Timeshares are often advertised as a way to have a vacation home in a beautiful destination for a fraction of what a full-sized property there would really cost. But is it too good to be true?
The short answer, unfortunately, is yes.
Timeshares can be nasty little things that are very difficult to escape once you’re in it.
First thing – what is a timeshare?
A timeshare can come in different forms. In a ‘deeded’ timeshare you own a piece of the actual property. In an ‘undeeded’ timeshare, you own a share in the company that owns the property (but not the property itself). The newest version is a ‘membership’ to a vacation club. In this version you don’t own anything at all.
In each form, a timeshare allows you to stay in a particular room or room type for a certain period every year or every two years.
What’s so bad about them?
The main problem with timeshares is that they’re not as great a deal as the sales rep would have you believe – or would have represented.
Timeshares are usually pitched to persons on vacation when they’re swept up in their beautiful surroundings. That atmosphere makes the sales pitch more attractive…and makes the buyer less likely to read the fine print.
The fact is timeshares are very expensive to maintain. Even when you pay off the purchase price, you are required to pay maintenance fees (even if you don’t use it). These maintenance fees aren’t guaranteed to stay the same and typically increase depending on inflation.
Since these fees are forever, that means that timeshares aren’t very easy to sell. Who wants to pay eternal fees? Therefore, a timeshare isn’t exactly a great long-term investment.
Long story short…
Think twice before buying a timeshare. READ the contract and know what you’ll be paying for and for how long (it may be forever!).
Remember, everything looks good in paradise.
Disclaimer: This article is for general information only – not legal advice. If you have a legal issue, you should contact a qualified attorney.