Timeshares are a popular way to get access to vacation properties, such as hotels and resorts, without actually buying a home. They offer one way to lock in a place to stay in your favorite destination year after year, while also saving you money compared to staying in hotels. However, there are a few things to keep in mind before you buy a timeshare.
Firstly, you need to understand what you are getting into when you purchase a timeshare. While it may sound like a good idea, timeshares are not a smart investment.
They don’t offer a way to invest in your vacation, as they typically are not. A timeshare is a lease agreement that gives you permission to use the property for a fixed number of weeks each year, regardless of how many times you want to go. The contract is usually tied to a particular time period, such as 20 years.
Another problem is that timeshares are often very expensive to maintain. Depending on the resort, you will likely have to pay maintenance fees that include taxes and utilities.
These costs can add up quickly, especially if you have a large number of units in the same complex. Even if you are only using your timeshare a couple of times each year, these maintenance costs can quickly add up.
The best way to avoid these high maintenance costs is to consider renting your timeshare instead of purchasing it. This allows you to recoup much of your initial outlay, but the income generated won’t be enough to cover the expenses.
Alternatively, you can use your timeshare as an investment, to earn additional income. For instance, if you have a lot of timeshare points and can rent them out for a week or two each year, this could be an excellent way to generate extra income.
If you can find someone who is willing to swap your timeshare with them, you can save a lot of money. Some people are willing to swap for a small fraction of the cost, but others will only accept full ownership.
The downside to this is that you will not be able to make any improvements or changes. It is also a very limited way to spend your vacation, and it can be quite restrictive.
There are a few other benefits to timeshares, including allowing you to trade your time with other owners, or if you decide you aren’t happy with the resort you are staying at you can always sell your timeshare and move on. If you are interested in buying a timeshare, our office can help you weigh the pros and cons of the type of property you are looking at. We can even run the numbers for you to ensure it is a good financial decision for your lifestyle.