Pros and Cons of Timeshare Properties
Timeshare properties were invented with the purpose of allowing a buyer to enjoy a vacation while being able to stay in a home-like environment with the extra amenities a hotel cannot provide. The idea has remained the same in the decades since its invention, but the contracts have become more intricate and complicated. This guide will go over what a timeshare is and the pros and cons associated with this type of property.
What is a Timeshare?
A timeshare is another property that exists aside from an owner’s main dwelling. Usually, it is located in a highly desirable destination for vacationing, meaning it can be anywhere from hundreds to thousands of miles away from the owner. It is unique in that it is co-owned by several other people and that a person is not necessarily buying the physical property, but a given time period in which they are allowed to visit and stay.
The Federal Trade Commission goes into different types of timeshares in more detail.
What Attracts People to Timeshares?
The distance between an owner and a vacation home presents several problems as upkeep and maintenance cannot be done or supervised by an owner. Plus, the home cannot be rented out long term if a vacation homeowner wants to visit the property and stay there for an extended amount of time on a whim.
Thus, timeshares were created with this type of owner in mind.
The Pros of Timeshares
Timeshares offer a reliable way for owners who purchase a stake in them to have the peace of mind that they can come vacation at a location they enjoy coming back to, year after year. (Of course, keeping in mind that the week they want is available.)
Timeshares also offer people a chance to own a home without having to be the sole owner of it. Costs of maintenance are shared between the several parties who have purchased a part of the home.
Sometimes timeshares have perks, like public pool access or a resort-like area. This can be great for families.
The Cons of Timeshares
Unfortunately, there are a lot of timeshare properties for sale on the market because it is not an investment that usually appreciates. This can cause a feedback loop, causing a timeshare to further depreciate in value because of high supply. Do not invest in timeshares if you are hoping to make money.
Timeshares have a negative stigma attached to them for a reason: the salespeople can be manipulative and timeshares can be a serious money suck if a person gets caught up in their emotions. The best action to take is to take your time and thoroughly research what you are being offered.
Final Thoughts
Timeshares are worthwhile if you do not consider them investments and instead treat them as a place to vacation. They can cost a great deal of money, and any buyer should do their due diligence when seeking to purchase a stake in a timeshare home. Although, any purchase related to real estate should be treated with respect and care.
Timeshares, like any other property, offers benefits and drawbacks that a buyer needs to heed.
