For many people, the idea of owning a vacation home in a tropical paradise is a dream come true. Unfortunately, the cost of maintaining the property and being able to afford it usually come between you and your dream. For many individuals, dreams become reality when timeshares step in. A timeshare is basically a property purchase that allows you to own a place for a small section of the year. Included here are a few things you will want to consider before you commit to a timeshare.
Lower Cost Maintenance
One reason many people make the leap for a timeshare is due to the lower cost of maintaining a vacation property. Often, you will only have to pay for any repairs or maintenance due during the week of your stay. This means no money wasted maintaining a home that is empty for most of the year.
The predictability of a timeshare could be a blessing or a curse, depending on who you are. Often, when you purchase a timeshare, you could be committing to vacationing the same week of the year; so not only will you be in the exact same place, you will witness the same season of weather, year after year. If you enjoy knowing that the same vacation awaits you year after year in the same spot, you will appreciate the predictability of a timeshare.
However, if you are more adventurous and enjoy the constant change of environment available to you on vacation, the predictability of a timeshare may bore you to death. Make sure you understand how you want to spend your vacations before committing to the same view every week for your next thirty vacations.
Possibilities of Trade
There is some possibility that you may be able to swap your week at your timeshare with someone else at a different vacation spot. This can be a great option if you have tired of looking at the same chunk of paradise every year. However, there is no guarantee that you will find someone willing to swap shares, so it is wise to commit to your favorite location.
While your property will cost you less than owning a vacation home outright, the maintenance fees of some timeshares can be astronomical. You will be held liable to whatever the annual fees of the property are and you will have no control over the increase in cost. Additionally, you will always be held liable for yearly fees, regardless of whether you used the property or not.
Difficult to Sell
Timeshares are widely recognized as being a difficult investment to get out of. If you choose to sell your timeshare it is likely you will receive less back than what you paid for it. When you lose money in the sale, you are unable to claim the loss of investment as a capital loss as you could with other property.