7 Factors to Consider Before Making a Timeshare Investment

02/14/2023

timeshare investment

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There are over 1500 timeshare resorts in the United States. That means that there are thousands and thousands of timeshare owners in the United States as well.

However, is investing in a timeshare worth it? What is it that you should know before you go through with the timeshare investment?

Because getting involved in a timeshare comes with a lot of risks, it is important to understand what you are getting into before you do so. Keep reading this article to learn more about what being a timeshare owner entails.

1. There Will Be Ongoing Fees

One thing that makes timeshares so popular is that the price of the property itself is divided into equal shares among various timeshare owners. Because of this, the price of the timeshare doesn’t seem so bad. However, there are going to be ongoing fees that you have to pay throughout the year. This is for maintenance, property management, and more.

These fees often add up and can run you around $1000 per month. Not only that, but they often increase every single year.

2. They Are Hard to Sell

Many timeshare resorts and properties make selling the timeshare itself very difficult when you decide that you no longer want it. Although it may seem like a good idea to start, if you choose that it is not something that you want anymore, you have to jump through a lot of hoops.

If you are able to sell, you are going to take a huge loss on your initial investment because your share will most likely not appreciate in value during the time that you own it. 

If you do not want to deal with trying to sell a timeshare when you are done with it, it is best to avoid it in the first place.

3. You Cannot Use It Whenever You Want

When you plan a typical vacation, you get to choose when you go and where you go. That is not the case with a timeshare. You cannot use it whenever you want.

You are typically only allowed to use it for a specific period of time every single year. This is dependent on the number of shares you own for the property. For instance, if you own 1/12 of the property, you are only going to be allowed to use that one month out of the year.

However, you may not always be able to choose the specific months that you want. It could be a fixed month, you may have to gain enough points to pick the month you want, or it may be a fixed month every single year. 

Since that is how it works, you may not actually be able to get the usage out of it that you want. This makes the investment not worth it.

4. Paying More Than You Would for Vacations

When you choose to buy a timeshare, you are not necessarily buying the property itself. Instead, you are pre-paying for a couple of years or more worth of vacations. This is part of the reason why your money doesn’t appreciate – because you are not paying for the property itself.

This is why looking at purchasing a timeshare should be thought of as a payment that you will never see again rather than an investment.

Let’s break it down. If you pay $20,000 for a timeshare in Florida, and an average week there costs $4000, you are pre-paying for about five years of one-week vacations. However, this means that you always have to go back to the same place. It also does not take into account other expenses like food, airfare, tours, and more.

5. Always Research the Provider

Nowadays, there are so many different providers that sell timeshares. There are also so many different resorts that sell timeshares as well. But they are not created equal.

Because you are purchasing something that you’ll be using for years, it is important to understand who your provider is. You should consider getting recommendations from people you know to ensure that they are reputable. You can also do research online to make sure that you are making the best choice for this purchase.

You should also make sure that your company has all appropriate licenses and complies with all the laws of the local area. 

6. You May Feel Pressured

If you are ever staying at a resort that offers a timeshare meeting to get a discount for your stay, you run the risk of feeling pressured to purchase the timeshare. Many times, these meetings for the timeshare sales take place in an area where you feel like you cannot leave. You may often be guilted into buying a place even if you do not think that is possible for your personality.

People who may think that they can leave without being guilted into purchasing often end up with a timeshare on their hands. If you do not want that to be you, it is often best to avoid these meetings.

A Timeshare Investment: Is It Worth It?

Before you purchase a timeshare investment, is important to know what you may be getting into. If you have read this guide and still feel like you want to invest, then that is up to you!

However, you may find that you want to exit the timeshare at a later date and have a bit of trouble doing it on your own. If that is the case, you can request a timeshare cancellation with us at Lonestar Transfer.

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