Breaking Down Timeshare Costs: Is Ownership Worth It?
According to timeshare companies like Marriott Vacation Club and Wyndham, the cost of owning a timeshare is invaluable. The quality family time, memories, and vacation destinations you get to experience make the purchase seem like a worthwhile investment.
So, if it’s such a good investment, why do so many timeshare owners end up compromising their personal finances? Because a timeshare isn’t really an investment. Investments make you money, but with timeshares, there are many additional fees that owners don’t find out about until it’s too late.
If you are thinking about buying a timeshare, don’t go into it thinking that it’s just annual payments that you’ll be responsible for. There are a lot of extra costs that timeshare buyers have to pay just to visit their vacation spot for a week each year. Let’s explore all the added expenses of timeshare ownership that you may not be aware of before you decide to buy.
Breaking Down the Timeshare Cost
Timeshare companies make a living by targeting average vacationers. They send unsuspecting travelers gift cards and vouchers for free hotel room stays in exchange for attending timeshare presentations.
Guests are treated to complimentary breakfasts while being shown slideshows of dream timeshare destinations. These tactics are designed to distract vacationers with perks, platters, and pretty places, making them feel that this lush lifestyle is attainable within their budget.
However, it doesn’t stay attainable for long. Within weeks of signing the initial timeshare contract, buyers start to see just how expensive timeshare ownership really is. Here is a breakdown of the timeshare costs that you’ll be responsible for if you decide to purchase a timeshare property.
Upfront Costs
Timeshares always come with an upfront cost. This is the total value that a timeshare property is listed as. Like in real estate, every timeshare has an overall purchase price that can technically be paid in full. Prices range from $10,000 to more than $100,000 depending on the location, size, and timeshare developer. Most buyers finance the property, as paying the full amount upfront is rarely feasible.
There are several ways to finance a timeshare purchase. You can set up a payment plan with the timeshare provider. For example, Disney timeshare owners in Orlando can pay off their property in installments over several years.
Some owners take out a personal loan, which can offer lower monthly payments and interest rates. If finances don’t allow this, a home equity loan can be used, using your primary home as collateral. This is risky, as missed payments could put both properties at risk.
Keep in mind that the upfront cost is just the beginning. Timeshare companies often charge interest rates between 14–20%. For example, a $30,000 timeshare with a $3,000 down payment and 20% interest over 10 years could cost over $55,000 before maintenance fees.
Even with personal or home equity loans, interest costs add thousands more to your total expenses.
Maintenance Fees
All timeshare resorts charge annual maintenance fees. These fees cover staff salaries and upkeep of amenities like pools, tennis courts, lounges, and unit upgrades such as re-tiling, HVAC maintenance, or flooring improvements.
While updates keep units livable and attractive, maintenance fees often rise annually. A significant portion (30–50%) may go toward management profits rather than actual upkeep.
Most owners don’t scrutinize their contracts for caps on fee increases. While many contracts limit increases to 10–15% per year, this still represents a substantial long-term expense. For example, a $1,000 national average maintenance fee could grow to $1,500 within a decade at a 5% annual increase.
Special Assessments
The timeshare industry doesn’t just profit from upfront costs and maintenance fees. There are also special assessment costs that can arise at any time. These fees cover unexpected maintenance needs resulting from events such as hurricanes, blizzards, earthquakes, or other natural disasters that impact vacation properties.
Is there a way to avoid these extra costs? You could purchase a property in a location less prone to natural disasters, but many timeshares are in high-risk areas like beaches or mountains. While special assessments are not manipulative fees imposed arbitrarily by developers, they are unexpected expenses that rarely come up during the initial timeshare presentation or contract signing.
Emotional Distress
The true cost of a timeshare extends beyond finances. Ownership can also cause significant stress and emotional strain—feelings no one should associate with vacationing.
When you were first pitched a timeshare, it seemed idyllic and affordable. However, over time, the financial and logistical burdens become clear. Coordinating vacations for an entire family in a single, limited week can be challenging. Compounding this, having to interact with a timeshare company that shows little empathy for the financial strain adds anxiety. For many owners, the emotional and financial costs together make ownership a heavy burden that outweighs the benefits of a timeshare.
Avoid an Unprecedented Timeshare Cost
Timeshare companies use various tactics to convince potential buyers to sign contracts. They showcase swanky vacation spots and offer free perks to create the illusion that a luxury, jet-setting lifestyle is attainable at an affordable price. In reality, even if the timeshare company is transparent about the upfront cost, they rarely disclose all the hidden timeshare costs associated with owning your vacation property.
Ownership comes with many unexpected expenses. Whether you finance through a developer plan or a personal loan, high interest rates can drastically increase the total cost of your timeshare mortgage. Annual maintenance fees often rise sharply over time, and if your property is in a disaster-prone area, special assessment fees can add yet another financial burden.
If you’re looking for a true investment without hidden costs, a timeshare is not the right choice. However, if you already own one and are struggling with unanticipated timeshare costs, exiting your contract may be the most practical solution to avoid further financial strain.
Thankfully, this process can be handled with the help of Centerstone Group. We specialize in assisting clients to resolve timeshare contracts, particularly for those affected by fraud, high-pressure sales tactics, or misrepresentation during the timeshare sales process. Contact us today for a free consultation.
According to timeshare companies like Marriott Vacation Club and Wyndham, the cost of owning a timeshare is invaluable. The quality family time, memories, and vacation destinations you get to experience make the purchase seem like a worthwhile investment.
So, if it’s such a good investment, why do so many timeshare owners end up compromising their personal finances? Because a timeshare isn’t really an investment. Investments make you money, but with timeshares, there are many additional fees that owners don’t find out about until it’s too late.
If you are thinking about buying a timeshare, don’t go into it thinking that it’s just annual payments that you’ll be responsible for. There are a lot of extra costs that timeshare buyers have to pay just to visit their vacation spot for a week each year. Let’s explore all the added expenses of timeshare ownership that you may not be aware of before you decide to buy.
Breaking Down the Timeshare Cost
Timeshare companies make a living by targeting average vacationers. They send unsuspecting travelers gift cards and vouchers for free hotel room stays in exchange for attending timeshare presentations.
Guests are treated to complimentary breakfasts while being shown slideshows of dream timeshare destinations. These tactics are designed to distract vacationers with perks, platters, and pretty places, making them feel that this lush lifestyle is attainable within their budget.
However, it doesn’t stay attainable for long. Within weeks of signing the initial timeshare contract, buyers start to see just how expensive timeshare ownership really is. Here is a breakdown of the timeshare costs that you’ll be responsible for if you decide to purchase a timeshare property.
Upfront Costs
Timeshares always come with an upfront cost. This is the total value that a timeshare property is listed as. Like in real estate, every timeshare has an overall purchase price that can technically be paid in full. Prices range from $10,000 to more than $100,000 depending on the location, size, and timeshare developer. Most buyers finance the property, as paying the full amount upfront is rarely feasible.
There are several ways to finance a timeshare purchase. You can set up a payment plan with the timeshare provider. For example, Disney timeshare owners in Orlando can pay off their property in installments over several years.
Some owners take out a personal loan, which can offer lower monthly payments and interest rates. If finances don’t allow this, a home equity loan can be used, using your primary home as collateral. This is risky, as missed payments could put both properties at risk.
Keep in mind that the upfront cost is just the beginning. Timeshare companies often charge interest rates between 14–20%. For example, a $30,000 timeshare with a $3,000 down payment and 20% interest over 10 years could cost over $55,000 before maintenance fees.
Even with personal or home equity loans, interest costs add thousands more to your total expenses.
Maintenance Fees
All timeshare resorts charge annual maintenance fees. These fees cover staff salaries and upkeep of amenities like pools, tennis courts, lounges, and unit upgrades such as re-tiling, HVAC maintenance, or flooring improvements.
While updates keep units livable and attractive, maintenance fees often rise annually. A significant portion (30–50%) may go toward management profits rather than actual upkeep.
Most owners don’t scrutinize their contracts for caps on fee increases. While many contracts limit increases to 10–15% per year, this still represents a substantial long-term expense. For example, a $1,000 national average maintenance fee could grow to $1,500 within a decade at a 5% annual increase.
Special Assessments
The timeshare industry doesn’t just profit from upfront costs and maintenance fees. There are also special assessment costs that can arise at any time. These fees cover unexpected maintenance needs resulting from events such as hurricanes, blizzards, earthquakes, or other natural disasters that impact vacation properties.
Is there a way to avoid these extra costs? You could purchase a property in a location less prone to natural disasters, but many timeshares are in high-risk areas like beaches or mountains. While special assessments are not manipulative fees imposed arbitrarily by developers, they are unexpected expenses that rarely come up during the initial timeshare presentation or contract signing.
Emotional Distress
The true cost of a timeshare extends beyond finances. Ownership can also cause significant stress and emotional strain—feelings no one should associate with vacationing.
When you were first pitched a timeshare, it seemed idyllic and affordable. However, over time, the financial and logistical burdens become clear. Coordinating vacations for an entire family in a single, limited week can be challenging. Compounding this, having to interact with a timeshare company that shows little empathy for the financial strain adds anxiety. For many owners, the emotional and financial costs together make ownership a heavy burden that outweighs the benefits of a timeshare.
Avoid an Unprecedented Timeshare Cost
Timeshare companies use various tactics to convince potential buyers to sign contracts. They showcase swanky vacation spots and offer free perks to create the illusion that a luxury, jet-setting lifestyle is attainable at an affordable price. In reality, even if the timeshare company is transparent about the upfront cost, they rarely disclose all the hidden timeshare costs associated with owning your vacation property.
Ownership comes with many unexpected expenses. Whether you finance through a developer plan or a personal loan, high interest rates can drastically increase the total cost of your timeshare mortgage. Annual maintenance fees often rise sharply over time, and if your property is in a disaster-prone area, special assessment fees can add yet another financial burden.
If you’re looking for a true investment without hidden costs, a timeshare is not the right choice. However, if you already own one and are struggling with unanticipated timeshare costs, exiting your contract may be the most practical solution to avoid further financial strain.
Thankfully, this process can be handled with the help of Centerstone Group. We specialize in assisting clients to resolve timeshare contracts, particularly for those affected by fraud, high-pressure sales tactics, or misrepresentation during the timeshare sales process. Contact us today for a free consultation.