3 Reasons to Pass on a Cheap Timeshare

When you look at a cheap timeshare, you might be tempted to buy. Here are a few reasons that you should consider passing on a cheap timeshare.

1. Resale Trouble

Although many believe that getting a cheap timeshare could help you make a nice sum of money upon resale, this might not be the case. Timeshare resales traditionally go for less than 50% of the purchase price for a new unit. Therefore, it would be difficult to turn a profit. 

2. No Financial Benefit

Even if the deal that you are getting on a timeshare seems fantastic, it still may not be to your financial benefit. For example, for many timeshares, you can expect to pay at least $800 per year in maintenance fees for a two-week vacation. When you break that down, it works out to $57 per day of vacation. While paying $57 per day for a room is a decent deal, you can often do that well with many of the online travel sites. In addition to that, you still have to pay for the price of the timeshare first.

3. Could Be an RTU

Instead of a deeded timeshare, some developers will sell a "Right to Use" contract or RTU. This means that you can use the property for a certain amount of years and then you own nothing. 

blog comments powered by Disqus