Timeshare salespeople try to make owning a timeshare seem ideal. It’s a place you can go to every year, usually in state where the weather is always nice, such as Florida. They paint an incredible picture in order to get you to sign up. However, it’s important to know what exactly timeshares are. Once you educate yourself on how timeshares work, you may come to realize that they’re not as great as you initially thought.
How do timeshares work?
A timeshare is a piece of property—usually a condo—that you purchase in order to stay there during a specific time out of the year. You have the rights to those dates every year while the other owners of that same timeshare have rights to visit the property during their respective dates. Typically, you get one week out of the year, but it varies depending on the timeshare.
If you think about it, the definition of a timeshare is right in the name. You buy a share of a piece of property and you share the time spent at that location with the other owners.
Not an investment, just an expense
Although you have a place to go on vacation every year, you end up spending a lot of money in the long run. It’s completely different than if you rented a condo or hotel room.
Let’s put in perspective:
You want to go on a family vacation.
One option is renting a house or condo for a week in which you pay a one-time fee. You pay for the lodging and you spend a week there. You don’t pay anything else after that.
Another option is to buy a timeshare in which you can go visit that location every year for a week with your family. However, you’re not just paying for that one week. You have to purchase that share of the property and then pay maintenance and other fees throughout the year as well.
Yes, renting a house can be expensive if you have a large family—unless you’re an InteleTravel agent in which getting the most affordable travel deals is effortless—but paying for upkeep of that property like you would a second home can significantly affect your finances.
Additionally, it can be next to impossible to sell a timeshare. Even if you do, the value typically depreciates so you won’t make any money from what seemed like a good investment. You’ll probably lose a considerable amount instead. Plus, timeshares are passed on from one generation to the next, so if you aren’t able to cancel or sell your timeshare, your children will then be responsible for paying the fees.
It’s safe to say the reason timeshares seem too good to be true is because they are. You’re better off keeping your money and saving it so you can travel to different places. This way, you won’t have to worry about making additional payments every month for a piece of property you only get to visit once a year.
Now are you thinking about how to become a travel agent?