It’s vacation time. Kick back in a beach chair and ready that sunscreen, because it’s time for some well-deserved R&R. That is until the vacation is over and you discover that massive credit card bill that fueled the fun.
Vacations are expensive, that’s just life. But what if you could save money and guarantee your favorite vacation spot until the day you die?
It might be time to buy a timeshare. Timeshare vacations are the perfect choice for groups or individuals who visit the same location during their two-week PTO. However, they do come with some noteworthy caveats.
Read on as we discuss everything you should know before you sink your funds into a timeshare.
What Is a Timeshare, Anyway?
A timeshare, put simply, is a long-term commitment to frequent a single resort–or any resort owned by the same company. You pay in advance with a lump sum to secure your place. Then, you can visit that resort for as long as you have secured it, guaranteed, at the same time each year.
People often buy timeshares as a group, such as a family. Each person in the group is allotted a time of the year that they can use it. After you’ve paid upfront, you only have to pay for any additional maintenance fees throughout the year.
Depending on the contract, timeshares may or may not be transferable. If they are, you can sell or gift a timeshare to someone else. If you can’t, then the timeshare will usually have a limited number of years before expiration.
Hotels and resorts will often advertise these timeshares at events that guests can attend. It’s a win-win for the hotel, and for the person who really intends to use a timeshare. The hotel gets a guaranteed profit for the life of the contract, and you get a guaranteed annual vacation.
Timeshare options often allow some flexibility for the weeks you can go. However, the contract is binding once you sign. You may only have a brief window to cancel after signing up.
Benefits if You Buy a Timeshare
Timeshares aren’t for everyone. But they are a popular option for tight-knit groups of individuals who like to make solid plans well in advance. Let’s look at just a few of the reasons why you might need or want a timeshare.
Guaranteed Booking
It’s a nightmare to plan vacations simply because you likely have a vacation at the same time as everyone else. Everyone schedules their PTO for the summer. The only way to get a hotel is to secure it months, sometimes years, in advance.
All of your plans hinge on this availability, too. If something happens to your booking, you could lose flights and other paid activities.
A timeshare is set in stone, more or less. The property you contracted is available to you, and only you, for your scheduled time period. There’s no need to fight for the last accommodations with other desperate patrons.
Cheaper Overall
Booking hotels can often cost you $80 for a single night and upwards. Make that a hotel with multiple rooms to accommodate your family, and those costs skyrocket.
Not the case with a timeshare. Do the math, and you could be saving upwards of 50% compared to booking normally. Think of it like buying hotel rooms in bulk.
Downsides if You Buy a Timeshare
Timeshares are awesome, but like with all good things, there’s a catch. Getting a timeshare may not be ideal for the following reasons.
They’re Not Flexible
Say due to work your vacation gets pushed back a few weeks. With a timeshare, it’s not so easy to book on a different date.
Some timeshares like floating timeshares and point system timeshares may allow you some wiggle room. But even then, it may be difficult to change last second since you have to negotiate with those who also own the timeshare.
Upgrading or Extending Usually Is Difficult
Say you want better accommodations–or cheaper accommodations for a longer time period. Unfortunately, it’s not easy to simply upgrade or downgrade. You’re often stuck with the resort you chose, no ifs, ands, or buts.
Point system timeshares allow you to “upgrade” to more desirable resorts and times. But that may mean you have to take your vacation less often, reducing the overall value of your timeshare.
Selling or Cancelling a Timeshare Can Be a Challenge
Once you sign the contract for a timeshare, it’s hard to get out of it. In most cases, you will need to sell your timeshare to someone else–often at a considerable discount. But canceling a timeshare mortgage is possible, and you can get more info if you want to go that route.
Timeshares Are Not Cheap (At Least at First)
Remember, you’re buying a timeshare for years, at minimum. Many timeshares will last for a lifetime. Most people pay upwards of $20,000 just for a one-week timeshare–and thanks to inflation, that cost is rising.
If you don’t have the cash to purchase this directly, then you may have to take out loans or refinance. The original timeshare could end up costing far more in the long run. It’s best to find a solid core of reliable people to split the cost with.
You Are on the Hook for All Fees
Think of a timeshare as owning, in part, a property. You don’t have the deed or the rights to the property. But it is “yours” in a sense until the share ends.
That means, unfortunately, that you’re responsible for every red cent regarding fees. That includes maintenance fees, HOA dues, insurance premiums, landscaping costs, and even renovation budgets.
Even if you don’t use the property for a contracted year, you’re still responsible for paying those fees. Acts of God, such as natural disasters, are also your responsibility. The resort may force you to pay a portion of the repairs.
Get a Timeshare Today
Buy a timeshare and enjoy a consistent resort experience every year for the rest of your life. However, be aware that this will be expensive and very difficult to change. Avoid timeshares if you don’t have a solid friend group that doesn’t mind the same destination decade after decade.
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