It’s quickly becoming common knowledge that a large majority of timeshare owners are looking for an exit strategy yet are struggling to find an option which is feasible. Timeshares are notoriously difficult to get out of once you’ve signed on the dotted line but many owners don’t realise this until it’s too late.
With many current owners frantically looking for an exit strategy, the industry is becoming awash with fraudsters and scammers looking to take advantage of those in desperation, however what’s becoming obvious is that people are still attending sales ‘meetings’ with unscrupulous salesmen and that thousands each year are still being talked into signing up to and spending their hard earned income on something which, quite frankly, isn’t even a poor investment…it isn’t an investment at all!
The Timeshare Consumer Association recently put together an infographic which looks at ‘The Truth About Timeshares and, in particular, 10 secrets which the salesman won’t tell you. Here’s a brief summary of their points:
1. It’s Cheaper To Rent Than Buy
Almost the exact opposite of what you find in the property market, it’s often far cheaper to rent than buy a timeshare. Why? Thousands of owners each year aren’t able to use their week and, as such, will rent it out at a lower cost in an attempt to at least cover some of the outlay.
2. Timeshares Are Commonly Mis-Sold
It’s not unusual for timeshares to be mis-sold, usually at some form of presentation evening alongside a seemingly very attractive incentive. Add to this the high-pressure sales tactics used by salesmen and it’s easy to see why so many are sold in a way which many would deem unethical.
3. They’re A Poor Investment
Timeshares are a depreciating asset and, in reality, aren’t an investment at all, despite what you may be told. Your timeshare will NOT go up in value and certainly won’t bring you a return on your ‘investment.’
4. Once Bought, Selling A Timeshare Isn’t Easy
As consumers become more aware as to the pitfalls, many are avoiding them like the plague. As such, anyone who has tried or is trying to sell their timeshare will tell you that it’s something far easier said than done. In fact, in many cases, selling is near on impossible!
5. There’s Many Hidden Risks
When you buy a timeshare, you’re buying part of a building at a resort. Did you know that if disaster strikes, you’ll be responsible for your share if it’s not properly insured? No, we didn’t think you did!
6. The Industry Is Full Of Scammers
As with many ‘financial’ industries, the timeshare industry is awash with scammers and fraudsters who will do anything to get you to party with your cash. Common scams revolve around ‘exit strategies’ which, in reality, don’t exist and won’t see you get rid of your timeshare, only thousands of pounds.
7. They Lose Value Straight Away
Most people know that a new car loses 20% of its value once you drive it out of the garage but many don’t know that a timeshare loses around 50% of it’s value as soon as you’ve signed on the dotted line. Some investment eh?
8. You Could End Up Holidaying In The Same Place Every Year
For most, holidaying is about seeing new places but with a timeshare you could end up in the same place year on year. You’ll be told it’s easy to trade weeks but, in reality, that’s not the case and to do so you’ll usually be asked to fork out more cash!
9. You’ll ALWAYS See The Best Rooms At The Presentation
Regardless of how interested you seem, when attending a sales presentation, you’ll always be shown pictures and videos of a resort’s best rooms. In reality, one you purchase could be nothing like it and you WILL end up feeling disappointed in what you’ve forked out on.
10. Getting Out Can Take Years
Many resorts don’t offer an easy ‘out’ even due to ill health or old age. Whilst there’s a number of ways to get out of a timeshare, it can take years. During those years, you’ll have to pay all annual fees which can amount to tens of thousands of pounds.
At the end of the day, for the money a timeshare costs, one or even two great holidays could be paid for, especially if using budget airlines and competitively priced hotels. Don’t be lured into the trap which the salesmen throw down and know the issues which the industry faces. Trust us, timeshares aren’t an investment and are almost guaranteed to see you left disappointed and severely out of pocket.