The vast majority of timeshare owners consider their purchase as a mistake. In one survey, 85% of timeshare owners regretted their decision.
Timeshares sound like a great idea when initially presented. Who does not want to vacation routinely at a great destination?
However, many timeshare owners soon learn that it is a financial burden. Unlike traditional real estate investments, timeshares do not generate income for the owner. This leaves many owners thinking it is time to sell or cancel.
Read on to learn whether you should cancel or sell your timeshare. Explore topics such as timeshare cancellation and reasons why it is not a good investment.
What Is a Timeshare?
In a timeshare, you are taking fractional ownership of a property. If you purchase a week at a timeshare resort, you essentially own 1/52nd of the condo.
Some people purchase a fixed week, while others pay more for the flexibility to use the timeshare during a longer period of time.
Many timeshare properties operate under a point system. This means that you can trade your points to stay at another destination or upgraded room.
There are generally two types of timeshares. In a deeded timeshare, you now have a partial ownership stake in the property. Non-deeded timeshares work more like an apartment lease and you have no ownership rights.
Most people opt to pay for their timeshare with monthly loan payments. In addition, the property charges maintenance fees. There may be other fees and charges assessed to timeshare owners as specified in the contract.
Why Are Timeshares Not a Good Investment?
Timeshares are not a good investment. Unlike a traditional real estate investment, timeshare values decline in the resale market.
This means that some timeshare owners are not able to recoup the upfront costs and monthly loan payments. Add in the maintenance fees and timeshare owners often take a significant loss.
Also, the Covid-19 pandemic is placing an additional burden on the timeshare market. World governments are imposing significant travel restrictions due to the coronavirus. Many people are afraid to travel and are choosing to stay at home instead.
How does this all affect timeshare owners? It makes it more difficult to trade or exchange points.
In the past, you could sell your designated timeslot and delay vacation to a future year. It is increasingly difficult to find trade partners and timeshare owners are left with the burden.
What Are Your Options for Timeshare Cancellation?
The good news is that there are professionals to help you get out of your timeshare. They review your timeshare contract and help you file a dispute with the timeshare company.
In addition, these professionals protect your credit report and put a stop to damaging milestones like foreclosure. The end goal is to zero out your account balance and get you out of your timeshare.
Is It Time to Cancel or Sell Your Timeshare?
With economic uncertainty and the Covid-19 pandemic still wreaking havoc, it is time to get out of your timeshare. With professional help, you can get out of that burdensome timeshare and put your money into a more fruitful investment.
If you want to cancel or sell your timeshare, contact us today to speak with a licensed professional.