Timeshare facts
There are many different types of timeshares, but they all serve the same purpose: allowing you to have a vacation at a specific resort or home each year. They can also be a great way to save money on your vacations and get to see a new place each year without having to worry about booking a hotel room every time you travel.
They’re a terrible idea
The timeshare industry is a $17.3 billion-dollar business that relies on salespeople to lure people into their presentations and then pressure them into signing contracts that they might not have otherwise signed. If you are considering buying a timeshare, here are a few things to keep in mind:
They’re expensive
The average cost of a timeshare is $21,455, according to the American Resort Development Association (ARDA). In addition to that, you’ll need to pay yearly maintenance fees, special assessment fees, property taxes and utilities.
They’re a binding contract: If you decide to sell your timeshare, you can’t do so without the developer’s consent. You’ll have to go through a lengthy legal process that can take years to complete.
A timeshare can be structured as a deed of ownership or a lease of ownership, and each type has its own unique benefits and disadvantages. Generally speaking, the best option is to purchase a deeded timeshare.
Deeded timeshares are the most popular type of timeshare. They give you the rights to stay at a particular resort or property each year, and they’re transferable if you want to pass them on to family members or sell them.
Floating timeshares are a more flexible option than deeded timeshares, but they’re not as common. The main difference is that you don’t have to own a specific week of the year — instead, you’re allowed to select any week on the calendar from which to choose your vacation.
There are many types of timeshares, but the most common ones are fixed-week, floating and annual usage. There are even timeshare clubs and points systems, which can be a good option for those who don’t need a specific week each year but would rather have the flexibility of choosing different properties for their stays.
If you don’t plan to use your timeshare for a few years, it’s a good idea to consider selling it on the resale market. You can find used timeshare units for sale on the secondary market for a fraction of what it costs to purchase directly from the developer, and you’ll be able to recoup some of your investment in a shorter amount of time.
These resales often come from current owners who no longer have use for their timeshare. They may be trying to sell their timeshare due to a health issue, financial hardship or just to downsize.
They’re a bad idea for your family
Many timeshare buyers are pressured into making purchases they never meant to make. They may have been in financial hardship and unable to afford the initial payment, but they still went to the presentation, signed a contract and now have an expensive burden to bear. They’ve been forced to turn to credit cards, 401(k) plans and even bankruptcy to pay off the debt. They’ve also been defrauded out of thousands of dollars by companies that resell timeshares to people who can’t afford to buy them.
