How Much Should I Pay for My Timeshare?

While mulling a timeshare ownership, undoubtedly, the most difficult question you must have encountered is - "How much should I pay for my timeshare?" Several factors would have to be taken care of before coming up with a best-fit answer to this question, as there's no "one size fits all" answer.

How much is an average timeshare?

Simple though it may sound, the answer might not be as simple because timeshare prices vary greatly according to factors, such as time of the year, location, resort amenities, size of the unit, etc. A set of legal documents known as the Codes, Covenants, and Restrictions (CCRs) stipulate timeshare programs. CCRs establish the rights of property owners and govern how the timeshare will be managed.

Before you buy, read the CCRs carefully to completely comprehend the requirements relating to fees and charges. Most people often tend to get bogged down by the multiple payment tiers and are left asking 'how much should I pay for timeshares?' Payment for timeshares usually consists of an up-front purchase cost and an annual fee to cover property maintenance. The up-front purchase cost will depend on the following set of factors:

. Where's the timeshare located?
. Whether the timeshare is deeded in perpetuity, or only for a predetermined number of years
. What is the resort's rating?
. What are the available amenities?
. Is the resort a part of a well-known status group of resorts (Marriott, Disney, or Four Seasons, for example)
. What is the season of the week(s) in question?

You would also need to keep in mind what you would be spending on vacation accommodations without timeshare. For instance:

. The average number of nights you pay for hotel/motel accommodations annually
. How many years can you reasonably expect to continue to vacationing, barring an unforeseen circumstance like death
. The average annual rate of hotel/motel inflation

Besides the purchase price, you will also be required to pay an annual maintenance fee, which includes costs of staffing, operating and maintaining the resort. A portion of this maintenance fee is kept aside in a reserve fund that pays for major repairs and revamps. The money is allocated to the reserve fund based on a reserve study, which calculates the life cycle of major resort components, such as appliances, carpets, climate-control system, furnishings, parking lot pavement, swimming pool, etc.

Your resort will send you an annual bill that will include both your maintenance fee and your portion of the property tax, since timeshare resorts are real estates, like a house or residential condominium. Some resorts also impose a separate utility surcharge on owners because the local law requires collection of bed tax, occupancy tax, or transient tax at the same rate charged by hotels and motels in that jurisdiction. Hey! Don't get dissuaded, just ensure that you are digging deep into your pockets for all the right reasons.

Introduction To Timeshares

What's the difference between timeshare and vacation ownership?

Can I sell my timeshare if I don't want it anymore?