Timeshares are one of the fastest growing segments in the vacation industry. It’s also a major moneymaker for resort developers. However, it’s important to know what you’re getting into before you make a decision to buy.
First and foremost, you need to decide whether or not owning a timeshare is right for you. There are many different factors that come into play, but the most important is your budget and how often you plan to use it.
A timeshare is a type of vacation property with a shared ownership model. Typically, timeshares are small units within larger resort properties. In some cases, a timeshare owner owns a fraction of the property and in others, they rent the property for a certain amount of time each year.
While timeshares are attractive to many people, there are some drawbacks to this type of vacation property. Here are some of the most common issues that people face with timeshares:
1. Timeshares depreciate rapidly.
While the average price for a one-week timeshare is $22,942 in 2019, it doesn’t include financing, maintenance fees (annual dues) or exchange fees that can more than double the first-glance cost of owning a timeshare over a lifetime. Moreover, timeshare prices are usually artificially low on the resale market because the resort developer absorbs most of its costs with the sale.
2. The resale market is oversupplied with timeshares.
The resale market is flooded with millions of timeshares that are available for purchase on the secondary market. There are so many people who own timeshares that there is an oversupply of them on the resale market, which makes it very difficult to find a buyer for your unit.
3. Many salespeople are unqualified to sell you a timeshare.
While a salesperson may claim to be a travel expert, the reality is that he or she does not have the necessary knowledge to help you decide if owning a timeshare is right for your needs. This is especially true when the salesperson has not worked in the timeshare industry before and doesn’t have an insider’s perspective on what it is like to own a timeshare.
4. Unscrupulous salespeople will offer you a way to get out of your timeshare and they will tell you that this will be accomplished by purchasing another product, such as a vacation club.
These salespeople will try to pressure you into buying a product that isn’t right for you or your family. This can be a serious problem for timeshare owners who are not aware of the risks and costs associated with timeshares.
5. Most salespeople will try to sell you a timeshare that is too good to be true.
While a timeshare can be a great way to vacation in your favorite destination, it is important to know the details before making your final decision. The following timeshare facts will give you an idea of what owning a timeshare is like and how it can affect your financial future:
Before you agree to buy a timeshare, ask questions about the timeshare’s policies and terms. Be sure to look over the documents that you receive when you sign your purchase agreement. You should also check online for any information about the property or its owners that you may need.
