I’ve heard this question many times, particularly when friends have just returned from vacation: “Are timeshares a good buy?” On more than a few occasions, my friends had already purchased the timeshare and were just looking for positive reinforcement for their impulse purchase! There are cheap family vacation options to consider before finding yourself sipping on a daiquiri at a timeshare presentation.
I guess the answer is that it really depends. First of all, a typical timeshare will cost you between $10,000 and $20,000 up front, which can be financed at a fairly high interest rate (and the interest is no longer tax deductible). You will also need to pay an annual maintenance fee of between $500 and $1000. Lastly, you better like the resort where you bought your timeshare because finding available timeshares at more exotic timeshares on the dates you want can be very difficult. and it may cost you more money. If your children have grown up and you prefer to go to Maui instead of Disney World, be prepared to be flexible and patient!
Another option that we are seeing more and more, particularly in the bad economy, is discount vacation clubs. They usually charge an initial fee of between $1000 and $10,000, but you will never have to pay again and you will have the membership for life. Also, the appeal of the timeshare discount vacation club is that it is not limited to certain weeks each year or to certain resorts. The world is your vacation option, and you also have the option of cruises and all-inclusive resorts. Also, you don’t need to feel stressed if you miss a year because your membership is already paid in full. The last advantage I see for discount vacation clubs is that they have resale value. In fact, its value will remain at least at what you paid for if you decide to sell it.
In my opinion, timeshares are no longer a great buy. You have options that are much better. I know it’s tempting when you’re on vacation and receive an offer for a free breakfast and a round of golf if you attend the timeshare presentation. You are not obligated to buy anything. Well I know 2 different couples who own 2 timeshares each in the same areas of Florida. Those presentations can be very persuasive while you are relaxing and enjoying your vacation. It’s not so relaxing when you’re back home making those monthly timeshare payments and wondering what you’ve gotten yourself into!
