Last week my in-laws were visiting from a neighboring state. They had a fantastic time and we enjoyed hanging out with them for the few days they were in town. While at dinner one night, my mother-in-law described how they love vacationing in Hawaii and staying at their timeshare. They were basically trying to convince us to take a vacation with them. But then, my slightly tipsy mother-in-law blurted out how amazed she is that they own property on a Hawaiian island. At that moment, my mind started turning. Does she really own that apartment at the resort they call their “timeshare?” How does owning a timeshare compare with owning actual property? Is this a good investment?

While probing my mother-in-law’s (MIL’s) husband, he began detailing what they pay annually. Basically, it sounded like they pay for maintenance fees and property taxes. I did some quick and dirty research, I really need to come up with my own research terminology lingo, and found that many timeshare companies do give out deeds to the properties they sell. However, the property doesn’t appreciate, so owning one as an investment property is a moot point. Here are just a few pros to owning one (in my opinion!):

• PRO: For frequent travelers: It saves a lot on hotel costs. When you own a timeshare, because you pay maintenance and property taxes, you usually don’t pay for the week or two that are yours.
• PRO: Transfer weeks for cruises: This is something my step-mother does. (I have a very large extended family!) She and my dad have cruised the Mediterranean for free by giving up their Florida timeshare for a cruise instead. They’ve also been known to take cruises to the Caribbean and the Mexican Riviera this way.
• PRO: Build up weeks for a longer vacation: For people who can’t get away as frequently as their timeshare is available, sometimes you can save up those weeks and use them together for a longer vacation.
• PRO: Tax right off. Because you actually own the property, I’m guessing it can be used as a tax right off. Right? Does anyone know about this for sure?

Now for the cons. In my case, because I have two family members who own timeshare units, I could just borrow their week(s) when I want. They’ve already offered multiple times, so owning one myself may be a waste of income. Based on my biased opinion, here is my list:

• CON: Why pay the maintenance and taxes when you could rent a week from someone else? There are a few sites where timeshare owners “rent” out their weeks for much less than a hotel. You also may find that someone close to you, a relative or friend, may own one and give your their unused week somewhere.
• CON: Since the property doesn’t appreciate, you won’t make any money on it when you sell it. And that’s IF you can sell it. Not surprisingly, they are hard sells.
• CON: Many people purchase timeshares thinking it will make them travel more often. This isn’t always the case. Circumstances can change and make it very difficult to visit your lovely timeshare property.
• CON: Pushy sales people. A couple of years ago while on vacation, my husband and I went on a timeshare tour. Mainly because we wanted some of the “free” goodies they were giving out as an incentive to sit through their spiel. We had an awful experience because they had over-booked their tour. We ended up with some of the freebies, but it really wasn’t worth our time.

So are timeshares worth it? In my opinion, no. There are plenty of travel deals out there that cost way less over the long run. Since timeshares don’t appreciate, the owner ends up not profiting on their purchase and may in fact lose money if they are unable to sell an unused property. Quick math based on information from MIL’s husband: $3,500 per year maintenance + $800 property tax x 10 years = $43,000 for the cost of owning a timeshare for 10 years. Yuck!

Anyone have personal experience with a timeshare, good or bad? What about a contrasting opinion? Did I leave some important details out? I love comments!