Owning a vacation property has its perks. Statistics show that revenue attained from timeshares ranges in the billions of dollars. While many people are investing in a vacation property, it is critical to note that it is a risky venture with many pitfalls.
Many scrupulous dealers use this investment to scam unsuspecting people. Over the years, timeshares have established a bad reputation for their hidden costs and unfavorable practices. Before investing in timeshares, it is crucial to know what you are getting into and how to mitigate costs. You need to understand what timeshares are and the risks involved.
A Timeshare is a way to own vacation property for a specific period during the year. The problem with this investment is that it has a contract that obligates you to visit a destination even if you don’t want to. It involves several owners who pay for maintenance and other miscellaneous upkeep costs.
Top Timeshare Risks
The number one risk of timeshares is the contractual agreement. This document binds you to the property and makes it difficult to exit. The contact gives you access to the vacation destination at a specific time of the year, but you don’t own the property. The contract has obligations that you must fulfill over a period, and you cannot cancel the Timeshare at will.
Timeshares ownership is over 9.9 million families across the globe and is a popular option for annual vacationers. Although Timeshare adverts list several destinations, the contracts give you access to one location.
You can only use the location once a year. Note that Timeshare owners pay a whopping $20,000 a year to go to the same place. You can vacation 12 weeks a year to different destinations for the same amount. These expensive upfront and maintenance costs mean timeshares have a low return on investment.
Another top risk is that timeshares are like mortgages. Late payments or defaulting on fees may lead to foreclosure. The contracts in timeshares trap you into a financial obligation that has no value to you. These obligations are also transferable to spouses and siblings. Timeshares are a tricky investment. They offer little value and have no financial benefit. Ensure you do a lot of research before you invest in timeshares.
Our team has canceled over 16,000 timeshares. If you’ve already invested and are looking for a cancel timeshare solution, contact us today!