Hello friends! I’ve compiled a list of 8 reasons to be cautious when
thinking about purchasing a timeshare. None of these pitfalls are new,
but they seem to be just as true today as they have ever been.
Unfortunately, we continue to hear these same complaints from our
customers on a daily basis, but hopefully, a few of you will read this
blog and take a moment to evaluate your options.
Timeshares are NOT an Investment
As expressed time and time again, timeshares are a liability, and
their financial value depreciates over any given period of time. This
means that the instant you purchase a timeshare, the value plummets,
along with the resale value.
Maintenance Fees
Fees that were promised to remain low during the initial sales pitch
can begin to spiral out of control rather quickly. Along with general
maintenance fees that will surely rise, there are other fees to keep in
mind, such as special assessments, taxes, membership fees, and
exchange-transaction fees. The owner must pay these fees whether they
use their timeshare or not.
Travel Expenses
Another item that is often overlooked by overzealous timeshare
purchasers is the question of travel. Sure, it might seem like an
affordable vacation locale if one can account for the annual taxes and
fees, but people often forget how expensive it is to travel to certain
destinations. As anyone with a timeshare can tell you, airfare is not
cheap and neither is fuel.
The Timeshare Industry is Complicated
The timeshare industry is extremely complicated, and entering into a
contract should not be taken lightly. Resort developments are counting
on their prey to not do their homework, thus making them easier to
sell. If one isn’t well versed in the language of timeshares (e.g.
fixed-week, point based systems, leased timeshares), it becomes even
easier to fall victim to manipulation and predatory sales tactics.
You’ll Likely Never Break Even
Timeshares seem cheap at the initial time of purchase, but when
compared with the cost of practical hotels over the lifetime of the
contract, it’s likely that you’ll never reach a break-even point.
Little Vacation Flexibility
Trading your time for a unit in a new vacation location is not as
easy as a timeshare salesperson would have you believe. It could nearly
a year’s worth of advanced planning, and trading costs can add up
quickly. Further, there’s no guarantee that you’ll be able to get your
desired location during your desired time.
Timeshare Prices are Negotiable
Even more than regular real estate or the local farmer’s market, the
sticker price on a timeshare is highly negotiable. The salesperson
doesn’t expect you to pay the initial price tag on the timeshare, and
they are willing to come down on it. However, since timeshare
salespersons expect to negotiate, there is a high mark up on the
original price of the property.
Timeshares are Nearly Impossible to Get Rid Of
A timeshare is a liability, not an asset. Therefore, the value will
only depreciate over time, which makes the resale market virtually
non-existent. There are many listing agencies and exchange companies
who will make empty promises about the value of your property and the
abundance of buyers lining up to purchase it, only to cash a large check
without providing adequate service. The bottom line is that it is
nearly impossible to sell a timeshare. The market has decreased
significantly and shows no signs of rebounding.
This list is by no means exhaustive, but it should be a starting
point for anyone interested in taking an honest look at what timeshare
ownership really involves. Timeshare ownership can be a wonderful
experience for many families, but it is important to do all the
necessary research before signing on the dotted line. If you or someone
you know is locked into a timeshare contract and looking for an exit
solution, please contact Newton Group Transfers at (877) 354-4321.
