5 Reasons Why A Timeshare Makes A Poor Investment

5 Reasons Why A Timeshare Makes A Poor Investment

Despite claims to the contrary that are made by those trying to sell you them, timeshares really aren’t a good investment at all.

What is sold as a guaranteed holiday and a great asset is, in fact, nothing more than a financial burden and a source of stress for those who end up stuck with one.

We spoke to the Timeshare Consumer Association who told us that “the tactics used by timeshare salesmen to con people into signing up are extremely controversial, often using psychological tricks and targeting people who are already on holiday in the sun.”

So if you’re considering investing in one, or if you’re heading on holiday soon, we recommend reading our top 5 reasons why a timeshare is actually a pretty terrible financial decision.

The maintenance fees

A timeshare is actually something of a financial burden as once you’ve bought the actual timeshare itself, you have to pay annual maintenance fees which can be very high and, usually, keep going up each year.

Usually, there is no cap on how high these can rise so while you may only be paying a few hundred pounds a year initially, it’s important to think about what they might be in a few years time and whether they would still be affordable.

You’ll struggle to get rid of it

Despite what you may be told by the reps, your timeshare will not increase in value and you won’t be able to make a profit in a few years time. In fact, they are so hard to get out of that lots of people actually resort to giving them away for free.

What’s more, often the financial burden is passed on to your surviving relatives after you die. While this may be sold to you as a benefit when you’re considering buying a timeshare, in reality being lumbered with extortionate maintenance fees and having to go through the stress of trying to get out of a timeshare is the last thing a grieving family needs.

You can’t rent it out

When you buy a timeshare, all you are really buying is the right to book a property for a week or two and you don’t actually own any real estate.

This means you can’t rent it out while you’re not using it. A much more attractive option is to invest in property instead.

While this is obviously a larger upfront cost, it is an asset that you can make extra income from and sell in the future.

If having a base in a specific place is what attracts you to a timeshare, then property ownership is a much better alternative.

There are better alternatives for a summer holiday

These days you can grab a bargain holiday really easily, with package holidays being a much more attractive deal than they once were.

It’s becoming more and more simple to book a great break, and if you want that ‘home away from home’ feeling you can always book somebody’s actual home through sites such as Airbnb.

You’ll still have to pay to get there

If you’ve bought a timeshare, you’ll still have to make your own way there. This means sorting flights and other travel which can quickly add up, particularly if you have a week in peak season.

You may not have the option of holidaying when flights are cheap and may even find that some years you can’t afford to actually use your timeshare.

We hope we’ve given you a few things to think about if you’re considering a timeshare and demonstrated why they are not the great investment they seem.

 

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