question

If you have any experience with timeshares you’ve probably asked yourself, are timeshares worth it?

That answer can change a lot depending on who’s asking, and what they really mean. Is a timeshare worth the initial financial investment and ongoing burden? The planning frustrations? The difficulty in cancelling the contract?

This blog will aim to look at all these angles, and try to answer the question: Are timeshares worth it?

The initial cost of a timeshare is by no means the only financial consideration of purchasing a timeshare. However, it is something to consider. The average price of a timeshare interest is now nearly $20,000, a cost that few can manage without financing of some kind.

Financing is a somewhat hidden cost of owning a timeshare. Developers offer loans to prospective customers so they can make the sale, but these mortgages are offered at exorbitant interest rates. The monthly mortgage payments can become unmanageable quickly if there’s any change in your income.

The other cost that timeshare developers want to downplay is the maintenance fees that every owner must pay, as well as the special assessment fees that the timeshare contract entitles the developer to collect.

Maintenance fees are monthly or annual fees that are ostensibly used to maintain the resort, but research has shown that 40% of this revenue goes directly back into marketing to new customers. Maintenance fees are the reason companies operate timeshare rather than a traditional hotel. Owners are obligated to pay these fees if they want to use their timeshare. If the owner stops paying, they not only lose the right to use their timeshare interest: the developer will foreclose on the timeshare so they can resell the interest to someone who will make the payments. This foreclosure is extremely damaging to the owner’s credit score. Furthermore, maintenance fees rise every year without fail and the average annual maintenance fee in 2015 was nearly $900!

Special assessments are fees that a developer can collect in the event of damage to the resort of any kind, in addition to any insurance reimbursement. Even if owners are unable to use the timeshare because of storm or fire damage, developers can still demand these special assessments.

Are timeshares worth it from a financial perspective? No. Our research has also shown that timeshares ARE NOT cheaper than hotels, despite what a timeshare salesperson may tell you.

One of the most common timeshare complaints is that owners are unable to even use their timeshare in a satisfactory way. A lack of availability is the most common reason. The only way to get around that problem is to book travel a year in advance, a luxury that many people don’t have.

Furthermore, no matter what you are told during a sales presentation, you will NOT be able to travel “anywhere, anytime you want.” This is because timeshare developers and exchange companies are increasingly using points with arbitrary values that allow them to sell more points to more people.

The beautiful resorts shown during a timeshare presentation are only accessible by people with millions of points during peak times, and are impossible to book at other times because of competition between owners, and the fact that the resort often decides to rent out rooms to guests rather than owners. The timeshare company already has your maintenance fees, why shouldn’t they try to collect even more money from someone else?

Are timeshare worth it, even when it can be impossible to book travel? No. Find out more about the lack of timeshare availability here.

Timeshares are so difficult to get rid of that an entire industry has developed to help owners somehow extricate themselves from their unwanted timeshare. But these options come with their own set of problems.

  • howto_1The timeshare resale market is flooded by timeshares being sold for a dollar with no bidders.
  • howto_2Timeshare donation is not a viable option for the majority of owners, and is just as plagued by fraud as the resale industry.
  • howto_3So-called timeshare cancellation companies, or advocacy groups, often just write form letters to developers that go right in the trash.
  • howto_4Deed transfer is only available if you can find someone willing to take the timeshare, and the timeshare is completely paid off.

No wonder many timeshare owners feel they will never get rid of their timeshare! Luckily, there is a way to legally cancel a timeshare contract for good. The timeshare attorneys at Castle Law Group have the legal authority and knowledge to get results for their clients, and get justice for timeshare fraud.

Even though Castle Law Group can help unhappy timeshare owners, are timeshares worth it when cancelling is only available with the help of an attorney? No.

If you or someone you know needs timeshare help, give us a call at 844-578-4866 to schedule a free legal consultation.