Considering Purchasing a Timeshare? Know the Risks

Considering Purchasing a Timeshare? Know the Risks

Timeshares are a great vacation option for many Americans. Nearly 10 million Americans own some sort of timeshare vacation home. If you’re considering purchasing a timeshare, there are some risk factors that you want to be aware of before taking the plunge. Timeshares are a lifelong commitment, and costs are associated with being a timeshare owner. If you’re already scheduled to attend a timeshare presentation, read this before you attend so that you’re in a better position to make a more informed decision.

Timeshare Overview

Usually buying property is an investment. You can rent it out for a profit and receive tax breaks as a real estate investor. But owning a timeshare isn’t that type of an investment. If you buy a timeshare vacation interval option, you have no ownership of a specific property. You do not hold the title to the vacation property, you’re paying for the right to use the property. Deeded timeshares on the other hand offer real property ownership, but it’s a shared ownership with other timeshare owners. Although there are benefits to being a timeshare owner, the ACA Group Florida knows that it’s better to understand the risks before signing a timeshare contract if you intend to be a satisfied timeshare owner.

The Risks

Indeed, there are plenty of satisfied timeshare owners out there. Still, there are a lot of dissatisfied timeshare owners who felt pressured to sign on and are now feeling trapped in an ongoing contractual obligation. High-pressure sales tactics keep buyers from slowing down and carefully reading the fine print of the contract or calculating their actual cost of vacationing. You also should consider whether or not you plan on financing the purchase of the timeshare. Financing means paying interest, which equates to paying more for the timeshare over time. It’s also good to know that timeshares don’t appreciate or retain their value. Reselling on the secondary market isn’t likely to net you any profit, and renting yields very similar results. Timeshare points are also unreliable as they’re subject to inflation. And the amount of points needed for your preferred dates may also be subject to change. Annual dues and fees are also subject to change, so what starts as affordable may not stay that way.

The Benefits

People love their timeshares and wouldn’t trade them for the world for many reasons. Here are some of the benefits that timeshare owners experience. When it’s vacation time, you already know where you’re going, so the amount of vacation planning is reduced. If you prefer to exchange your vacation location, that’s usually possible too. Another bonus for timeshare owners is not having to be burdened with the physical maintenance of the property. Depending on the fine print and the route you take to timeshare ownership, it can cost less than owning a vacation home. One other thing that often gets overlooked is the spacious living quarters. Families tend to enjoy the separation of living spaces that hotel rooms do not typically offer.

Timeshares are a great way to vacation when it makes sense for you. But whether or not you decide to purchase a timeshare, you want to be sure that you’re doing so with as much information as possible. Timeshares are an ongoing commitment that requires careful consideration.