Things to Consider When Buying a Timeshare

Things to Consider When Buying a Timeshare

Timeshares are an investment opportunity that many people assume is too good to be true.

Timeshare owners can enjoy the benefits of owning their vacation property, but it comes at a hefty price tag. Before you buy into this lifestyle, consider some things before making your final purchase decision.

  • What will happen if I go bankrupt?
  • How much will maintenance fees cost me each year?
  • If I want to sell my timeshare, how long should I expect it to take, and what should I expect for compensation?
  • Is there enough return on investment (ROI)?

These questions and more need answering before you buy a timeshare.

Let’s dive in.

What will happen if I go bankrupt?

When purchasing a timeshare, one of the most important considerations is whether or not you’ll lose ownership rights if you ever file for personal bankruptcy.

If you end up filing for Chapter 7 bankruptcy protection, all assets must be liquidated and any remaining funds distributed among creditors according to established priorities. This includes your timeshare.

In other words, if you declare bankruptcy while still holding title to your timeshare, you could potentially forfeit ownership rights to your timeshare.


Things to Consider When Buying a Timeshare

Of course, if for any reason you find you want to cancel Worldmark Timeshare, you can always find help.

How much will maintenance fees cost me each year?

The amount of money you spend maintaining your timeshare depends largely upon where you live. Some areas charge higher rates than others.

For example, Florida has very high costs associated with keeping its properties maintained. The average annual fee charged per unit ranges from $1,000-$2,500, depending on location. However, these numbers don’t include additional charges such as taxes, insurance, utilities, etc.

If I want to sell my timeshare, how long should I expect it to take, and what should I expect for compensation?

Selling your timeshare isn’t easy. It takes time, effort, and patience.

You also need to make sure that you get fair market value for your timeshare. Several factors are involved in determining the right price: current condition, size, age, amenities, location, number of units, etc. When selling your timeshare, you typically receive anywhere between 10% – 20% less than what you paid for it.

That said, you shouldn’t feel pressured to accept whatever offer you receive because you might miss out on future opportunities.

Is there enough return on investment (ROI)?

One of the biggest concerns about investing in real estate is finding a good deal. After all, you’ve got to pay upfront to secure a piece of property. But did you know that timeshares aren’t different? They require similar amounts of capital to acquire them.

For instance, let’s say you repurchased a timeshare worth $100,000 in 2005. Today, it’s worth only half that amount. So even though you invested $100k, you now owe $50k. And since you didn’t earn anything extra, you lost $50k.

That doesn’t automatically mean you should give up hope. Instead, look for ways to increase ROI.

There are plenty of reasons why someone would choose to invest in a timeshare instead of traditional real estate investments. However, just like with any investment, there are risks involved. Once you’re cautious, you’ll be able to reap the rewards without having to worry about being left empty-handed.

What benefits do timeshares bring?

Buying a timeshare isn’t a decision to make overnight. A deep understanding of both the benefits and downsides is crucial when you invest your money, whether buying a timeshare or anything else. If you think about purchasing a timeshare, it’s good to know the benefits you will enjoy.

You can have fantastic vacations every year

Whether you buy floating week, fixed-week, fractional timeshare, or point-based timeshare, vacation ownership ensures you a fantastic vacation. You won’t need to worry about saving money on the side for a vacation as you already cover annual maintenance fees for a unit. You also don’t need to book accommodations or hire a travel agent to have a nice vacation.

It’s more affordable than one-off vacations year to year

Many factors impact the price for a one-off vacation with time of the year, how far in advance the vacation, and type of accommodation as the most important to name. When you have a timeshare, you won’t have to deal with any of these issues. You will no longer stress about price influxes, but only focus on paying the yearly maintenance fees to use the timeshare as planned.

You save time and energy

Owning a timeshare turns vacation planning into a stress-free and smooth process. With timeshare ownership, you know when and where you will vacation every year. You only need to call the resort/property to confirm the reservation and book other travel needs. It’s not necessary to search high and low for best rates—you only need to make a call!

You can select the home resort and brand you like the most

The market is generous and offers many timeshare brands and thousands of timeshare resorts all around the world. As long as you precisely know what you fancy the most, it’s easy to find the perfect ownership. You can have peace of mind knowing that your home resort will provide you with outstanding amenities. When you go with a reliable and prestigious brand, all the stress about the quality of your stay will vanish.

Timeshare brands have properties worldwide

Most prestigious and trustworthy brands are famous for specific reasons, and having many properties worldwide is one of them. You can select from hundreds of properties and flexible internal exchange options. With such brands, you may expand your vacation options without compromising on the quality of your stay.

In-suite and on-site amenities surpass hotel stays

Timeshare resorts impress with more updated, larger, and luxurious accommodation options. In-unit washers, dryers, and full kitchens are some of the features that attract clients. When you purchase a high-quality timeshare, you can expect amenities like full-service spas, kid’s clubs, swimming pools, daily and weekly activities, several on-site restaurants, fitness centers, and so on.

Many timeshare resorts are connected to external exchange networks

If internal exchanges aren’t enough for you, you can look for resorts affiliated with external timeshare exchange programs. The latter has thousands of partnered resorts worldwide. You can buy yearly membership, deposit the timeshare points/weeks, and have similar exchange vacation within the program’s database.

Flexible vacation club programs are available

The requirements of timeshare owners have changed a lot in time, so timeshare companies made their programs more flexible. Nowadays, you can find vacation clubs that offer points-based timeshares with options for vacations. Some of these options are taking several shorter trips, borrowing or banking points, and using points for on-site benefits.

You can rent the timeshare

When you cannot use your timeshare and you don’t,/can’t bank the vacation for future use, you can rent it out to another vacationer. Renting out a timeshare will help you cover the annual maintenance to avoid losing your money. More importantly, your vacation week won’t be wasted.

Fixed or floating timeshare weeks—which one is better?

Traditional timeshare properties sell a set week (or weeks) in a property. You will pick the dates you want to spend there and purchase the right to use the unit during the specified dates every year. If you’re going to spend a specific time (Christmas, birthdays, 4th of July), a fixed date is the most inspired decision.

However, you may want to look into choosing flexible or floating weeks. This arrangement is more flexible and lets you select a week/weeks without a set date. Therefore, you pick a specific period or season. You can reserve a week every year at any time during the specified period, as long as it’s available.

For instance, you might purchase a week during “high season,” so you can reserve any week during the popular season every year. With the high seasons spanning from December to march, the flexibility of your vacation is quite impressive.

Keep in mind that flexible timeshares come with one major downside. When you don’t reserve the week quickly enough, you might end up not being able to go when you want to go. But if flexibility sounds appealing to you and you’re able to plan, you should choose flexible structures over fixed options.

Things to Consider When Buying a Timeshare

Extra tip

Some people wonder what their options are when they can’t pay cash upfront. When you don’t have the entire timeshare purchase cost upfront, expect to pay high rates to finance the balance. Timeshares don’t necessarily keep their value, so it’s challenging to get financing from most banks.

Should you find a bank that is ok with financing the timeshare purchase, don’t be surprised if the interest rate is high. The developer should also provide you with alternatives for financing, but the interest rates will be steep.


What kind of property is a timeshare considered?

The timeshare refers to a shared ownership model of the vacation property. Several owners have exclusive use of a property for a specific period. Condominiums, apartments, and resorts are some of the most common kinds of vacation properties for timeshares.

Let’s say you don’t pay off the timeshare. What happens next?

When you decide, for whatever reason, that you no longer want to pay for the timeshare, the timeshare company will go above and beyond to collect the money. Expect to receive letters and phone calls. Eventually, they will assign the collection to a collection company. Should you not pay, expect some legal actions against you.

How much will you pay a month for a timeshare?

The American Resort Development Association stated that the average rate for a timeshare is $22,942 per interval. Expect to pay $1,000 for annual maintenance, and keep in mind that the numbers vary on the size of the timeshare.

How many times a year is it possible to use the timeshare?

Every “owner” can use the property for a specific week or set of weeks. Since there are 52 weeks in a year, the timeshare company could basically sell the unit to 52 different owners. Most of the time, there is no expiration date for the ownership, and you can sell it to others.

You’ve just inherited a timeshare. Can you refuse it?

Should a person die while owning a timeshare, the timeshare becomes part of the estate. As a result, the obligations are passed onto the estate’s beneficiaries or the next-of-kin. We should highlight that they’re not obligated to accept it. At the end of the day, you have the right to say “no” to any part of an inheritance, timeshare, or anything else.

About Amanda

I love to buy a lot of products for the home, and dissect them out. I split them into duds and winners, and share the findings here on my site. As a reader of my site, I'm aiming for your next purchase to be an informed and inspired one.

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