A Complete Guide to Timeshares

Hi everyone,

Thanks for visiting my hub. I'm Krishnan and I'm here to talk about timeshares. A great vacation is something that we all enjoy and as you know, timeshare is one of the best ways to enjoy a great vacation, year after year. So, I'll be talking about timeshares in this hub. What is a timeshare, how to buy timeshares, how to sell timeshares, how to rent timeshares, timeshare scams, and timeshare companies - you can expect all this and more here. In short, if it's got something to do with timeshares, I'll share it with you right here.

When a hub deals with a topic like timeshares, it can, at times, become a little preachy and, to be honest, boring. However, yours truly will try to present the information in a different, interesting manner so that you won't be bored to death reading my hub. :)

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Timeshare market attracts a lot of newbies every year and frankly, most of them make the same set of mistakes again and again. Sure, we all make mistakes and we learn from our mistakes. But still, there are some mistakes/misconceptions that are so common among new timeshare buyers that almost every other person seems to do it. So, given here are a list of five things you should be aware of while buying your timeshare.

1. Your timeshare will not appreciate in value over time

Yeah; you read that right. It will not appreciate in value over time and most probably you will not be able to make a profit by selling it. In some cases, if you own an exceptionally good timeshare which has a great demand in the market, you might be able to make a profit selling it, but those are exceptions. A timeshare is not a real estate property. A timeshare is an easy way to enjoy your vacations in places you love to go at affordable prices. So, don't ever trust anyone who says you can make a helluva profit from your timeshare. In fact, the Federal Trade Commission states it very clearly in its website - "You should know that the value of [timeshares] is in their use as vacation destinations, not as investments."

2. Your timeshare does not sell like hotcake in the market

One of the commonest misconceptions among new timeshare buyers is that they can sell their timeshare easily. But unfortunately, you can't. Just so you know, the timeshare market is a buyers' market. The supply exceeds demand to a large extent. So, it's easier to buy a timeshare but it's tougher to sell one. In some cases, if you have a red week in Hawaii or something like that, you might be able to sell it quickly. But generally, it takes time. So, list your timeshare as FSBO (For Sale By Owner) in a good timeshare website and wait for buyers to approach you.

3. Buy a timeshare in a place you'd like to go

A lot of newbie timeshare buyers spend way too much time trying to analyze different timeshare ratings, the costs involved, how famous a holiday destination is, the number of people it attracts, and other things which are completely unrelated to your buying a timeshare. All you need to think about is this - do my family and I like going back to this place year after year? If the answer is yes, go for it.

4. Find a good timeshare company

This is very important. There are way too many companies out there claiming to offer the best service possible. As a thumb rule, never fall for the sales talk. Run a background check on that company. A good timeshare company will have an equally good website and you can check it out its credentials. Find if the company is a member of ARDA (American Resort Development Association). Check out the testimonials of its past clients. Get in touch with them if you can and get to know the real facts. Ask your friends and relatives if they have any idea about the company. Once you've done your research, you can buy a timeshare from that company.

5. Yes, you do have to pay taxes on your timeshare

If you happen to make a profit by selling your timeshare, you have to pay taxes on that. A few items like property taxes (if billed separately), interest charges on timeshare loans, and interest charges on home equity loans are deductible.

Hope the article gives you a clear perspective of what to look forward to and what not from a timeshare. If you like what you read, write me a word or two. Cheers. :)

When it comes to buying timeshares, choosing the right timeshare company is perhaps the most important thing to do. As you may know, a lot of complaints are lodged against unprofessional timeshare companies in the Better Business Bureau (BBB). So, you might not want to get associated with one of them. However, finding a good, reliable timeshare company is not as tough as it sounds.

Since there are plenty of timeshare companies out there which promise nothing but the best service, you should take your time to choose the right one. And you can do that only by doing some homework.

1. Check out the company's website and look for the testimonials section. Find out details like how long the company has been in business, how many timeshares have they got listed, how many they have sold, how many have they rented, etc, etc. This should give a good idea to begin with.
2. Do a Google search on the company and try to find out as much details as you can. Sometimes, you can find rival websites talking about the company and this can give you a lot of inside information.
3. If possible, get in touch with their old customers. This should really give you a great idea about the company.
4. Get to know if the company is a member of ARDA (American Resort Developers Association) or any such prestigious associations.
5. Check with the BBB to know if any complaint had been lodged against this company in the past.
6. Become a member of timeshare forums and ask them to guide you. Veteran timeshare owners will always be ready to help you out in such forums.
7. Last but not least, ask your friends and family. Some of them might have dealt with the company already or some of them might have heard about the company already. So, it helps.

Once you've done your homework, you can rest assured that the company is a very good one and you can get ready to buy timeshares. Happy timesharing.

While a lot of people are familiar with timeshares in general, they aren't so when it comes to the various taxes related to timeshares. In fact, not many newbies are aware of the fact that you have to pay taxes on your timeshares. So, let's take a look at the taxes related to timeshares.

First of all, let me make one thing very clear. You DO have to pay taxes on your timeshares. If you make a profit selling timeshares, you have to pay taxes.

If you incur losses selling your timeshare, it's not deductible. However, there is a leeway here. If you and your family used the timeshare for your personal use, the losses aren't deductible. However, if you decide to not use it personally and rent it out regularly to someone else, it's considered a business timeshare. If you sell this timeshare and incur a loss, it's deductible, as it's considered a business loss.

There are three items which are deductible as far as timeshares are concerned.

Property Taxes

When billed separately, property taxes deductible. But if your property tax is clubbed with your maintenance fee or any other fee related to your timeshare, it's not deductible. So make sure it gets billed separately.

Interest charges on timeshare loans and home equity loans

The interest charges you pay on your timeshare loan and/or home equity loan are completely deductible.

There it is folks. I hope you now have a clear idea of what is taxable and what is not when it comes to timeshares. Talk to you later. :)