What is Timeshare and why should you beware of it?

Hawaii. Photo: Depositphotos

At first glance, this is a dream that has become reality. But is this dream worth as much as you have to pay for it? Andrei Boychuk asks in an article for Immigrant porada.

What is timeshare? This is a vacation program that provides 1-2 weeks of rest every year throughout your life. How it works?

There are 2 types of timeshare. The first is when you essentially buy a piece of housing anywhere in the world, mainly in resort areas. In this accommodation you can relax for 2 weeks throughout the year. You can also divide this period into 2 times a week or 7 times 2 days. Although every timeshare is different, you get the general idea.

The second type of timeshare is the accrual of points. These points can be used to pay for hotels or other timeshare accommodation anywhere in the world.

You buy this program and pay for it once. By the way, it is very easy to get a loan for it. Prices vary - from $20 thousand and more. But the appeal is that you buy timeshare once for life. Yes, that's right, for life.

Do you want something more interesting? This program is passed on to their children, also for life. Can you imagine how nice it is to leave such an inheritance to your children? That is, buy what you will use all your life, and then your children.

It sounds fabulous. But the question is: why is everyone who has timeshare unhappy with them and trying to sell it or even give it away? Well, at least all the people I know. When you sell such a holiday and tell you how great it is, your jaw drops in surprise. When you paint, as you with your wife or husband and children will rest in Hawaii every six months, you have the idea of ​​an ideal investment. Everything else no longer matters.

But there is a very important nuance. Someone must maintain this housing: pay for cleaning, maintenance and repairs. This money will be taken from you as a monthly payment.

How much exactly? The least is $90, but they told me this figure 4 years ago. Let's say prices go up a little. Now you need to pay $100 per month (it’s easier to calculate this way). That's $1200 per year. Compare: you can rent a hotel room for $100 per night if you go on vacation for a week every six months without timeshare. Perhaps not the best, but a very good hotel can still be found for $100 per night.

So, the minuses of timeshare are:

— the monthly service fee is more than the hotel price;

— timeshare provides you with a limited number of places to travel;

- if you did not use your time this year, it does not remain for next year;

- it is very difficult to sell timeshare, so do not think that it can be an investment;

— now on websites you can find offers at half the price.

Can I sell timeshare?

Yes, it is possible, but it is very difficult to find a buyer.

Timeshare buy mostly in the heat of emotions, and emotional acquisitions are always the most expensive. Do not believe? Go very hungry to the store.

When you have to sell a timeshare, you sometimes have to sell it at a 90% discount. Last time I heard about timeshare last March. A person bought such a program for $ 60 thousand, and sold it for $ 10 thousand.

I can not answer unequivocally, bad timeshare or not. But I advise you not to be emotional when you decide something. Think.

About the Author: Andrey Boichuk is the founder of Immigrant Porada (iporada.com), a platform for Ukrainian immigrants in the United States. Cheerful husband beautiful wife and father of a joyful daughter.

This blog is translated from the Ukrainian language. The original article can be found on the website. "Immigrant Porada" (Ukrainian online advice platform for immigrants in the United States).

ForumDaily is not responsible for the content of blogs and may not share the views of the author.. If you want to become the author of the column, send your materials to [email protected]

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