Have you been thinking about buying a timeshare vacation? While it may seem like a good idea, there are a number of reasons why getting a timeshare could lead to trouble.
Some things that come to mind are expensive yearly maintenance costs and the depreciation in value after buying the timeshare. If you're still not convinced, keep reading to learn about our top eight reasons why you should rethink buying a timeshare vacation.
You're Forced to Vacation at the Same Spot Every Year
Who are these people who love to go to the same place every year for their vacation? You may prefer to travel and see new places around the country or even internationally.
So purchasing a timeshare would make little sense to you. Even if you have a great time at that particular resort, you are unlikely to enjoy doing the same exact activities the next season and the season after.
You also never know if the weather will stay the same in future years. Your sunny afternoons at the beach may turn into clouds and rain. By going to the same place year in and year out, you will lose out on the excitement of visiting new locations.
The Value of Owning a Timeshare Vacation is Subpar
Sometimes timeshares may cost as much as $20,000 for a one-week vacation. Be sure to check out how much the property would cost if it were a private sale.
Take a look at the local real estate sales in the area and compare it with the timeshare cost. Often you'll find out that the value of owning a timeshare is inadequate.
The resale value of a timeshare is also often much less than what you originally pay for it. A timeshare vacation will actually depreciate in value over the years.
It may not be worth it to buy a timeshare solely due to the poor overall value .
You're Predicting you can Take the Same Vacation Week Years into the Future
You are committing your time when buying a timeshare in such a way that is nearly impossible to anticipate.
You can't predict the future. You don't have a crystal ball to tell you that you'll take the same exact week for vacation for the next decade.
You never know if your job will allow it or if you are in the middle of switching jobs and can’t take that week off. you also never know if you might get sick and become unable to travel or possibly have an unexpected funeral to attend.
Life brings many curve balls our way that makes predicting a vacation five or ten years into the future nearly impossible.
You're Committing to Pay Money well into the Future
When buying a timeshare vacation, the buyer is committing to make payments on the timeshare for years into the future. Yet, you never know if you'll be able to afford the same payments after three or four years.
You never know if you might lose your job or face a very large expense such as covering high out-of-pocket medical costs.
Your family may face unexpected expenses and pay the cost of a timeshare may seem more frivolous. In fact, yearly vacations may become more of a luxury if you are undergoing financial troubles.
Committing to pay money into the future may not be the best bet since you never know where your financials will stand even five years from now.
You will Need to Cover More than Only Mortgage Payments
It's likely that you wouldn't be able to buy a timeshare right off the bat and will need to get a bank loan to pay off a mortgage. However, you'll soon find that you are required to pay for more than just the mortgage.
Read your timeshare contract and you will find that you have to pay for property taxes, maintenance fees, utilities, and special assessments.
Monthly maintenance fees and per stay fees could lead to very high annual expenses. These costs may even cover the majority of lodging at a very nice hotel instead of staying at a timeshare.
Timeshare Resale Scams DO Exist!
Since selling timeshares tends to be difficult, a large number of scam artists have been known to sell themselves off as timeshare resale brokers.
These brokers can tell you that they have a buyer interested And could direct the sale. However, they usually charge very high upfront fees and then fail to actually sell your timeshare.
Yet, not all resale brokers are scam artists. Additionally, some states have enacted laws that try to crack down on these scam artists .
Nonetheless, you will need to be very vigilant to avoid falling into one of these scams. This is a major reason why buying a timeshare vacation may just be one too many hassles.
Renting out your Timeshare Won't be Easy
You can't count on the option to rent out your timeshare to someone else. Even though many timeshare contracts allow you to rent out the location, this won't be easy to accomplish.
The issue may be that there are more timeshares available to rent and fewer people looking to rent them. Also, some contracts won't actually allow you to rent out your timeshare.
Other contracts may place restrictions on the type of renting agreement you're allowed. Essentially, don't expect that renting your timeshare will be a piece of cake.
Booking a Hotel Room or Renting Lodging may be Cheaper
While many people may think that buying a timeshare is a great investment, the high costs and extra fees such as maintenance payments or taxes could make it unaffordable.
You may find that renting lodging or booking a hotel room at another Resort could be cheaper than buying a timeshare.
We hope you have enjoyed reading the top eight reasons why you might want to avoid buying a timeshare. Let us know what you think in the comments below!
And if you have any questions about a timeshare contract, please don't hesitate to reach out. You can contact us here .