Timeshares are a lucrative and popular investment. In the last decade, this type of vacation ownership has become one of the notable revenue streams for resorts across the globe. Average Timeshare occupancy now stands at almost 80%, with onsite guest spending hitting the $3 billion mark.
A Timeshare is a system that commits you to pay annually for trips to various holiday resorts. It is a lifetime commitment commonly referred to as vacation ownership. In practice, timeshares have contracts that divide property ownership between several people. In a Timeshare agreement, parties can use the specific property for a period. You are not, however, allowed to sell it.
Hidden Timeshare Fees You Should Know About
The popularity of timeshares doesn’t mean that they are solid investments. Several loopholes involved make them more expensive than spontaneous travel. For example, the average maintenance cost for timeshares exceeded $1,112 monthly in 2019. Note that you can travel to several top-tier resorts for 12 weeks in a year for a similar amount.
Maintenance costs are not the only expenses. Several hidden costs reduce the ROI (Return on Investment) of timeshares. It is for this reason that a Timeshare cancel service is critical to saving your investment.
Many people ignore phrases in the contracts such as Contract in Perpetuity. While this may not be a fee, it is one of the many financial burdens attached to timeshares. This perpetuity agreement means that your spouse and children are also liable. This obligation makes exiting a Timeshare difficult. You may need the services of a Timeshare cancel service to get out unscathed.
Another hidden cost is the revenue gap fees. Paying members are put in a tight spot when other people fail to pay what they owe. Worse still, even if delinquent owners pay, you don’t get a refund.
Did you know that you pay for upgrades to the property? This hidden cost is known as a special assessment fee, and it caters to changes made to the building. Note that these fees are not part of the annual maintenance fees. You pay extra. Other hidden costs, such as all-inclusive resort charges, will also dent your pocket substantially.
Always read the fine print before you invest in a Timeshare. While it is an exciting prospect, the hidden fees can be monstrous. If you’re looking for a way to get out of your current timeshare, contact us today to learn about our timeshare exit strategy service!