Saving money is one of the biggest selling points of a timeshare. There are lots of investment opportunities that open up when you get a great deal. But when the numbers are examined closely, how much money are you actually saving with a timeshare?
The Biggest Cost of Timeshares
Cancellations are one of the unspoken costs about dealing with a timeshare. This is why using https://acagroup.org/timeshare-cancellation-letter as a resource is a recommended start. The cost to leave a timeshare can quickly add up. Some people have spent more on cancellations than the initial timeshare cost. It is absurd to think about, but timeshares are an investment that are made to drain the finances of investors that want passive income. If you get a good deal and stay on top of it, timeshares are worth the money. But more often than not individuals want passive income or get sucked into a timeshare scam.
Selling At a Loss
Timeshares are sold as something that can be bought at a bargain and sold high. This type of flipping is common with real estate, but is laughably bad practice with timeshares. Anyone that tries to sell you a timeshare with the ‘buy low sell high philosophy’ is already sizing up a mark. When cancellations aren’t costing a ton, you will end up wasting time and money selling at a loss. The first time you sell high with a timeshare is when you’ll get all of the lowball offers. After not getting any bites, selling it at cost seems appropriate. Unfortunately, serious buyers only seem to show up after you sell it at a loss. In a truly bad scenario, no one will want it (even at a loss) and you’ll be begging buyers to name their price!
The Fine Print
The fine print always hides the ugly truth about contracts. Not all timeshares are created equally, so pay close attention to the type of agreement you sign. Timeshare maintenance fees are pretty cut and dry, but there are a couple of ‘gotchas’ that are easy to hide. These maintenance fees have a chance to go up every year, with no true cap on their max. These fees have to be paid whether you use the property or not. If your fee is paid monthly, there is a good chance you will spend more on an unused timeshare than your actual mortgage that month.
It’s Not Actually the Cheapest
Timeshares have overtaken the vacation industry with the idea that they’re a cost saving way to get access to luxurious locations. Take a moment to think about the last time you went on an expensive location. What was the biggest cost? The vacation itself, or the itinerary that includes entertainment, sightseeing, food, amenities and shopping? Most of the money on a vacation goes to things other than travel and stay. When you depend on a timeshare to save you money, it ignores the fact that the property itself is only a minor part of enjoying a vacation.
A Bit of a Gamble
It’s no surprise that you have to spend money to make money. There are timeshare specific regrets that should be a warning sign to anyone that invests big in the industry. Don’t get distressed from small mistakes, and make sure to cancel if it ever gets overwhelming.