CAREERS

The Result of a Poor Timeshare Investment. Is the Purchase Worth it?

The Result of a Poor Timeshare Investment. Is the Purchase Worth it?

The timeshare industry is a booming business. Today, plenty of timeshare owners enjoy vacationing for a fraction of what a second mortgage would cost. At the same time, a large percentage regret the purchase and view it as a bad investment. Because of this, more and more timeshare owners are looking to get out of their contracts every year. You would think profits would suffer due to this increasing trend – but, even when complaints were peaking, the industry brought home close to $10 billion in 2017.

This successful endeavor has continued to thrive due to a persuasive “bait and switch” sales model that prioritizes occupancy. Every room has to be booked and sometimes overbooked in order to guarantee maximum profits. Timeshare companies believe their greed is justifiable because the vacation rental market is slowly taking over a large percentage of their market share. We can only assume they’re focusing on sales over customer retention because they know it’s only a matter of time before hard-selling is no longer effective. I guess until that time, they don’t plan on changing anything. As sales teams continue to master the art of deception, timeshare owners continue to bite on presentations that seem too good to be true.

When it’s all said and done, impulse buys can leave a lot of people looking for relief. Instead of focusing on the reasons why timeshare owners want to get out of their contracts, let’s take a look at what the result of a poor timeshare investment can be.

1. A Travel Void Arises

The most common result of a poor timeshare investment is that people still have a desire to find an escape away from home. The further along they get with timeshare ownership, the easier it is for them to see that the property isn’t fulfilling the need they initially set out to satisfy. Their inability to use the timeshare during preferred vacation days is a big reason why that void still exists. Aside from availability, the amenities and promoted activities have now created an expectation that timeshare owners begin to covet over time.

What’s really intriguing about the timeshare industry is that most people attending the sales presentation have no intention to buy. This means, the desire to vacation wasn’t necessarily present at the time. Moreover, when they decide to make the purchase, many new timeshare owners don’t even know exactly what they’re agreeing to. They’re too distracted by the possibilities to understand the actualities of the “deal.” In the end, the features and benefits get them excited about the idea of routinely vacationing.

Even when timeshare ownership loses its appeal, owners may still feel inclined to continue pursuing that experience. Just like any other poor investment, money wasted forces them to make it work. Timeshare owners normally won’t give up on these aspirations just because the commitment they made wasn’t reciprocated by the resort. If anything, it ignites the pursuit.

Think of the Travel Void Like a Bad Relationship

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The desire to fill this void is kind of like dating. You put yourself out there to experience something magical and in the end, the other person is only interested in their own agenda. If you’ve invested a lot of time into the relationship then it can be difficult for you to end it. But, once you let go, human nature tells you to immediately fill that void. You’re tired of the “what could have been.” In order to stop thinking about the possibilities of the previous relationship, some people might even double down on their dating efforts – or their overall investment. It’s just like the way plenty of timeshare owners cope with their bad experience.

This can be dangerous because it may cause some to obsess over righting their wrong. It’s easy for timeshare owners to believe “upgrades” and other forms of eye candy will fix the problem. They fail to consider the consequences simply to bury the previous mistake.  Multiple failed attempts might make most hesitant to try again, but it doesn’t mean the desire to fill this void goes away. Especially if a timeshare owner feels obligated to make up for the impact the loss has had on family or personal relationships. The desire to provide the vacation home everyone was anticipating is probably the most disheartening result of a poor timeshare investment.

2. An Increase in Debt

If we were to rank the most devastating results of a poor timeshare investment, the financial aftermath would easily be number one. Hundreds of thousands of timeshares are owned by people who can no longer afford it. People end up wanting to get out of their timeshare because they simply cannot continue chasing a return by spending more money than they originally budgeted for. Some timeshare owners are in denial about how much they’ve put into making it work. But, when they’re forced into purchasing hotel rooms just so they can go on vacation, things have gotten out of control.

I’d be remiss if I didn’t credit the effectiveness of the timeshare sales presentations for their contribution. Upfront costs for a timeshare are extremely high and sales teams do an immaculate job at persuading prospects this is an affordable investment. According to certain associations that monitor the industry, the typical timeshare week costs anywhere from $20,000 to $40,000. On top of that, each timeshare owner is responsible for about $200-$1000 in maintenance fees every year.

In order to show you how ridiculous maintenance fees are; A resort that books 100 rooms for 30 weeks a year with $600 in fees can deposit $1.8 million. What’s worse is they can charge more if they want or feel the need to.

Timeshare companies reserve the right to revise these annual fees when they see fit. Additional costs normally skyrocket after natural disasters or during resort buyouts and mergers. Moreover, many timeshare owners use credit lines to keep up with payments. When you factor in interest rates for mortgages and credit cards, the unexpected fees start to add up. Being on the hook for these expenses causes many to verge outside of their initial budget.

This is a big commitment for an industry dominated by middle class America. Would you spend that much on a car you could only drive for one week every year? Even if it was a Lamborghini, I think most of us would balk at the proposal. The fact of the matter is, millions of timeshare owners are initially led to believe owning a timeshare is a worthwhile investment. As they get further away from their expectation, it’s easy for them to dish out more cash to to satisfy the desire they initially invested in. Just like the first result in this article. Refusing to see the reality of their situation only puts them in a bigger hole.

When it comes to being realistic, we have to understand that timeshare ownership is an expense, not an investment. Eric Mohrman of USA Today encourages us to look at it purely from a financial standpoint. “An investment should generate income, increase in value or, in the best cases, do both. Timeshares don’t do either.” At the end of the day, there’s no equity involved in a timeshare purchase. Timeshare owners are simply buying real estate interest. Instead of experiencing a return over time, the timeshare diminishes in value. In other words, if you sell the property, you’re going to lose money. A lot of it. Even claiming capital loss as a tax deduction requires you to jump through some hoops with the IRS.

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Although a major loss is anticipated when re-listing the property, many believe this is their only option to exit timeshare ownership. Far too many people pursue this resolution without knowing the resale market is oversaturated with options. Over time, they realize the small percentage they hoped to recoup is nothing but a pipedream and the resale “opportunity” costs are eventually added to the overall expense of timeshare ownership.

This is normally where debt catches up to the consumer and desperation sets in. Losing more money by trying to rent or sell causes them to become desperate for a way to get out. Unfortunately, many timeshare relief companies prey on their vulnerability as well. Time and time again, owners end up right back where they started. If they would have known the overall expense would be so high, I’m sure a majority of them would have avoided the investment altogether. Unfortunately, once they sign the contract and agree to upgrades, they’re financially obligated to continue paying or further damages loom.

Walking Away From a Timeshare Can Be Very Costly

Debt can be a burdensome result of a poor timeshare investment. It can get to a point where timeshare owners literally can’t make payments anymore. If they happen to default on their mortgage payments, foreclosure normally follows. Even when the timeshare mortgage is paid off, defaulting on other financial obligations (like taxes, maintenance fees or special assessments) also triggers a foreclosure. If this occurs, they can expect further financial consequences on top of their accumulation of debt. They’ll have trouble taking out another loan while experiencing higher interest rates and a damaged credit line. If you’re not careful, the result of a poor timeshare investment can be extremely costly. You could end up paying for the decision for years to come.

3. Personal Grief

Have you ever despised your employer? Does the poor work environment carry over into your personal life? In most cases, it does. Similar to the way these conditions affect the home, bad investments can create emotions that impact people’s everyday lives. Over a long period of time, it can become difficult for some to embody a positive outlook when they continue to experience disappointment or deception. Not only can this affect their ability to trust, but also cause them to become extremely skeptical. A negative outlook can have a big impact on current relationships as well as future interactions. When timeshare owners feel defeated and trapped in an investment, it’s easy for them to act sour towards others. The self-pity, resentment and grief can really alter their perspective.

I wonder how many relationships or marriages have suffered to the tune of a bad investment. The blaming game can be enough of a distraction in itself. Taking a loss can be difficult. Sometimes, multiple people are involved. The demeanor of a person can change when a beneficial resolution isn’t in sight. Especially when the overwhelming debt has handicapped their ability to enjoy life.

In addition to the psychological disadvantage, many timeshare owners struggle to afford some of the things they’ve grown accustomed to over the years. They might even be forced to make sacrifices just to keep their head above water. Whether it’s social events or personal purchases, their inability to enjoy these things can also create a sense of bitterness. Having to give up personal interests in order to pay for a regretful purchase can be a recipe for disaster.

What Did I Get Myself Into?

Another result of a poor timeshare investment is being forced to constantly deal with high pressure sales and marketing tactics. Whether timeshare owners are disappointed or content, resorts are always looking for ways to increase their revenue. Even when they pursue ways to get out of a timeshare, submitting their information places them into new sales campaigns that never seem to end. Many consumers don’t realize that a lot of these timeshare programs actually work together. No matter how many times you tell them “no” someone is always countering your disinterest with another shiny object. When salesmen don’t respect your wishes or listen to your responses, general annoyance can turn into frustration. This causes a majority of timeshare owners to believe every offer is a ripoff or scam. Their negative outlook grows colder.

Purchase Skepticism Can Result

An experience like this can also affect large purchases outside of the timeshare industry. Timeshare owners might begin to assume the worst in other scenarios that aren’t relevant. Car salesmen or real estate agents could easily be misjudged prior to any form of interaction. Online purchases might get overly compared and contrasted. Legitimate “deals” might not have the same appeal anymore. A bad investment can easily turn into something bigger than a bad attitude.

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For the most part, travel and hospitality companies have taken the biggest hit. Timeshare owners that regret their decision struggle to trust these purchases as well. From our perspective, the timeshare industry is single handedly destroying tourism in many destination cities. The fear of being bamboozled can detour some from truly exploring the world and participating in other expeditions. It’s truly sad to see.

The personal grief experienced by timeshare owners is the main reason we officially launched our company back in 2014. We were tired of seeing people get taken advantage of while timeshare companies thrived. Although some timeshare experiences are amazing, there are plenty that consistently fall short of consumer expectations. Our commitment to helping timeshare owners with an ethical approach has earned us an unmatched reputation in the cancellation industry.

We’re the only company that offers guarantees that are actually backed by 100% success rates. If you feel like you have nowhere to turn with your timeshare, we’d love to point you in the right direction. At the end of the day, we want to make sure your end result to a poor timeshare investment is a positive one.

Check Your Eligibility

View our eligibility form below to inquire about our qualifying for our timeshare cancellation program. This is the first step of learning how to get out of a timeshare contract.

Are Timeshares an Archaic Thing of The Past?

Are Timeshares an Archaic Thing of The Past?

This article is written from the perspective of Susan Rodgers, who’s been featured in multiple lifestyle publications.

When searching for the perfect timeshare to spend your vacations, do you ever ask yourself, “Are Timeshares an Archaic Thing of The Past?” Most people would say absolutely yes! Most people would say absolutely yes! With the rise of vacation clubs, Air BNB, hotel and airfare apps, traveling these days is easier and less costly than ever before! “Timeshare” is no longer what it once was. So, why burden yourself with all the baggage that goes with timeshare? Yes – pun intended!

The Reality of Purchasing a Timeshare.

According to Hospitality.net, 32% of timeshare owners wouldn’t purchase another timeshare and nearly 90% of them regret they did so in the first place. They now wonder how to get out of their timeshare ownership so that they can grasp a new modern and affordable way to explore the world. They can also sleep better at night once they find a way to dump their timeshare and not worry about being bombarded with ongoing fees and unexpected expenses due to being an “owner” of a timeshare.

Not only have timeshares lost their value and appeal, they’re just not logical anymore. Why waste money on the cumbersome costs associated with a timeshare once you own one? It costs thousands and thousands of dollars to make the purchase before you’ve even traveled anywhere! If you’ve got a few thousand dollars to spend on a dream vacation (like that weekend in Fiji, or that Alaskan cruise), it’s easier to research your options (via your phone or computer) and invest in a one-time trip! Today, it’s more affordable than ever to travel to exotic places across the world! Plus, you’ve got no rules on when you can go and where you can stay. You can plan ahead or be spontaneous and do what you feel like doing at the time, instead of being given a small option of places to go.

But the reason you’re probably even reading this is because you don’t know how to get rid of that vacation dinosaur of the past, your timeshare. many of you realize that once you are able to put it behind you, then the real dream of adventure in travel can begin. Timeshare needs the boot! It’s obsolete. This makes those who prey on travelers to purchase a timeshare even more desperate to sell you one.

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The Manipulation of Timeshare Sales.

I’d also like to address the whole nightmare of the manipulation on how you were burdened with this thing in the first place, sign here, sign there, free this, and free that, all under the auspices of a lavish free meal or adventure. Remember what your parents or grandparents used to say, “There’s no such thing as a free lunch”? I hate to say it; but they’re right! You’d be better going online for a half price meal or an adventure on Groupon, rather than obtaining it through some timeshare salesperson who will lie, cheat and use whatever malicious tactic they can to get you to sign the dotted line and spend ridiculous amounts of your hard earned money on a mainly useless piece of property.

Once You’ve Taken the Bait, Promises Aren’t Kept..

The real true nightmare is once you’re saddled with a timeshare, people often start by dropping twenty, thirty thousand or more for one week a year to participate in their timeshare – if they are even lucky enough to get the dates they hope for. Then there are the mandatory maintenance fees, taxes, the ongoing property maintenance fees if something goes wrong at a property you “own”. Yes “own.” If you really own it, then why can’t it be a tax deduction like your other property taxes? You own houses and cars, but do you really own a timeshare?

These so called deeds or deeded properties are not worth the paper they are supposedly written on. Oh yeah, just think, in the next couple of years, you could own a timeshare in the devastated terrain of Puerto Rico or the volcano ravaged areas of Hawaii – you could easily receive a ten thousand dollar bill or more for repairs any day now. How crazy! You shouldn’t have to spend all that hard earned cash for one or two weeks of a vacation. It’s ridiculous and you know what? It’s wrong in all aspects. It’s got to stop. I haven’t even broached the whole “perpetuity scam” of how your timeshare will burden your loved ones you might want to pass it on to. Don’t do it – get out while you can.

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How We Help You Dump Your Timeshare Mortgage.

Our company has not only had ongoing success and one of the world’s most renown source of legal teams behind us to get you out of timeshare forever, it’s also surprisingly affordable. We don’t rely on gimmicks and expensive marketing plans that make your costs higher for our services to get that timeshare monkey off your back; you’ve already spent too much money on your archaic timeshare with its draconian rules to ownership. Yes, draconian (origin: 7th century law of code with harsh laws which prescribed death for every offense of breaking those rules) or in modern times: harsh, a draconian legal code. I can’t think of a better word in the English language to describe the rules of timeshare ownership beside appalling and downright evil!

I haven’t even probed so many of the other burdens of timeshare ownership or the details on how these charlatans got you to purchase it in the first place, but believe me I’ve got a lot more to say about it. Stay tuned…my husband and I are now off to Italy to stay with a family we found on Air BNB and use our airline points to fly there for free. Arrivederci!