According to recent statistics, the value of timeshare-related business transactions in the United States is upwards of $10 billion in any given year. Although business is booming for timeshares and has always been booming for the industry, many financial experts and laypeople alike agree that owning a timeshare often causes headaches. It’s true that you should never take others’ advice on things without learning a bit about them yourself. As such, let’s dig into the basics of timeshares and the downsides they carry alongside them.
Companies Spend Tons Of Money Making Timeshares Look Like Good Buys
Real estate companies regularly put on seminars, talks, and shows for people who are potentially interested in buying timeshares. They often feed, house, and transport attendees just to listen to real estate agents and other salespeople for an hour or two. Although visiting such seminars might seem like a good idea, just for the heck of it, it can result in you being stuck with a major liability that you can be held liable to pay for decades upon decades.
The Supply Of Available Timeshares Greatly Exceeds The Market’s Demand For Them
In simple terms, this means that timeshares almost always depreciate in value because they’re not scarce. Real estate companies can consistently generate substantial profits from building or buying properties that are ideal for vacationers. However, reselling them often doesn’t turn out so well.
Some estimates place the average annual cost of a timeshare in the United States around $15,000! Timeshares usually last for at least a decade, though they sometimes stay active until their owners die. That’s a lot of money just to stay at what’s essentially a rental home with infinitely more liability for a week or two each year. You know something isn’t a great value if you can’t give something away for free. As a matter of fact, many timeshare transfersresult in owners having to pay other individuals or businesses to take timeshares off of their hands!