That is the Question

Should you sell your timeshare? Well, that answer depends on your situation. If you use and enjoy your timeshare, then the answer is a resounding, “no!” Timeshares are valuable when used. If you use the timeshare some of the years, you may have to crunch some numbers and consider other factors to see what might make the most sense to do.

Although it may be difficult to face the thought of selling your timeshare at a loss compared to the timeshare purchase price, it may be the best thing for your financial situation. Timeshares on the resale market often sell for as low as 30% to 50% of the original developer price. Now, if you have an extremely desirable location, week, or resort, it may be a different story. Many people think their timeshare is worth more than it is. However, the fact remains that most timeshares on the resale market sell at a price significantly lower than purchase price. Now, if this sounds depressing, it isn’t really so bad. If you’ve had the ability to use your timeshare even once, you have saved the money you would have otherwise paid for an expensive vacation.

On the other hand, keeping a timeshare that you are not using will hurt your wallet. Maintenance fees and taxes add up year after year. If you kept your timeshare for ten years with maintenance fees and taxes of $600 per year, you would spend $6,000 in that time. Unless you are covering those expenses by renting the timeshare, you are losing money. You may also want to consider the opportunity cost of the money that you cannot use since it is tied up in the timeshare. If you invested the proceeds from your sold timeshare with a small return of even 5%, it is likely you could do better with your money. A timeshare is not considered an appreciating investment. It’s not that timeshares don’t have value, but they are meant to be used and enjoyed, not held onto for an investment return. If you add all things together, you might quickly find that selling your timeshare is a much more desirable option and one that can feel like a gain instead of a loss.

Hopefully you are now better prepared to make the important choice of whether or not to sell your timeshare. By all means, keep your timeshare if you can really enjoy it year after year. If you cannot, don’t let your pride stand in your way toward improving your financial situation by selling your timeshare. The numbers just don’t add up when you put off the decision to sell your timeshare.