Why Timeshares Lose Value
Timeshares may be a sensible purchase for you if you want to create memories and do not mind the inflating costs. Timeshares can be very expensive, and a timeshare purchase typically requires a down payment with a 5-10 year loan term. You will also have yearly maintenance fees that can increase up to 25% a year! Timeshares are a pricey expense.
The biggest misconception of value is when a timeshare is described as a real estate property. Timeshares are not like real estate. When you own a real estate property, you own everything on that property. If you own a timeshare, you only own a certain week in that year. You can not rent the unit out all year long, and you can only rent the unit out when it is your week in that year.
Timeshares also do not generate profits from increased value, in fact, timeshares decrease in value, even when they’re in a highly desirable location. Just like vehicles, timeshares start losing value right away, and their value usually continues to drop as time passes. Timeshares are also nearly impossible to resell. New and used timeshare markets are abundant in supply outweighing their demand, that is a bad sign. So, even if you do manage to sell off a timeshare eventually, expect a price considerably lower than what you paid. Also, try not to think about the thousands you shelled out for maintenance fees over the years, now that is something that you should consider when you purchase a timeshare.
If you need more information, read this article and get inside info on why your timeshare may be costing you a lot more money than you think. If you are considering canceling a timeshare contract, make sure to read our timeshare exit company reviews. We also recommend you contact your developer to see if they have any options available for cancellation.
Read over our website and fill out the form on the right or contact us through Live Chat for a free personalized timeshare exit consultation. Our team will help connect you with a timeshare exit company that has a $0 up-front cost until your timeshare contract is canceled. There are hundreds of timeshare scams every year, protect yourself from becoming another victim.