Timeshares can be a great way to lock in vacation time at a favorite destination. But be careful of their hidden costs, which can be more than you think.
You’ll need money to buy your timeshare, plus cash for maintenance fees and taxes that come with owning a deeded property. Depending on the type of timeshare you’re buying, you may also need to pay for utilities and other expenses in addition to those fees.
A timeshare is a type of real estate that’s typically a condo, apartment or room at a resort that you share with dozens or even hundreds of other owners. While you own a fraction of the property, you’re sharing it with other owners who are all trying to make their money off of it.
Buying a home is a big financial undertaking that takes time and planning. It involves looking at properties, applying for a mortgage loan and committing to a whole new set of expenses.
If you’re impulsive, you might not be thinking through the full picture of your purchase, which could result in financial losses that are difficult to recover from. That’s especially true if you’re using a timeshare, since you can’t always just walk away from your contract and sell it to someone else.
The bad news is that many timeshares end up losing their value after you own them for a few years. That’s because timeshares are hard to resell and often don’t grow in value, which means you might not be able to get back much of your initial investment once you sell it.
Another bad thing about timeshares is that they can be incredibly expensive, and most developers and sales agents don’t tell you this until you’re past your cooling-off period. If you don’t have the cash to cover your annual fees, it might be impossible to use your timeshare at all.
There are ways to avoid these costs and get the most out of your timeshare, but you’ll need to spend some time researching each type of timeshare before deciding on the right one for you. Here are some tips for getting the most bang for your buck:
1. Do you really need a timeshare?
When you think about it, owning a timeshare isn’t much different than buying a condominium or other home. It’s a deeded property, but you’re still sharing it with other people who are trying to make their money off of it.
2. Does a timeshare really fit your family’s lifestyle?
A timeshare is a good idea for many families, particularly those who love to travel and want to be able to lock in a vacation spot every year. But if you’re not sure you’ll be able to afford the annual maintenance fees, it might be best to consider other vacation options.
3. Are there any cheaper options?
There are lots of options for buying a timeshare, and you should be able to find the right one for you. There are plenty of resale timeshares for sale on the secondary market, and they usually don’t have the same hidden fees as the timeshares that you’ll be buying from the developer or sales agent.