Timesharing, as a concept, is a relatively simple and even attractive one. The reality meanwhile can prove both complex and costly. Here’s just five reasons why a potential timeshare ‘investor’ might want to think again before parting with their hard earned cash.
- Timeshare are NOT an Investment
As is clearly stated in the Desert News article, ‘The Promise and Pitfalls of Timeshares’, even the phrase or term ‘timeshare investment’ is a ‘complete misnomer’. Despite the name, timeshares are not a lucrative or even really a financial investment of any kind. Rather, purchasing a timeshare is like purchasing a car from a car showroom; the value of most cars does not increase with time, but rather deplete quite rapidly. Potential timeshare ‘investors’ need to be aware that the same is true of timeshares.
- Reselling a Timeshare Could Cost You
Proof that timeshares don’t just make a lousy investment, but are not even an investment is provided when a person attempts to sell a timeshare – which can prove extremely difficult. Changes in holiday trends, the rise of the budget airline and ‘last minute deal’ and the bad press surrounding the timeshare industry have meant that in 2015 selling a timeshare is not just very difficult, but can prove near impossible. Quite plainly, people these days are far more ‘clued up’ as to how and where to genuinely invest their money or get a good holiday deal. Consequently, few if any people want to buy timeshares.
- The Timeshare Industry is Fraught with Scams
Both buying and selling a timeshare is fraught with danger – and scams. Scammers who purport to sell timeshares or mis-sell timeshare opportunities do not stop at selling. Capitalising on having contributed to tarring the reputation and murkying the timeshare market, scammers also operate through conning existent timeshare ‘investors’ who are desperate to sell their ‘investment’.
Hence, it is not just difficult to buy or sell a genuine timeshare, but equally difficult these days to know who to even approach or trust when attempting to do exactly that. So, to learn more about timeshare scams, how they operate and how not to become a ‘timeshare scam victim’, the Timeshare Consumer Association website is a sensible place to begin – and is staffed by experts who (most importantly) can be trusted.
- Timesharing is not a Form of Property Investment
Further to the fact timeshare investments are not an investment, is the fact that those who purchase the right to occupy a property (hence, purchase a timeshare) are not actually purchasing a property or any share of a property at all. Rather, almost all timeshare ‘investments’ involve purchasers buying a share of a lease upon a property.
To some this may seem obvious, to many more had it been clearly stated and communicated they would not now be trapped in a costly timeshare agreement with so few escape routes, and fewer still that involve recouping even a fraction of the finances they put into acquiring and the subsequent maintenance of that timeshare.
- Annual Timeshare Fees Can Cost More than a Holiday
Lastly, and yet another ‘trap’ thousands of timeshare ‘investors’ have fallen prey to, is the matter of ‘annual fees’ affixed to most timeshare agreements.
Annual maintenance fees cover the maintenance of a timeshare property in order for it to remain a desirable, up kept and safe property in which to stay. Fees can also involve paying for the wages of staff and maintenance of a surrounding complex, if the timeshare is part of a complex. To learn more about fees associated with timeshares, and so avoid being stung by them, the Timeshare Users’ Group website features the article, ‘What are Timeshare Maintenance Fees?‘ that explains all.