Are Timeshare Fees Shrinking Your Pot of Gold?
Owning a slice of vacation heaven is a dream cherished by many travelers. They envision a haven where they can return year after year, crafting unforgettable moments with loved ones. To turn this vision into reality, they opt for a timeshare. This scenario might ring a bell for quite a few.
Based on the 2018 State of the Vacation Timeshare Industry report by the American Resort Development Association (ARDA), the average price for a timeshare interval stood at $22,180. This figure represents just the initial cost. However, many are unaware of the additional financial commitments that come with timeshare ownership. Here are some key expenses to consider:
Ongoing Maintenance Fees: A Closer Look
A common practice among timeshare resorts is the imposition of an annual maintenance fee on owners. This fee is generally allocated for expenses such as taxes, utilities, and upkeep of the property. It’s a recurring charge, payable each year, irrespective of whether the property is used or not.
The ARDA’s 2018 survey highlighted that the average annual maintenance fee was around $980. The fee varies based on multiple factors, emphasizing the importance of thorough inquiry prior to purchase. Prospective buyers should seek clarity on what the fee encompasses, its potential increments, and if there’s a cap on these increases.
Property Taxes: Understanding Your Obligations
Although property taxes are usually included in the annual maintenance fee, there are instances where the fee doesn’t cover the full amount of property taxes due. In such cases, owners are liable for the shortfall. The location of the timeshare can influence property tax rates, which may escalate annually, adding to the financial burden.
Assessment Fees: Preparing for the Unexpected
Timeshare resorts and properties periodically undergo significant upgrades or repairs, leading to additional costs for owners through assessment fees. It’s crucial for buyers to comprehend how costs for major renovations or repairs are allocated before committing to a timeshare. These assessments can be unforeseen and substantial, potentially amounting to thousands of dollars.
Travel Costs: A Significant Consideration
While not a direct fee, travel expenses are an essential factor in the overall cost of timeshare ownership. For those whose timeshare is a manageable drive away, travel costs may be minimal. However, for owners who need to fly to their destination annually, travel expenses can quickly accumulate. Factors such as family size, distance, and travel seasonality (with peak times attracting higher fares) must be taken into account.
Prospective timeshare buyers are advised to thoroughly educate themselves on the true cost of ownership. It’s imperative to ask detailed questions and obtain clear responses regarding annual fees, property taxes, and assessment fees before making any commitments.
This article serves purely for informational purposes and should not be construed as legal advice.
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Read more articles about Timeshare Fees:
https://finnlawgroup.com/cost-to-get-out-of-a-timeshare/
You decide, is it fair for Timeshare Associations to Double Maintenance Fees?
