed. Some owners say they were pushed into the purchase after attending a sales presentation and that they regret their decision. Others say they were ripped off by unethical salespeople who misled them about the benefits of owning a timeshare.
