With there being, in 2016, so many reasons not to invest in a timeshare, narrowing it down to just five is a task in itself. That said, the five reasons given below don’t just prove that it is a task worth doing, but are also the five most important issues to consider before ‘investing’ any money or time into timesharing.
- Poor Investment Return
The term ‘timeshare investment’ is not just somewhat of a misnomer, but proves untrue for almost all people who choose to purchase a timeshare. That is, the vast majority of people who decide to purchase a timeshare will garner no financial gain what-so-ever. Instead, timeshare ‘investors’ are more likely to watch the value of their timeshare depreciate in value year-by-year.
- Hidden Fees and the Real Cost of Timesharing
Despite the fact that timeshares are in 2016 at an all time low, which in for example the property market would suggest it is a great time to buy or invest, the fees attached to many timeshare properties remain shockingly high.
So, even if you holiday in the same country and even area every year, sticking to scouting online for budget deals might still prove more cost effective than ‘investing’ in a timeshare property. Not only does a package holiday (provided it is ATOL protected, which you can learn more about via the Which website ATOL guide) prove the safest, most inclusive and easy as well as often financially savvy way to holiday, it also almost always includes all the perks of a good holiday, including hotel accommodation, flights and even meals and extras.
Meanwhile, timeshare owners, whilst enjoying ‘free’ accommodation will still spend a considerable amount of time each year searching for cheap flights in order to make a timeshare financially viable, and once there spend a portion of their holiday buying groceries, cooking, cleaning and washing their clothes only to return home to continue paying fees for a property they will not see usually for another twelve months.
So, the best bet to bagging that great holiday deal in 2016 is to ditch any ideas of timesharing and instead search for a package holiday deal via a reputable travel website such as Secret Escapes or by simply turning to a well established travel agency such as Thomas Cook.
- Scams, Cons and Mis-selling
Few, if any, industries are quite as famous for the scammers and con artists that populate them and are as saturated with horror stories as the time share industry. In fact, there have been so many ‘victims’ of timeshare scams and cons in the last twenty years that agencies, organisations and associations dedicated to tackling exactly that have bloomed into being and remain heavily used and relied upon by thousands of people who have found their dream of owning holiday property abroad turning into a total nightmare.
To learn how to avoid this fate, the most popular scams going at the moment relating to timeshares and what to do should you have been already scammed or approached by scammers, head over to the TESS website. One of the leading associations set up to deter scammers, save timeshare victims and offer hope and help to those stuck in a timeshare nightmare, the Timeshare Consumer Association website is full of advice and up-to-date information.
- The Problem of Re-Sale
Timeshare are hard to sell, namely for the following (and aforementioned) reasons:
- Timeshares almost always depreciate in value.
- The timeshare Industry has been detrimentally sullied with horror story scams, cons and tales of mis-selling which are for the most part true and so deter buyers.
- Timesharing has fallen out of favour and the subsequent rise of budget airlines and package deal holidays today do far more to meet current travelling fashions.
- Timesharing is inflexible. Timesharing involves holidaying in the same place, for the same amount of time and usually during the same time period every single year.
- Timeshare fees, once a timeshare has been bought and paid for become an annual and costly responsibility, often negating any saving a person stands to make by timesharing rather than looking for a holiday package each year.
- Timesharing Re-Sale Cons
Finally, selling a timeshare is not just problematic because of the reasons given above; unfortunately, because timeshares can prove so difficult to sell, scammers are quick to capitalise on the desperation of would-be-sellers, offering deals that do not materialise and instead can stand to sour many years of happy holidaying memories and leave individuals emotionally, mentally and as well financially bereft.
In an attempt to help people avoid suffering this reality, the Citizens’ Advice Bureau has dedicated an entire section of its website to the issue of timeshare re-selling. Whilst this is good news for anyone attempting to avoid being scammed, it is worth remembering (for anyone yet to purchase a timeshare) that the guide was put together and published in direct response to the sheer numbers of people who were contacting the Citizens’ Advice Bureau because they had become victims of a timeshare selling scam.