3 Reasons NOT To Invest In A Timeshare in 2018

3 Reasons NOT To Invest In A Timeshare in 2018

When it comes to having your own slice of paradise in the sun, owning a holiday home is usually a pipedream for most of us and we’re often resigned to booking the usual self-catered apartment in the Canary Islands.

As a result, timeshares were introduced in the 1960s in Europe to make holiday homes more accessible to everyone, not just the rich. Built on the premise of owning a share in the home alongside fellow holidaymakers, these solutions have become increasingly popular, with an estimated 22 million households worldwide owning a timeshare.

However, not everything is as it seems with timeshares and these types of holiday homes are often too good to be true.

Here, we’ve found three of the top reasons not to invest in a timeshare in the new year, from costs to alternatives.

You can’t make money off it

Contrary to what developers would lead you to believe, especially during the ‘hard sell’ presentations used to lure you in, you won’t actually make any money by investing in a timeshare.

Because you only purchase a share in the home and the right to book a week abroad, you don’t actually own any property. This means you’re unable to rent the holiday home out when it’s not in use and you’re unable to sell on the entire property years down the line, only your share in the home.

Selling a share is also extremely difficult, due to a saturated market and low opinion of timeshares, with some consumers even selling them for $1 or donating them for free.

There are better holiday options

Timeshares can also limit you in terms of your holiday destination and choice of property, and there are much better holiday options out there as opposed to investing in a timeshare.

Renting a holiday home through the likes of Airbnb or Holiday Lettings can allow you to get the same home from home feel as a timeshare, minus the long-term legal contract and ongoing fees.

You can also opt for a package holiday if you like the high standard of accommodation offered by a timeshare, or alternatively opt for buying your own holiday home outright if you’ve got the cash.

All of these options give you the same style of holiday as a timeshare, with more flexibility, less hassle, and usually at much lower prices.

They’re an ongoing expense

Finally, one of the main reasons not to invest in a timeshare is due to the ongoing expense incurred when buying one.

We spoke to the Timeshare Consumer Association, who said: “Many people believe that once the initial down payment has been received by the developers, the ongoing expenses will be minimal.

“Unfortunately, however, that’s just not true. You’ll be required to pay annual maintenance fees that often rise each year at the whim of the developers, with uncapped payments often rising above £500 per year, despite only using the property for a fraction of the year.”

Plus, you’ll also have to continue paying the maintenance fees even if you’re in the process of trying to sell your share, meaning you’ll see absolutely no return on your payments.

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