There are several costs associated with buying a timeshare. They include high upfront costs, annual fees, and maintenance fees. According to a study by Ernest & Young, 56% of timeshares reverting to the developer are due to foreclosure. Timeshare exit experts can suggest an ideal exit strategy without resorting to bankruptcy or other drastic measures. Below are the benefits of having an exit strategy for your timeshare.
Avoid High Upfront Costs
Most people who put their properties up for resale have paid much less than what they owe on expensive mortgages and credit card debt. This financial burden can be detrimental to people looking to sell their timeshare. You can avoid this if you choose the right timeshare exit strategy. Timeshare exit experts can help you quickly walk away from your timeshare.
Avoid Annual and Maintenance Fees
Annual fees and maintenance fees are standard costs with owning a timeshare. They are usually relatively small compared to other expenses involved in purchasing your property. The costs can add up and be a financial drain. In this case, having a solid exit strategy will help you avoid these fees by allowing you to quit the investment.
Avoid Additional Taxes
You must pay the IRS if you plan to sell your timeshare. The Internal Revenue Service charges taxes on your increases in property value. By using a timeshare exit strategy, you can avoid all future taxes on the rise in the value of your timeshare. It is advisable to consult timeshare exit experts to determine the best exit approach.
You will save money if you have an excellent timeshare exit strategy. The government also charges a capital gains tax if you sell your property for more than you bought it. If your timeshare’s value increases significantly, this can reduce your profits. There are a lot of companies that will purchase your timeshare with the outstanding balance on your account. This means you will not have to pay for it yourself. Doing this will also allow you to avoid future taxes.
Now that you know the benefits of a solid timeshare exit strategy, you must explore all your options. If anything about buying or selling a timeshare is not clear to you, it is best to consult with timeshare exit experts. They can help you get out of your timeshare with the best strategy. For more details about timeshares, contact us today!