There’s a lot of negative stigma around timeshare. What is a timeshare? How does it even work? Why do people buy timeshares? What could the benefit possibly be? Forbes even has an article on the Pros and Cons of Buying a Timeshare. Surprisingly, timeshare has drastically shifted to a new model that might surprise you. We’ll tell you exactly why people buy timeshares.
In Forbes “Buying a Timeshare: The Pros and Cons,” it’s the writer’s opinion that a timeshare purchase is “often an emotional and impulsive decision.” However, with all of the reasons why people buy their timeshares, that’s not entirely true. In fact, 85% of timeshare owners love their overall experience with their timeshare. It can’t be all bad if the timeshare industry has seen nine years of consecutive growth.
So, Why Do People Buy Timeshares?
- A timeshare is less expensive than a lifetime of vacations.
- Owners are guaranteed outstanding vacation time every year.
- The industry has shifted to a “vacation club” model that is more flexible.
- Timeshare resorts offer units with more space and privacy.
- You can rent out your unit to on years you don’t use it.
- Owners can trade their points or weeks on vacation exchange networks like RCI or Interval International.
- Top vacation brands have resorts in all corners of the world.
- Exciting travel opportunities also come with timeshare ownership.
- You can finance a timeshare purchase.
- Timeshares are not just for “older” generations.
How Much Do Timeshares Cost?
If you’re stuck on the “sticker shock” of how much a timeshare costs up-front, you’re not alone. Timeshares can cost upwards of thousands of dollars when you buy them straight from the developer. The reason this costs so much, however, is because you’re basically buying a lifetime of vacations in bulk. So why do people buy timeshares if they cost so much up-front? When you break down the price of your timeshare versus the cost of your vacations over your entire life, a timeshare is much more cost-effective.
While timeshare maintenance fees do exist and can draw some people away, these are important for updating the resort, taking care of the important amenities like pools, fitness centers, restaurants, etc. and even paying the resort employees. If there’s ever a year that you decide not to use your timeshare, you can rent it out to cover your annual dues.
Average Timeshare Cost
On average, according to ARDA, timeshares cost around $20,000 when you purchase directly from one of the best vacation clubs. While it is still more cost-effective to own a timeshare rather than pay for vacations every year, you can save even more by buying a timeshare resale. The timeshare resale market has timeshares available from owners that just don’t have the same vacation lifestyles anymore. You can browse by top brands, destinations, and resorts. It’s as simple as making an offer online!
Timeshare Points Vs Fixed Week
A “Fixed Week” in timeshare means you own a specific week at a specific resort every single year. The industry has largely moved towards points-based membership for owners. With points, you are still guaranteed to vacation at your Home resort every year, or use your annual allotment for other resorts within your brand’s portfolio. Hospitality companies like Hilton Grand Vacations Club give owners a deeded interest at one of their resorts that can be used like Fixed Week ownership or converted for Hilton Points to use at other HGVC resorts.
Diamond Resorts has more of a “pure” points membership option, for the travelers that prefer long weekend getaways instead of an entire week stay. Use points all in one trip, or space them out over the year. They’re yours to use!
Timeshare Vs Hotel Room
Ever try to vacation with your grown-up kids or extended family members? Most of the time when you take a large family vacation in a hotel, you have to book multiple, cramped rooms and make sure you know which floor everyone is on. This makes for a pretty hectic event when everyone is trying to get together for dinner or an outing. And isn’t it kind of a bummer when the family has to split up at the end of the day?
Timeshare resorts are known for providing one, two and three-bedroom units that can accommodate large families or travel parties. With a timeshare, you don’t have to worry about coordinating everyone’s hotel rooms or being stuck in a cramped space.
Timeshare units even have fully-equipped kitchens and living room areas, so you feel like you’re right at home. Spend a night in with the entire family and cook a nice meal or get together on the couch for a movie night. Why do people buy timeshares? They have plenty of space to actually relax and recharge while they’re away.
Vacation Clubs Vs Timeshares
You may hear “vacation club” and “timeshare” interchanged in advertising or conversation. They pretty much mean the same thing, however, we can break down some minor differences. Vacation clubs are normally from top brands, like Marriott Vacation Club or Holiday Inn Club Vacations. These brands offer timeshare points, which can be used to exchange for locations other than your Home resort. When you own with a vacation club like Marriott or Holiday Inn, you’re given access to other resorts within the club’s portfolio, not just one. It’s still like owning a timeshare but comes with more flexibility and freedom.
Rent Out Your Timeshare
Some years we don’t have the time or budget to take a vacation. This is completely normal and it’s something your resort understands. If there’s ever a year that you simply aren’t making use of your ownership, you can rent it out to help cover the annual dues. Check with your resort if they have an in-house program to rent out your unit or a referral program that helps owners do this.
If you own a fixed week or have rotated through enough of your developer’s resort portfolio, you might be wondering if there’s any possible way to see the world with what you already own. This is exactly how the concept of vacation exchange was born!
Started by Resort Condominiums International (RCI), timeshare owners can become members of their resort’s affiliated exchange network. After signing up, you can deposit your timeshare points or weeks and exchange them for a resort across the world! There are thousands of options between the two largest vacation exchange companies. Check with your resort for their affiliated exchange network.
International Timeshare Resorts
Popular brands like Wyndham, Marriott or Hilton offer their vacation club owners the opportunity to see the world. Rather than use an exchange network to cure their travel bug, these owners can stay right within their beloved brands’ portfolio of resorts worldwide.
Exclusive Travel Opportunities
According to the AARP 2018 Travel Trend report, 27% of the Millennial generation and 21% of the Baby Boomer generation travel because of their desire to adventure. Further, 24% of Millennials and 15% of Baby Boomers want to try something new.
Top timeshare brands don’t ignore these facts. That’s why many of them include one-of-a-kind, exclusive vacation opportunities for their owners. Disney Vacation Club offers Adventures by Disney, taking DVC owners to Asia, Africa, Europe and more. Even Hilton Grand Vacations Club‘s ClubPartner Perks provide opportunities like cruises, houseboat rentals, RVs or yacht charters.
From Forbes’ article on “Buying a Timeshare: The Pros and Cons,” the writer declares that banks will not lend you money to buy a timeshare and the resort will arrange financing higher interest rates. What they don’t mention, however, is that third-party timeshare financing companies are a valid option. Our partners at Vacation Club Loans offer low-interest rates, no hidden fees and flexible payments.
Who Buys Timeshares?
It’s not always who you think, that’s for sure! Today’s timeshare owners are younger, more diverse and better educated than ever before. In fact, the average owner’s age is 47 years old.
Is A Timeshare Worth It?
There are so many reasons why a timeshare might be worth it for you to buy. Read up on things you need to know before buying a timeshare to help consider if vacation ownership is right for you. If you take at least one vacation a year, have a family, or enjoy luxurious trips with lots of amenities, you might want to consider it!
Why Do People Buy Timeshares?
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