If you’ve got a favorite holiday resort that you travel to every year without fail, you might be considering buying a timeshare.
A timeshare involves purchasing part ownership of a holiday home. You are basically paying to have the home for a set time period each year. Timeshare is often advertised as the perfect solution to your holiday problems. You get guaranteed access to a beautiful resort without paying while you’re not using it for the whole year.
However, there’s a reason that top timeshare exit companies exist. Many people jump into a timeshare without considering the implications of doing so. Although there are lots of benefits to a timeshare, there are also countless drawbacks that you should be aware of before you sign the dotted line.
Advantages
You Only Pay for What You Need
Unlike buying a holiday home that you’re paying for all year round, but only use for a couple of weeks each summer, you only pay for what you use with a timeshare. This makes it much more affordable and cost-effective.
It’s Guaranteed
If you have a favorite abroad that you love traveling to every year, there’s always the risk of it being fully booked up before you get a chance to get a room yourself. This is especially difficult if it’s in a popular location and you want to go in the height of summer.
With a timeshare, you can have peace of mind knowing you are guaranteed to get a spot at your dream destination. It’s this predictability that many people love about owning a timeshare.
You Might Be Able to Exchange Your Shares
Some timeshare companies enable you to exchange your timeshare after signing the contract. You might be able to switch the time of year that you own the resort for or you might even be given the option to switch to a completely new resort if you need to.
Similarly, you might be able to contact the other timeshare contract owners of the resort to swap your times with them if it suits you both better.
Disadvantages
There Are Annual Fees
Even though you’re not paying to buy the whole resort outright, you are still expected to pay an annual fee for your part ownership. There are also additional maintenance fees that you will need to contribute to the upkeep of the resort.
Even worse, these prices aren’t fixed and you have no control over them. The prices vary depending on market rates and you have to pay them even if you stay at home during your timeshare period.
Lack of Flexibility
Once you’ve signed your timeshare contract, you’re limiting yourself to just one holiday destination at a specific time of the year for the foreseeable future. If you decide one year that you want to switch things up and try somewhere new, you will still be paying for your timeshare.
Sometimes it’s easier to just pay for your holidays and hotels separately each year to avoid getting fed up with the same location.
Consider both sides of the coin before you commit to a timeshare. As with anything, there are good and bad points, but as long as you do your research, you will be able to make an informed decision that suits you best.