There are over 5 million timeshare owners world-wide, and the most recent survey had 85.6% agreeing that timeshare ownership was a positive experience. But maybe you shouldn’t buy a timeshare. Here are 5 reasons not to buy a timeshare:
- Looking for an Investment
A timeshare is not a real estate investment. This can be confusing for some people. Legally a timeshare can be considered deeded real estate, you have to pay property tax on it, and in many states timeshares are regulated through the real estate commissioner’s office. However, a timeshare does not act like real estate. You don’t own a piece of property, but rather you’re buying a share of some time to use some property. Think of purchasing a timeshare more like purchasing a car – it can be listed in your will, it’s very handy to have, and it will depreciate in monetary value. - You don’t take Vacations
The entire point of owning a timeshare is to make vacationing easy on a routine basis. If you know you’ll be taking a week’s vacation every October, and like visiting Maui, then buying a timeshare on Maui for that week will allow you to have a pre-planned vacation every year. However, if you’re not someone who vacations on a regular basis, then a timeshare won’t work for you. - Unpredictable Vacation Time
Maybe you do take a vacation every year, but you never know when or how long it will be. Many timeshares restrict you to a particular week of the year, and if you don’t know when you’ll have time off then, don’t buy a timeshare. However, there are ways to make your timeshare flexible. Exchanging your timeshare week is an option, as is purchasing through a vacation club that works on points rather than calendars. - Ties up Cash Flow
There’s no getting around the fact that paying an up-front fee on a future vacation limits your cash flow in the present. If you take out a loan you’ll have interest to pay, and every timeshare purchase also includes monthly maintenance fees, all of which contribute to the amount of cash that is tied up each month. - Scams
Disreputable companies and timeshare sellers are no doubt a part of the timeshare world. If you don’t keep your eyes wide open, do your research, and deal only with businesses that have a reputation for honesty (always check with the Better Business Bureau, or the consumer affairs office your state) you’ll have a negative experience with your timeshare purchase.
If you are wondering if a timeshare purchase is right for you, take a vacation with a timeshare rental first. You’ll learn a lot that can help in your decision, one way or the other.