Timeshare Ownership: The Pros and Cons of Timeshares

The pros and cons of purchasing a timeshare should always be considered in a rational way before making a decision. It is important to consider your choice of lifestyle, as well as your financial condition and giving weight to the advantages and disadvantages. For instance, if you are quite wealthy. The purchase price will be easier to pay that if it represents a substantial amount of your savings. The cost will also affect how you evaluate the pros and cons of other aspects of the investment. In either case, it is always wise to thoroughly research your decision.

First, we'll look at some of the advantages to timeshare ownership. To start with, timeshare properties can be quite economical when contrasted with buying standard real estate that you would only occasionally use. For instance, you could buy a piece of real estate for $200,000, or you could purchase a timeshare property were only $10,000 and pay an annual maintenance fee of $500 per year. Assuming you own a the timeshare for a period of 30 years, the total cost will be as follows:

(30years x $500)+$10,000 = $25,000 total.

Compare it with buying the real estate property; you will save $175,000. Isn't that a lot of money? Is it wise to invest that much extra money for once a year use?

Consider instead, that you spend $1200 a year to stay in a hotel during your vacation. To be fair, we need to consider that cost for the same 30 year period.

30 years times $1200 equals $36,000. This is still $12,000 more than the $25,000 you would pay to own the timeshare property for your lifetime.

Apart from saving money you get the comfort of your home. In a hotel you might get only a suite. But a typical timeshare condo has two or three bedrooms, one or two bathrooms, a kitchen, a dining room and even a laundry room. Also timeshare units are usually fully furnished. Most of the timeshare properties have an indoor or outdoor pool also these days. In addition to that you also get resort facilities. What more somebody might want when they get all these facilities and comfort of home?

If you have a timeshare you don't have to worry about the upkeep and maintenance of the condo. It is taken care of by the developer. Now compare this with buying a real estate property for the life, you have to do all the maintenance.

A somewhat overlooked advantage of owning a timeshare is that it almost forces you to take a vacation each year. If you have a timeshare, you definitely make it a point to go for a vacation at least once a year so that you can take full advantage of the property. Also, you are also saved from the hassles of planning a vacation every year since you know where you're going and when well in advance.

Most of the timeshare companies are associated with other timeshare companies. This allows the exchange of timeshare. This is one of the many reasons why people prefer timeshare.

Let's quickly examine some of the cons of timeshare ownership. One of the common complaints people have with timeshares is the use of high-pressure sales techniques during a sales presentation that an unknowing customer is lured into after receiving a free gift from the timeshare company. It is wise to thoroughly research the company before going into the presentation and ensure that they have a good reputation for being honest and easy to deal with.

You'll lose some of your free capital when you have to pay a large fee upfront. Also, when you finance the cost through a loan you will be paying extra money in interest costs. Lastly, don't forget about the annual maintenance fees and any association fees.

Timeshares are one of the most difficult types of real estate to resell. Furthermore, they typically depreciate on the resale market vice appreciate. These facts are cons to timeshare ownership.

A final consideration is the flexibility of your timeshare property. You might have a floating week and an exchange program to take advantage of, but you'll have to plan your timeshare vacation months in advance. Remember that you are on a first come, first served basis with the other timeshare owners. If you have a fixed week, the lack of flexibility is an even greater con.

If you are interested in timeshares a good place to learn more is in aTimeshare Forum. We Own Timeshares.com is a new social network full of Timeshare Information and it has a great forum too. It is free and easy to join this timeshare social network. Create your own profile in minutes, share experiences and reviews of different timeshare locations and start asking questions in the forum today.