Can You Make Money Off of a Timeshare?

timeshare money

If you are considering purchasing a timeshare, you should be aware of what you can expect. Timeshares are not cheap, and if you miss payments, you can get into serious debt. Depending on the type of timeshare, you may also be charged for resort transfer fees. In addition, you will have to pay annual maintenance fees and special assessments. Even if you don’t use your unit, you will still have to pay these costs.

While the salesperson might tell you that you’ll be able to make money off of your timeshare, it’s unlikely. For starters, you are not allowed to resell your timeshare. Secondly, it’s very difficult to get your money back once you own it. You’ll have to continue paying the mortgage, taxes, utilities, and any other associated fees. Plus, your credit is likely to take a hit, so you can’t rent out your timeshare if you are behind on your mortgage.

The good news is, a timeshare is a great way to experience different destinations each year. However, your financial situation may change as you age, your family may grow, and your health might decline. As a result, your ability to travel will decrease. At the same time, you could be faced with a higher than average maintenance fee. It’s not a good time to purchase a timeshare, but if you do decide to do so, stick with reputable brands.

There are many ways you can be taken advantage of. This includes the usual high-pressure sales tactics. Some timeshare salespersons claim that their timeshares are the best in the industry, and that you will have access to eager buyers. But in reality, you’ll likely end up with an inferior product.

You can’t resell your timeshare on the spot, but you can recoup some of the money you spent. A good option is to look into renting your timeshare. Fortunately, there are plenty of companies that specialize in this service. These firms can give you a better deal than you might be able to obtain from your bank.

You can also try to trade your timeshare. If you are concerned about the resale systems, you can hire a designer to build you a custom funding package. Many times, the price of a designer unit will be negotiable. Moreover, you can use a third party collection agency to help you.

There’s a lot to learn about timeshares, and you don’t need to be a financial whiz to do some homework. For example, you can check out the Better Company Bureau website to see what complaints people have about specific resale companies.

Lastly, you should consider the rescission. Many timeshare purchase contracts include a rescission period. Most states have a law on the books that gives you a few weeks to get out of the contract. Usually, the rescission period is in the range of 7 to 15 days. If you don’t make the required payments, you’ll face levies, collections notices, and eventually, foreclosure.

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