At least until the current housing slump and global credit crunch, timeshares were a growth industry boasting sales of $10.6 billion in the year 2007. At the end of that year, more than 4.8 million US households owned at least one timeshare unit (or an equivalent). Even as sales and ownership increased, so did the number of those looking to get rid of their timeshares. Many of these owners want to share what they have learned and advise others on exactly why they shouldn’t buy a timeshare. Keep reading to see five of the top reasons cited by these owners.
1. The Upfront Cost
When buying a timeshare, you’ll typically pay an upfront cost. In 2007, this upfront cost averaged over $19,000. The salespeople selling these units tell you that this cost upfront will save you money over the long run. However, only a very few use their timeshares enough to recoup this cost.
Furthermore, the money spent could have been used for savings, necessities, and/or true investments with expected returns. Timeshare rentals or traditional hotel lodging on a year-to-year basis would most likely be a much more cost-effective way to spend your vacationing dollar.
2. Pain in Scheduling
The use of a timeshare usually has to be booked well ahead of time; in many cases up to two years before your visit! The owners are already paying fees and assessments to the resorts, so they unsurprisingly would prefer to continue selling more shares in the property than to actually allow owners to use their timeshares.
3. Contracts Favoring the Timeshare
Timeshares typically require owners to sign long term contracts. The salespeople will explain this long term contract as being a firm commitment from the resort. What these contracts really ensure is a steady income stream ? revenue provided by timeshare owners - for the resort which can last decades. The resort can easily place a lien on the real property of owners or obtain a judgment against the timeshare owner if they try simply to refuse to pay.
4. Fees and More Fees
A common marketing technique in timeshare presentations is to examine the rising cost of hotels due to inflation. The comparison with a timeshare and a low weekly cost in the form of an annual maintenance fee seems like quite a bargain. What is not thoroughly considered is the fact that maintenance fees rise over time as well. Resorts can also issue special assessment fees whenever any type of “special circumstances” arise. Thousands of dollars can be spent on special assessments alone.
5. Huge Number of Resales
The number of timeshare owners who feel the proverbial albatross around their necks is rising. The disillusionment has caused a glut of timeshares on the resale market. The competition and the lack of informed buyers has caused plummeting sales prices. Many timeshares go completely unsold with the owners quietly bearing the on-going burden to pay the associated fees.
Friends don’t let friends buy timeshares. Learn from those that have gone through the process yet are lost among the din of timeshare promotions. The long-term contractual obligations and scheduling hassles far outweigh the freedom of vacationing on an ad hoc basis.
Viewed 44 times by 20 viewers
