SFP 002: Why You Should Not Buy A Timeshare – My Biggest Financial Mistake
Welcome to episode 2 of the Stumble Forward Podcast. In today’s episode I talk about one the biggest financial mistakes I’ve ever made in my life, buying a timeshare. That’s right buying a timeshare has been one of the biggest waste of money for me and has cost me thousands of dollars and I got very little in return once I did sell it.
In fact buying that timeshare literally turned my life upside down. It burned up a lot my cash and put me in some really tight situations that all could have been avoided if I would have only turned down the offer. However when I look back on the way things turned out I realize this mistake only made me a better person with my finances.
In fact I probably would have never started this blog, podcast, or even got into financial services if I had not lived through that mistake, and sometimes that’s what needs to happen in order for us to make a change for the greater good.
So check out my story in this podcast of my biggest financial mistake, and on top of that I will also give 5 reason you do not want to buy a timeshare, and finally I will also share 3 things you need to look for if you are considering the idea of buying one.
What You Can Expect To Get Out Of This Episode
- Learn why timeshares sales reps must be avoided.
- Learn how much timeshares can really cost you big.
- Learn what the biggest problems are with owning a timeshare.
- Learn how to find a timeshare for cheap and buy them for pennies on the dollar.
- Learn the right way to buy a timeshare without getting ripped off.
5 Reason You Should Not Buy A Timeshare
- Timeshares Are Not Real Estate. Timeshares are nothing more than a piece of time, one week to be exact. On top of that they do not grow in value either.
- Use Them Or Lose Them. When it comes to timeshare you only have so much time to use your allotted week or you will lose them.
- Tons Of Fees Attached to Them. Timeshares can have some big fees attached to them such as maintenance fees, network fees, and exchange fees just to name a few.
- High Loan Interest Rates. If you also decide to get financing through the resort know that the interest rates can be ridiculously high, in fact mine was 16%
- Impossible To Sell. Finally understand that timeshares can be very hard to sell, in fact it took me over 4 years to get mine sold, and then when I did get it sold I only got 10% of the value.
What To Look For If You Still Want To Buy A Timeshare
- What Kind Of Resort Is It. Know what kind of unit you are buying before you sign, in fact you may want to consider going to the resort before you buy it.
- How Much Are The Maintenance Fees. Maintenance fees can be very expensive and the last thing you want to do before you buy is find out that it may cost you an arm and a leg.
- Where Is The Resort Located. Know where your resort is located, and what the surroundings are like. The last thing you want to find out is that your resort is located in a bad neighborhood.
Links In This Episode
SFP 001: Introduction To The Stumble Forward Podcast
All Inclusive Vacations Vs Timeshares
Share your thoughts on this episode below in the comments.
Four hours? You should have gotten up an hour previously.
There’s no manipulation going on. They’re salespeople…what did you expect?
Your comments on resale are incorrect as well.
Hotel receipts don’t increase in value.
90% of timeshares are in fact real estate. You don’t buy a timeshare with an eye for investment. There’s a HUGE difference between real estate and investment.
If you’re not going to go on vacation, don’t buy a timeshare. And if you don’t go on vacation, you wouldn’t have been at the presentation to begin with.
There are 6,000 resorts worldwide and no they are not mostly in tropical places Hotels are not always available either.
Ever heard of room tax? Resort fees? Travel is never free. If you don’t think you pay for maintenance at a hotel, you are delusional. The average annual fee is about $750.
Your definition of a fixed week is incorrect.
Hi Lisa, I see your points Lisa but obviously we both see things differently. The point I was trying to make was that it was MY financial mistake not anybody elses. Rather I’m just sharing my experiences here and how things worked out for me.
On the other hand I know a few people who do have timeshares and they love them. This is something I failed to mention in the podcast but my experience did not go so well as you can obviously see and you are right I should have left the meeting after 3 hours and now I know. When it comes down to it I just don’t see the value in them.
Thanks for the comment Lisa.
Chris, great job on the podcast, you sound like a natural!! I hate to hear how you lost money in a timeshare, but it likely was a great learning experience and hey, you get to help others avoid the pitfalls, great job!
Thanks Jim, I don’t know about the natural part yet but as I make more episodes it does seem to get easier. Also if you get a chance leave me a review in iTunes, I would really appreciate it.
Hey Chris, keep moving on forward with this!
Don’t worry about the people who challenge you, because in anything you do, there will always be people who challenge you.
But good stuff, thanks for the story!
Thanks so much Kevin I really appreciate the kind comment. It’s not the first time I’m dealt with people like this before but their usually isn’t much you can do about it. Thanks for your inspiration.
Timeshares have always been a bad buy. But for those who really feel they need one I make one recommendation: Never buy from the developer. Always wait for timeshares to appear on the secondary market, usually at half-price. People like you get excited at the new developments and jump right in, only to become disillusioned later and dump the property onto the secondary market, at a loss, for a patient, informed buyer to take advantage of.