Timeshares and Your Retirement PlanTimeshares are vacation properties which are co-owned by different people to be used at different times throughout the year.  Often, potential purchasers are approached about timeshare ownership when they are enjoying a vacation or through advertising.  For those entering retirement, a timeshare at a holiday destination may be an appealing option.  However, it is vital that retirees know certain key facts concerning timeshares before entering into any agreements.

Types of Timeshares

It is important to know the type of timeshare you are considering.  Some timeshares only permit an owner access on specific dates while others programs allow use during part of the year. There are also points based ownership models and time-limited properties which you will not own but will be able to use until the expiration of your term.  Additionally, some timeshare companies allow owners to use properties in different locations rather than a single place.  Take time to learn about the kind of timeshare which is being offered and then contemplate how much you will use the property and the kind of access you will require.

The Value

For those entering retirement, deciding whether this expense is reasonable will depend on their financial circumstances and how much use they anticipate. Timeshares can be expensive but, depending on your situation, the costs may be acceptable to you.  While the average timeshare costs are approximately $22,000.00 at the outset, this amount may be worth it to those who plan to use the property regularly for the rest of their lives.  Another consideration is maintenance fees.  Many timeshare companies charge up to $1000 per year for upkeep of the property.  If paying this fee on top of the purchase price is beyond your budget, a timeshare may not be a good choice for you.

The Companies

Unfortunately, there are disreputable companies who will sell a victim property ownership which is fictitious or make false claims about the property’s condition.  It is essential to perform due diligence in researching the timeshare company and their record and reputation before giving them financial information.

Transfer of Ownership

For individuals who may want to transfer ownership of their timeshares, it is important to note that ordinarily they are not easily sold.  However, a retiree who wants to leave a timeshare to someone may be able to include the ownership in their will or place it into a trust.  However, the type of ownership and location of the timeshare may implicate the laws where the property is located.

Vacation property ownership in retirement can be a positive experience provided certain conditions are in place.  We have experience helping people evaluate their options and make choices which work for their needs.  Contact us online or by phone if we may be of assistance.

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