How much does a time share actually cost?
Today, we’re well aware of how overrated timeshares are. The salespersons make so many promises at the point of purchase whereas only a few of those promises are actually met. Irrespective of this, it does not mean you can’t have a good time owning a timeshare. Sadly, only a poor number of timeshare owners enjoy their timeshare.
One of the most asked questions about timeshares is: How much does a timeshare actually cost?
In 1990, a timeshare cost approximately $10,000 – $16,000, with an average annual maintenance fee of $250 – $500. The buyer thinks that bulk of the cost of a timeshare comes at the initial stage of the purchase. The accumulated cost (annual cost of maintenance- which is prone to increase) turns out to be more expensive than the initial cost. Today, the average maintenance fee amount is $850 -$1000. The average increase in maintenance fees is 10% to 12% per year. When purchasing a timeshare, your contract specifies the duration of your ownership. In most cases, it is in perpetuity. This means that your estate is responsible, even after your death. Taking this fact into account, the average timeshare owner could be paying over $100,000 in maintenance fees for the duration of their life!
In recent times, the cost of a timeshare ranges from $20,000 to as much as $100,000. It all depends on the type of contract. Prospective buyers are often shown the largest unit, with the best view, with the most luxurious amenities. This gets the buyer thinking that all the units are the same, when in fact, this is not the case. These showroom units are often the most expensive. When a buyer cannot afford the most expensive, a lesser unit for a lower price is offered. Of course, the buyer never gets to see what is actually on the deed and contract. Instead of the $100,000 unit, the buyer gets a deal at $20,000. What the buyer does on know is that the lower priced unit is much smaller, has modest furnishings, sometimes is located at a different resort completely, and does not have the expected, breathtaking view. More often than not, the buyer is left disappointed.
For more comfortable units, the initial cost should be in the range of $320,000 and above. The annual maintenance fee which follows is an average of $700 – $800 for one bedroom, and $850 – $1000 for a two bedroom unit. The larger the unit, the more expensive it will be. You must remember that prices are also affected by the period or week of purchase, resort location, resort quality, and resort size. Simply put, the more comfortable and beautiful the resort, the more expensive it is.
One of the side attractions of a timeshare is the promise of being able to transfer from one location to another. So, you can tour the world with the pay of one timeshare. All these heart-melting goodies come at a price. It is said that the average cost for vacation exchange is $100 – $250. Resorts have their customized plans and different modes of approach when it comes to timeshare exchange.
Often, when timeshare owners eventually tire out from all their timeshare troubles, the most popular option is outright sale of the timeshare. However, the reality is that timeshares cannot be sold as easily as they are bought. The owner would most likely pay the closing costs and usually prepay some maintenance fees. These incentives can cost thousands of dollars to the seller, with nothing in return. It is important to note, that very few timeshares sell on the secondary market.
Resale of timeshares can be a bit difficult. The unit acquired is usually sold at a loss. A terrible loss.
If you’re looking to get out of your timeshare, a team of professionals who understand the legal process are available to help you. TS Elimination can help you with your timeshare. Contact us today on www.tselimination.com or 888-559-5660.