Timeshare: An Impartial Article

A multi-billion dollar industry, timesharing began in North America and Europe in the 1960s, as a convenient answer for regular vacationers looking for a place to stay. Through its 60 years of existence, the industry has seen more than its fair share of legal and ethical issues, mostly concerning scams and questionable business practices.

Thanks to the large money involved, the timeshare trade was a constant avenue for fraud. In addition, even legitimate companies and salespeople resorted to aggressive, misleading and sometimes illegal tactics just to meet their quotas amid rising competition. Although the industry was able to weather these, other problems still make timesharing an uninviting investment.

Though you probably won’t realize it at the time of the purchase, timeshare maintenance fees are a big disadvantage. They may considerably be less expensive than actual hotel stays, but these prices never go down. These fees are essential to keep the property in mint condition but somehow don’t cover all the necessary services your unit needs. In other words, watch out for those extra charges and special assessment fees.

Week exchanging, although touted as a timeshare advantage, can also be a huge headache for owners. Although, the program allows a timeshare owner to visit other properties of the resort company, it does not, however, guarantee access to them, especially during the peak season. Believe it or not, there are resorts which are almost impossible to get into even when it’s supposed to be an “internal exchange.” It only becomes worthwhile if the owner is a member of an external exchange company, which is yet another membership and expense.

Price is a huge timeshare disadvantage. It shouldn’t take a rocket scientist to know that every week you buy from a developer is mostly overpriced. Property resales, like those on EBay are way cheaper, although you’d still have to pay the same maintenance fee. The only time it may make sense to buy from the developer is when a new resort is first offered for sale. It will be hard to find resales for those for a few years. And the resale price could actually be higher than the pre-sell price.

Condo-hotels or travel membership clubs are great timeshare substitutes. The two programs have a different (although highly similar) system compared to timesharing and allows for more benefits, including access to a number of timeshare resorts. Some travel clubs even offer lifetime membership for a fraction of a cost of a timeshare unit and minus the maintenance fees. After paying the membership fee, the club member will still have to pay for each vacation, but the amount he’ll have to release is comparatively much less.

Being a timeshare owner has its benefits. In the end however, such membership has too many disadvantages to be considered favorable. Free your mind from thinking that the best way to have a holiday is by owning a timeshare property. Remember that there are other, better options out there.