We are entering the time of the year when families take a week or two off to travel to some tropical oasis instead of battling the ice and snow that surround most of us. In the back of your mind you might be thinking if buying or renting a timeshare would be a solid investment. You’ve been vacationing at the same resort for years now… what if you’ve been missing the investment of a lifetime by not looking into this trend? Just relax and let’s take a look at these memberships that let you buy to own, rent or exchange a timeshare.
Traditionally, the buyer of a timeshare pays a sum of money (average being about $19,000) for the use of an apartment, condo, house, etc., for the same week every year. These timeshare members are also responsible for an annual fee that is for maintenance of the property, an annual membership fee, and possibly other fees that are randomly added onto the bill. The maintenance fee averages out to about $660, membership fee is around $200, and other odd fees could add up to another $200.
Renting a timeshare can be significantly cheaper (average about $1500 for the week), but you are still responsible for the maintenance fee and the membership, and the odd fees they stick in there. Exchanges can be a huge hassle, but lately some programs give you points so that you can stay at their facilities in different parts of the world, and at different times. As better as that sounds, you are still responsible for the annual fees.
A few of the benefits of buying timeshares is that they are usually sold with a kitchen and laundry facilities, which saves the member from eating out all the time, and the units come furnished which saves the cost of buying furniture.
On the other side of the coin, timeshares do not appreciate; making the purchase of one a very bad investment, and it may be very difficult to sell when the time comes. There are scammers out there always happy to sell your timeshare for you as long as you pay a fee upfront. After calculating the economic value of a particular timeshare, one economist determined that to buy a timeshare would cost 4.5 percent more per year. Nobody should make an investment that is going to cost them money every year. That is just a bad business practice.