Pros and Cons of Owning a Timeshare - Home Buyer Real Estate Article

Pros and Cons of Owning a Timeshare

Timeshares grab headlines every so often as being the best vacation alternative around, far superior to the traditional vacation rental. Before you jump on the bandwagon, however, you should consider the pros and cons of owning a timeshare before you make that plunge. After all, it's a big investment that can set you back tens of thousands of dollars.

Pros

Perhaps the one of the biggest perks of owning a timeshare is that you actually own a piece (or percentage) of property. Though it's not like owning a second home, it does bring a bit of status to one's life. Owning a timeshare also guarantees you time in the location and property you've chosen – no more worries about missing out on your yearly Hawaiian vacation on the beach. Just make sure you reserve your spot way in advance if it's the high season you want. For a popular winter vacation spot (i.e. Caribbean Islands ) or a cool summer destination, you might have to reserve you time a year in advance.

Some timeshares even allow owners to swap locations. If you're particular timeshare property is part of a network, you might even have your choice of locations throughout the world. Let's say that you purchased a timeshare in the California desert. You're tired of spending your winter vacation in the desert oasis and would prefer a spot by the Mediterranean Sea . Simply check your timeshare's “sister” locations and select one of the properties nearest the Mediterranean .

Cons

Owning a timeshare does have its share of negative points. Timeshares require a huge investment – not everyone has $30,000 available or is willing to take out a “second” mortgage, especially when you can rent a vacation home without any initial investment. Besides the initial outlay, you'll also have to pay the yearly maintenance costs, which can amount to $500 or more per year. Some maintenance fees are even tied to inflation so that in another 20 years or so you might be paying close to $1,000 in yearly fees.

Another con is that timeshares usually don't make a good investment. With resale values so low, you probably won't make any profit - in fact, you might lose money on the deal. Timeshares should be considered as vacation getaways, not as investment properties.

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