The allure of a new timeshare can be strong, but there are numerous factors in play that often make buyers regret the purchase. If you currently own a timeshare, there’s eight great reasons to sell at the first good opportunity.
1. A Timeshare as an Investment
Perhaps the best reason to sell your timeshare is that it isn’t a good investment, and whenever you purchase real estate, a return should be your end goal. A primary reason why timeshares are a poor investment is that the after-market has always been weak.
2. The Total Cost of Ownership Factor
Timeshares are rarely a one-time cost or an isolated mortgage. There are numerous long-term costs, such as maintenance, utilities and property taxes. Even when your timeshare is “paid off,” you’ll have numerous obligations for as long as you participate.
3. Losses Aren’t Tax-Deductible
One of the most essential reasons to sell a timeshare is that losses aren’t tax-deductible. That means that you have to absorb the entire financial blow, and if an opportunity presents itself to get out with no or little loss, that’s too good to pass up.
4. Put that Timeshare Money to Better Use
Timeshares will almost inevitably be a financial burden at some point. If you don’t have time to vacation, you’re still paying for it. If you can’t afford vacation, then that money tied up in the timeshare could be better used elsewhere.
5. Open Up Your Vacation Options
One of the big downsides to purchasing any vacation property is that it locks you in to vacationing in that one area. Some people like the idea of a familiar vacation spot, but even if you do, you can’t account for how your family and your tastes will change over time.
6. An Exchange System May Not Provide the Options You Want
You may be thinking you’ll overcome the vacation options problem through an exchange network, but you may have to think again. Exchange networks let members exchange timeshares and vacation homes, but scheduling problems are rampant for even the biggest exchanges, and you just can’t count on getting the time and place you want year after year.
7. Renting a Timeshare May Require Significant Effort
Many people plan to rent in order to offset timeshare financing, but renting is often a hassle. Timeshares are usually in timeshare-centric areas, which means that there’s a significant amount of competition.
8. Renting Accommodations Can Actually Be Cheaper
The bottom line is that renting accommodations when you need them is often less expensive over the long-term than investing in a timeshare. Sure, there are exceptions, such as the Fourth of July weekend or Memorial Day weekend, but more often than not, renting is cheaper.