Owning a timeshare can get expensive. Between the upfront purchase price – which you may have financed – and the ongoing maintenance fees that you will be required to pay, owning a portion of a timeshare can quickly become far more expensive than you imagined at first.
On this page, we’ll take a closer look at what you can reasonably expect to pay if you decide to become a timeshare owner. Of course, if you are already a timeshare owner and would like to get out from under the costs that you have been dealing with over the years, you are welcome to reach out to us for assistance. Our team is here to help!
A Huge Range
The problem with writing an article about the “average” for anything that you could purchase is that the answer is sure to include a wide range. And, indeed, that’s the case with timeshares. The costs of owning a timeshare are going to range wildly from one situation to the next. Some timeshares come with a relatively modest price tag and overall investment, while others are extremely expensive.
You’ll find that the variety in prices for timeshares depends on a number of factors. First and foremost, it’s the locations that are available in a timeshare program that is going to dictate how much it costs. If you will have access to a variety of high-end properties in warm, exotic locations, you can be sure that experience is going to come with a lofty price tag. On the other hand, if only one or two properties are offered by the timeshare, and they aren’t in particularly competitive destinations, the price will be lower.
There is also the matter of the type of ownership model being used to consider. If you have a fixed-week arrangement, you will be required to travel at the same time year after year, to the same destination. This setup might be a little more affordable, depending on the timeshare, than it would be to own points that can be used more flexibly at a variety of locations.
Understanding What You’ll Spend
One of the ways people get into trouble with timeshares is that they don’t understand clearly from the start exactly the various ways they will be expected to pay for their ownership. With so much fluff presented during the sales pitch, and so many beautiful resorts shown as a great place to spend time with family and friends, you might lose track of the details and get into something that you don’t entirely understand.
First and foremost, there is the upfront cost of the timeshare purchase. This one is easy enough to understand, and you could choose to pay for it in cash at the time of the purchase, or you might finance it and pay over time. If you take that second option, you’ll need to make monthly payments to pay down the loan, much like a mortgage you may have taken out on your house. Some people mistakenly think that if they pay cash upfront to cover the cost of the purchase, they won’t have more expenses to worry about down the line. Sadly, that simply is not the case.
The elephant in the room here is known as “maintenance fees”. These are ongoing costs that owners must pay into the timeshare to contribute to the upkeep of the various properties that you may have the right to access as an owner. Like everything else, the maintenance fees you pay will vary from one timeshare to another, and can range from a few hundred dollars per year to a few thousand. If you fall behind on your maintenance fee payments, you might suffer credit consequences, and the developer may even take legal action against you.
So, if you finance the purchase of your timeshare, and then add the maintenance fees on top of that monthly payment, you’ll quickly be looking at a rather significant, ongoing bill. Eventually, if you remain an owner for long enough, you will successfully pay off the loan that you used to purchase the timeshare – but the maintenance fees will remain.
It’s Not Done Yet
Those two categories – a loan and the maintenance fees – are going to account for the primary costs that you experience as a timeshare owner. However, that’s not quite the end of the story, as it’s also possible to be hit with a special assessment. These occur when something happens to the resort that needs to be addressed. As an owner, you are legally on the hook for a portion of the repairs or renovations that might be required.
For example, consider a case where a resort is badly damaged by a storm. The costs that are incurred to fix the resort in the aftermath will be the responsibility of the owners – and those expenses will be divided up and billed out to the owners through an assessment. These can be particularly difficult to deal with because they aren’t expected and can be significant in cost. You don’t need to include assessments in what you will expect to pay month after month, but they should be in the back of your mind as a possibility that you should save for to be prepared just in case.
Considering the Value – Or Lack of Value
When you add it all up, you might find yourself spending a few hundred bucks each and every month to maintain your ownership stake in a timeshare. Or, if you purchased access to a higher-end, luxury facility, you might see a bill that is in the thousands. Whatever the case, you’ll want to think carefully about whether or not that money is going to deliver the value you deserve in terms of fun, relaxing, memorable vacations.
This is where the experience of being a timeshare owner usually starts to turn. If you add up everything – the purchase price, the maintenance fees, the assessments – you are spending a lot of money to go on vacation. And, even if you do enjoy the vacations, you’ll have to ask yourself if there would be a more affordable, flexible way to have the same experience. With so many travel options available today, including private home rentals, shared properties, hotels, and more, it’s not necessary to have a timeshare in order to find great places to visit.
There is also the matter of the ongoing nature of timeshare ownership to consider. If you just travel by paying for one trip at a time, you aren’t obligated to pay for anything beyond the current trip you are booking. If something comes up next year and you can’t travel, you won’t have spent a dime. Or, if you experience something like a loss of a job or disability that impacts your earning ability, those timeshare bills won’t be hanging over your head. Then, when your financial picture improves again, you can get back to traveling as you see fit. The flexibility that comes with not owning a timeshare and just traveling one trip at a time is a big plus that is too often overlooked.
The Matter of Getting Out
As we have seen in this article so far, timeshares can place a notable strain on your personal finances. Whether you can technically afford to keep paying for it and just don’t want to, or you simply can’t make ends meet while keeping up with these payments, finding a way out is important.
Unfortunately, this is where it gets sticky for most timeshare owners. While you might have been told during the initial timeshare sales pitch that you could turn around and sell your ownership when you are done with it, that rarely works out to be the case. Sure, you can list your timeshare for sale, but you are unlikely to find many – if any – willing buyers on the market. Even if you would be willing to sell the timeshare for a dollar just to get rid of the obligation of the maintenance fees, it might be tough to find anyone who wants to take the deal.
At the same time, timeshares generally aren’t in the business of letting owners out of their contracts. They view this as something that you own in perpetuity, not unlike traditional real estate. Of course, with regular real estate, you would have no problem finding an interested buyer to pay a fair price, but timeshares don’t tend to have any intrinsic value. So, if you contact the timeshare company directly about canceling your ownership, you are likely to run into a brick wall.
Start Saving Right Away
It gets old spending money on a timeshare month after month, especially if you aren’t getting much value in return in the way of trips and experiences. By giving us a call at 833-416-8796, you can discuss your options and consider the next move to work toward getting rid of your timeshare and creating some financial flexibility in your life. You are also welcome to use the chat feature here on our site to get started. We would love to serve you!