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 |  | Used Timeshare: $500-$8,000 |  | New Timeshare: $10,000-$40,000 |
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A timeshare is a resort property that may be purchased for a certain timeframe each year. Timeshare owners receive a deed to the property, which is actually shared with the other owners. Rather than owning a particular room or suite, timeshare buyers have the rights to use it during their allotted timeframe, often one week.
Typical costs: | - A report by the American Resort Development Association[1] states that the average sales price for a timeshare in the U.S. in 2009 was $20,468 and the average maintenance fees were $674 per year. About 306,000 timeshare units were sold in 2009.
- The sales price for a new timeshare typically ranges from $10,000-$40,000. The sales price for a used timeshare can be significantly lower, at $500-$8,000, though there are exceptions of used timeshares selling in the $20,000s and higher. Prices are based on one-week intervals (buyer gets one week of timeshare usage per year).
- Timeshare maintenance fees are typically $200-$1,000 per year, according to Budget Travel[2] . For example, maintenance fees are often higher in tropical destinations, where hurricanes are a threat.
- The location, size and age of a timeshare property will all affect the value, with larger, newer builds in exotic locations costing more.
Related articles: Home Exchange
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What should be included: | - According to Vacation Timeshare Rentals[3] , timeshares may be classified in one of several different types.
- Fixed-Week (owner visits timeshare the same week every year) timeshares may vary in price according to the popularity of the week (holidays like Christmas may cost more, for example). Biennial Week timeshares are a type of fixed timeshare in which the owner travels every other year.
- Floating-Week (owner may select from available weeks each year) timeshares and Split-Week (owner may split 7 days of time into two or more shorter getaways) timeshares offer the owner more flexibility.
- In addition to these categories, timeshares either operate on a flex system (owner may choose a week to travel during a particular block of time) or a points system (owner uses points to "purchase" travel at various resorts within a timeshares network). A timeshare owner is allotted points based on how desirable his or her own property is.
- Other timeshare terminology determines how many years the owner is entitled to use the property. A "deeded timeshare" is the owner's vacation property to use for the rest of his or her life; a "right to use" vacation interval is good for a set number of years, often 10 to 50.
Additional costs: | - Timeshare owners should typically budget $150-$200 per year for property taxes for a one-week timeshare.
- One-time timeshare purchase fees may include closing costs, broker commissions, a transfer fee or recording fee. Expect to pay additional finance fees unless paying with cash. These costs vary widely, but an example is a $295 closing cost through Timeshare Title, Inc. when purchasing through Bidshares.com[4] . Time Share Adventures[5] charges no closing costs. Costs associated with buying and selling are typically paid by the buyer.
- Resorts sometimes make major upgrades and bill timeshare owners what is called an assessment fee, ranging from less than $100 to more than $1,500.
- Some resorts bill timeshare owners for utilities used during their vacation week. In a timeshare forum, owners discussed monthly utility bills ranging from $50-$300, with higher bills for air conditioning and a running pool in warmer months.
- Timeshare owners who wish to trade their destination for a week at another resort may join a resort exchange company, which can cost an extra $100. For example, membership to Resort Condominiums International[6] costs $89 per year. Trading fees may cost an additional $100, so read the fine print.
- Timeshare owners using a points system may purchase additional "points" for $50-$100.
Shopping for a timeshare: | - Time share presentations are often high-pressure situations in which a person is given a tour of a vacation property and offered special prizes or incentives for buying a timeshare that day. Avoid buying a timeshare under these circumstances and fully research the costs associated with timeshare ownership before signing any papers.
- The Timeshare Users Group[7] provides user forums, ratings, reviews and tips from timeshare owners around the world.
- The Federal Trade Commission[8] cautions shoppers from viewing a timeshare as a financial investment, because these properties rarely go up in value, and maintenance fees are likely to increase every year.
- Owners who wish to rent or sell their timeshares are typically free to set the price at whatever they wish; however, timeshares often go down in value, especially in a congested market. Owners can avoid broker fees by listing a timeshare as For Sale By Owner and placing a classified ad.
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What People Are Paying - Recent Comments |
| Posted by: a user in wisconsin dells, WI. | Posted: February 4th, 2016 02:02PM |
| Location: wisconsin dells | Size: 1 bedroom, galley and fireplace |
| Amount of Time: week 41 |
While my company liquidated in the late nineties my timeshare was eventually paid off. I spend 600 a year on fees for one week in October. Lovely area, despite downsize remorse, I find a week in the near North quite tame. Nice indoor pool, walking path, lots of water parks and convenient shopping a few miles past the Pines...life is manageable so far. |
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External Resources: | - www.nxtbook.com/ygsreprints/ygs/g14892_ardajuly10_final/index.php?startid=48&qs=av...
- www.budgettravel.com/feature/050609_timeshares,4081/
- www.vacationtimesharerentals.com/timeshare-tips/timeshare-tips/the-many-types-of-t...
- www.bidshares.com/help/index.cfm?fuseaction=closing#cost
- www.timeshareadventures.com
- /www.rci.com/RCI/
- www.tug2.net
- www.consumer.ftc.gov/articles/0073-timeshares-and-vacation-plans
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