Timeshares are a popular vacation ownership option. The industry is a multibillion-dollar one, with a projected growth rate of 6% to 8% per year.
In a timeshare, you buy a right to stay at a particular property, usually once or twice a year, for a set number of weeks. In exchange, you pay a maintenance fee and other fees to use the resort or hotel room.
It can be expensive, but if you’re willing to invest in this product, it can offer significant benefits. However, there are some major drawbacks that may make you want to rethink your decision.
First, you have to decide if the benefits are worth the high costs involved in the purchase process and ongoing maintenance of your unit. Ultimately, your decision will rest on whether or not you believe the timeshare will bring you happiness and peace of mind while on vacation.
Another consideration is the quality of your unit. Modern fractionals are generally larger apartments or homes with better finishes and amenities, while traditional timeshares can be smaller and less appealing.
In addition, you need to consider the amount of maintenance and management that will be required in order to keep the property in good condition. The higher the initial investment, the more maintenance and management fees you’ll need to pay.
Finally, you need to consider the resale value of your unit. Timeshare properties degrade over time and are often harder to sell than fractionals, owing to their lower initial quality, higher maintenance and management costs and higher user traffic.
As a result, you can expect to lose more of your purchase price on resale than you’d get from renting the same property or booking another vacation. This can be particularly problematic if you’re planning to travel regularly and use your timeshare for longer stays.
Buying a timeshare is an expensive business, and it’s not for everyone. But if you’re willing to put in the work, it can be a great way to take advantage of special offers and discounts that you can’t get through normal hotel booking channels. Moreover, with a growing global population, there’s a strong case to be made that the timeshare industry will continue to grow in the years ahead.