How much does it cost a Timeshare
People has been told during sales presentation that owning a Timeshare makes them owners of a property, and that is what people in general belive. Althought there are in fact some rare cases where that is correct (deeded property), that is NOT the general for most timeshares.
In general, what you own with a (non deeded) timeshare is a non-cancelable 40 years or so contract. Which yes you can rent, or sell, but since you are not a real owner of the property the resell value is always very low.
In general that contract gives you the Right To Use 7 nights in the resort every year, in exchange of a mainteinance fee that you are obligated to pay every year for 40 years!
Since none really wants to spend it’s holidays in the exact same place for the following 40 years, timeshares usually need to be accompained by a membership of a Timeshare Exchange Company, which of course has a membership fee, and an exchange fee.
So, how much does a time share cost?
Lets remove the ads and the fancy words, what you really buy is resort nights at bulk:
7 days for 40 years are: 280 nights paid in advance plus annualities.
Lets do the math. I’m going to take as an example the info they gave me ina recent sales presentation in Vallarta:
-Upfront payment 10,800USD (that is once they reduced 40% off the original price).
-Issue of the contract 540USD
Now what they didn’t tell me untill I asked for:
Every year you have to pay:
-Mainteinance: 350USD
-Interchange Company membership fee: 75 USD
-Exchange fee: 160USD
So the total you have to pay is: 10,800+540+40x(350+75+160)=$34,725USD
I did stay on that resort for $139usd, so for the $34,725usd I can get: 250nights!!!!!
That means that in real terms I’m paying 250nights and I get 280nights in return
That is 10% discount over the retail Price!!!! for buying 280nights bulk paid almost in advance!!!!
That is just insane.
Please do the math before you buy a Timeshare
