The subject of timeshares is a perennial polarizer, and your perspective typically depends upon your timeshare ownership experiences or the experiences of friends and relatives. Bid adieu to pricey hotels when vacationing and lock in predictable payments by buying a timeshare. Save additional money by making your timeshare a headquarters for meals and entertaining. Such are the advantages of timeshare ownership. On the other hand, sinking your cash into a timeshare locks you in for the duration of your contract.

Over time, maintenance costs could rise in direct proportion to the rate at which the property is aging.

Lose your job or your home or experience catastrophic financial or health problems and you could find yourself stuck in a market that's glutted with timeshares for sale. The number of foreclosed timeshares on the market tends to follow the same trend as foreclosed residential properties. Some folks love amassing property, but ownership has some disadvantages.

You can also bequeath a timeshare to your heirs. If your timeshare holding company experiences financial problems, efforts to maintain the property you own could go by the wayside. Hang out with like-minded people, hit the golf links or beach with contemporaries and cement friendships while on vacation at your timeshare. How much sense does that make? You put down a cash deposit and pay off your investment in seven years, on average, while you kick in a monthly assessment fee on top of the mortgage obligation.

Sure, you can deduct the interest on your loan, but asking a broker to show you a comparable investment with a greater yield could open your eyes to other options. Take a tip from the Better Business Bureau, and separate the idea of real estate investments from timeshare ownership.

Timeshare points and Credits by My Resort Network

The first truly is an investment. The second is a pre-paid vacation accommodation. Based in Chicago, Gail Cohen has been a professional writer for more than 30 years. She has authored and co-authored 14 books and penned hundreds of articles in consumer and trade publications, including the Illinois-based "Daily Herald" newspaper.

Her newest book, "The Christmas Quilt," was published in December Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.

Advantages & Disadvantages of Timeshares | Finance - Zacks

These returns cover a period from and were examined and attested by Baker Tilly, an independent accounting firm. Visit performance for information about the performance numbers displayed above. Skip to main content. More Articles IRA Rules for Taxable Withdrawals Gifting Shares of Stock Are IRA Losses Tax Deductible? Monetary Advantages and Disadvantages Bid adieu to pricey hotels when vacationing and lock in predictable payments by buying a timeshare.

Ownership Advantages and Disadvantages Some folks love amassing property, but ownership has some disadvantages. Timeshare Advantages Vacation Ownership: Timeshare Advantages Family Education: What About a Timeshare?

Credit Advice -- How Can I Dump My Timeshare? Photo Credits sunset dusk color bright condo house sun purple image by Paul Retherford from Fotolia.

About the Author Based in Chicago, Gail Cohen has been a professional writer for more than 30 years. Recommended Articles Do You Pay Sales Tax on Game Show Prizes?

Regulatory Requirement That Stock Brokers Sell Shares If Clients Do Not Settle Their Accounts How to Gross Up Severance Pay Is a Pension Taxable at the Same Rate As Ordinary Income? Related Articles Mortgage Financing for Real Estate Investors Are IRA Withdrawals Subject to Social Security Tax? Money Sense E-newsletter Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more.

Editor's Picks Do k Deductions Reduce FICA Wages? Reasons for Delisting a House Should I Open a Whole Life Insurance Policy or a k First? The Maximum Number of Allowable IRS Deductions. Trending Topics Latest Most Popular More Commentary. Quick Links Services Account Types Premium Services Zacks Rank Research Personal Finance Commentary Education. Resources Help About Zacks Disclosure Privacy Policy Performance Site Map. Client Support Contact Us Share Feedback Media Careers Affiliate Advertise.

Follow Us Facebook Twitter Linkedin RSS You Tube. Zacks Research is Reported On: Logos for Yahoo, MSN, MarketWatch, Nasdaq, Forbes, Investors. Logo BBB Better Business Bureau. NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.