Timeshares have change into increasingly common — and expensive.
About 10 million U.S. households own a timeshare, and the typical price of certainly one of these vacation homes rose to $23,940 in 2023, a greater than 30% increase since 2018, in line with the American Resort Development Association. While the industry has grown more popular, it has come under fire, as owners often struggle to exit their contracts.
“I could have retired if I had my a refund from this, but I am unable to retire straight away due to this example that I’m in,” said timeshare owner Sheila Wagner.
The timeshare industry is valued at greater than $10 billion. But one study found that as many as 85% of buyers regret their purchase. Many house owners turn to the resale market to get out of their agreements, but even essentially the most coveted properties lose value after signing.
“Our general rule of thumb is most timeshares sell for between 0% and 10% of their original retail purchase price, and the vast majority of that focus is unfortunately on the 0%,” said Brian Rogers, owner of Timeshare Users Group, a consumer advocacy and timeshare resale website.
Some timeshare firms will take back the deed once a buyer has paid off their entire contract, but that shouldn’t be at all times an option. Even after the timeshare is fully paid off, the owner is accountable for rising annual maintenance costs. The national average was $1,170 in 2022, in line with the ARDA.
“There are loads of timeshares where the upkeep fee is $1,200 and the people cannot rent them for $100 an evening,” said Jeff Weir, independent timeshare journalist and former RedWeek chief correspondent.
The Higher Business Bureau has received about 3,000 complaints on two of the biggest timeshare firms, Wyndham Destinations — under Travel + Leisure — and Hilton Grand Vacations, prior to now three years.
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