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Purchasing a timeshare resale might seem like the greatest idea- until it isn’t. You may assume it’s automatically a great investment, and that once you sign those papers, you’re good to go.
However, not everyone is mentally fit for a timeshare, and even for the ones who are, they may have elements that make having a timeshare a difficult task. So, it’s no surprise that many people end up reselling their timeshare or canceling their contract shortly after signing on.
Here are some reasons why you shouldn’t consider a timeshare:
Getting a Timeshare Can Be Costly
If you have tight finances, know that getting a timeshare resale probably won’t be your best bet. And it’s definitely not going to fix your financial situation in a snap. If anything, it will only make it worse. Mortgage payments (or even paying for the timeshare in cash), after all, aren’t cheap, especially with another mortgage or rental payment on top of that.
You’ll Be Liable for More Than Just Mortgage Payments
Mortgage won’t be the only thing you’ll be on the hook for when getting a timeshare resale. You can also expect to have to pay for, say, property taxes, special assessments, utilities, and so on. These costs can add up, especially if you’re not in a financially-fit position.
Losses Can’t Be Deducted on Your Federal Tax Return
In most cases, if your timeshare ends up being a loss, you won’t be able to deduct it on your federal tax return. While there are some exceptions to this, knowing that this is unlikely can be worrisome for those concerned with the risks of buying a timeshare off someone else.
You May Be at Risk of Foreclosure
In the beginning, you might think the financial aspects of buying a timeshare won’t be too crazy, but then you may find yourself in a bit of a predicament.
If you can’t keep up on your payments, your timeshare may end in foreclosure. Not only will you no longer have the timeshare in your possession, but any future investment opportunities from owning the property will cease to exist, and your credit score will likely tank. And while you’ll no longer owe a mortgage, you will have to fork out selling fees.
Timeshare Scams are a Thing
Timeshare resales are a legit thing. Although, timeshare scams definitely still exist. A scammer may pose as a real estate agent or other professional, ask for a deposit of some sort or to wire the closing costs to them, only to take the money and run- all without the exchange of the property.
While many states have laws that protect prospective buyers from said timeshare scams, there’s still that chance that one may be a victim of one, which can be stressful and complicated to say the least.
Is it already too late for you- did you already purchase a timeshare and want out? No worries; there may be a way to get out with the help of ACA Group.
Timeshare resales can be a successful venture for many. But just like other things in life, timeshare resales aren’t ideal for everyone. For some folks, it can be a mistake buying a timeshare. So, always conduct your research thoroughly before signing any documents or paperwork.