The average price to buy into a 1-week per year timeshare is $24,140.
Timeshare companies are great at what they do. They can make a vacation investment sound like an amazing idea and will go a long way in convincing you that you can’t lose. However, if you’re looking to sell your timeshare instantly here, it’s important to recognize the potential pitfalls.
In reality, many people who invest in timeshares end up regretting their decision. If you’re thinking about vacation ownership, don’t rush into things. There are several factors to consider before making any big commitments.
In this guide, we’ll cover everything you need to know about vacation ownership so that you can make the best decisions. Keep reading for more.
What Is Vacation Ownership?
Vacation ownership involves investing in a timeshare property. You pay an upfront cost, along with an annual maintenance fee. In return, you’ll get access to the property at a specified time of year.
The same timeshare will have various other owners, and each will have a portion of time to use the property. Note that the time slot you have each year is often the same, but in some cases, it can change.
Benefits of Vacation Ownership
Timeshare companies will make a point to highlight all of the benefits that come with owning one. These can vary depending on the property in question, but some factors can make any timeshare a good investment.
Easy Vacation Planning
Some people like seeing different places, but others find a favorite spot that they like to visit. If you own a timeshare, you’ll be able to go to the same place with ease, and won’t have to worry about finding accommodation. For those that like stability and predictability, this can be very helpful.
If you feel like a change after some time, you might be able to exchange your timeshare for another one of the same or lesser value. This will give you the opportunity to find a new place for your yearly vacation.
No Need to Worry About Maintenance
You’ll pay annual dues that go towards maintaining the property, but you won’t need to worry about organizing anything yourself. The timeshare company will deal with all the admin duties; you just need to be able to pay the amount required each year.
More Financially Accessible than Buying a Vacation Home
Vacation homes aren’t cheap, and many people simply can’t afford them. With vacation ownership, however, you’ll only be paying a portion of the price of a property, with the total cost split between the various owners. This makes it a much more viable option for those who don’t have the capital to buy their own property.
Secondhand Timeshares Are Even Cheaper
You can sometimes get great deals when looking for an investment opportunity. Some timeshare owners will want to sell for one reason or another, but they can be tricky to get rid of. As such, you may be able to get one for significantly less than the price it would be from a timeshare company.
They’re Spacious
Timeshares are typically designed to offer a lot of space. This means high square footage and plenty of bedrooms. The designs typically resemble condos rather than hotels and often include additional amenities such as swimming pools and gyms.
Cons of Vacation Ownership
While all of this can sound very good, it’s important to not get too distracted by all of the benefits. Several disadvantages can also come with vacation ownership.
You Might Be Talked Into Something You Can’t Afford
Timeshare sales agents have their jobs for a reason. They’re great at selling and will do their best to get you to invest. As they highlight all the benefits of vacation ownership, it can be easy to get convinced that it’s a great decision.
Their goal is to make money, so the more you spend, the happier they’ll be. As such, they might try to talk you into buying something that you can’t really afford. Financing is an option, but may not be suitable, regardless of how suitable a sales agent makes it seem.
Financing Can Be Pricey
Financing is possible, but not with a traditional mortgage. Instead, you’ll likely need to do so with the timeshare company itself, or using a personal loan/credit card. This can end up costing you a lot, and you won’t get typical mortgage benefits such as tax deductions.
The Value Won’t Appreciate
One of the biggest issues with timeshares is that the value won’t increase with time. In fact, the value will often go down, which isn’t ideal if you think you might want to sell it eventually. The secondary market is very competitive, so you’ll have to contend with other owners that are also trying to sell.
Vacation ownership should always be looked at as a long-term investment. With that in mind, if you do want to exit, you could transfer your timeshare. This may be ideal if the fees become unaffordable, or if you simply don’t want it anymore.
Timeshare Points Can Lose Value Over Time
There are different types of timeshares, and some are points based. While these points can make things more flexible, they don’t hedge against inflation. As such, your current points may not get you as much as they will a year down the line, for example.
The points required to use your timeshare at specific times can also change. If a certain period starts experiencing high demand, it will likely become more expensive.
Is Vacation Ownership Worth It?
Vacation ownership may be suitable for you. It’s important to think about what you want out of your vacations and if a timeshare will offer what you need. You also need to weigh up the pros and cons to determine if it’s the best choice for you.
For more lifestyle articles, check out some of our other blog posts.
