3 Timeshare Considerations

A timeshare is a great way to secure a vacation spot at a discounted rate. Timeshares are often located in desirable areas where it may be too expensive to outright purchase a property. Signing on the dotted line means the signer will have access to the property at least once a year. Timeshares work out well for many individuals, but if circumstances change, they may become an unaffordable luxury. Before committing, it is important to understand the timeshare cancellation policies. Then, you can prepare yourself accordingly.

Here are three more timeshare considerations to take into account.

It is a Rental, Not an Investment

A timeshare is not the same as a real estate property. A real estate property is not shared, it can be improved for the purposes of flipping or can be held with the intention of being sold for profit at a later time. A timeshare is meant to provide guaranteed lodging. It helps you avoid sold out hotels, motels and resorts during the busiest tourist time of the year in that area. When you commit to a timeshare, therefore, it is important to do so with the proper mindset.


There are several fees incurred when you commit to a timeshare, and they are similar to the fees that are incurred as a homeowner like property taxes, maintenance and utilities. How comfortably you can afford these fees and the upfront payment should help you determine whether or not you can commit to your desired timeshare. If you cannot afford to pay the upfront payment in cash, for example, you will be asked to take out a mortgage. A mortgage causes your payment to increase due to financing fees. Missing payments introduces a new set of fees that can make it more difficult to keep up.

It is Your Rental

Some people commit to a timeshare believing the opportunity to rent to others or sell off in the secondary markets are viable options. This is rarely true. If you commit to a timeshare, it is your rental and your responsibility for the agreed on time frame.

A timeshare can be an enjoyable rental property that offers lodging in a desirable location once a year. It is best to enter into this commitment with a realistic mindset. If you understand that it is not investment, includes fees and becomes your rental, you can maximize its benefits.

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