Because my husband and I have owned a timeshare for the last 9 years, I am frequently asked by friends and business associates if it makes financial sense for them to buy a timeshare.
Consider this scenario: When you and your family travel, how much do you spend on hotel room in a nice resort? One family suggested that because they have two teenagers, they actually get two rooms, usually averaging about $150 per night, a total of $300 per night. So, a seven day vacation will cost him about $2100 for the week. Accommodations for the $300 per night stay were for a nice standard hotel room, with no kitchen or living room. And because of the limited amenities, a good sum of money is spent on food since they have breakfast, lunch and dinner in restaurants each day.
Consider a timeshare: Most timeshares are condos with bedrooms, living room, kitchen and even a laundry room. You can buy some groceries and it’s like living at home but at another exotic location and usually there are numerous planned activities for the whole family.
Here are typical costs associated with owning and trading a timeshare:
Annual membership in exchange company: $ 100
Exchange fee (assuming a trade each year) $ 139
Annual maintenance fee & property tax $ 500
Lost interest on the investment for buying timeshare (@3.25%) $ 400
(based on $11,500 purchase price)
Total annual cost: $1139
I explain to all my friends that I could be bitter about the timeshare thing… because when we first bought into our timeshare it was truly considered an asset.
But now the rules for taking a quality vacation have changed, as the internet has made it easy to book nice, comparable properties online. Now no ownership is needed to obtain the same quality stay. Wholesale vacation clubs now give you access to these same unused timeshares which you can access at very low prices.
In our attempts to sell our timeshare (thinking ours was our asset), we haven’t found any buyers yet, only listing companies that are happy to charge their upfront listing fee. Recently, it was even explained to me that there generally is an agreement that most timeshare owners sign at their closing which authorizes unpaid timeshare fees to attach to your permanent residence as a lien. So here I have purchased my timeshare thinking this was an asset to pass down to my children, however, what I have left for them is an annual bill to pay, whether they enjoy the vacation exchanges or not. I explain to my friends that if they want an asset which gives them a lifetime of vacations, there are now better alternatives that work for the “new rules”. I have reviewed many membership options. My recommendation is Platinum One Destinations which provides vacations at true wholesale prices.