The Hidden Costs of Timeshare Ownership
Owning a timeshare may seem like a good deal because you’re praying for a fraction of the cost of getting a hotel every year. Besides, it’s all yours for the rest of your life. However, there is one distinct downside to timeshare ownership that many of the timeshare companies tend to downplay, such as all the additional hidden costs of ownership. If you’re considering becoming a timeshare owner, you need to know what you’re getting into and at what cost.
The most common fee you will find with timeshare ownership is the maintenance fee. In addition to your initial purchase, there will also be an annual maintenance fee to pay for property upkeep. This can be paid once a year in a lump sum or, in some cases, it can be paid monthly. Maintenance fees may vary from place to place, but know that they will always continue to increase.
Another unexpected fee you may encounter includes taxes, which sales agents never warn you about. Be sure to ask about the tax on your potential timeshare because in most parts of the world, a timeshare tax is levied on every night you stay in your timeshare and it can be anywhere from $20 or more per night.
One hidden fee that you might think is included in your maintenance fee is utility fees. Your maintenance fee doesn’t cover the amount of electricity you use during your stay, so at the end of the week, you end up getting a bill for it. If you are using the air conditioning unit for the entire week, this can be quite expensive.
Other hidden fees include transportation costs. That’s all you’re left for, so if your timeshare is far from where you live, make sure you factor in how much it will cost to drive or fly there and rent a car or use public transportation. Your source of transportation and the distance of your timeshare from your home should definitely be taken into account when calculating the profitability of owning a timeshare.
Lastly, there are also trading and exchange fees. Most timeshares are part of a larger network, so if you want to use your timeshare week in a different location, you’ll need to pay a fee to make that happen. If you are seriously considering buying a timeshare, don’t let the purchase price fool you or influence your decision. Timeshares cost much, much more due to the aforementioned fees that sales agents tend to skip over and don’t exactly highlight in your contract.
Timeshares may be for some people, but they are definitely not for everyone. If owning a timeshare no longer fits into your budget or lifestyle, you may want to consider your timeshare relief options.