Timeshare ownership has been around for many years now. If you consider owning a timeshare for vacation memories, you will say that it is a great investment. However, most people don’t consider timeshares as great investments due to some obvious reasons. In this blog, we’ll discuss whether timeshare is an investment or a financial burden.
Timeshare key considerations
A timeshare is a type of fractional ownership in a vacation property or a resort. Though timeshares seem to be an exciting and savvy way to spend your vacations, they have additional costs that must be kept in mind. Further, timeshare contracts lose their value in the market, they should not be considered as investments.
Suppose you are standing in a luxurious condominium that overlooks a beach. It may appeal you so much that you end up signing the dotted line. Beware of the fact that timeshare salespeople do business. Just because they tell you not to miss out on a good deal, it doesn’t mean that you should succumb to the contract. Instead, take some time to research and talk to timeshare owners if possible. Don’t make any impulsive decisions.
Besides the monthly loan payments, there is an annual maintenance fee that can set you back hundreds of dollars a year. Also, some charge miscellaneous fees, like publication fee or additional fee if you must sell your timeshare property. However, you shouldn’t take this route in order to get rid of your timeshare. Always look for a timeshare firm with experienced attorneys who will work in your best interests. Also, make sure to read reviews of timeshare cancellation companies to get an idea of how good they are at their work.
Another important thing to consider is the management company that sold you the timeshare. Will it be there two or three decades from now? Furthermore, if you plan you buy a timeshare in a foreign country, you should first understand their laws and determine what the result could be if the company gets closed.
Keep in mind that timeshares have no appreciation value as other vacation ownerships. Most timeshares lost value the moment they are purchased. The reason is the marketing costs associated with timeshare sales. These expenses include tour gifts, commissions, etc. that are in excess of half of a base timeshare. They are considered quite high as compared to other real estate investment purchases.
Does this mean timeshares are bad?
Well, consumer confusion has given this industry a bad name. The prime reason is you may not know what you are getting into. The timeshare salespeople target vacationers who knew nothing about the contracts. Potential buyers are lured into signing the contracts for prepaid vacations or other fancy words.
They will make you feel like it is the best deal that you can’t afford to miss. A plenty of used timeshares on the market, salespeople selling new timeshares, and the appeal of buying a new vacation resort work against the idea that you will gain any profit on this ‘investment.’ Thus, a timeshare can’t be considered an investment.
How to get rid of a timeshare?
It is easier to get into a timeshare, but difficult to get out of it. You may feel like you won’t be able to afford the timeshare payments for long. Or, perhaps you don’t plan vacations frequently and feel like your timeshare has become a financial burden. No matter the reason, seek help from a professional timeshare attorney to get rid of your timeshare. Check out how much do lawyers charge to get out of a timeshare. It may take time, but you will save a lot of your hard-earned money in the long-term.
