Timeshare Tips & Insights
STOP before you buy that timeshare! This article will explain what a timeshare is and shares insights as to why they may not be the retreat you truly desire.
Table of Content
1. What is a Timeshare? & How Do They Work?
What is a timeshare?
A timeshare is a (vacation) property with divided ownership and/or usage rights. These properties are typically resort units that can be sold. In the case of timeshares, which typically include a specific period of time to which the owner is entitled to stay at the resort.
For more information, please visit: Wikipedia Timeshare
How does a Timeshare Work?
A timeshare agreement is a property arrangement that let’s individuals share the various property expenses with others in exchange for the guarantee of a specific period of time at the resort. Each timeshare works differently according to the terms of the agreement. The typical timeshare has a right-to-use period of 1 or 2 weeks.
For more information, see Dave Ramsey’s Article: What is a Timeshare and How Does it Work?
2. How Much Does It Cost to Buy a Timeshare?
According to the American Resort Development Association (ARDA), the average cost to buy a timeshare interval in 2019 is $21,455 according to 2018 data.
For more information, please visit: U.S. Timeshare Industry Data 2018-2019
3. What are Timeshare Maintenance Fees?
Timeshare maintenance fees are similar to how Homeowner’s Association (HOA) fees work in that they share the cost of property maintenance, the expenses associated with the upkeep of the property.
What do Timeshare Maintenance Fees Cover?
Maintenance fees typically include:
- Property Business Costs like insurance, administration, record keeping, etc.
- Landscape Maintenance such as tree/hedge trimming, cutting of grass, sprinklers, etc.
- Maintenance of Amenities including upkeep of pool, gym equipment, common areas, etc.
How Much Do Timeshare Maintenance Fees Cost?
According to the American Resort Development Association (ARDA.org) 2019 Report on U.S. Timeshares, the average timeshare maintenance fees were approximately $1,000 per month.
Source: U.S. Timeshare in 2019
4. Important Timeshare Insights & Considerations
- Dealing with Timeshares: Can Your Timeshare Really Be a Tax Deduction?
- Tired of Timeshare Maintenance Fees? Here’s What to Do
- Why Timeshares Aren’t Worth Buying
- Benefits of Getting Rid of Your Timeshare
- How to Get Started on Cancelling Your Timeshare
1. Dealing with Timeshares: Can Your Timeshare Really Be a Tax Deduction?
Timeshares are often considered to be a bad investment. If you earned a little more money than usual, and you were either tricked into getting a timeshare, or you just decided on one on a whim, it’s critical to correct your mistake as soon as possible. Timeshares can be costly to keep, and you won’t use them that much for them to be considered a viable investment.
Now, many people might believe timeshares can be turned into a tax deduction. This isn’t always the case, and you can’t really get rid of all the taxes associated with a timeshare, except in particular situations. However, there are tax deductions you can qualify for, depending on the type of timeshare you have.
Maintenance fees and loan interest payments can usually help you qualify for a tax deduction more easily. The amount of money required for maintenance or to pay off a loan you got to buy the timeshare will therefore not be as taxing as you might expect. Property taxes billed separately from maintenance charges may also qualify you for a tax deduction.
One of the leading cases, when you can get rid of most of the taxes on your timeshare, is when you donate it to charity instead of selling it. This instance allows you to get a tax rebate that’s equal to the fair market value of your timeshare, but it requires an independent appraisal before you can qualify for it.
2. Tired of Timeshare Maintenance Fees? Here’s What to Do.
No matter how long you’ve had your timeshare, you’ve probably noticed one pesky little thing (okay, maybe many pesky little things) — the fees! Maintenance fees are part of the package, but when you bought the timeshare, you probably didn’t consider them, really. You didn’t consider the fact that they would rise, and continue to rise, year after year.
Your maintenance fees go to the property — to pay for the upkeep and upgrade of the entire space. It varies from location to location, but it often goes to things like landscaping, amenities upkeep and the cost of doing business for the resort. Essentially, those maintenance fees ensure the timeshare is an enjoyable place to stay, but that doesn’t mean you’re the one enjoying it.
Will maintenance fees stop increasing? Well, that’s a tricky question. But if we’re honest, it’s unlikely. Just like rent often raises year after year, those maintenance fees are likely to keep on rising, too. We certainly can’t guarantee that they will, but the chances of your maintenance fees lowering or staying the same aren’t great. On average, these fees rise 4% each year.
What Can You Do? Theoretically, you could stop paying them, but we certainly wouldn’t recommend this. After all, you’re contractually obligated to those fees, even if you aren’t using the timeshare anymore or don’t think the fees are worth it. Plus, if you stop paying those fees, you’re going to deal with debt collectors and potential legal action, and no one wants that.
If you’re really looking to kiss those fees goodbye, there’s only one solution: get out of your timeshare for good.
That may seem like quite the undertaking, but we promise, it’s possible. And when you work with professionals who understand the complexities involved with legally getting out of your timeshare and getting rid of those fees, it’s more than just possible – it can be simple!
Not sure where to start? Let Timeshare Termination Team help. Schedule a free consultation and let’s discuss your options to get rid of your timeshare. Together we can create a plan to get that money back in your pocket so you can start planning for your future. Let us help you discover freedom from your timeshare burden.
3. Why Timeshares Aren’t Worth Buying
Unfortunately, in many situations, a timeshare is just the illusion of a great vacation. You sign a contract for something that seems to be a great option to spend your holiday, but you get a huge financial burden, as well as a lack of options to get rid of it and recover your initial investment.
The main disadvantage is that the value of a timeshare at resale can drop by 50% of the original price. Timeshares may be the subject of subsequent sale to other third parties, but, the actual value of the resale is much lower than the price originally paid.
When you try to sell your timeshare, an unscrupulous seller may propose you a new holiday plan using your timeshare as a part of the exchange; be careful about these deals, because you may end up with two properties instead of one. Caution is advised, as well as paying great attention to the contractual clauses.
Abusive clauses may also occur in a timeshare contract due to poor regulations in this field. For example, you may have the unpleasant surprise that the seller restricts your access to some services and asks you to pay unjustified fees for getting it back.
Another reason why timeshares are not worth buying is that you will have to go every year in the same place. Theoretically, exchanges with other timeshare owners are possible, but not simple, nor free of charge. Get legal advice from Timeshare Termination Team today, for help with timeshare contract cancellation.
4. Benefits of Getting Rid of Your Timeshare
Timeshare represents a way to buy holiday accommodation that gives you the right to occupy an apartment or a villa, equipped and furnished as a home, for one or more weeks a year. Apartments are usually situated in luxury resorts and other tourist areas, with facilities for practicing sports and other means of spending time in a pleasant way.
Contracts are usually made for very long periods of time, for example 20 years, which is risky, considering that many people do not know exactly what they are getting when they buy a timeshare. These deals are made to look very attractive, and buyers are often manipulated into signing contracts that they are very likely to regret.
Under these circumstances, we can talk about benefits of how to get rid of a timeshare legally – and here is why:
- Considering that a timeshare deal is often made for indefinite duration, you may get bored about spending your vacation in the same place
- Even if it is an attractive option at first, a timeshare typically becomes a burden and a big problem when you want to sell it. Most likely, you will sell it to a ridiculous price, which has nothing to do with the purchase price.
- Your children, who may inherit your timeshare, will be required to pay for its maintenance, whether they like it or not.
5. How to Get Started on Cancelling Your Timeshare
Timeshare contracts are the ones whereby, for a certain period of time (which is typically very long – at least a few years!), you acquire the right to use one or more accommodation facilities in holiday resorts.
However, you must be aware that the purchase price of a timeshare is not the only amount of money you get out of your pocket; there are different additional annual fees and maintenance costs added to the timeshare price. Most people are surprised by these expenses as they occur, though they should have known of their existence from the start. As such, the timeshare concept is surrounded by incertitude, information which is only half-correct and generates additional expenses and sometimes it is unfortunately related to real scams – sellers who want to obtain advantages on our own expenses.
If you want to cancel your timeshare, here is how to get started with the cancel my timeshare process.
The seller from whom you bought your timeshare must provide you with a standard form that you can use. You do have the right to withdraw from the contract within a certain cancellation period after you signed the contract. Check your state’s law for more information about it, or contact the local consumer protection office, but be quick, as the cancellation period expires sooner or later. Within the cancellation period, the seller is not allowed to request advance payments, guarantees, etc.
When you buy a timeshare, the biggest risk is not whether you can cancel your contract, but that you will never be able to recover your money.