Money Matters

Are Timeshares Worth it?

Q: I constantly hear conflicting advice regarding timeshares. Some experts claim they are a great way to take inexpensive vacations. Others claim they are a waste of money. What’s the truth?

A: As with many things in life, it depends on your intentions. There are over 8 million Americans with ownership of a timeshare, so it’s a popular option. But is it right for you??

In most cases, the owner of a timeshare is buying a portion of ownership in a vacation property. A 1/52 share would entitle the owner to one week in the property each year. The scheduling depends on the details of the agreement. The details of the agreement can make all the difference.

Other types of timeshares do not include ownership.

The advantages of timeshares include:

1. More home-like accommodations at your vacation destination. Most vacation rentals are designed to have a lot of people moving through them each year. Timeshare participants tend to be more respectful of the property, allowing the property to be better maintained.
2. Guaranteed location. You’ll know exactly where you’re going each year. Some timeshare programs also allow participants to swap properties.
3. Guaranteed price. The price of timeshares is largely fixed from year to year. Over time, timeshares can be very economical compared to traditional accommodations.

There are also potential pitfalls:

1. There are costs, even while you’re not using the property. These include, but are not limited to, maintenance fees, commissions, and taxes.
2. Scheduling. When your turn comes to occupy the property, you feel compelled to, even if the timing is inconvenient or money is tight. After all, you’ve been paying all year for the right to spend a week there.
3. Lack of appreciation. Timeshares rarely increase in value. Many of those that are resold are sold at half the original price.

Timeshares can be a reasonable vacation concept if you’re in it for the long haul and want to return to the same location year after year. If you like variety in your vacations, however, you most likely would not enjoy having a timeshare.

Daderea Forrest