Let me tell you about timeshares. I’ve been researching “are timeshares worth it” lately because my parents just got back from one of those “free vacation” sales pitches. They almost signed up for one! The question of whether timeshares are worth it comes up a lot when people think about vacation planning.
A timeshare is basically partial ownership of a vacation spot. You pay to use a property for a specific time each year—usually a week. Some work on points instead, where you collect and spend “vacation points” across different resorts. Understanding how timeshares work and are they worth it is crucial before making any commitments.
What You’re Really Getting When Buying a Timeshare
When you buy a timeshare, you’re not just buying a vacation. You’re signing up for:
- A fixed week (same place, same time every year).
- A floating week (same place, different times).
- Points to use at various resorts in a network.
The timeshare pros and cons start with this basic structure – your ownership type affects everything about your experience.
I talked with a couple of friends who own timeshares, and they mentioned something important: unlike booking a hotel, timeshares come with ongoing responsibilities that stick with you for years.
The Good Stuff: Pros of Timeshares
- Potential savings down the road
Think about it this way: hotel prices keep climbing every year, but your timeshare locks in your main vacation cost. My neighbor Steve has had his Florida timeshare for 15 years and swears he’s saved thousands compared to what beachfront hotels cost now.
- Your vacation is already planned
There’s something nice about knowing exactly where you’re going. No endless scrolling through booking sites or fighting over destinations. You’ve got your spot.
- Trading power
Most big timeshare companies let you swap your week for stays at other places. I met a couple in Hawaii who own a timeshare in Colorado but hadn’t been there in years—they just trade it for tropical vacations instead.
- Rent it out when you can’t go
Can’t make it for one year? You might be able to rent your week to someone else. Not guaranteed money, but it helps offset those fees you’ll be paying regardless.
The Not-So-Good Stuff: Timeshare Cons
- That price tag hurts
Buying in costs thousands. We’re talking $10,000 to $50,000 upfront for many places. And if you finance it? Watch out.
- The fees never stop
The annual maintenance fees are the real kicker. They start around $500-1,500 per year, and—here’s the painful part—they almost always go up. Every. Single. Year.
I have a coworker who pays almost double the fees now compared to when she bought her timeshare ten years ago. And you pay whether you use it or not.
- Try selling it? Good luck
Unlike houses, timeshares drop in value faster than a rock. When I looked at the resale market, I found people trying to give away their timeshares just to escape the annual fees. Why are timeshare resales so cheap? It’s because most buyers quickly realize the ongoing fees and rigid use terms don’t match the price tag, so demand drops and supply skyrockets, driving resale prices down to near zero.
- Stuck in a routine
What happens when you want to try somewhere new, or your schedule changes? Even with point systems, you’ll face blackout dates and availability headaches.
The Money Reality
Let’s talk real numbers:
The initial cost might be $20,000. If you finance that at 12% interest (typical for timeshare loans), you’re actually paying about $34,000 over ten years.
Then add yearly maintenance fees. Starting at $1,000 and increasing 3% each year, you’re looking at another $11,500 over that decade.
That brings your 10-year cost to around $45,500 for about 10 weeks of vacation.
The worst part? None of this is tax-deductible like a regular home mortgage might be.
Is Buying a Timeshare a Good Investment? Is It Right for You?
Let’s be clear – most financial advisors would tell you a timeshare is not an investment. The timeshare’s worth often decreases over time. But as a vacation option, a timeshare might work if:
- You actually take vacations every single year.
- You enjoy returning to the same place.
- You have stable finances for ongoing costs.
- You’ve thought about how you’ll eventually get rid of it.
My aunt and uncle love their timeshare. They go to the same beach in Florida every March—have for 20 years. For them, it works.
Better Options?
Not sure about the commitment? Consider:
- Vacation rentals – I’ve had great experiences with Airbnb in the past year. Total flexibility, no long-term obligation.
- Travel clubs – Some offer similar perks to timeshares without the ownership headache. Are vacation clubs worth it? That depends on how often you travel and how much flexibility you want. They’re often cheaper and more adaptable than timeshares, but come with fewer guarantees for premium locations.
- Hotel loyalty programs – Free to join, and you earn points for stays anywhere in their network.
Bottom Line: Are Timeshares Worth It?
After weighing all the pros and cons of timeshares, what’s the verdict? Timeshares work for some people—typically those who love routine vacations and have the budget to handle rising costs.
For most of us, though? The math just doesn’t work out. That $45,500 ten-year cost could fund a lot of vacation rentals with none of the commitment. When asking “Are timeshare worth it?” the answer depends entirely on your vacation style and financial situation.