What if there was a way you could guarantee a lifetime of annual vacations? And not just your basic vacation, but a getaway to a different resort and destination each year. Well, luckily for you, there is a way, and that’s through timeshare ownership. Unlike the old, traditional vacation ownership model, timeshare owners today enjoy numerous vacations throughout the year to a handful of different timeshare properties within their vacation club’s portfolio. However, there are still a few pros and cons of timeshares to consider before making a timeshare purchase. In this blog, we’ll discuss these pros and cons to help you determine whether ownership is right for you. Let’s begin!
Misinformation About Timeshare Vacation Property
Before we dive in, let’s discuss some misinformation surrounding the timeshare business. Like many modern companies, the timeshare industry has a lot of myths around it. Yet, one of the biggest myths is that timeshares are scams. Timeshares themselves are not scams. However, many timeshare scams exist, which buyers and sellers should be aware of.
Before working with a company to buy or sell a timeshare, we advise you to visit the American Resort Development Association (ARDA) website for proof of membership, as well as check the company’s BBB rating. Members of ARDA, like Timeshare Broker Associates, are vetted and follow a strict code of ethics. So, working with an ARDA member and/or company with a high BBB rating will help you avoid fraud and scammers.
Pros and Cons of Timeshares — The Pros
Of the pros and cons of timeshares, the good often outweighs the bad. Owning a timeshare in the modern world means guaranteed vacation time, dynamic getaways worldwide, and spectacular resort accommodations and amenities. Take a look at our list of the pros of timeshare ownership below.
Save Money on a Lifetime of Vacations
The overarching idea of timeshare ownership is to save money on a lifetime of vacations. When you buy a timeshare interest, you secure today’s rates, saving you money on future travel should prices rise. With a timeshare, what could cost you hundreds of thousands of dollars over time now costs thousands less.
Moreover, many timeshare owners buy their timeshare ownership on the secondary market instead of retail. This is because when you buy resale, your purchase price is often a fraction of the retail price. So, new owners looking to get into vacation ownership, as well as existing owners looking to add to their ownership, can save even more money on vacations at their favorite resorts by buying on the resale market.
Visit More Resorts with Points-based Ownership
The world of timeshare has revolutionized in recent years. The fixed-week timeshare model is no longer the norm (though this option is still available among some major vacation club brands). With this model, owners could only visit one specific resort during a fixed week each year. This was among the pros and cons of timeshares, as visiting the same resort could be great or get old pretty quickly. But today, top vacation club brands feature points-based ownership options.
Think of timeshare points as your vacation currency. Owners buy a number of points and choose a home resort where they will receive priority bookings. Their club points are renewed annually and used to book getaways at resorts within their vacation club’s portfolio. The amount of points needed for each stay depends on the size of the timeshare units, the resort, the destination, and the season, to name a few.
The beauty of the points system is choosing when, where, and how you vacation. You enjoy more flexibility than the traditional timeshare model. Moreover, with most clubs, you can bank and borrow points to save for grander vacations. Of course, you can also buy more points from the developer or head to the resale market to purchase points for cost savings! Top brands using this system include Disney Vacation Club, Hilton Grand Vacations, Marriott Vacation Club, etc.
See the World with Vacation Exchange
What’s more, most timeshare companies are partnered with either RCI or Interval International (II), the two leading vacation exchange companies in the world. Once you’re an owner, you can become a member of the affiliated vacation exchange network and exchange your timeshare week or points for a stay at one of the resorts within the network’s collection. RCI features 4,300+ resorts in over 100 countries, and II has over 3,200 resorts in over 90 countries. So, if you ever decide you’ve seen all your vacation club portfolio has to offer, with vacation exchange, you’ll never run out of new adventures.
Better Than Your Average Hotel
Tired of eating dinner in your bed? Never settle for a cramped hotel room again with timeshares. Among the pros and cons of timeshares, trading in the hotel room for a true vacation home is at the top of the list. With timeshares, owners enjoy units with multiple bedrooms, full kitchens, living and dining areas, and in-unit laundry. Get the complete vacation experience with top-tier timeshare resort amenities like an oceanfront swimming pool, spa, on-site restaurant, lazy river, and more.
Pros and Cons of Timeshares — The Cons
Now, let’s move on to the more dreary parts of the pros and cons of timeshares. Buying a timeshare is a serious decision, and it’s essential you consider all the factors before making a purchase. From annual dues and maintenance fees to deciding whether to buy retail or resale, there’s a lot to consider. Explore the cons of ownership below.
High Cost of Buying Retail
No one said timeshares were cheap. According to ARDA, the average cost of a timeshare in 2022 was $23,940. For the average person, this is quite an expense. Of course, you’re receiving a lifetime of vacations at today’s rates, so there is value in spending such a large amount of money. If you place a lot of worth in yearly vacations at stunning resorts, the retail cost may be worth it to you.
Generally, timeshare prices are steeper when you buy right from the developer. But when you buy resale instead of retail, you cut this price by thousands. Buying resale instead of retail is a fantastic way to save money on your vacations while maintaining the same level of luxury.
Cost of Annual Maintenance Fees and Dues
Unfortunately, the timeshare cost doesn’t end with the initial purchase price. Owners are also expected to pay annual dues and maintenance fees, with prices depending on the vacation club and home resort. This is another tack on the list of pros and cons of timeshares. Owners pay maintenance fees to keep the resort properties beautiful, as well as pay for resort upgrades and staffing. According to ARDA, the average annual maintenance fee is between $600 to $1,290. Again, this depends on the unit size, the resort, and other factors. Moreover, annual fees and maintenance fees are subject to increase. So, what you pay one year may increase or decrease the following year.
Depreciation of Ownership
Before you buy a timeshare, please know that timeshares are not a real estate investment or financial investment. Unlike a house and other real estate investments, timeshares rarely appreciate in value, and it is very unlikely you will get back what you paid for your ownership should you decide to sell. So, if real property is what you’re looking for, a timeshare is not a good investment. Of course, selling timeshares is common practice today, and there’s a healthy market of buyers on the resale market. You can make some money back on your ownership should you decide to sell; it is just unlikely you will profit any money from your purchase.
Some Club Restrictions for Resale
One last con to consider is that some club restrictions on timeshares purchased on the resale market exist. This means that resale owners lose some club benefits that other owners receive. For example, under Hilton Grand Vacations, resale purchases are not eligible for Hilton’s Elite Status. Similarly, those who buy a Club Wyndham timeshare off of the resale market are not eligible for VIP status. Moreover, Disney Vacation Club restricts resale owners from visiting a few resorts within their portfolio. It’s up to you to research these resale restrictions for your desired vacation club brand. However, you may find that these restrictions aren’t significant enough to spend the extra money on buying a timeshare right from the developer.
Become an Owner with Timeshare Broker Associates
So, are timeshares worth it? According to ARDA, 85 percent of owners love their timeshare experience and value a lifetime of guaranteed vacations. If you’ve considered the pros and cons of timeshares and have decided to become an owner, let us help you! As dedicated American Resort Development Association (ARDA) members, Timeshare Broker Associates puts their clients first. Our licensed real estate agents have years of experience working with buyers and sellers of top vacation club brands like Hilton, Wyndham, Disney, and more. Our resale market features listings for spectacular resorts in highly sought-after destinations around the world. Let us help lower your total cost and start investing in your vacations and lifelong memories today.
