Are Risks Justified with Timeshare Investment?

Kimberly Watson, Editor in Chief
August 08, 2012 /

There are thousands of timeshare owners in America. Although various changes have occurred within the industry towards improving its flexibility, investing in a time share is still considered a significant financial risk.

Traditional investing in a time share generally means making an initial payment which gives them usage of a specified unit at a determined time annually. Although the period is usually for one week, this time-frame is subjected to negotiation factors. Unit owners are required to pay fees annually which include a contribution towards maintenance.

Various resorts show that the average sales price for investing in a time share on a one week occupation time scale is about $19,000. Add to this, an average yearly fee for maintenance of $660.00.

The current trend for timeshare operation is on a points system. This provides owners investing in a time share greater flexibility regarding occupational dates and travel location. Various programs offer options related to points being available at any time during a calendar year and an exchange accommodation network. This package is supported with a roll over of points from a previous year and opportunities to use points for cruises and camping. An owner is also able to detract points from the next year’s allocation.

In certain instances where investing in a time share has seemed a viable option, exchanging or selling the property has proven difficult. Even if the unit is not utilized the annual fees still have to be paid.

Time share owners wishing to sell are also warned regarding the potential for fraud. Various sellers have been approached by fraudsters with promises to sell their unit. Hey request a fee upfront and then disappear.


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