Timeshares were initially created for people who wanted to have their own holiday homes. These luxury vacation homes used to be exclusively for the rich until the timeshare industry boomed in the 1970s nearly a decade after it was first introduced by a ski resort developer in the French Alps.
When the concept of timeshares made its way to America it enabled middle-class Americans to experience luxury vacations at a price they could actually afford. Now, lots of people buy timeshares because they think their saving money on annual vacation costs and making an investment on a piece of property. However, this isn’t always the case.
When you buy timeshares, it’s important to understand that timeshares are not an investment. An investment is an asset, but timeshares are actually financial liabilities you are responsible for until the end of your timeshare contract. Buying a timeshare is a lot like buying a car. When you buy a car, the value of the car depreciates as soon as you drive it off the forecourt. Similarly, a timeshare loses value the moment you sign on the dotted line and the ink dries.
If you’re going to buy timeshares, make sure you understand what being a timeshare owner entails, it may be better for you to rent timeshare weeks instead. Buying a timeshare isn’t just the initial cost of buying one as it also includes ongoing timeshare maintenance fees as well as periodic special assessments. Taking into consideration the ongoing expenses of timeshare ownership, consider buying your timeshare via the resale market because it is almost always cheaper than buying timeshare directly from the resort developers.
If you buy a timeshare and decide that timeshare ownership is just not for you, then it may be time for you to cancel timeshare. Under certain circumstances, Mercantile Timeshare Claims can offer you an easy way out of your timeshare contract.