reason #3 Why Not to Buy a Timeshare

Ability to exchange

Though exchange is an attractive reason for purchasing a timeshare, your "trading power" and the trade opportunities available to you, will depend on what you buy. Read more about how the timeshare exchange system works.
There is also a cost consideration here - if you're buying a timeshare for exchange ability, you'll want to pay close attention to these as well. Most exchange companies have annual membership fees + exchange fees involved when you actually do the exchange. There might also be fees for allowing someone else to use your unit.

In depth review of Con #2 of Buying a Timeshare FLEXIBILITY

Flexibility

Although there are timeshare plans that afford more flexibility than others, some people feel nothing is quite as flexible as being able to decide when and where you go each year, in the more traditional methods of travel planning. If you want a holiday week, you may not be able to trade your timeshare for it, because there are many timeshare owners hoping for the same week. You also may not be able to decide last minute that you want to use your timeshare in a certain location.
If you buy a floating week timeshare, you will have more flexibility in when you use the timeshare, but availability is given on a first-come, first-served basis. So, planning farther in advance serves you better.

In depth review of Cons of Buying a Timeshare

Reputation of unethical players and scams

Most of the major industry players value their brand's reputation more than the sale, and many have committed to standards of ethics in recent years. An organization to which we belong, ARDA (American Resort Development Association) includes most major timeshare businesses today and members subscribe to a set of consumer-friendly ethics rules. However, timeshare has an unfortunate reputation of being associated with hard sales pitches and sneaky sales techniques similar to the notoriety of used car sales. While these horror stories are few and far between these days, as with any industry, there occasionally still are unethical salespeople trying to do whatever it takes to bring home their commission. That is why it is important to do the homework you are doing right now.


Before walking into a situation where you know there will be a pitch, educate yourself on timeshare and go into it with an understanding of the pros and cons and what makes financial sense for your family's lifestyle. Research the resort and management company to be aware of any outstanding complaints. If you end up changing your mind after the purchase, most states have "rescission period" laws that allow you to cancel the sale within two or three days.

In depth review of Benefit #4 of Buying a Timeshare

Guaranteed Vacations


Americans are notorious for giving up vacation time. Americans get a meager amount of vacation time, they also tend not to use it all, Unsurprisingly, Americans got the least amount of vacation days per year among the countries surveyed, earning only 14 days vs. 24 days in Great Britain, 26 days in Germany, 30 days in Spain and 36 days in France. So take a vacationWhen you buy a timeshare, you're making a significant upfront investment and may be more motivated to take valuable time with your family annually. If you buy an annual fixed week, you are guaranteed that same week each year at a resort you are familiar with, and don't have the hassle of vacation planning year after year. It is a fact that timeshare owners are more likely to use their vacations than those who don't own. Again... a lifestyle decision to build memories with your family and friends.


Take a Family Vacation

In depth review of Benefit #2 of Buying a Timeshare

Home-like accommodations

Most timeshare units have floor plans that closely resemble two bedroom, two bathroom condos or apartments, usually with an additional sleeper sofa in the living room. Timeshare unit sizes vary from studios to four bedrooms, allowing plenty of room for families.
Anyone who has been on a vacation with children or groups of friends can tell you that hotel accommodations are not ideal. There are some hotel chains that offer suites, but they are often difficult to find, and two or more bedrooms are hard to come-by. Adjoining hotel rooms are often much more expensive, and usually lack the living, dining, kitchen, and laundry amenities that make your vacation more convenient and affordable. In addition, timeshares come stocked with kitchen utensils, dishes, silverware, etc.. But, unlike your typical rental home, no need to pack sheets and towels.
See more differences between hotel and timeshare condo accommodations »

Real property ownership
If you buy a "deeded" timeshare, you are buying real property. You can give it away, will it to your heirs, rent it, sell it, and so on. Not all timeshares are sold today with deeds. You will need to look carefully at the contract you are offered.

In depth Review : Benefits of Buying a Timeshare

Long-term savings over hotels

The basic timeshare concept is simple: you pay a one time purchase fee that entitles you to a week every year (or sometimes every other year) at a resort. Instead of renting your vacations, you now own them. Due to the upfront costs, and the fact that the majority of timeshares do not appreciate like normal real estate, the cost savings is in future vacations.
Here's an example:
$1,000
x 30
----------
$30,000
Your weekly cost for a hotel room*
Number of years of vacationing

Total cost in today's dollars**
* Assuming $200/night
** Before inflation
With a timeshare, let's assume you find a deal on for $4,000 with an annual maintenance fee of $600. Your equation becomes:
$600
x 30
----------
$18,000
+ 4,000
----------
$22,000
Your annual maintenance fee
Years of vacationing

Total maintenance fees*
Upfront purchase price

Total cost in today's dollars**
* Assuming maintenance fee remains constant
** Before inflation
Using this calculation, you could pay as much as $22,000 upfront for a timeshare and break even with comparable hotel vacation costs. This is more like the high end new sales prices of timeshares sold today.

Positives and Negatives of owning a Tineshare

Timeshare Pros and Cons
As with anything in life, buying a timeshare has its pros and cons. One should not make a purchase without fully understanding both sides of the story. Timeshare ownership may not be best for your lifestyle. The material below may help you decide.

Timeshare Pros:
Long-term savings over hotels
Home-like accommodations
Real property ownership
Ability to exchange
Guaranteed vacations
Flexibility
Less maintenance than a vacation home

Timeshare Cons:
Reputation of unethical players and scams
Flexibility
Ability to exchange
Cash flow
Timeshares do not appreciate
May be difficult to resell
Maintenance fees and special assessments