The reasons of timeshare is a bad idea

You may be wondering what’s so bad about timeshares. After all, they cost much less than owning a vacation home. And much less than paying for a full vacation every year.
While that may be true, there are several downsides to timeshares. Consider these negatives before you buy one.

You’re Stuck With One Company

Some timeshares make you keep your week at your resort. You go the same place year after year. That can get boring.
Other timeshare companies have several resorts. They allow you to trade your week for one somewhere else.
Or, you can stay somewhere else if you pay an extra fee. While this sounds good, you’re still locked into the one company. You can’t vacation with no boundaries.
If you’re okay with that, great. But there’s a reason so many timeshares sit on sales sites with no takers.

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You May Not Use It

I know several people who bought timeshares but don’t use them. They mean to, but things get in the way. Maybe it’s their schedule. Or that they no longer love the destination.
Timeshare sales pitches thrive on spur-of-the-moment impulses. The new and shiny idea sounds wonderful. There are bells and whistles and sparkly things.
Then reality sets in and it’s not as great as it once seemed. Or you just get too busy. Then you’re out the money and the vacation.
They Cost a LOT
Another reason timeshares can be a bad idea is because of upfront cost. Many units cost $15,000 or more at the outset.
When you add on annual fees, they get expensive. Wouldn’t it be better to spend your money how and where you choose?
They Don’t Appreciate in Value
Unlike most real estate, timeshare don’t appreciate. The value of the building is irrelevant to timeshare owners. You’re buying the time, not a piece of the building.
It’s kind of like buying a new car. The value decreases as soon as you leave the lot. Or in this case, sign the contract.
Therefore your investment won’t increase in value. This is different than if you bought a vacation home outright.
Those buying timeshares from sellers get a much better deal. Resale prices on timeshares are significantly lower than the original sale prices. If you insist on owning a timeshare, buy used.

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Timeshares Don’t Generate Income

With investment real estate, you earn income. If you rent out a home, you collect rent.
That rule doesn’t hold true with timeshares. They cost you money. But they won’t earn you income.
They’re Not a Liquid Asset
As I’ve mentioned, timeshares aren’t an asset. But if they were, they wouldn’t be liquid. A liquid asset can be quickly sold to get cash.
On the contrary, timeshares are tough to unload. People have trouble giving them away.
Visit the website mentioned above (RedWeek.com). You’ll see dozens of timeshares selling for $0 or $1 just sitting there without buyers.
There’s a reason no one’s buying them. They just don’t make sense, money-wise.
That’s not to say that a small percentage of buyers aren’t happy with them. They can be good for some people.
However, many people find they’re a waste of money. Think carefully before you invest in one. And consider these timeshare statistics.
Some Statistics on Timeshares
Despite their oft-bad rap, timeshares are still selling in the U.S. Here are some facts regarding timeshare sales.
• There were $8.6 billion in timeshare sales in 2015
• The average price for a timeshare in 2015 was $22,240
• Annual maintenance fees averaged roughly $800 on timeshares in 2015
• The timeshare industry supports over 1 million jobs each year
Source: Statista, Timeshares & Vacation Property Ownership
As you can see, timeshare sales are booming. However, that doesn’t necessarily mean you’ll want to keep one if you buy it.

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People get lured in by the sales pitch. It’s like the honeymoon period of a relationship. Everything seems wonderful at first. Then real life sets in and the romance is gone.
You realize how much money you spent on the deal. And you think about other ways you could have used it.
Now you’re thinking about getting out of the deal. Or maybe you’ve had your timeshare for a long time. You realize it’s time to move on.
You Bought it on a Whim
Yep, you fell for the pitch. You were drawn in by the sunny beaches and smiling faces by the pool. You’ve signed the contract and handed over big cash.
Now you want out. There’s no shame in that. This is why contracts often have recission periods. Refer to the first section of this blog for a refresher on that.
You Don’t Use It
People who buy timeshares sometimes find they don’t use them. Maybe they’re just too busy. Or they no longer desire the location.
Maybe things have changed in your family. Or your schedule. The kids are grown and off at college. Or married and living out of state. Whatever the reason, you may not use your timeshare anymore.
You Can’t Afford It
We live in a time of financial instability. The economy is improving, but it’s volatile, too. Maybe you just can’t afford your timeshare anymore.
The annual fees are adding up. Or the cost to travel there and back is too much. Maybe you’ve had financial setbacks.
There’s no shame in deciding the cost of your timeshare isn’t worth it. Or isn’t doable. It’s best to get out of it and move on.
You May Have Health Concerns
Have you had your timeshare for several years? Aging and health concerns may prevent you from using it.
It was easy when you were younger. Now you prefer not to travel. Or health concerns prevent you from doing so.

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The point is that your timeshare owning days may be done. The reason doesn’t matter so much. The fact that you want out does.
Use the information above to get out of your timeshare.
The Bottom Line
Timeshares are a depreciating asset. There are always more sellers than buyers. And they don’t appreciate in value.
The first owners take the brunt of the depreciation. Our general opinion is that they’re not a great investment. However, that’s just an opinion.
You may find that a timeshare works well for you. But if you need or want to get out, follow the tips above.
The sooner you get rid of it, the more money you’ll save. You may not get money back on the sale price. But you’ll get out of the annual fees.