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Are Timeshares Worth The Investment?

Buying a timeshare usually starts with an interest in vacationing on a regular basis, but almost always ends in heartbreak caused by a points-based system where annual maintenance fees skyrocket. Purchasing a timeshare might be explained to you - in high-pressure sales tactics – as an investment,  but in all reality, it's just throwing money down the drain. It's important to understand why timeshares are not worth any type of investment. Let's examine a few characteristics that make timeshares one of the worst types of vacation plans out there.

Yearly maintenance fees

Just like upkeep on a regular house, a timeshare needs its annual maintenance as well. A lot of resorts take massive hits to their facilities during busy seasons, like spring break or labor day weekend. In turn, this creates a demand for renovations and repairs around the timeshare property. What most people don't know is that this need for maintenance directly affects them as a timeshare owner. While in some timeshare owner agreements it may be obvious that these annual fees increase, in others it comes as a bit of a shock. People are usually minding their own business when out of nowhere, they get an invoice in late December for these annual maintenance fees. This is where the real frustrations start to set in.

Some people seem to think they can avoid the maintenance fee, but this won't stop a timeshare company from ensuring you can't book a stay before you pay your maintenance fee. Another issue that could surface is your financial capability in the future. If your timeshare company does report to a credit bureau, not paying your maintenance fees could make a hit on your credit. It should be noted however, that in some cases, a timeshare exit company could advise you to halt payments. It's important to remember that something like that is your decision and responsibility.

The sooner owners figure out their timeshare maintenance fee situation and relevant terms, the better. It could hurt you for a long time in many different ways, including but not limited to affecting your credit score. Annual maintenance fees are just one of the reasons that purchasing a timeshare can be a bad financial decision, but they're also one of the more important characteristics to think about when it comes to deciding whether or not to purchase a timeshare.

Availability at your vacation property

Timeshare companies love to tell you about all of their wildly dishonest benefits. One of their favorites is that if you sign up at their timeshare resort, you can travel anywhere you want, anytime you want. The problem is, in most timeshare ownership cases, your timeshare is on a fixed week system. This means that you have one week out of the entire year where you can use your timeshare. Thus, the "anytime you want" phrase comes into play. While it might be true, if you're the type that likes to plan a vacation in the spur of the moment, you might be out of luck. Many timeshare come with what is known as blackout periods. It is usually not possible to secure a spot at your resort during these dates, and if you are able to d oso, you're going to have to settle for paying a lot more money. It stands to reason that if you own your timeshare, you should be able to visit it whenever you would like.

What most travelers aren't aware of is that timeshare companies will use availability as a common benefit during sales presentations. Picture this: You're on vacation at a resort. You like everything about it, you just feel like the price is kind of high. All of a sudden a salesperson approaches and says, "What if I told you, you could visit this same resort any time of the year for a lower price than what you're paying right now?" This is how so many timeshare owners get tricked into vacation ownership. Timeshare resorts don't care what they tell you, they just want you to sign on the dotted line.

Financial Hardship

Like any recurring payment plan, a timeshare can hurt you in the long run. If you don't buy your timeshare outright – almost no one does – you're going to have to take out a timeshare mortgage loan. On top of this monthly payment, you will have the previously talked about maintenance fees, as well as any other additional fees (i.e. assessment fees, origination fees, etc.) This is where timeshare owners start to feel the financial hardship set in. It doesn't take long for them to realize they don't have room in their budget to account for a timeshare every month. So what happens when you can't make a payment on a timeshare? Well, your credit takes a hit and in some cases you could face foreclosure.

Foreclosure on a timeshare is variable based on how lenient the timeshare company is about your payments. There are very rare occurrences of homeowner associations stepping in to help timeshare owners who are having difficulty paying their timeshare fees.

Knowing the ins and outs of your timeshare agreement upfront will help you to determine if you can take on the financial responsibilities of owning a timeshare. There are many hidden fees within timeshare agreements that are often overlooked and become troublesome down the road. Be sure to do your research before entering into a timeshare agreement. If you have already signed and are facing the financial hardships of owning a timeshare, there is a way out. 

Your Best Exit Option

If you're struggling with your maintenance fees, booking availability, or your monthly mortgage payment, it's important to remember you aren't totally out of luck. Your best option could be to find a reputable timeshare cancellation company that offers a 100% money-back guarantee. One company that has a money back guarantee and a stellar reputation is Wesley Financial Group, LLC. With a free consultation and a staff that is passionate about your case, you are in good hands. If you’re interested in learning more about Wesley Financial Group, LLC and how they can help you terminate your timeshare agreement, be sure to visit their website for more information.


Before your next vacation to any resort, be sure to prepare yourself for the possibility that you might be approached about buying a timeshare. Sometimes these sales teams will use different phrases like "vacation ownership" or "vacation club", in order to lure you in. However, if you know the warning signs you'll be just fine.

No matter the so-called benefits, buying a timeshare is almost never worth the financial risk. Taking vacations independently with your own money is always a better option.

Wesley Financial Group, LLC, and/or its affiliates, successors, or assigns are not lawyers and/or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes only and are not intended to be a substitute for professional advice, legal or otherwise.

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