On the surface, timeshares may seem like they can offer you everything you want from a holiday: sand, sun, and sea but, if you dig a bit deeper, they may cause you more problems than solutions.
For decades, misguided holidaymakers have been buying into timeshare schemes and coming out the other side realizing they’ve made a huge mistake.
So, to prevent the same scenarios repeating themselves with those who are considering getting a timeshare, I’ve questioned whether timeshares are still regarded as a good investment.
There are Better Alternatives Than Timeshares
One of the main benefits of having a timeshare is that they do come with the home comforts, privacy, and amenities that hotels usually don’t, but there are plenty of other alternatives which give you the same luxuries.
Buying a holiday home is a wonderful alternative to getting a timeshare because you have the benefit of owning the property and you’re able to rent it out to other holidaymakers for a bit of extra cash when all the while you’re surrounded by features of your home that you know well.
Another popular option is renting out someone else’s property. With the rise of websites such as Airbnb, it couldn’t be easier to find a delightful holiday home to stay in when you go away where you still have plenty of comfort features, along with your own space and privacy.
Timeshares Are an Expense
Despite popular belief, timeshares are more of an expense than they are an investment. In this way, getting a timeshare is not a good financial move as you’ll be paying monthly fees without owning the property in any way.
I spoke to Timeshare Consumer Association who said: “Timeshares will drain you of your finances rather than build them up, so they’re not actually an investment at all. You don’t ever own the property and, because you can’t rent them out, the only benefits you’ll really see is during your annual week or so on holiday.”
“Not only will you have to make a large initial payment, you will also have to continually pay maintenance fees, so you’re more likely to be damaged financially if you get a timeshare rather than benefit from your payments.”
Timeshares Are Difficult to Sell
Due to there being so many people who are unhappy with their timeshare contracts, the market has become saturated, where there are a lot more people looking to sell than there are to buy.
Because of this, timeshares are exceptionally difficult to sell and, even if you do manage to find a buyer, you almost certainly won’t make back your initial payment, so neither making a profit or breaking even are likely outcomes.
There are plenty of cases of people even giving away their timeshares with for no money in return to charities such as Donate My Timeshare just so that they can get out of their contract.
In short, timeshares certainly once were regarded as a good investment but, with the horror stories and case studies we have today, you’d be better off opting for a better alternative, such as buying a holiday home or renting out someone else’s property for your holidays.