It is expected that timeshare resorts will be back to their old trick again, while desperately trying to bring in new business after a struggling year. It is important to note that not every timeshare resort is bad, there are many good resorts and some great travel clubs offering huge holiday discounts at the moment. However, we are writing this post to inform readers that timeshare is not an investment!
The EU Directive states that timeshare weeks, points & fractional ownerships should never be sold as being an investment. They are not re-sellable assets. If buying a holiday home is something that you are interested in, buy from a real estate agent.
Why timeshare is not an investment?
- You do not own the property. The maximum contract length cannot exceed 50 years.
- You cannot use a real estate agent to show the property to prospective buyers as offsite agents will not be welcome onsite.
- The commission on a timeshare sale is between 14% – 20%, whereas commission on real estate is around 1.5%.
- Decorating and renovation work is out of control of the timeshare owner.
- Costs to maintain a timeshare property can be much higher that it would cost to stay at most timeshare resorts via hotel booking websites.
We are contacted everyday by timeshare owners who want to break their contractable agreements. Many of whom do not even want any money back; they simply want to stop paying the annual maintenance fees.
In Europe it is illegal for timeshare resorts to sell a holiday ownership product based on the property being a re-sellable asset. If you have been sold a timeshare and informed, at the time, that you could later sell the timeshare at a later date for a profit, you could be entitled compensation.
Speak to a specialist today. The information we provide is free of charge, and there is no obligation to use our services if you decide to terminate your timeshare agreement or claim compensation.