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Why You Should Never Buy a Timeshare In Your 20s

22 April 2018 No Comment

Buying a timeshare directly from a resort is one of the worst financial mistakes you can make at any age of your life. If you’re unfamiliar with timeshare, it is a product that splits ownership of a room at a resort into separate weeks that are owned by different customers. There are 52 weeks in a year and most timeshares are sold as 1 week shares, so each room at a resort could have 52 different owners.

Most timeshares are sold by a resort for about $10,000 – $15,000 each. This could be for just 1 week per year at the resort. In addition to the up-front cost, the timeshare will come with yearly fees that are usually around $800 – $10,000. These fees can sometimes go up each year and there is nothing the timeshare owner can do to stop them. If this product is starting to sound extremely overpriced, that’s because it is.

The truth is that most customers could simply book a room online at one of the many online travel agents such as Hotels.com, Expedia etc. for the same price or even a lower price than they’d pay with a timeshare. There are even some instances where a resort will say it is fully booked to its timeshare owners, but still have rooms available for rent online. When you buy a timeshare you aren’t buying any special treatment from the resort. You’re simply buying a scam.

Have you ever wondered why timeshare companies offer you extravagant gifts such as a $100 gift card just to take a timeshare tour of their resort? The timeshare companies do this because the only way they can sell their product is through hard-sales techniques. No one wakes up and says “I’d like to go shopping for a timeshare today.” The timeshare product is pushed on to people aggressively until they feel like they have no other choice but to buy in.

In addition to using hard-sales techniques, timeshare companies will often start the price of their product at hundreds of thousands of dollars. When the customer says no thanks, the price magically drops to just several thousand dollars. When the customer says no again, the price drops again by several thousands dollars. Timeshare companies are able to do this because their product is virtually worthless. You can buy a timeshare from a resort directly for $10,000 and the next day it will be worth 50 – 90% less. It’s 10x worse than buying a new car!

Timeshares do not increase in value like traditional real estate. These worthless products lose significant value the second they are purchased. Head over to ebay and you’ll find thousands of timeshare owners hoping to sell their timeshare for just $1.

With all of that being said, a timeshare can make sense in very specific circumstances. Most timeshares come equipped with a kitchen and at least one private bedroom, so if you’re vacationing with your family they can be a nice change of pace from a hotel room. If you enjoy having a family reunion at a particular resort each year, a timeshare can be a nice guaranteed week of fun each year. However, the timeshare must be purchased on the secondary resale market or else no matter what you buy you’re going to get ripped off.

If you accidentally bought a timeshare already, it’d be a good idea to get rid of it as soon as possible. The longer you pay the rising maintenance fees the longer you will be getting ripped off. You can try to sell the timeshare on a site like Ebay, but it likely won’t sell or it may take years to sell. A better option is to go through a timeshare exit company such as Wesley Financial Group or Primo Management Group. These companies use lawyers and other means to get your timeshare contract canceled completely.  Stopping your maintenance fees is the only way to financial freedom from a timeshare purchase.

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