Why You Should Think Twice Before Investing Your Money In A Timeshare

A timeshare is a property where a buyer pays a lump sum upfront, allowing them use of a specific unit for a specific duration - usually at the same time every year. These properties are commonly resort condominium units, where multiple parties hold the rights to use the property.

Types of timeshares

Fixed Week – the buyer owns the right to the unit on the same date every year. There is sometimes the option to rent out this block of time or trade with owners of other properties.

Floating – the buyer blocks out a time during a given period of the year which gives you more flexibility, but you can often lose out to others.

Right to use – the buyer leases the property for a set amount of time each year for a set number of years.

Points Club – buyer can stay at various locales depending on the amount of points they’ve accumulated from buying into a particular development.

Pros of timeshares

You only pay for what you use, so it’s an affordable way to have access to a very expensive property that you couldn’t normally afford, plus you don’t have to worry about year round maintenance. Depending on your arrangement, you might be able to swap with other timeshare owners, rent out your allotted time for a profit, or gift it to family and friends.

Cons of timeshares

There are often lofty annual fees for maintenance and upkeep which you have no control over. This can be especially difficult when rates rise and you simply have to accept it. Timeshares are notoriously hard to sell, so make sure you go through all the get out clauses very carefully to make sure it doesn’t become a burden if you no longer want it.