Timeshares may look fantastic on the surface but, if you scratch a bit deeper, you’ll probably find that they’re not all they’re cracked up to be.
Most people with timeshares have been led to believe that they’re a worthwhile investment but, upon realising that they’re more of a financial drain than anything, it quickly dawns on them that it’s tricky to be shot of them.
So, if you’re thinking of buying into a timeshare and you have been led to believe that it’s a strong investment, here are three reasons to reconsider.
They don’t generate an income
When you buy into a timeshare, you don’t actually own the property so, even if your timeshare increases in value (which almost never happens), you won’t reap any rewards, let alone generate any sort of income.
We spoke to Timeshare Consumer Association who said: “It’s important to understand that, contrary to the popular belief, timeshares are an expense as opposed to an investment – they really don’t hold the same advantages as owning your own holiday home.”
“Timeshares are a drain on your income and you can’t rent them out to others when you’re not using them. So, when you buy into a timeshare, you’re not actually investing at all.”
They’re difficult to sell on
It’s highly likely that you’ll find yourself unhappy with your timeshare and you will want to sell it on, but it’s exceptionally challenging to sell a timeshare on to a buyer. The reason for this is that the timeshare market is saturated: there are more people looking to sell than to buy.
Similarly, if you ever do manage to sell your timeshare, it’s near impossible to make a profit or break even, so you’ll never recover the cost of your initial investment or the hefty maintenance fees which you have had to pay.
There has been an increase in the number of cases where people have sold their timeshares for as little as £1 simply to get rid of them and some people have even donated their timeshares to charities such as Donate My Timeshare.
There are plenty of better options
With so many better options out there, it’s difficult to see why so many people opt to get involved with timeshares. For example, buying a holiday home is a great alternative than buying into a timeshare because it’s an actual investment and you will be able to decorate it and modify it to match your needs.
With a holiday home, you still get the same perks as not being in a hotel, such as having your own kitchen and your privacy, but it will likely be much more cost-effective and you’ll have the option to rent it out to generate a bit of income.
Another worthwhile alternative to buying a timeshare is renting out an apartment. With websites such as Airbnb only rising in popularity, it now couldn’t be easier to rent out someone else’s apartment when you go on holiday.
When you rent out someone else’s property, you’ll still have your creature comforts and you’ll gain a deeper insight into the culture and the lives of the locals in the destination you’re staying.