Top 4 Timeshare Myths and Facts

 

Timeshare Myths and Facts

Timeshare ownership can be very confusing if you are unable to differentiate industry myths from industry facts. Every year thousands of people go to timeshare presentations and are fed myths about timeshares by a fast talking salesman. Today we will be debunking 4 common myths can be heard industry wide.

Myth #1: Timeshares are easy to sell.

Fact: Timeshare salesmen often tell potential timeshare owners that if they are not satisfied with their timeshare that it can easily be sold at a fair price. This could not be any further from the truth. The supply of timeshares on the resale market greatly outnumbers their demand for their purchases. A major reason why the demand is so low is due to the high fees associated with owning a timeshare.

Myth #2: Timeshares are a good investment and they hold their value.

Fact: Timeshares are sometimes angled as being a good financial investment. An investment is defined as the following: “The action or process of investing money for profit or material investment”. Timeshares are the exact opposite of an investment. Buying a new timeshare is similar to buying a new car; as soon as a new car is driven off the lot it instantly loses most of its value.

Myth #3: Timeshares are more affordable than staying in a traditional resort/hotel.

Fact: Staying in a hotel for your vacation is not only more cost effective but it is also much more flexible. When you buy into a timeshare you become partial owner of a real estate property, meaning you are responsible for paying to maintain the property even when you are not using it. So if the property were to suddenly need a new roof, new carpet, or new furniture all financial responsibility falls directly on the timeshare owners. This is not the case when it comes to staying in a hotel, you only pay for the time you use the space and all other financial responsibilities fall on the resort. Not to mention you are free to use a hotel whenever you please, timeshare owners are given a specific time of year that they can use the resort.

Myth #4: You’re getting a deal.

Fact: Timeshare presentations happen every day and everyday somebody is told that they are “getting a deal”. There is no such thing as “getting a deal” when it comes to timeshare ownership. If you spend some time browsing timeshare listing websites you will find that there are a ton on timeshares online being sold for as low as one dollar.

Despite these myths being debunked, consumers continue to fall hand their money over to resorts in the form of maintenance fees. This is where we step in! Contact us today if you would like to put an end to all timeshare maintenance fees

How Do TImeshares Work: Different Timeshare Fees

 

timeshare fees

When consumers first purchase a timeshare they are told by a salesmen that  their timeshare will hold or gain value over time and that it can easily be sold. This is not true. The market for buying a timeshare is not a good one because most owners are willing to give their timeshare away for free. Owners give away their vacation properties for free because of how high timeshare ownership fees can get. Unfortunately most of these fees are directly controlled by the resort and the timeshare owners are are subject to paying what ever price is set. Here is a list of some common fees that are associated with timeshare ownership.

Upfront purchase price

This price is based upon the demand of timeshare property. Popular weeks in beautiful destinations are more expensive to purchase than less popular weeks. Amenities and location also play a large role determining the upfront price.

Maintenance Fees

Maintenance fees are the annual (sometimes monthly) payments that the resort establishes and collects. This fee is put in place to cover things like landscaping around the building, new furniture, housekeeping, remodling, insurance, etc. Many resorts claim to that this fee is used to improve the property but it can also be seem as an excuse to raise the amount charge owners.

Special Assessment Fees

This is the unexpected fee that resorts charge you when they need to cover “damages” or “renovations” to a property. This is one of those fees that a resort can charge you at any time during your ownership. Many people believe that resorts use this fee to cover losses in revenue from canceled contracts

RCI and II Memership 

RCI and II (Interval International) are exchange companies that timeshare owners can use to exchange their timeshare week for another week within the same exchange network. Members have to pay an annual membership fee and an additional fee for when you actually make the exchange.

 Cost of Travel

A major cost that many timeshare owners forget to consider is how much it costs to actually get to the resort location. If you own a timeshare located on the other side of the country getting every member of your family there can be quite expensive on an annual basis. Timeshare resorts also make it difficult for you to use the timeshare at your convenience so you will not be able to buy your flight tickets early in advanced, making the tickets more expensive.

When these fees begin to pile up it is understandable as to why people are not even willing to take on a timeshare for free. If you are looking to stop paying high fees associated with owning a timeshare , companies like American Resource management group specialize in permanently transferring timeshare ownerships.

Closing Costs

Just like any other real estate transaction there are closing costs that are associated with the purchase of a timeshare unit. A common closing cost is the fee that is charged for putting together transaction paperwork together.