Why Timeshares Are a Terrible Investment
When I was younger, one of my friends and her family went to Aruba every year because her family owned a timeshare there. I was always so jealous when she would come back tan, have her hair braided with the cool beads, and tell me about her vacation. It made me want a timeshare for myself when I was old enough to afford one.
Fast forward 20 years and my desire to own a timeshare has dwindled. As much as I would love to have a place of my own in a tropical location that I could possibly travel to a couple weeks out of each year, it just does not make sense financially.
I listen to Dave Ramsey’s podcasts every now and then and it’s very evident how much he doesn’t like timeshares. I even think one of his sponsors is Timeshare Exit Team. To figure out why Dave isn’t a fan, I did some research on the topic. Here are some good reasons to not invest in a timeshare.
They are expensive
According to howstuffworks.com, a new timeshare sells for around $10,000 while a used one costs as low as $1,500. On top of this, annual fees can range anywhere from $300-$400 but can be as high as $1,000! You could spend thousands of dollars on a place that you might be able to use only once a year.
Don’t forget that you have to somehow get to your time share. Whether it’s via a car or airplane, you have to factor in travel costs to get to your destination.
They are not an investment
You have no equity in the place and you will not get the money back that you put into it. If I’ve learned one thing about finances recently, it’s to let your money work for you. Don’t just throw it away on a timeshare.
Difficult to sell
Good luck trying to get out of your timeshare. Unfortunately, new timeshares are being created every day. In addition, many people try to sell their own because they realize they can’t afford it. Both lead to an oversaturated market which is not conducive for selling anything.
Moral of the story – save your hard earned dollars and travel to different, more affordable places every year!