So you’ve found yourself in a seminar listing to a pitch about owning a timeshare. I’ve been there myself. They promise you some prizes like a car or a trip or cash if you come and listen to them talk about what a timeshare can offer you. I remember driving out into the middle of nowhere in the mountains and walking into a nice small condominium community. The area was beautiful and it seemed peaceful. It was definitely a place I could see myself relaxing and having a good time. The rooms were beautifully furnished from the bathroom to the kitchen with a fireplace and a balcony. Having this little condo tucked away in the mountains for one week a year was something I could get on board with. But then there’s the kicker. It’s going to cost me $22,000. I can hardly afford a cup of coffee let only a timeshare.
But maybe you’re different and have some cash and are looking for an investment. And while you sit inside the condo that could be yours you begin to think that this might be the investment you were looking for. Maybe you’ll flip it or sell off your weeks off to other people. Or worst case scenario take the vacation yourself. Sounds good right? Its not all that cut and dry. Let’s take a step back and break down the investment value.
You want to buy the timeshare and then resell at a higher value. Sorry, but this won’t happen. Most studies in the field show that not only are timeshares almost impossible to unload once you’ve bought it, but the resell value is never close to the original value. A good comparison is to think about the purchase of a car. The minute you sign and drive the car off the lot the car loses value. Same goes for your piece of a timeshare. Also, there are many scams out there that will charge an upfront fee to sell your timeshare for you. But once you pay, they do little to actually list it.
Using the timeshare and selling off a week here and there may be the best option. The only problem with this is that to turn a profit it will take years, maybe decades. The other problem is that you want to watch for any hidden fees inside of your contract. Many places charge either monthly or yearly maintenance fees that can total around $600 on the year.
If you find yourself reading this article and realize that a timeshare won’t be the investment you’re looking for but its too late, don’t freak out. You shouldn’t cancel your contract without consulting with a professional that has experience in this field. A great resource to go to for help is Right Choice Transfer. They do this for a living and will be sure to help you out with your best interests in mind.
So always look at all the angles and options before signing into any timeshare agreement to make sure you don’t get burned.