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Here's What To Consider Before Investing In A Timeshare

February 11, 2019
Here's What To Consider Before Investing In A Timeshare

Today's timeshares are different than the timeshares of the past. They are modern, located in both exotic and popular destinations across the US and abroad, and can be a great deal for the right buyer. Even millennials are taking advantage of this amazing way to "own your vacation."

The Points Guy, Brian Kelly, recently sat down with Noah Brodsky from Wyndham Destinations to discuss what people should consider before buying a timeshare.

Timeshares Are Long-Term
Like any real estate purchase, buying a timeshare is not a decision that should be made lightly as it is a long-term investment. Before buying a timeshare, make sure you are investing in something you will want now, as well as in the future.

Consider The Tax Implications
Purchasing, maintaining, and selling your timeshare has tax implications. Consult with a licensed tax advisor before purchasing a timeshare to understand what you should expect. Your financing and maintenance fees may be tax deductible, but what you choose to do with your timeshare after you are done with it (sell, donate, bequeath) will also have tax implications on the next owner.

You Generally Purchase A Set Amount of Points
Nowadays, most timeshare companies determine a set amount of points needed for each reservation, depending on the time of year, unit, and location. Using points is an awesome way to own your vacation. Once the points' value has been determined, it generally does not change for the duration of your timeshare ownership. Keep in mind how you're planning to use your timeshare when you first purchase a point allotment.

You Will Pay Maintenance Fees & They Will Fluctuate
On average, you should budget for a 3% increase in maintenance fees from year to year. Maintenance fees will cover things like keeping your timeshare unit updated and comfortable, upkeep of the grounds, facilities, and maintenance. To learn more about all the benefits maintenance fees provide to timeshare vacationers, click here.

What Else Should I Know?
There are many benefits in timeshare ownership, but for more information on if timeshare ownership is right for you, check out the FAQs page on our website to learn more about timeshares.

To learn more from our source, click here