Should you buy a timeshare or are timeshare rentals a better bet?
If you’re thinking about a timeshare purchase, it makes sense to do your research and consider your options. Timeshare rental allows you to stay at the same resorts as ownership, but the sales rep is touting the benefits of buying. So what should you do? Read on to find out.
Costs of Timeshare Purchase vs. Timeshare Rental
In 2017, the average cost of a timeshare was $22,180, and average maintenance fees were $980 a year. Let’s consider costs over ten years for a deeded, fixed week timeshare. Purchase price plus maintenance fees would be $31,980. That assumes that maintenance fees don’t rise over time and you don’t encounter any special assessments. That breaks down to $3198 a week. That’s an expensive vacation before you even consider travel and entertainment expenses.
Of course, if there’s one thing that’s certain about maintenance fees, it’s that they go up. Plus, you have special assessments to consider. A special assessment is a one-time fee levied by your timeshare HOA to pay for upgrades of damages. These assessments are unpredictable, especially given that they may have to cover repairs to resorts located in hurricane-prone areas. Even if you don’t encounter a special assessment, your actual weekly cost will be higher than the $3198.
So, what kind of timeshare rental can you get for $3000? A lot, as it turns out. Check out any timeshare rental forum, and you’ll find countless rentals available from the owner. You can also rent out the very units that are available for sale.
Benefits of Rental
Of course, if you own the timeshare for another ten years, your weekly rate would average $2089, which starts to look like a good value. So, why not buy? Well, first, it takes a long time to realize any value. In the meantime, your money is in the hands of the resort earning them money rather than in your hands earning you money. When you choose to rent, you keep your money longer.
Second, when you rent, you can go anywhere, visiting a new destination each year. Timeshare owners have no such flexibility. They are locked into their destination and their week unless they choose to participate in an exchange program for additional fees.
Finally, a timeshare contract requires the owner to pay no matter what. If financial circumstances change, owners have little or no flexibility on paying their fees. And if they can’t travel for a year or have a conflict with a date, they lose their time. Of course, they can always rent out their unit.
Timeshare rental offers far greater flexibility than ownership and comes with almost no liability. We think it’s a good option. However, if you’ve already bought a timeshare that no longer suits your needs, then we can help. Contact us today for a free consultation.
(Image Source: Pixabay)