There are boundless cases of misguided holidaymakers around the world buying timeshares but realising after purchase that they’re not the great deal which they were led to believe.
Timeshares may look great on the surface, but if you delve a bit deeper you may find that they’re not what they seem. So, with so many people now holding unwanted timeshares, we thought we’d write a quick guide outlining why timeshares are a poor investment.
They don’t generate an income
Because you don’t actually own the property when you buy a timeshare, you will not benefit from any increase in value which means that, contrary to the popular belief, timeshares don’t actually generate any income for their owners.
We spoke to the guys at Timeshare Consumer Association who said: “It’s important to understand that timeshares are an expense as opposed to an income and they don’t hold the same advantages of owning your own property.
“For example, you can’t rent out timeshares whilst you’re not using them and they drain your finances rather than build them up.”
Because of this, when you buy a timeshare, you’re not really investing in the property at all.
There are better alternatives
There are so many more beneficial holiday options than buying into a timeshare. Buying a holiday home is a great alternative to a timeshare because you will actually own the property and will be able to decorate it and modify it as and when you please.
You’ll still have the same benefits of owning a timeshare which hotels don’t offer, such as having your own kitchen and your privacy, but it’s a more cost-effective option.
Another alternative to owning a timeshare is renting someone else’s apartment. With companies like Airbnb gaining popularity, there’s no end to the opportunities you have when it comes to staying in other people’s homes.
By renting out someone else’s property, you’ll get a deeper insight into the culture of your holiday destination and will still be able to enjoy plenty of home comforts and privacy.
They’re difficult to sell on
If you find yourself unhappy with your timeshare or your contract, it can be very tricky to sell it on to a buyer. This is because the market is saturated: there are more people looking to sell timeshares than there are wanting to buy them.
Even if you do manage to sell your timeshare, it’s unlikely that you will ever recover your initial investment, let alone the hundreds of pounds spent on maintenance fees. In fact, there have been many cases of timeshares selling for as little as $1.
Many people who have found themselves in a sticky situation with selling their timeshares have even opted to donate or auction their timeshares. For more information on selling timeshares, check out this really useful post from Citizens Advice.
This guide is just scratching the surface of why buying a timeshare isn’t a worthwhile endeavor. You’ll find lots of further information online, such as at Timeshare Consumer Association.