Timeshares – Pros & Cons You Should Know Before Buying

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Timeshares have remained one of the better options for investing in real property. Even with the economy on the downturn, it is still a good business to be involved in, particularly because it’s relatively easier to manage and standards for exchanging, sale and leasing are already set. But timeshares are anything but perfect and they do have their pros and cons. If timeshare ownership is one of your current goals, learn what their advantages and limitations are prior to purchase.

Timeshare Pros

You get to own real property.

If real property ownership is a dream of yours, then go for a deeded timeshare. Buying one is similar to owning real property in that you can do anything you want with it – the same things you’ll probably be doing with more traditional forms of real property. You could, for example, sell your timeshare, lease it, give it as a gift to family or friends or even include it in your will. If this seems like a good choice for you, just make sure that your timeshare comes with a deed.

You can exchange a timeshare for a different resort.

This is probably the main reason why people buy timeshares. Once you own one, you can exchange the rights with someone else’s regardless of where you may be, although this usually depends on the affiliates that belong to the same exchange company as you.

Savings over the long term

If you’re looking to buy timeshares expecting immediate returns on your investment, you’re in the wrong place. The closest to a profit you will earn will be in the form of cost savings and vacation usage.

You invest in a vacation.

If you like to take regular vacations every year but were always put off by the hassles involved in planning, then buying a timeshare will take all the worries away. Since a timeshare lets you buy a fixed week each year, you are assured of that particular week for years to come. Furthermore, you take the vacation in a resort facility you already know – no unpleasant surprises or last minute tricks to contend with.

Timeshares are also flexible. In case you can’t make it on your designated week, you could look for available weeks through timeshare exchange companies so you can take your vacation.

Timeshare Cons

No appreciation

Unlike traditional real property, a timeshare will not appreciate, even if it comes with a deed. Do not treat a timeshare as an investment in real estate. It’s also even likely that yours could depreciate later on.

Fees

When you buy a timeshare, you will also be paying regular fees for maintenance. This should cover for the general upkeep of the property, including housekeeping, property management, taxes, utilities and maintenance of appliances. The maintenance fees will also pay for expenses related to improvement in case something in the property needs to be fixed, replaced or remodeled.

Fees will vary, depending on the location, the size of the unit you bought and the amenities included. They could also increase.

Exposure to scams

Timeshares have their share of scams and sneaky dealers. Some first-time buyers may even find themselves on the receiving end of hard sales pitches which can be downright uncomfortable and annoying.

Resale can be a challenge.

As many timeshare owners will tell you, trying to resell a timeshare can be difficult. In addition, there could be certain clauses in your contract with the developer that could limit your actions on the sale.