How to Break Down a Timeshare's Costs

When purchasing a vacation timeshare, it is imperative to understand exactly what you are paying for. Be sure to do your research before you sign anything, as reputable companies will give you an itemized list of what exactly your payment covers like maintenance fees and other expenses.

Instructions

Difficulty: Moderately Easy

1. Research rates. They vary depending on what type of timeshare you are looking for (high end, family, resort). Be sure to figure out how much you are willing to spend for a week of vacation. Then compare this to how much the timeshare's cost will be.
2. Pay maintenance fees. Maintenance fees can vary just like the location of the resort or the amenities offered. These fees cover running costs such as maintaining amenities like the pool, golf courses and tennis courts.
3. Include travel costs. Some timeshare companies and developers include the cost of travel to the destination within the overall fee. If this is true for your potential timeshare, be sure to compare the cost of travel expenses (airfare, car rentals) to make sure you are not paying more than is necessary.
4. Look at the cost of the timeshare as an investment in future vacations. Roughly, a $10,000 timeshare will break even in about 10 year's time.
5. Exchange a timeshare. Some timeshare resorts will allow the purchaser to pay a fee and exchange the timeshare purchased for one in another location. This allows the buyer to experience more than one vacation destination.

Tips & Warnings

• Do your research before purchasing any kind of timeshare. You should get an itemized break down from the seller that describes precisely what you are purchasing.
• Talk with other people that have purchased timeshares to get a general understanding of how much it will cost and look on the Internet to see if comparable timeshares are selling at about the same rate.
• Investigate the seller to make sure it is a reputable company or developer.