How Much do Timeshares Cost?
A time share gives a person the opportunity to own a portion of a resort for vacation purposes. By paying a portion of the cost of the condo, the family will receive a week or more of use of the vacation home. Depending on the company selling it, the timeshare will either be the same one each year or you may receive use of different resorts around the country. Time share plans have evolved and the cost of owning one is going to depend upon a number of various factors such as the resort, the company managing one, the size of the space, and the number of weeks of use you receive.
How much do timeshares cost?
- The cost of a timeshare will depend on how old the resort is as well as the size of it. You will also have to factor in the demand, the ranking of the resort, and the location. On average, the price can range anywhere from as little as $1,000 to as much as $50,000 for the initial investment. This will not include the maintenance fees, taxes, or other additional costs.
- Higher-end time share places will be in higher demand during the peak times while a lower-end timeshare will be the bottom of the pile, often being something that most people do not really want.
- According to the American Resort Development Association, their figures stated that the the average one-bedroom timeshare could have an initial cost of at least $15,789. This will not include the additional fees that are noted below.
- The website HowStuffWorks.com claims that a timeshare can be within the range of $10,000, but can go in any direction in regards to the cost. They also noted that annual can be within the $400 and $1,000 range.
What are the extra costs?
- A timeshare will have to be treated just like your primary residence. There will be tax implications due twice a year during tax time. Just like the taxes of a home, the taxes will greatly depend upon the value of the timeshare and the location.
- Annual maintenance fees will occur every year. These fees will widely vary depending upon the company running the timeshare. Plan on spending anywhere from $300 to $1,500 per year.
- On top of a maintenance fee, some companies may also charge a membership fee.
- If you plan on selling the timeshare in the future, a transfer tax will be applied just like a real estate sale. On top of the transfer tax, a recording fee may apply as well. Be sure to check the terms of your contract to know exactly the fees for which you will be responsible.
- Like an association at a condo complex, an assessment fee can also be applied if any repairs need to be made and the association cannot cover it.
- Additional amenities may be considered an additional cost such as beach towels, spa treatments, health club treatments and more.
What is going to be included?
- A timeshare is a well-designed resort or hotel that offers a wide variety of amenities. Similar to a hotel or resort that you are used to staying at, these timeshares will give you partial ownership. Most companies will hand out credits on an annual basis. These credits can then be turned in for stays throughout the year at various resorts. Some companies may limit you to one resort while others can allow you to travel throughout the United States.
- Most units will be larger than the hotel room that you are used to getting. These rooms can often comfortably sleep up to ten people. They can also be equipped with a variety of great amenities such as a kitchen, washer and dryer, hot tub and more.
Tips to know:
- Most timeshares allow you to bank your time to go onto the next year if you were not able to stay the current year. However, many timeshares work in different ways, so it is best to read your contract thoroughly.
How can I save money?
- Timeshares are often considered to be horrible investments. If considering one, be sure to weigh your options. This NuWireInvestor.com article states a few reasons why a timeshare should be avoided.
- If your heart is set on a timeshare purchase, highly consider purchasing one used. Auction websites such as eBay often have timeshares up for sale at a fraction of the cost.
- If you have your eyes set on a timeshare rental, consider renting one through websites such as RedWeek.com.
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