Why Anything is Better than a Timeshare
Siting down with those unethical and morally challenged timeshare salesman may leave you with a picture that for a moment makes sense, but note that their picture is chalk full of lies.
Let me paint you a different picture, one with financial clarity that is morally sound and can offer an actual investment that makes sense.
Three scenarios: one with a prepaid vacation or timeshare, one with a good old fashion vacation, and the third is financial investment.
Timeshare, Otherwise Known as Prepaid Vacation
Timeshares effectively are prepaid vacations that ultimately really benefit the Resort owners in that they resell one unit 52 times over.
Timeshares can have large upfront costs that most likely have a high interest finance rate spanned over a decade. Despite what the salesman said they are not an asset, as you own nothing but a liability shared amongst the other so called owners. Also there is so much inventory that you cant even sell it.
Wait! Not done yet as you have annually fees that keep increasing for the rest of your life whether you use the property or not. Not to mention that you may not be able to use your timeshare when you want it.
Now to top all that off, you are locked into a contractual obligation that may be in perpetuity and passed down to your children. Refuse to pay and the Resort will foreclose and purposely destroy your credit rating.
All this sounds like a migraine headache not a vacation.
Vacation of Your Choosing
Here is a thought! Why not just book your vacation, as you want, when you want, and where you want.
Have the freedom to pick and choose the locations and days. Perhaps you do like going to the same local every year. Well you can and you can do it for less. Let me explain how.
Based on American Resort Development Association (ARDA) study:
Lets do the simple math:
Take the average initial fee you paid: $22,180 per interval
Now lets look at the maintenance fees over 10 years: average fee is $980 annually and constantly increasing. (Lets not even consider other fees such as assessment fees)
Thus there is a total of $31,980.
Now divide that with the usage of one week per year, thus it would cost you $3,198, which translates to $319.80 per night. This would give you 70 nights of stay.
If you were to rent a place of your choosing for $250 a night this would give you 128 days, thus 58 more days with no contract, or additional fees.
Of course none of this takes under the consideration of borrowing the money to initially pay for the timeshare:
Again according to ARDA the average interest rate for financing a timeshare is 14%. Take this over 10 years and your interest you would owe is an additional $31,052.00 plus the initial amount you borrow for a grand total of $53,232.
This makes absolutely no sense what so ever. Over ten years with as usage of one week per year you are paying $760 a night.
Encourage Foreclosures and Distressed Buy Backs
Now lets see if you were to throw that money into a Mutual fund:
Again to be conservative and not give you a complete heart attack we will use the initial cost of $22,180 with no high interest rate financing.
Take this average cost and lock it into a Mutual fund of 10% over 10 years. Add the $980 maintenance fee yearly over the ten years.
Over 10 years:
Your initial investment of $22,180.00 plus your yearly investment of $980.00 at an annualized interest rate of 10% will be worth $76,018.23 after 10 years.
Over 20 years:
Your initial investment of $22,180.00 plus your yearly investment of $980.00 at an annualized interest rate of 10% will be worth $221,760.53 after 20 years.
Over 40 years:
Your initial investment of $22,180.00 plus your yearly investment of $980.00 at an annualized interest rate of 10% will be worth $1,684,301.39 after 40 years.
Over 40 years you would get close to $1.7 Million. All that you would get with a timeshare for 40 years is a financial liability that you can’t sell.
- Stay at any Resort of your choosing with no hassle, stress, interest rates and fees.
- Rent someone else’s timeshare. They are always advertising them on TUG, Air BNB, Craigslist’s etc.
- Join a vacation Club an get access to an abundance of great deals all around the globe
- Resort Memberships
- Fractional ownerships
Notice that Timeshares are not on the list and that’s because they just don’t make any sense what so ever. Timeshares only make sense to the Resort owner like Disney, Wyndham etc as effectively stealing all your hard earned money and tricking you into it.
So now that we did the simple math and gave you some perspective, perhaps you may need help with getting out of your timeshare. There is no better company to help then Easy Timeshare Relief. Trust worthy, guaranteed, 100% legal, and bar none least expensive on the market as we are here to help not take further advantage of you.
One thought on “Why Anything is Better than a Timeshare”
Good theme !