Exploring the Pros and Cons of Buying a Timeshare

Exploring the Pros and Cons of Buying a Timeshare. This year, 80% of Americans admit to needing a vacation desperately. This number is high primarily due to COVID fatigue.

So what are good options when you want to take your family on vacation? Several options are available, from taking a road trip to buying timeshares.

You can consider a timeshare if a road trip doesn’t sound like something you’d enjoy. Understandably, you may only know how this vacation choice works if you’ve used a timeshare.

If this is you, keep reading because we can help you understand. You can learn the pros and cons and more right here.

What Is a Timeshare?

A timeshare is a type of holiday you can invest in and is also often referred to as vacation ownership. It’s a subscription to a single resort or franchise of resorts at which you can vacation. It’s a lifetime commitment; typically, your vacation is one week long.

There are fees involved, some of which you pay upfront, and annual maintenance fees. You can also finance your upfront payment through a financial institution if it isn’t readily available.

Typically you can only stay at the resort or resorts you’ve paid for; however, some arrangements can be made where you can stay at another venue. This service will usually come at a price.

Types of Timeshare Resorts

When buying a timeshare, you have two primary options: a shared deeded or a right-to-use contract (aka shared lease). A shared deeded timeshare contract splits the property ownership between all the owners, which you can transfer to someone else. Your vacation time is a specific week or set of weeks where you can use the timeshare; however, you don’t own the property.

A right-to-use contract splits the use of the property between you and everyone else paying for the same timeshare . With this lease,  you can use the timeshare for a predetermined number of years. You may not transfer this contract.

Advantages of Owning a Timeshare

Now that you know what a timeshare is, let’s take a look at t. These are by no means the only advantages, just the ones we’ve chosen to highlight.

1. It’s Convenient

One of the primary reasons people invest in a timeshare is because of the convenience it provides. If you have a large family, getting everyone to agree to the same vacation location can be challenging, but having a timeshare means the choice has mostly been decided.

Timeshare resorts typically offer more than one-bedroom units, a dedicated living area, and a kitchen. They will have almost all the comforts of home, which means there is less to pack than if you were to go camping, for example.

2. You Own Real Property

Depending on which timeshare you buy, you can be investing in real property. For example, if you purchase a deeded timeshare, you will own it. this means you can sell it, rent it, or hand it down to the next generation like it was your own.

However, if you purchase a right-to-use contract, you’re only buying the right to use the property and won’t own any of the actual property deeds. When buying timeshares, ensure you fully understand the contract you are signing before putting pen to paper. You don’t want to think you’re buying real estate only to find you purchased a shared lease contract.

3. You’re Forced to Go On Vacation

Our third excellent advantage of buying a timeshare is you’re forced to take a vacation at least once a year. You will invest a lot of money upfront when you purchase a timeshare.

This large downpayment will motivate you to take your vacation week or weeks rather than skip them like you might have done for another vacation, such as camping. Too often, we miss the opportunity to go on holiday, but with timeshare, if you use it, you lose it.

Disadvantages of Owning a Timeshare

Of course, there has to be a downside to any upside, so here we outline some cons of timeshare ownership. Not all of these may apply to you, so ensure you assess your needs when making your decision.

1. Limited Flexibility

While some may not consider this a genuine disadvantage, the limited flexibility can be a significant con. Whether or not this con applies to you depends on the contract you bought. If you purchased a floating week timeshare, you’d have more date options available to choose from.

2. Continuous Fees

Another disadvantage to vacation timeshare is the ongoing fees. Some may find the upfront payment significant, but there are additional fees that you need to pay as well.

Typically these will be annual fees for timeshare maintenance, but they can add to the overall cost you budgeted for your vacation time. Unfortunately, these maintenance fees can run high, so some may prefer to use that money on other vacations that don’t require upfront commitment.

3. Difficult to Cancel

Unfortunately, timeshare has a reputation for being difficult to cancel. Because this is a lifetime commitment, the contract can include stipulations that could make it challenging to cancel or back out of. Furthermore, you risk damaging your credit score if you cannot pay the fees.

If you’re trying to get out of a timeshare contract, enlisting the services of a lawyer to help you navigate the timeshare cancellation is wise.

Understand What You’re Signing On For When Buying Timeshare

Buying timeshares can be a great way to guarantee a vacation for you and your family every year. If you have the money to pay upfront and for the annual maintenance fees, you can have the option to holiday in one or more timeshare resorts. It can be an affordable accommodation option, especially if you have a large family, because you can purchase one timeshare vs. rent multiple hotel rooms.

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