Timeshares can be a great idea but can also cause problems if you don’t know what you’re getting yourself in to. Here are the pros and cons to give you a clearer idea.
The Pros Of Timeshares
1. Vacation homes can easily remain vacant throughout certain parts of the year. However, with timeshares you only pay for what you actually use. In turn, using expensive properties is affordable, and you don’t have to pay for year-round maintenance.
2. When you have a timeshare, you have a guaranteed destination for your vacation.
3. In some cases, you can trade locations and times with other timeshare owners. In turn, you can travel to new destinations.
4. Some timeshares allow you to rent a block of time out if you don’t use it. Some contracts forbid you from doing this. Plus, some websites will charge you in order for them to play matchmaker.
5. You can usually let your friends or family use their timeshare at no charge.
6. You can create home from home, kit out your timeshare at surplus.net.
The Cons Of Timeshares
1. Maintenance might not be something you have to worry about, but you do need to pay annual fees and you don’t have control over whether or not these fees increase. Generally speaking, $660 is the average maintenance fee that people pay on an annual basis. Not only that, but you pay this fee regardless if you use the property, and you might be on the hook for special assessments. Your timeshare could be foreclosed if you don’t pay these fees.
2. Timeshares are notoriously difficult to sell, and they are often sold at heavily discounted prices due to how many timeshares are on the market. This is why it is sometimes a good idea to buy a timeshare the secondary market. Also, there are many timeshare reselling schemes that have left victims defrauded out of thousands of dollars.
3. You can’t claim a capital loss if you sold your timeshare at a loss. The IRS does not allow this. This means you will be out of money.
4. If you decide to purchase a timeshare in a foreign country, then there are special challenges you could run into. For example, some countries don’t allow you to hold the title to a property that is within a certain number of miles from the border or coast. You might only have the right to use the timeshare and that’s it. Also, sometimes consumer protection laws are not that good in certain countries, which is another thing you should consider before getting a timeshare in a foreign country.