The timeshare industry has evolved in many ways over the years. As the world opened up to travel, there was a huge spike in the sales of timeshares. In fact, the ARDA International Foundation estimates that the total number of timeshares sold will reach $8.1 billion in 2021.
Despite its many benefits, the timeshare industry also has its problems. One of the biggest problems is that it is a product that tends to depreciate quickly. Timeshare properties degrade over time because of poor maintenance and higher user traffic. Eventually, a resort may not have enough money to pay for large property expenses. A timeshare can often be resold for less than the initial cost. Nevertheless, owners may have trouble transferring their contracts.
Fortunately, the timeshare industry is making a big comeback. As the market begins to stabilize, there are more owners looking to take advantage of the opportunity. However, there are still a lot of gray areas in the market. It is important to do your homework and understand what you are buying before making a decision.
There are two main types of timeshares. These include fixed-week and triennial. Fixed-week is the original type of timeshare. It gives the owner a specific unit that he or she can use during a given week of the year. This type of timeshare is good for people who prefer routine. On the other hand, triennial timeshares allow owners to take advantage of seasonal changes. They are also less expensive to maintain.
Another major problem is that the industry has been accused of aggressive marketing practices. Timeshare sellers often use lengthy, high-pressure presentations to entice buyers. In some cases, these buyers are pressured into agreeing to a deal they do not understand. Even if the buyer is fully informed, the sales process can be exhausting. And the industry has been known to hide the true cost of ownership.
There are also special assessment fees that can be incurred. These fees can cover things like remodeling and presentational changes. For example, if a resort needs to change the name of its resort, there may be a special assessment fee to cover the costs.
Because of this, the timeshare industry has been lobbying for a number of tax breaks. It also wants to see private resale prices included in local taxes. Many states have increased timeshare assessment caps. But the demand for the product remains strong. That’s why the industry is poised for a major boost in the next few years.
To avoid getting sucked into the timeshare hype, it’s important to do your research. You’ll want to find a reputable resource to guide you. Also, keep in mind that there are a number of warning signs that indicate your purchase is not right for you. Some of them include:
If you think that your current obligations are too onerous, consider finding an exit solution. There are companies that can help you get rid of a timeshare that is no longer serving your needs.