Timeshare Attorney Las Vegas
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The True Cost of Timeshare Ownership
When you need help with disputes about your vacation property, Timeshare Defense Attorneys can help. Learn more about The true cost of timeshare ownership here.
The Issue of Timeshare Ownership
Timeshare ownership remains a hotly contentious issue. High-pressure sales presentations highlight the pros yet conceal the cost of timeshare ownership, adding to the bad reputation of timeshare resorts.
Typically, superslick salespeople deliver highly professional presentations to potential timeshare owners who have been goaded to meetings with promises of free holidays, lunch, and gifts.
Pressure selling techniques cause unsuspecting potential customers to sign on the dotted line without adequately considering the actual costs. Wildy pessimistic projections are made about the future cost of holidays to persuade people to buy timeshare property.
Customers are persuaded to finance their timeshare ownership purchase without adequately examining their own financial position and borrowing costs. Often ongoing costs aren’t disclosed at the time of sale.
There is a legal right to cancel the contract with a full refund during the rescission period. However, it is difficult and expensive to cancel the timeshare contract after the rescission period has passed.
When considering a timeshare, be fully aware of the total costs of ownership. Timeshare Defense Attorneys are able to help with disputes regarding timeshares.
How Much Does the Average Timeshare Cost?
The American Resort Development Association (ARDA) estimates that the average paid for a weekly timeshare interval is $24,140. The resort will guide you to either make a down payment by borrowing money from a bank or take advantage of the resort’s finance option if you do not have the savings to cover this amount.
Unfortunately, banks typically do not lend money for timeshare deals due to the depreciation of timeshare properties. A personal loan could also be an option, but these are typically more expensive than other loans. Resort financing is usually very expensive for a limited time.
Regardless of how you finance your timeshare purchase, you will end up paying thousands of dollars in interest at the agreed interest rates. According to the American Resort Development Association, a 10-year loan has an average interest rate of 14%. After accounting for interest, the timeshare you purchased for $24,140 is closer to $33,796.
What Other Costs Must be Considered?
Several other costs must be accounted for before correctly understanding the cost of timeshare ownership. These costs vary depending on each contract.
The Cost to Get There
As a timeshare owner, you will need to travel to your timeshare every year. Whether you drive or fly, these travel expenses can add to significant sums, and you should include these costs in your calculations.
Property Maintenance Fees
Resort developers typically include fees to cover the maintenance of the investment property. This is contained in your timeshare agreement which will contain a clause about annual maintenance fees.
Firstly, this fee typically ranges from $1,000 to $2,000 per year for the first year, regardless of whether you actually go to the vacation property every year or not.
Second, keep in mind that your timeshare maintenance fee is due annually even if you have paid your timeshare mortgage and are a titled owner.
If you have a timeshare for twenty years, your initial maintenance fee contribution will be $1,000. The first-year annual fee will be $1,050, the second-year fee will be $1,102.50, and so on. It will not take long for these annual fees to exceed the value of your timeshare, as there is no cap on them.
Unforeseen Expenses
Some timeshare contracts oblige you to pay your proportional value for unforeseen events. These expenses can be significant and unpredictable. The last thing you need is to be presented with an additional expense you are obliged to pay before you go on holiday.
In cases where annual fees do not adequately cover property taxes, the shared ownership model might require additional contributions.
Unforeseen Events
How many people took their timeshare vacation in April 2020 at the height of the pandemic? Almost none. This amounts to a loss and is always risky when purchasing something as long-term as a timeshare option.
Costs to Bank Your Points or Change Your Period
If you need to change the period of your timeshare, wish to bank your points in the points-based system, or transfer your location to other resorts, transfer fee charges are applied. Sometimes you can buy points and add these to the points required for the transferred location.
The Cost of Selling Your Timeshare
If you ever wish to sell your timeshare, there will be costs related to the sale, including advertising to potential buyers. If you manage to sell your timeshare, the timeshare company will add a transfer fee and a recording fee to the transaction fee. It is scarce for timeshares to be sold for anything but a loss. This loss should also form part of the costing equation.
You may need a lawyer to assist you with a timeshare exit. If you do, consider speaking with a timeshare attorney in California. The first consultation is free, after which your case will be assessed before continuing.
Foreign Currency Costs
If you are visiting a foreign country, there are potentially foreign currency costs that may add to your vacation bill. Occasionally foreign currency can work in your favor, too, though.
Compare with Other Options for a Vacation
It is always worthwhile when buying a timeshare to compare what you are buying with other options available. It is a good idea to compare what it would cost to go on holiday to the exact location you are considering timeshare.
In most cases, timeshare companies claim savings that are simply not true. For a similar price to your annual maintenance fee for your timeshare property, you can stay at a nice condo for a week. When you could enjoy your timeshare as a rental, it may not be worth owning it.
So, before you enthusiastically commit to a timeshare contract, make sure that you consider all the timeshare costs and compare these to other options to make sure you are making the best choice.
If you have already committed to a timeshare and have changed your mind, you may turn to a timeshare attorney in Las Vegas to help you assess your options. Familiar with the timeshare industry, we are here to fight your timeshare battle for you and would love to assist. Call us today at (888) 565-8545!
