Q. Are Timeshares Really Worth It?
A. Timeshares Aren't Very Liquid
It's usually only after you've purchased a timeshare that you realize there are more people looking to sell them than buy them. The likelihood of recovering your initial investment is very low — to say nothing of recovering many years' worth of maintenance fees. A timeshare is not an investment, it's a vacation. It's also an illiquid asset that is likely to lose value over time. Ultimately, timeshares are like swimming pools, if you buy one, do so because you love the idea of owning it, not because you expect to make a profit.
Q. Why are time shares bad ideas?
A. Timeshares are NOT a sound investment. They tend to depreciate over time rather than increase in value. Also, the supply of new timeshares is typically greater than the demand and they come with significant fees.
Q. What happens if you don't pay maintenance fees on timeshare?
A. Failure to pay these fees results in collection efforts by the management company. When you purchased your timeshare, your contract outlined the amount of the maintenance fees and their due date. You may incur interest, collection efforts and even foreclosure if you do not pay on time.
Q. What is the timeshare industry?
A. A timeshare is a type of vacation ownership in which multiple individuals share rights to use the property, each with his or her own allotted time frame (in its most common form, this is a fixed week each year).
Q. What is the difference between a vacation club and a timeshare?
A. So, the typical timeshare is a one week deeded interest in a condominium-style resort real estate development. A Vacation Club is a group of people sharing the right to access a group of vacation properties, which could be hotel properties or vacation homes.
Q. What is the average timeshare maintenance fee?
A. The average annual maintenance fee is $980, according to ARDA. (2018)
Q. Can you stop paying maintenance fees timeshare?
A. The only way to get rid of your timeshare maintenance fees and the other special assessment fees is to get rid of your timeshare altogether. As long as you own the property, there is really no way to end the yearly onslaught on your bank account.
Q. Are timeshares forever?
A. Timeshares Are Forever Or, at least, for a really long time. When you purchase a timeshare, know that you're generally buying “deeded real estate.” It's similar to buying a house, except you don't actually own a freestanding home.
Q. Can you refuse to inherit a timeshare?
A. In general, if you refuse a timeshare, it will go to the next person in line to inherit. If that person doesn't want it, they too must file their own Disclaimer of Interest. A word of warning. You can't legally disclaim a timeshare that you've used to benefit yourself after an inheritance.
Q. What does Dave Ramsey say about timeshare?
A. Dave says, “Timeshares are basically getting you to prepay your hotel bill for 20 years. Just put that money in an investment and it could pay your hotel bill!” Rather than spending all of your hard-earned cash on a terrible “investment” like a timeshare, one option is to start a sinking fund for your vacation.