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What Are Timeshare Maintenance Fees? For the timeshare owner, these annual fees are collected by the timeshare management company yearly (or possibly monthly) for the stated purpose of covering the normal costs of maintaining their timeshare property.
How much does a timeshare cost? The average cost of a timeshare is $22,942 per interval, according to 2019 data from the American Resort Development Association (ARDA). Annual maintenance runs $1,000, on average, but can vary based on the size of the timeshare, ARDA reports.
Is a timeshare a one time payment?
The basic timeshare concept is simple: you pay a one time purchase fee that entitles you to a week every year (or sometimes every other year) at a resort. Due to the upfront costs, and the fact that the majority of timeshares do not appreciate like normal real estate, the cost savings is in future vacations.
While timeshares can be an exciting and perhaps cost-effective way to travel on a regular basis, they often have both up-front and on-going costs that must be weighed.
Frequently, RTU timeshare contracts do have an expiration date. For example, you may buy into a timeshare that gives you the right to use that property for the second week in June each year for five years. After that five-year deadline, you may be able to renew your contract or opt out of the property.
How much does it cost to maintain a timeshare?
The average annual maintenance fee is $1,000. But the surprise comes when you find out the fees go up every year, often much faster than the normal inflation rate. The latest numbers say the increase averages around 2% a year.
However, some timeshare contracts include a specific clause that limits future fee increases. Sometimes, the annual fee does not cover property taxes, so share owners would then be responsible for those costs, as well.
A timeshare is a vacation property arrangement that lets you share the property cost with others in order to guarantee time at the property. But what they don’t mention are the growing maintenance fees and other incidental costs each year that can make owning one unbearable. How Do Timeshares Work?
Can you get a loan for a timeshare?
If you don’t have that money saved already, you’ll probably be looking for a loan (which you shouldn’t do anyway). But banks won’t give you a loan to purchase a timeshare. That’s because if you default on their loan, they can’t go and repossess a week of vacation time!