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5 Reasons Why Investing in a Timeshare is A BAD Idea

For those of use who fall in love with a particular holiday destination or just love the idea of spending a couple of weeks a year in an exotic location, investing in a timeshare cat seem like a fantastic opportunity. In some cases, this may well be true, but for the majority they are risky business and leave many investors out of pocket. Here are 5 reasons why you are better off staying clear of a timeshare deal.

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1.   Cost

When initially signing up to a timeshare deal you will generally pay a good chunk of money up front. This can range anywhere from £1-2,000 up to north of £10,000. On top of this fee you will usually have to pay a maintenance money for the upkeep of the building itself throughout the calendar year.

To anyone who has been on holidays regularly enough in the past couple of years it will become clear that it would take a very long time before you are breaking even or making a saving on the amount you would pay for a normal stay in a local hotel.

2.   Hard to get out of 

Timeshare deals are either fairly long term contracts, or deals which lend themselves to you signing up for a long time to get your money’s worth. You run into a number of problems however because of the long term contract, the most common being the depreciation of the timeshare.

Many people who invest in a timeshare struggle to make much more than half of their original fee back. This has created an unhealthy secondary timeshare market in which plenty of people pick up a bargain because people have no other choice than to take a loss.

Speaking to Timeshare Consumer Association who help people who have had difficulty getting out of timeshares, told us the amount of people struggling and have been in contact with them has grown over the last few years because of increasingly complex contracts and sales pitches.

3.   Salespeople skilled

There are a number of industries where sales staff are integral to their profitability and timeshare sales is certainly one of those. While it seems easy to assume you could ignore the advice of a salesperson, timeshare pitches and salespeople have become known for their ruthless and persuasive skills. This awful tale from This is Money shows just how ruthless they can be.

4.   History of scams

While it is unfair to suggest that all Timeshare’s out there are scams, stereotypes do exist for a reason. By no means are we generalising here, but there is a wide ranging history of people being lead astray be deals which they were conned into. The saddest thing we often see is elderly or retired people tricked into deals and drained of their hard earned money. The history of scams has infiltrated popular culture, which further shows just how well known it has become.

5.   Better alternatives

Hinted at earlier in this post is the fact that it is actually not as cheap as many people think to opt for a timeshare. Realistically many timeshares only allow you to spend 1-2 weeks a year in them, which is a problem for people who are retired or are fairly wealthy because you might want to take more holidays than that a year.

Then also considering that you might be paying a large sum for a timeshare which only caters for two people, going on holiday to a hotel or renting an apartment for a week for more people could well work out cheaper and allow you to take more friends and family.

The evidence above hows just how risky it can be to invest in a timeshare in the current climate. While it would be unfair to suggest that all timeshares are scams or run by deceiving salespeople, there is plenty of evidence that exists to show there are plenty of them.