Purchasing a timeshare should not be based on emotions and impulse. Most timeshare owners find out how timeshare works after they have bought their membership. Some of them wonder if owning one is really good for them. Do not buy a timeshare unless you know its ins and outs. It is a major purchase that can be difficult to get out of when you decide that you don’t like it.
What are the advantages of owning a timeshare?
- With timeshare, you only pay for what you use. This is unlike buying a vacation home that is usually left vacant for most part of the year. Timeshare then affords the use of an expensive property at an affordable price.
- Timeshare guarantees vacation destination. This works well for people who like predictability.
- Timeshare allows travel to new places because owner can trade times and locations with other owners.
- If you cannot use your block of time, you may be able to rent it out if your contract permits it.
- Friends and family may use your timeshare for free.
While there are advantages to owning a timeshare, there are disadvantages as well.
- While you are saved from worrying about the upkeep, there are annual fees that you have to pay whether or not you use the property.
- When you don’t want to hold on to your timeshare anymore, you will find out that it is hard to sell. Used timeshare units are usually sold at a huge discount because there are too many in the market.
- When you share your timeshare at a loss, you may not be able to claim it as a capital loss unlike other investments and real property.
Before buying a timeshare, study the pros and cons. There may be more than those discussed here. Read up the reviews that you will find online. Ask your friends who may already own one. Do not dive into it with your eyes closed or you may not get out of it happy.
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