Ever been tempted by an offer to buy a timeshare? They’re an appealing option for a lot of people, since they allow you to vacation in an almost unlimited number of locales. Plus, with a timeshare, you’ll know exactly how to budget for your trip.
But is buying a timeshare REALLY worth the cost? And what happens if you decide to sell it?
Let’s examine the topic of timeshares more closely.
First of all, what are they and how do they work?
Timeshares give you partial ownership of a property.
Let’s say you purchase a one-week timeshare on a property. That means you own 1/52th of it. The fee you pay entitles you to use the property for one week out of each year.
Is a timeshare ever a good option?
Maybe. If you like to vacation in the same place each year, a timeshare might be worth considering.
Some timeshares limit you to certain dates of use, while others may not. You’re basically buying a vacation destination for a specific time period.
So, if you’re looking into getting a timeshare, make sure you know exactly what you are getting … and when you can schedule your stay. Otherwise, you may be stuck with a timeshare that you can’t actually use when you want to.
When is a timeshare a bad idea?
If you think of a timeshare as an investment, you may want to think again. There are so many timeshare options available, it’s unlikely that you can make a profit on yours. Your timeshare’s resale value is probably going to be much less than what you paid for it.
How much will this cost me?
Buying a timeshare may look like a great deal today. However, over time the costs associated with your property will probably rise.
You’ll be responsible for paying a portion of any maintenance, repairs, or upgrade costs on the property. If your timeshare property needs a new roof, the fees you pay will go up to cover that cost. Increasing fees can make the property less appealing … or even unaffordable.
You may even find a better deal on the used timeshare market. Many owners change their minds and want to get rid of their timeshares when it stops working for them. Google “timeshare resale” to see what deals are available.
What if I need to sell my timeshare?
The timeshare market is often flooded. That means you should expect to “list” your timeshare and wait for a while. Be prepared to take a loss on the resale, because buyers can usually get a deal if they buy directly from a timeshare company.
If you want to offload the timeshare so you no longer have the payment, you may need to use a third party to help you sell it. These third-party companies can’t work miracles, but they can help you identify a buyer for your property.
As you can see, timeshares may be a good option if you’re like visiting the same vacation spot each year. But be sure to research your options, look into the used market, and avoid viewing a timeshare as an “investment”.
Have you ever considered buying a timeshare? What was your ultimate decision, and how did it work out? We’d love to hear from you, so drop us a line today.