Here’s Everything You Need to Know!
You are probably wondering whether or not owning a timeshare is a good idea?
For many people, a timeshare is the perfect option as it entails having a vacation home available only when you really want it and not having the burden of worrying about it for the rest of the year.
For many people who have ever had timeshares or do have timeshares, it seems like they always use it. Timeshares offer plenty of benefits and are a good buy if you view it as a vacation purchase.
So, are timeshares a good investment or bad investment? Here is a comprehensive guide to its pros and cons to shed some light on owning timeshares.
Advantages of Owning a Timeshare
We all want to stretch our vacation budget and owning a timeshare presents many benefits.
Renting a resort apartment at a timeshare resort offers so much more than a typical hotel state for the value conscious vacationer. Here are some advantages.
Owning a Timeshare Is Economical
To begin with, timeshare properties are more economical compared to buying a piece of real estate property. The purchase price will be easier to pay if it represents a substantial amount of your savings.
Furthermore, if you have a timeshare, you don’t have to worry about the upkeep or maintenance of owning an apartment as it is taken care of by the owner/developer.
If you buy your own vacation home, you are going to have to do all the maintenance yourself. Owning a timeshare could save you a lot of money.
Timeshares generally offer you a significantly more comfortable stay and can accommodate a larger family.
Comparing the typical layout of a standard hotel room to a standard two-bedroom timeshare condo, you could get both for the same price or less even less at some timeshare resorts.
They offer bigger units with multiple bedrooms, a central living area which is especially helpful for families. It could also have full kitchens and dining areas where everyone can eat together, as well as multiple bathrooms, pool, spas and kids activities.
These resorts are in prime locations often near popular attractions and have amenities you’ll find at five-star hotels but at substantial savings over a hotel stay.
Timeshare condos are generally much larger than standard hotel rooms and can accommodate about six to ten people in separate rooms. This provides a much more comfortable home-style vacationing experience.
Allows For Renting
As a timeshare owner, you can rent out your unused weeks at rates often much lower than what the resort would typically charge. This way vacationers can book to stay at your property for a certain period of time and it earns you some money too.
It is possible to find better values at resorts rather than the rates offered at hotels.
Owning a timeshare gives you the flexibility of rentals resales and exchanges from timeshare resorts around the world. Plus, you set the price ranges of the resorts yourself.
Whether anyone is looking to rent a timeshare or buy a resale, the prices may be up to eighty percent off retail and one is able to save thousands of dollars over a typical hotel stay. This way it is possible to turn a timeshare into a goldmine.
Furthermore, if you have a timeshare, you don’t have to worry about the upkeep or maintenance of owning a condo as it is taken care of by the developer. If you buy your own vacation home, you are going to have to do all the maintenance yourself.
You Can Have the Best of Both Worlds
A more subtle advantage of owning a timeshare property is that it almost forces you to think about taking a vacation each and every year.
It is possible to rent out your timeshare and still use it. Many resorts offer owners valuable perks including day use and bonus time.
Unlimited day use enables you as the owner to make use of the common amenities as much as you want to. Think about it, you could have a free gym membership, parking space and even restaurant privileges.
Since you own the property, you want to take full advantage of using it when you can. It also takes the pain out of planning a vacation since you know where you are going and when.
Timeshare properties that are part of an exchange network have an added benefit of being extremely flexible. An exchange network such as Interval International will allow you to exchange your property for the use of another owner’s property.
Through the use of an exchange network, you could stay at different properties during different weeks of each year. Timeshare ownership definitely has its privileges.
The Downside of Owning Timeshares
Of course, there are some disadvantages of owning timeshares as explained below.
Timeshares may not be a good investment to everyone and the reason is really simple- it’s not an investment to make money. It’s an investment that will save you money, however if you purchase a resale timeshare it’s fair to say the amount you paid will grow over the years where as if you buy direct from the developer and want to re sell then it’s not normally the case and be prepared to lose around 60% of what it cost you.
Timeshares basically involve pre-paying holidays for say the next 5-10 years and this may not be a very smart choice if you do not go on holidays often enough.
Owning a timeshare does not make you a property owner.
Therefore, if you don’t use it you still have to pay for it and if there’s a special assessment, you are liable for it. The fact of the matter is timeshares bought from the developer directly most likely will not appreciate in value.
Can Timeshare Be Inflexible?
Although a timeshare also locks you in the contract, you might not always want to go back to your home resort.
You may find the use of an apartment or be having a place that you can go to as a family vacation every summer as being advantageous. Some families have done that for years simply by renting a lake house or renting a beach condo but pay more money.
The problem can be you are locked into that specific timeshare unless you sell it. It can limit your travel options to that one place that you have purchased in the timeshare or the resorts that are affiliated to the exchange network.
Although some timeshares give you the ability to trade back and forth, they still dictate where you can stay and you may find yourself unable to go to every destination you want.
Evidently, some timeshares may not be flexible enough for you to use every year at a specific time of your choosing.
Are Timeshares a Good Investment?
As discussed, there are pros and cons of owning a timeshare.
Think about your options in a rational way before coming to a conclusion. Also, consider your lifestyle choices and your financial status and weigh the advantages and disadvantages of your choices. If financially able, you may consider owning a timeshare because the purchase price of a timeshare will be easier as it represents just a small amount of your savings.
The cost of your timeshare will also affect how you evaluate the pros and cons of other aspects of the investment. In either case, it is always wise to research your decision thoroughly.
So, are all timeshares a good investment? Weigh your options and make an informed decision from there. For more information, contact us.