Timeshares – Worth The Opportunity?

     Timeshares are a controversial topic. Many are convinced that they only exist to scam and that all parties should avoid them at all costs. Then, there are plenty of others that enjoy them and insist on their value. Who are you to believe? 

The Pros

THEY FEEL LIKE A HOME

     Unlike, a hotel or similar accommodation, timeshares are much more likely to have that homey, lived-in vibe. Specifically, the benefit of having your own kitchen and laundry in the unit are huge, starting pros. 

THEY’RE AFFORDABLE

      Despite the common belief that they are scams, timeshares can actually be had fairly cheap. If you have family and looking to hang on to one for a long period of time, you’re in luck. With each vacation spent at the timeshare, you’re getting a portion of your money back from your original investment.

YOU CAN MAKE MONEY OFF OF IT

     If you plan properly and know you won’t be able to use your week at the unit, you can rent it out to family and friends! You may incur a small fee from the company that manages the timeshare, but it’s still a great way to make a little extra money and make back some of your investment.

Now, let’s talk about the cons:

NEW AND UNPREDICTABLE COSTS

     Maintenance. If you’re looking to invest in a timeshare, ensure maintenance fees are capped and will never change. Additionally, check to see if major upgrades like replacing carpets are included in your investment or if you’ll have to pay for that should it come up.

USE IT OR LOSE IT

     In many timeshare situations, you have to pick your week in advance and that’s the only week you can use it each year. So if you aren’t able to make your week or rent it to someone else it will just sit there, not being enjoyed. And you’re still paying for it. That lack of flexibility and risk of potentially not even being able to use it turns many people away from timeshares.

THEY’RE DIFFICULT TO SELL

     If you buy into a timeshare and then sometime later decide you want to sell, it can be difficult. There are many people out there trying to sell off timeshares so you will face great competition. Many management companies will include in your contract that they receive a commission if you sell. Often people trying to sell are so troubled in the process that they end up getting much less back than they originally paid for their share.

THEY’RE A BIG AND LONG-TERM COMMITMENT

     If you’re considering investing in a timeshare you better be ready to commit long-term, because it’s the only way they’re financially worth it. Not to mention most timeshare contracts require you to pay taxes and maintenance fees indefinitely. If you miss or refuse payments it could drastically affect any other debt you may have and your credit score overall.