Is Timeshare Still Ideal? What to Know About It


Timeshare as ideal investments

  • Despite negative press, the timeshare industry saw a 7% increase in sales in 2020.
  • Timeshare offers flexibility for vacationers without the burden of year-round maintenance.
  • Research partnering companies, evaluate rental options, and understand resale markets before investing.
  • Investors should remain informed on costs and fees and avoid scams to ensure a profitable experience.


Over the years, timeshare has been a popular investment opportunity for people looking for a vacation property without the headaches of full-time ownership. Despite some negative press and skeptical opinions, timeshare is still a viable investment option for many individuals.

According to a study by the American Resort Development Association (ARDA), the U.S. timeshare industry saw a 7% increase in sales, with $10.5 billion in sales volume. Additionally, the occupancy rate for timeshare properties was 80.8%, which has steadily increased over the past decade.

One reason for the continued popularity of timeshare is the flexibility it offers. Unlike traditional ownership, timeshare allows individuals to use a vacation property for a set period each year without the responsibility of year-round upkeep and maintenance. This can be especially beneficial for those who want a vacation home but cannot commit to the financial obligations that come with full-time ownership.

However, diving into timeshare will require preparations. Here are a few steps to consider when researching timeshare opportunities:

Research Partnering Company

When considering an investment in a timeshare property, it is essential to thoroughly research the partnering company to ensure a positive experience. This includes studying the property itself and understanding the reputation and practices of the company facilitating the sale.

Researching the partnering company can provide insight into its history and track record with timeshare sales. It can also reveal any negative reviews or legal issues that may signal potential problems with the investment. By evaluating the company's financial stability and its procedures for maintenance and repairs, investors can make an informed decision about their investment.

In addition, it is essential to understand the terms of the agreement when purchasing a timeshare property. This includes the specific details of the property, such as the location, amenities, usage restrictions, and financial obligations associated with the investment. By researching the partnering company, investors can ensure that the terms of the agreement are fair and that all potential fees or expenses are disclosed upfront.

Investors should also know the differences between traditional timeshare and fractional ownership. Fractional ownership allows for more flexibility in usage and can be a better fit for some investors. However, it also may come with higher fees and less predictability regarding availability.

Learn How to Profit from Timeshare

Investing finances into timeshare

The profitability of timeshare investments is crucial for those considering investing in such properties. While timeshare investment offers numerous benefits, such as flexibility and affordability, its profitability primarily determines its viability. Here are some best practices to understand the importance of profitability in timeshare investments:

Evaluate the Market

Before investing in a timeshare, investors should evaluate the market and identify where the demand lies. Research on regions with high tourism activities and growing populations since such areas often attract more timeshare buyers. Additionally, understanding the general trends in the timeshare industry will help investors make informed decisions.

Consider Rental Options

Investors should consider renting out their timeshare properties when they don't intend to use them. Renting out a timeshare can generate revenue that can offset ownership costs. However, investors should understand the laws that govern renting out timeshare properties, the fees associated with renting, and the rental process.

Understand the Resale Market

Understanding the resale market is essential for investors who may need to sell their timeshare investments. Timeshares are not known for their high resale values, and some investors may struggle to find buyers for their units. Therefore, investors should understand the resale market and the various factors that determine the resale value of one unit, including location and ownership restrictions.

Remain Informed on Fees and Expenses

Timeshare properties come with various fees and expenses, including maintenance fees, annual membership fees, and property taxes. Investors should understand the costs associated with owning a timeshare property and evaluate the fairness of the charges. Also, investors should identify contract clauses that may incur additional fees or unexpected expenses.

Avoid the Troubles

Keeping up with timeshare finances

Unfortunately, timeshare investments have been associated with scams in the past. Investors should be aware of common scams and avoid companies or individuals offering unrealistic investment returns. Also, investors should work with legitimate timeshare title transfer companies that can assist with the process of transferring a timeshare property's title to someone else.

Another worry is the potential for hidden costs associated with timeshare ownership. While specific fees may be necessary, investors should be wary of companies charging extra fees not outlined in the original purchase agreement. Researching the company and reading reviews will help identify any unexpected expenses.

Final Thoughts

To conclude, timeshare is still a viable investment option for those interested in owning a second home without the hassle and expense of full-time ownership. Investors should research partnering companies, evaluate rental possibilities, understand the resale market, remain informed on costs and fees, and avoid trouble by working with reputable parties to ensure an enjoyable experience. With these steps in mind, timeshare investments can become profitable for many individuals.

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