Timeshare may have reached its peak during the 1980s, but it's been bouncing back in recent years. The industry has shown 9 straight years of growth since 2010.
So if you're thinking along the lines of, ''should I buy a timeshare?", read on to find out the pros and cons of buying timeshare first.
The Benefits of Timeshare
The best timeshare to buy is one in a high-demand destination and season where you're committed to vacationing for the rest of your life.
Yet, it's still a good idea to buy a timeshare in a resort that gives you the option to exchange out to other destinations if you feel like a change or one that's affiliated to an exchange partner like RCI.
Other benefits of timeshare include:
Standardized accommodations, so you know what to expect
Great resort amenities and facilities
Low upfront costs when compared to a vacation home
No worries about upkeep and maintenance like you would have with a vacation home
If you're happy to go to the same resort year after year, and you have a steady stream of customers wanting to rent it from you if you don't, timeshare is a good option for you. There are hundreds of timeshare owners out there who really get the best use out of their timeshare weeks.
Cost-Related Timeshare Pros and Cons
Depending on where you secure a week, buying a timeshare can save you a lot of money over time. However, it's important to remember that the costs involved in purchasing this type of holiday can be akin to owning a second home.
Are timeshares a good investment? Timeshare is a luxury, not an investment. It doesn't appreciate in value over time, and you won't get any financial gain on your timeshare if you manage to sell it.
Renting out your time isn't guaranteed and the only return you'll get on your investment is in the vacations you enjoy there.
Timeshare Has a Bad Reputation
To be fair the timeshare industry has cleaned up its act in recent times, but you can rest assured that timeshare salesmen are very convincing. Don't take all their claims at face value and be wary of scams. If it sounds too good to be true, it probably is.
Take advantage of the cooling-off period to go through your contract carefully before you sign. The world is full of scam artists, and they seem particularly attracted to jobs in timeshare sales.
It's a Lifetime Commitment
The resale value on a timeshare isn't good and timeshare cancellation can be a tricky affair. So, think carefully about whether you can afford all the ongoing costs involved in buying timeshare before you commit.
When you purchase a timeshare from a developer, they could tie you into clauses that restrict you from selling your timeshare on your own too. Always read the fine print when it comes to buying a timeshare.
Better Investment Options
If you enjoyed these pointers on timeshare pros and cons, take a look at our blog for some more financial guidance.
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