Timeshares are a type of vacation property that is owned by several people who share the use of the same home. They come in many forms, including deeded and non-deeded.
Purchasing a timeshare can be an excellent way to experience a vacation destination without the high up-front costs of owning a vacation home outright. However, they also have some disadvantages that should be considered before making a purchase.
First, timeshares are expensive. The average cost of a timeshare is $22,942 in 2019, according to the American Resort Development Association. These fees include an initial fee, yearly maintenance fees, special assessment fees and property taxes.
Second, timeshares are difficult to get out of. If you have a timeshare and need to sell it, you will have to pay a significant brokerage fee upfront to a broker who works for the developer. In addition, you may not receive the full amount you paid to purchase the timeshare.
Third, timeshares are often a poor financial investment. They tend to lose value quickly, and while some developers can arrange financing for them, the interest rates they charge are usually higher than those charged by banks.
Fourth, they can be costly to maintain. Annual maintenance fees, special assessments and property taxes are all due and payable by the owner of the timeshare.
Fifth, they can be frustrating. You cannot change the date of your vacation or cancel your timeshare reservation for unforeseen health issues, inflexible job schedules or other reasons.
Sixth, timeshares can be a valuable tool for those who like to return to the same vacation destinations each year. A timeshare allows owners to stay in the same place each year, and eliminates the need to book hotels every year for a vacation.
Seventh, timeshares can be a good financial investment for those who have saved money and are looking for a vacation home that they can use as a base for their travel. A timeshare can offer a lower total cost of ownership than owning a vacation home outright, and they may be more flexible when it comes to using the property.
Eighth, timeshares can be a good option for those who want to visit a certain resort on the same weekend every year or at the same time of the month. These plans are known as fixed-week timeshares, and they are available at most resorts.
Ninety-one percent of resorts that have timeshare properties offer some form of rental program. That includes both onsite rentals and offsite rentals, as well.
Despite the fact that they are not a great financial investment, timeshares are still popular with some travelers. The number of vacationers who own a timeshare is expected to increase by over 30 percent in the next 10 years, according to research by Smith Travel Research.
Tenth, a timeshare can be a great deal for some people who are traveling often and want to be sure they have access to their favorite resorts each year. A timeshare can be a great way to guarantee your vacation accommodations, and it may even save you some money when compared to the costs of hotel rooms.