When considering vacation ownership, what’s the first question that comes to mind? If you’re like most people, the answer is probably, “How much is a timeshare?” Knowing what the initial, as well as long-term, costs of a timeshare are is important. Understanding these costs will help you make confident and smart decisions while navigating the timeshare market. There are many different factors that go into how much vacation ownership costs. From resort location to the timeshare company it belongs to, we’ll be covering everything you’ll need to consider when owning a timeshare. Read on to learn more about some of the most important things that can influence how much a timeshare can be.
How Much Is The Average Timeshare?
ARDA, the American Resort Development Association, makes yearly reports of financial trends of timeshare ownership. Timeshare ownership currently stands as a $10.5 billion industry. To put that into perspective, in revenue, the MLB is a $9 billion industry. The timeshare industry is huge, and growing every year. In fact, there are over 201,600 timeshare units in the U.S. alone! The current average purchase price of a timeshare week is $23,940. Alternatively, you can save money by buying a timeshare on the resale market. In addition to the initial cost of a timeshare, approximately $2.96 billion is spent annually by owners at their resorts! So, keep in mind that buying your timeshare isn’t the only expense. Resorts often feature other costs like restaurants or activities and excursions that you might have to pay a little extra for. Don’t forget the souvenirs!
What Affects How Much A Timeshare Is?
The brand that you decide to buy a timeshare with will affect the price. More popular brands’ resorts, such as Hilton Grand Vacations, are in higher demand than smaller independent resorts. As you’d expect, this demand affects the price to join these vacation clubs. However, with higher costs to join, potential buyers can almost always expect more luxurious amenities and accommodations.
You may see a vast difference in timeshare costs even within the same brand. Things like the location of the resort, the brand, and the popularity of the resort will all affect the cost of a timeshare. The number of points you buy, the size of the villa, and the time of year (for weeks-based ownership) will come into play when you’re starting vacation ownership. Additional things that affect how much vacation ownership is includes resort amenities and even the villa’s view. At the end of the day, there is no one-size fits all cost even for a typical timeshare.
Maintenance Fees
It’s important to keep in mind that the initial price to buy a timeshare isn’t the only money you’ll spend on your ownership. One of the most crucial timeshare costs that comes with vacation ownership is maintenance fees. Timeshare maintenance fees are the yearly dues that owners pay to their developers. These fees go towards many different things including timeshare resort maintenance, employee wages, and updated amenities. Maintenance fees can also cover any emergency costs that come from destructive natural disasters. The current average yearly maintenance fee cost is $1,170. Of course, the maintenance fee amount is dependent on the individual contract. The resort and size of your unit will affect the fees.
Why You Should Pay Maintenance Fees
Most often, you’ll need to pay maintenance fees yearly. However, some contracts will require biannually, quarterly, or even monthly payments. Failing to, or refusing to pay your maintenance fees will negatively affect your credit. Maintenance fees are similar to a mortgage payment and if you stop paying your mortgage, there are consequences. Not paying your annual maintenance fees may cause you to default on your ownership, which will likely cause financial problems in the future. This means that contrary to what some timeshare exit companies may say, you should not stop paying your maintenance fees unless you have fully sold your timeshare and the timeshare company it’s part of has confirmed the sale went through. If you are having trouble keeping up with your annual maintenance fees, we suggest you contact your developer to discuss in-house rental programs or find out how to sell your timeshare.
Why Are Timeshares More Expensive Than Hotels?
You might be wondering why timeshares cost more than a hotel. It’s important to remember that vacation ownerships offer so much when compared to a hotel. Owning a timeshare means you’ll have almost triple the amount of space, luxurious amenities, and other perks depending on the resort your timeshare is located at. You’ll also be able to return to the same place year after year with a timeshare, meaning that instead of staying somewhere different each time, you can relax somewhere you’re comfortable. Plus, depending on the resort, you’ll be able to enjoy all the benefits of vacation exchange. So, is owning a timeshare worth it? Ultimately, that’s up to you.
How to Save Money When Buying a Timeshare
While buying a timeshare property isn’t exactly cheap, there is a way to make it more affordable: the timeshare resale market. Buying a timeshare resale can end up saving you upwards of thousands of dollars! This is a great way to experience most of the benefits of a timeshare but at a lower cost! For example, buying points at Old Key West Resort directly from Disney Vacation Club right now has an upfront cost of $200 per point. From Fidelity Real Estate, you can buy points at the same resort for an average price of $121 per point. For a 150-point contract, buying resale can save you over $11,800. Of course, there are restrictions when buying resale, but saving that much money might overshadow those restrictions for you. You should also keep in mind that you’ll still have to pay annual maintenance fees for your timeshare unit.
The Costs and Benefits of Vacation Exchange
A big perk of owning timeshare points with certain brands is being able to vacation at a different resort every year. Many brands allow you to trade your week at your home resort for one of the brand’s other resorts. However, vacation exchange networks allow timeshare owners to use their points to book vacations at resorts outside their brand.
Networks like RCI and give owners more flexibility, but at an additional fee. To gain access to their vast networks, you need to buy a membership. Memberships also come with yearly costs, so be sure to research fees with RCI and dues for Interval International. If adding extra flexibility within your timeshare ownership to visit new vacation destinations is important to you, then an exchange network might be perfect for you!
RCI and Interval International
Speaking of RCI, it’s the largest vacation exchange brand, is part of the Wyndham Destinations Group. This means that all Club Wyndham owners are eligible to join RCI. Other brands within RCI’s catalog include Hilton Grand Vacations Club, Bluegreen Vacations, Holiday Inn Club Vacations, and more! So, someone who owns a timeshare at Wyndham Grand Desert in Las Vegas can trade for a stay at West 57th Street by Hilton in New York City.
Interval International, another large exchange network, is affiliated with Disney Vacation Club, Marriott Vacation Club, Westgate Resorts, Hyatt Residence Club, and more! This means that Marriott’s Aruba Ocean Club owners have the chance to trade for a trip to DVC’s Aulani Resort in Hawaii.
The Fidelity Advantage
Ready to buy a timeshare? We’re here to help! At Fidelity Real Estate, we’ve been helping people just like you buy a timeshare at their favorite vacation destination. Plus, as a member of the American Resort Development Association, we follow a strict code of ethics that helps to keep timeshare companies, buyers, and sellers safe. When you work with Fidelity, you work with a highly experienced, dedicated team of experts who are knowledgeable about all aspects of the timeshare industry.
Buy Timeshares For Less
Browse our online marketplace of available timeshare resale listings now! We have listings for resorts from top timeshare companies like Marriott Vacations, Wyndham Destinations, Westgate, and more! Whether it’s a fixed week or points-based timeshare, our marketplace is packed with options. When you find listings for vacation properties that you love, make an offer! Our team of licensed real estate agents will assist you in getting the best price. What are you waiting for? Take the timeshare vacation of your dreams! Contact us at 1-800-410-8326 or email us at [email protected] to get started!
