Over nine million households in the U.S use a timeshare, which shows how popular this option is.
Buying a timeshare has a range of benefits, from offering home-like accommodation to letting you rent out the space when it’s not in use. But they are riddled with negatives too, such as dealing with scammers and having less flexibility. Because of this, you must conduct thorough research to figure out whether it’s worth your time.
That’s why you’re here? No worries; we’ve got all the answers. Here’s a quick guide on the pros and cons of timeshares.
Pros of Owning a Timeshare
Before buying a timeshare, it’s important to know the ins and outs. Luckily, there are endless possibilities to consider. For example:
Multiple Types of Timeshares Available
The beauty is there are many types of timeshares available, depending on your situation.
You’ll notice that the most popular option is a “fixed week” option where you can stay in your chosen accommodation for a week each year or until your contract runs out. Or, if that doesn’t appeal to you, consider a floating timeshare where you can reserve a chunk of time outside of a fixed week.
Consumers can also browse right-to-use timeshares where the developer has control over the complex, but you can lease it for a specific period. You can also get involved with the Points Club systems, so you can choose from an array of great locations based on how much you invest in the system. For instance, a DVC timeshare is popular for this.
If you’re interested, check out the FAQs for DVC resales to learn more.
Home-Like Accommodations
Another reason why you should consider timeshare options is because of the home-like accommodations available. Many units have floor plans that include two bedrooms, bathrooms, and a living area that often has an additional pullout sofa. Because of this, timeshares are popular with families as they’re far more practical and affordable.
Only Pay for What You Need
Unlike a traditional vacation home, you needn’t spend money on it all year round. Instead, with a timeshare, you get access to an up-market property without worrying about funding it every month. As a result, it’s easier to find one that aligns with your household’s budget.
You Can Let People Use Your Timeshare for Free
Anyone who owns a timeshare can treat their nearest and dearest whenever they please. Or, if you want to turn it into an event, submit it to a charity auction to raise money for a cause you’re passionate about. But make sure you only give access to people you trust; otherwise, you’ll be responsible for any damage.
Lets You Rent Out Your Share
Aside from letting loved ones stay for free, you can also capitalize on your share. Many contracts let timeshare holders rent or lease the property if you can’t make it. Thanks to this policy, you won’t lose any money, making it a win-win.
Gives You a Guaranteed Destination
The stressful side of planning a vacation is finding the right destination, especially if no one can decide on where to go. Luckily, when you have a timeshare, the choice has been made for you. Because of this, spend time browsing timeshares in every possible country and make sure you’re happy returning there every year.
Cons of Owning a Timeshare
Unfortunately, there are downsides to timeshares. It’s important to consider these before signing a contract. For instance:
Reputation of Scams
Anyone buying or selling a timeshare is familiar with the potential scams surrounding it. This is because many sellers care more about the brand they’re representing, rather than the consumer. But you can avoid this by researching each one thoroughly.
Not a Financial Investment
A major downside to timeshares is that they’re not considered a financial investment. Unlike buying a vacation home, you only get a chunk of the property, so you don’t have the regular investment qualities. Because of this, don’t expect to make any money going down this route.
Timeshares Depreciate
Aside from not making a profit, there’s a risk of losing money. This is because timeshares notoriously depreciate rapidly and many traditional lenders don’t want to provide finance for this option. As a result, you must likely buy from a developer, which will cost far more.
Can Be Difficult to Resell
Many consumers have turned off timeshares because they can be difficult to resell. If you do choose a timeshare, make sure you’re besotted with it, so you don’t have the hassle of figuring out how to find buyers. Plus, there are often clauses that prevent you from selling the timeshare on your own, which means you need help from a developer.
Maintenance Fees
Another issue with timeshares is maintenance fees. These cover the grounds, housekeeping services, and keeping your unit’s appliances up and running. Note, that these are dependent on the resort’s location and unit size, so only choose one that aligns with your budget.
Less Flexibility for Vacations
If you love discovering new places, a timeshare isn’t for you. Many consumers forget that a timeshare is a hefty investment, and, if you don’t want to lose money, you must visit this site every year. But this is problematic if you hate being tired in one place or if your kids get itchy feet.
Know the Pros and Cons of Timeshares
Hopefully, you’ll take both the pros and cons of timeshares onboard before making a decision.
There are many great aspects of timeshares, such as the home-like units and only paying for what you need. But it’s important to consider the downsides, like the annual maintenance fees and less flexibility. What will you choose?
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