Timeshares: Investment or Liability?

Let’s look at a couple of basic definitions.

Investment – The act of expending money or effort to gain a profit or result

Liability – Especially as applied to law, moneys owed or debts

Unless you are a mutual fund manager with T. Rowe Price, you probably accept this basic definition of investment. And even if you were pressured into purchasing a timeshare, you likely viewed the transaction as an investment that would yield appealing results for family vacations as well as add economic value to your financial worth.

Far too often, timeshare owners come to understand that their ‘investment’ has become a liability. Despite investing a considerable upfront amount, frequently with debt and interest, owners face escalating annual maintenance fees, cumbersome reservations processes and drastic declines in the value of their investment. In fact, purchasing a resort timeshare from the developer frequently is compared to buying a new car – as in, ‘the minute you leave the lot, the value drops’.

Timeshare Issues

Value – Timeshares rarely increase in value, particularly with a huge resale market in which units often are priced at less than half of your original investment.

Fees – According to the American Resort Development Association, yearly maintenance fees currently average $880 and increase annually. Special assessments can present a very expensive – surprise, especially in storm-prone areas.

Owner Limitations – Your fractional ownership interest does not afford the same benefits as real estate ownership. The ability to make changes and the rules surrounding your occupancy pose strict limits on your freedom. Unlike traditional vacation home ownership, you cannot offset costs with rental income.

Liquidity – Cash is the supreme liquid asset; your timeshare is not! You have a very low likelihood of recovering even a portion of your initial investment, much less the various fees you have expended through your years of ownership.

Perpetual Liability – Most timeshare agreements are “in perpetuity” contracts, meaning that you – and your potential heirs – must pay maintenance fees and special assessments indefinitely. If you are neither gaining value nor generating income, your investment is a liability.

Where can you find the help you need to rescind your timeshare contract?

Our attorneys at Aaronson Law Firm welcome the opportunity to offer you our 80-plus years of combined legal experience to get your timeshare cancelled and preserve your credit.

Toll Free: 1-877-408-8790
Local: 407-644-1336

Please contact us today for your free consultation.

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