Timeshares are a great way to get a luxury vacation without breaking the bank. They also give you the freedom to vacation at different destinations throughout the year. But there are a few things to keep in mind before investing in one.
1. Timeshares don’t appreciate in value
When you sign a timeshare contract, it’s important to remember that it’s not an investment; it’s a way to secure vacations and make money off of them. And like any other investment, you’ll lose money over the course of your timeshare ownership.
2. Maintenance fees can be a major burden for owners
If you’ve ever owned a timeshare, you’ve likely come across maintenance fees. These are the fees that go toward maintaining your timeshare and making sure you can use it. The cost of these fees can be a significant part of the overall costs associated with owning a timeshare, and can add up to thousands of dollars a year.
3. Timeshares aren’t always worth it
There are plenty of other ways to spend your hard-earned cash if you don’t want to invest in a timeshare property. You could rent your timeshare out on Airbnb to cover some of those expensive maintenance fees, or you could even sell your timeshare for a fraction of its actual value.
4. You can’t cancel your timeshare when you want to
If you buy a timeshare, you have to stick to the terms of your contract. That includes paying the initial purchase price as well as any fees that were included in the agreement. If you decide to cancel, the contract usually requires a cooling-off period. This is a minimum of two weeks, but it’s best to check your contract for details.
5. Buying and selling timeshares can be complex
If the timeshare you own isn’t working for you, it might be time to consider selling it. There are a variety of ways to do this, including listing it for sale on auction sites and placing ads in local newspapers.
6. You can’t sell a timeshare for its full value
When you sell your timeshare, the company you bought it from isn’t going to pay its full value. Instead, they’ll likely offer a percentage of the resale price. The percentage is typically less than half of the original purchase price. If you decide to sell, you’ll need to find a buyer who is willing to pay this amount.
7. You can’t sell it to a third party
If you decide to sell your timeshare, be wary of third-party sellers. They’re often in the business of taking advantage of people who want to unload their properties quickly. These companies will rarely pay a fair price for your timeshare.
8. You can’t sell it to a bank
If you have a mortgage on your timeshare, you’ll need to pay off that before you can legally sell it to a bank. If you don’t, it will likely be repossessed. This can cause you a lot of pain, and it may also negatively affect your credit.