Timeshare is often seen as a double edged sword. There are merits and demerits of most timeshare programs. Over the years, we have seen timeshare being hyped up and we have seen it being lambasted by many critics. There are obviously some advantages and disadvantages which demand an objective assessment. Before we delve into the timeshare pros and cons, let us make a distinction among the different programs you would come across.
Timeshares can be for a fixed week, floating, on the basis of right to use or a points club. Each of these timeshares has its share of merits and demerits. Also, certain variables come into play while assessing the relative merits and demerits. Some variables are personal preference, frequency of holidaying, the choice of destination, budget and size of the family or group of people traveling together.
List of Pros of Timeshare
1. Ownership without Liability
Timeshare allows you to own a vacation home, guesthouse or cottage, whatever you may want to call it depending on the kind of property you are signing up for, without really owning the property. In other words, you get to stay at the property as if you are the owner but you don’t purchase the actual property, you don’t have to maintain it, you are not responsible for filling up the property with guests and you really don’t have to deal with any liabilities that would be incumbent on an owner in an ordinary scenario. You get to stay at a substantially expensive property without paying a premium price at the time of holidaying.
2. Certainty of Vacationing
Timeshare works really well for those who want their holidays to be predictable. There are families who would always travel at a certain time of the year, be it summer holidays or Christmas. There are specific dates when some families want to spend some time away from home. Anyone who likes this kind of predictability while holidaying or even while planning will really benefit from timeshare. Timeshare allows you to stay at the property at the exact dates you want. While some degree of availability will be factored in, it is not like being treated by a hotel that would not prioritize your request. Most timeshares offer guaranteed vacation at the destination and at the time you have decided.
3. Flexible Enough
Timeshare is quite flexible. Many people think that timeshares lock you down to a property and a destination where you would have to be every year or whenever you wish to use your timeshare. That is not true. Almost every timeshare program allows you to exchange properties, destinations and the time of travel with other owners or fellow timeshare members. You can thus travel to a new destination, stay a new property or you may even get to stay at a different property at the same destination, which is of your choice.
4. Rent out a Holiday
Every timeshare owner can consider selling the period of time when he or she would have holidayed at a given property. Renting out the block of time, the property at the destination is a way to make some money. It must be noted that every timeshare program doesn’t allow this. Most timeshares that allow this will charge a fee for such exchange services. The fee may be a tad high in some cases.
5. Transferable Holiday
Timeshares are transferable in most cases. You can gift a holiday to your friends, relatives or anyone you know. You may even engage in charitable causes if you like.
List of Cons of Timeshare
1. Exorbitantly Expensive
Timeshare is expensive. Over the years, almost every critic has highlighted how needlessly expensive timeshare programs are. By no way do you need to pay the kind of membership charges, annual fees and associated costs to have one week or two weeks in a lavish property of your choice at a prized destination. There are studies available that show how much you can easily save if you plan a holiday on your own without even considering timeshare. It is not as if someone gets to holiday all year or truly owns the property. There may not be any maintenance costs and there is a degree of ownership but one doesn’t really use the property anyway to pay for staggering membership fee and other costs.
2. Net Loss
Timeshare may be transferable but selling one is not easy. If you wish to recoup your money by selling your timeshare, then you have an uphill battle to fight. Not only is used timeshare very cheap but you would essentially lose money in the process so even selling doesn’t make much sense. Many people today opt for used timeshares due to the generous discounts and don’t even consider new or fresh timeshares.
3. No Tax Relief
Selling a timeshare at whatever loss will not allow you to claim any kind of capital loss. Timeshare investments are not regarded as investing in any real property.
4. No Holiday
A holiday is not always assured with timeshares. There can be blocked dates. A property may not be available. Local factors may hinder your planning and may even make it impossible for you to plan a vacation at a given destination.