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Loading...Loading...A timeshare is a vacation property that several people own and share. Each owner buys the right to use a resort unit for a set amount of time each year, and they all pay for it and have access to it.
A timeshare is a vacation property model where several unrelated people each purchase a fractional ownership stake in a resort unit. Instead of buying an entire vacation home outright, you're buying the right to use that property for a specific stretch of time, usually one or two weeks per year. The concept traces back to the 1960s, when a Swiss developer named Hapimag introduced the first "right-to-use" agreements at a small resort in Graubünden, Switzerland. By the mid-1960s, the idea had crossed the Atlantic and taken root in Hawaii, and it spread rapidly across the United States through the 1970s and 1980s as major hospitality brands entered the market.
So why does this matter to you? If you've ever dreamed about having a guaranteed vacation spot each year but can't swing the price of a second home, timeshares offer a more affordable entry point. You share the cost of the property with dozens of other owners, which brings the sticker price way down compared to buying a vacation property outright. According to the American Resort Development Association (ARDA), roughly 10 million U.S. households currently own a timeshare, and total industry sales volume reached approximately $10.5 billion in the most recent reporting period. Timeshare resorts also posted an 80% occupancy rate, well above the 63% average for traditional hotels, suggesting that most owners do make regular use of their purchases.
But timeshares aren't without complications. They come with ongoing maintenance fees that tend to rise every year, limited resale value, and contracts that can be surprisingly hard to exit. Before signing anything at a sales presentation, you owe it to yourself to look at the full picture, the real costs, the types of ownership available, and the alternatives. That's what we'll walk through here.
The basic idea behind a timeshare is straightforward. You pay an upfront cost to purchase a share of a vacation property. That gives you the right to use the unit during your designated time each year. On top of that initial price, you'll owe annual maintenance fees that cover things like resort upkeep, property taxes, insurance, and staffing. Those fees stick with you for as long as you own the timeshare.
Most timeshare purchases happen in one of two ways. The first is through a timeshare presentation, sometimes called a discovery tour. A resort representative walks you through the property, explains the ownership options, and usually sweetens the deal with a perk like a discounted hotel stay or a gift card. These presentations can be high-pressure. Sales teams are trained to create urgency, and the Federal Trade Commission specifically warns consumers to take their time rather than signing on the spot. Ask why the deal can't wait until tomorrow. If it genuinely can't, that's a red flag.
The second path is the resale market, where existing owners sell their intervals to new buyers. Resale prices are almost always a fraction of the developer's retail price, sometimes 50% to 70% lower, because timeshares lose value the moment you buy them. If you're set on a timeshare, starting with the resale market can save you thousands.
Once you're an owner, your vacation schedule depends on the type of timeshare you purchased. Some lock you into a specific week every year. Others let you float your dates within a season. And points-based systems give you credits to redeem across a network of properties. AmeriSave works with people every day who are weighing these kinds of vacation ownership decisions alongside their mortgage goals, and the financial math is worth doing before you commit to anything.
One thing that catches people off guard is how maintenance fees tend to climb. According to ARDA, the average annual maintenance fee jumped to $1,480 per interval in the most recent survey, up from $1,260 the year before. That's roughly a 17.5% increase in a single year. Some of that increase reflects inflation, higher insurance premiums in disaster-prone areas, and catch-up spending from deferred maintenance during the pandemic. But regardless of the reason, those fees are ongoing and non-negotiable for as long as you hold the contract. The National Association of Attorneys General notes that annual fee increases of around 5% per year have been common industry-wide, and even modest increases compound into eye-opening totals over a decade or two.
On top of maintenance fees, many resorts charge exchange fees if you want to swap your week or location for something different. Those exchange fees typically range from $100 to $400 per transaction. And if the resort needs a new roof, a pool renovation, or major structural repairs? Special assessments can land on your bill with little notice, sometimes adding $500 to $2,000 or more in a single year. These extra charges are often the costs that new timeshare owners don't fully anticipate when they're sitting in that sales presentation.
Financing is another piece of the cost puzzle that deserves attention. If you don't pay cash, most timeshare developers offer their own financing. But here's the thing: developer financing rates are steep. Interest rates on timeshare loans commonly range from 12% to 20%, far above what you'd pay on a conventional home mortgage. On a $24,000 purchase financed at 15% over 10 years, your monthly payment would be around $387. Over the life of that loan, you'd pay roughly $22,400 in interest alone. That nearly doubles the purchase price before you even count maintenance fees.
Not all timeshares work the same way. The type you choose affects when you can vacation, where you can go, and how much scheduling flexibility you'll have. Here are the three main models.
A fixed-week timeshare gives you the same specific week at the same property every single year. If you bought Week 26, you'd always vacation during that exact week. For people who like routine, who look forward to the same beach or mountain town at the same time of year, this can feel like a real anchor. You know what you're getting and when you're getting it.
The downside shows up when life doesn't cooperate with your calendar. If something comes up and you need to reschedule, you'll have to swap with another owner or try to rent out your week, and that isn't always easy. Fixed-week timeshares also tend to be less desirable on the resale market because buyers are locked into someone else's preferred dates.
Floating-week timeshares give you more breathing room. You still get one week per year at the same resort, but you can choose when within a designated season. Most resorts divide the year into peak, shoulder, and off-peak seasons, and your floating week falls within whichever season your contract covers. Peak season weeks book up fast, so reserving early matters.
This option works well if your schedule changes from year to year. But don't assume you'll always get the exact dates you want. Popular holidays, school break weeks, and prime summer stretches are competitive even within a floating system. First come, first served is the general rule.
Points-based timeshares are the most flexible option available. Instead of buying a specific week at one resort, you receive a set number of points each year. You spend those points to book stays across a network of affiliated properties run by the same hospitality company. Need a long weekend at a beach resort? That might cost fewer points than a full week at a ski lodge during peak season. Some systems even let you bank unused points for the following year or borrow against next year's allotment.
The flexibility is real, but it comes with tradeoffs. Point values can shift based on demand. High-demand locations and dates eat through your balance quickly, and you may find that your annual allotment doesn't stretch as far as the sales presentation suggested. The purchase price for points-based systems also tends to run higher because you're buying into a whole network, not just a single unit.
Beyond the type of scheduling, timeshares also differ in how ownership itself is structured. This distinction affects your legal rights, your tax situation, and what happens when you no longer want the timeshare.
With a deeded timeshare, you actually own a fractional piece of real property. If you purchased one week at a 52-week resort, you'd own 1/52 of that unit. Your name goes on a deed that's recorded with the local county, just like any other piece of real estate. You can pass the timeshare to your heirs, sell it on the secondary market, or rent out your week to someone else.
Deeded ownership also opens the door to potential tax benefits. You may be able to deduct the interest on your timeshare financing and the portion of your maintenance fees that goes toward property taxes, though you'll want to confirm the specifics with a tax professional. The catch is that deeded ownership means the obligation is perpetual. Unless you sell the timeshare, give it back to the developer, or let it go through foreclosure, the annual maintenance fees follow you indefinitely, and they can even pass to your heirs.
A leased timeshare, also called a non-deeded or right-to-use arrangement, doesn't transfer property ownership to you. The developer keeps the deed. What you're purchasing is the right to use the property for a set number of years, typically somewhere between 20 and 99 years depending on the contract. When the lease term ends, so does your access.
Leased timeshares don't come with the same potential tax deductions, and they tend to lose value over time since there's no underlying real estate asset attached to your name. On the plus side, they do come with a built-in expiration date. For someone who wants vacation access for a defined period without a forever commitment, that finite structure can be appealing.
Cost is where timeshares get real. The sticker price is only the beginning, and the full financial picture looks quite different from what the sales presentation usually covers.
According to ARDA, the average purchase price for a timeshare is $23,940. If you buy on the resale market, you can often find units at 50% to 70% below the original retail price, since timeshares rarely hold their value after the initial purchase.
Then come the annual maintenance fees. Those averaged $1,480 per interval in the latest ARDA survey, and they typically increase every year. Industry data from the National Association of Attorneys General suggests annual increases of around 5% have been common over the past decade. Exchange fees for switching locations or dates add another $100 to $400 per swap, depending on the exchange company. And if your resort undergoes a major renovation, special assessments can land on your bill with little warning.
Worked example: 10-year total cost of timeshare ownership
Let's walk through this together. Say you buy a timeshare at the average price of $23,940. Your first-year maintenance fee is $1,480, and that fee increases by 5% each year. Year one costs $1,480. Year two, $1,554. Year three, $1,632. Year four, $1,713. By year five, you're paying $1,800 annually. Year six hits $1,890. Year seven, $1,984. Year eight, $2,084. Year nine, $2,188. And by year ten, the annual fee has climbed to $2,411.
Add all ten years of maintenance fees together, and you get roughly $18,736. Combine that with your original purchase price of $23,940, and your total 10-year cost comes to approximately $42,676 for one week of vacation per year. That works out to about $4,268 per year, or around $610 per night for a seven-night stay.
And that math doesn't even include exchange fees, travel costs like flights and meals, or any special assessments the resort might charge for renovations. When you lay the numbers out like that, it gets easier to compare against alternatives. AmeriSave can help you run numbers on financing a vacation home if you want to see how the costs compare side by side with a monthly mortgage payment.
Tip: If a timeshare developer offers financing, ask about the interest rate. Developer-financed timeshare loans often carry rates between 12% and 20%, far above what you'd pay on a conventional home mortgage. That financing cost can add thousands more to your total.
Like any financial decision, timeshares have genuine advantages and real drawbacks. Here's an honest look at both sides.
Timeshare resorts typically offer spacious, well-appointed accommodations with full kitchens, multiple bedrooms, washers and dryers, and resort-style amenities like pools, fitness centers, spas, and concierge services. For families or travel groups, that space and those extras can be a genuine upgrade over a standard hotel room. The units are usually cleaned and maintained by professional staff, so you don't have to worry about upkeep between visits.
There's also the comfort of returning to a familiar destination year after year. Some families build genuine traditions around their timeshare trips. ARDA's most recent sentiment survey found that 80% of timeshare owners rated their most recent vacation as an exceptional experience, compared to 57% of general leisure travelers.
Points-based systems add network flexibility, letting you sample different destinations without committing to one resort forever. And if you vacation consistently, the per-night cost of a timeshare can be competitive with hotel rates at similar resort properties.
The upfront cost is steep, and those annual maintenance fees never stop. Unlike a mortgage on a home that builds equity, your timeshare payments don't create any long-term financial asset. The Federal Trade Commission warns consumers plainly that timeshares are not investments and cautions against treating them as such.
Resale values drop dramatically from the original purchase price. If you paid $24,000 at a developer presentation, you might only recoup $7,000 to $12,000 on the secondary market, and even finding a buyer can take months or years.
Flexibility can also be a problem. Fixed-week owners are locked into a specific schedule, and even floating-week or points-based owners can struggle to book popular dates during peak season. And if you decide you want out entirely? That's often one of the hardest parts of timeshare ownership. We'll cover exit strategies below.
This is the comparison a lot of people eventually arrive at. Is it better to put $24,000 toward a timeshare or use that same amount as a down payment on a vacation home you fully own?
When you buy a vacation home with a mortgage, you own the entire property. You can use it whenever you want, rent it out for income during the weeks you're not there, renovate it to your taste, and build equity over time. According to the U.S. Census Bureau, the median home value in the United States has generally trended upward over the long term, so real estate ownership can serve as both a vacation strategy and a wealth-building tool.
A timeshare doesn't offer that same upside. You don't build equity, you can't renovate or customize the unit, and your resale value trends downward from the day you buy it. But timeshares do remove some of the headaches of full homeownership. You don't have to mow the lawn, manage a rental calendar, handle emergency repairs at 2 a.m., or pay carrying costs during the months you're not using the property.
For families who want consistent vacations without the responsibility of owning a second home, that tradeoff can make sense. But for families where the math pencils out for a mortgage, buying a vacation home often ends up being the stronger financial move over a 10- to 20-year window. AmeriSave offers mortgage options for second homes and vacation properties that can help you compare the two paths. You can check current rates and see what you'd qualify for without any obligation.
Let's put some rough numbers on the comparison. If you put $24,000 down on a $240,000 vacation home at 7% interest on a 30-year mortgage, your monthly principal and interest payment would be roughly $1,437. That's about $17,244 per year. You'd owe property taxes, insurance, and maintenance on top of that. But at the end of 30 years, you'd own a property potentially worth more than you paid for it. The timeshare buyer, on the other hand, would have spent more than $42,000 over just the first decade with no equity to show for it. Over 30 years, the maintenance fees alone could easily exceed $100,000.
Getting out of a timeshare contract is one of the biggest frustration points in the industry. Here are the paths available to you, starting with the easiest option.
Every state gives timeshare buyers a cooling-off period, sometimes called a rescission period, during which you can cancel the contract without penalty. The FTC notes that this window typically ranges from 3 to 15 days depending on state law. The clock usually starts on the day you sign the contract or the day you receive the required disclosures, whichever comes later. If you're having second thoughts, act fast. Send a cancellation letter by certified mail with a return receipt requested, and keep copies of everything.
You can attempt to sell your timeshare on the secondary market, but keep your expectations realistic. Resale values are typically a fraction of what you originally paid, sometimes as low as 30% of the purchase price. Be very cautious of resale companies that charge large upfront fees and promise guaranteed sales. The FTC has pursued multiple enforcement actions against companies making those kinds of claims and collecting fees without delivering results. If you go this route, look for a licensed real estate agent who handles timeshare resales specifically.
Some timeshare developers offer deed-back or surrender programs where you can return the timeshare directly to the resort. Not every company offers this, and the programs aren't always well-publicized. But it's worth asking. Start with your resort's owner services department. A direct conversation can sometimes open doors that aren't obvious from the outside. Some developers have expanded these programs in recent years as they work to modernize their inventory.
If the options above don't work for your situation, a lawyer who specializes in timeshare contracts may be able to help. They can review your agreement for violations of state consumer protection laws, misleading disclosures, or other legal grounds for cancellation. Look, this is expensive and takes time. Attorney fees can range from $3,000 to $5,000 or more for timeshare exit cases. But for owners who feel genuinely stuck in a contract they can't afford, it can be the right path forward.
The timeshare industry operates under a patchwork of state and federal regulations designed to protect consumers from high-pressure tactics and misleading sales practices. Knowing your rights before you sit through a presentation gives you a real advantage.
At the federal level, the Federal Trade Commission oversees deceptive practices in timeshare sales and resales. The FTC's Consumer Sentinel Network has received roughly 7,000 complaints per year related to timeshare sales, and another 2,500 annually related to timeshare resales. The agency has taken enforcement action against companies that charged large upfront fees for services they never delivered, and it regularly publishes consumer advisories about timeshare scams.
The Consumer Financial Protection Bureau (CFPB) handles complaints about financial products tied to timeshares, such as loans, mortgage-like instruments, and debt collection disputes. If a timeshare lender mishandles your payments or adds unexpected fees to your account, the CFPB is the right place to file a complaint. Most complaints submitted through the CFPB receive a company response within 15 days.
At the state level, every state has its own timeshare laws governing rescission periods, disclosure requirements, and sales practices. Most states require developers to provide buyers with a Public Offering Statement or Timeshare Disclosure Statement that spells out the financial details, property specifics, management practices, and potential risks. If the developer fails to provide accurate and complete disclosures, the contract may be voidable under state law.
Here's the practical takeaway. Before you sign, ask the sales representative about your rescission rights in writing. Find out exactly how many days you have to cancel and what the cancellation procedure requires. Check your state attorney general's website for any complaints filed against the developer. And if anything feels off during the presentation, trust that instinct. You can always come back later if the deal is legitimate.
If you already own a timeshare and want to sell it, be very careful about who you work with. The FTC and state attorneys general have found a pattern of scams that target timeshare owners who want to get out.
In a resale scam, a company will usually call you and say they have a buyer who is ready and willing to buy your timeshare. They want you to pay them up front to cover the costs of closing, transferring, or appraising the property, which can be anywhere from $500 to $5,000. When you pay, the business goes away or stops answering calls. There is never a sale.
Exit company scams work in a similar way. For a flat fee, usually between $3,000 and $10,000, a company will get you out of your timeshare contract. Some of these businesses tell you to stop paying your maintenance fees, which could hurt your credit and start the process of foreclosure. The company takes your money and leaves you worse off than before.
After the sale is over, real timeshare resale agents make money from commissions. Real lawyers charge clear fees and don't tell you to break your promises. If someone promises a certain result or pushes you to pay right away, get out of there.
Don't sign anything if you're really thinking about buying a timeshare until you get clear answers to these questions. Find out the total yearly cost, which should include maintenance fees, special assessments, property taxes, and any fees for exchanging. Find out if those fees have a limit or if they can go up as much as they want. If you can't make the payments anymore, ask what will happen and if the contract has a deed-back or exit option.
Find out more about making a reservation. Can you switch your week or place? Are there people on a waitlist for popular dates? How far ahead do you need to book? What happens to your points or week if you don't use them? And most importantly, ask for a lot of information about the exit process. If you want to sell or give up your timeshare in five or ten years, what are your options?
One of my coworkers told me that some of the most angry timeshare owners she's talked to said they wished they had asked more questions before they signed. You can save yourself years of regret by sleeping on the decision for just one day instead of making it at the presentation. If you're thinking about using that money to buy a home instead, AmeriSave's prequalification process can show you what you can afford in just a few minutes online.
Timeshares are a good option for people who go on vacation often, like staying in resorts, and are okay with paying fees on a regular basis for the convenience. But they aren't investments, and they come with real financial obligations that can last for years or even a lifetime. Before you sign a timeshare contract, make sure you understand the numbers. Compare the total cost of ownership to the cost of booking hotels, renting vacation homes on sites you already use, or getting a mortgage to buy a second home.
AmeriSave can help you look into your mortgage options and find one that fits your budget if you want to buy a home. A little bit of research now can help you avoid making a choice you'll regret long after your vacation is over. No matter what you choose, make sure it's something you can live with for a long time.
No. Timeshares are not investments; they are vacation products. They usually lose value, and when you sell them, the price is often only 30% to 50% of what you paid for them. The FTC tells people not to think of timeshares as investments because they don't go up in value like regular real estate.
You don't build equity with a timeshare like you do with a house. You don't have a moment when you pay off your mortgage and own a valuable asset free and clear. If you want a vacation home that will also go up in value over time, getting a mortgage to buy a second home may be a better option. AmeriSave has mortgage options for vacation homes that let you build real equity while you enjoy your vacation home every year.
According to ARDA's latest industry report, the average annual maintenance fee is about $1,480 per interval. These fees pay for the costs of running the resort, keeping the property up to date, insurance, utilities, and staffing. On average, they go up by about 5% each year, so the amount you pay this year is likely to be higher next year.
Those yearly increases can add up to more than $18,000 in maintenance fees alone over ten years, on top of what you paid for the property. Before buying, ask the resort for a written history of past fee increases so you can estimate your future obligations with real numbers. AmeriSave's prequalification tool can show you your options in minutes if you'd rather use that money to build home equity.
A rescission period is a legally required time frame that lets you cancel a timeshare contract without having to pay a fee. In the US, the time you have to cancel a contract varies by state, but it usually falls between 3 and 15 days after you sign it or get the required disclosures, whichever comes later. You can change your mind at any time during this time.
If you change your mind during this time, send a cancellation letter by certified mail with a return receipt requested. Keep copies of everything you send and receive. Don't wait until the last day, because weekends and holidays usually count toward the deadline. AmeriSave's Resource Center has information on buying, financing, and protecting your interests when you buy any type of property. This is a good place to get more general advice on making smart property decisions.
Most traditional mortgage lenders won't lend money for timeshare purchases because timeshares aren't considered standard real estate collateral. Most buyers pay cash or get a loan from the resort developer. Developer financing usually has much higher interest rates than a regular home loan. The APR can be anywhere from 12% to 20%, which can add thousands to the total cost.
If you'd rather have a vacation home that you can pay for with a regular mortgage at a good rate, buying a second home is something you should really think about. A regular mortgage for a vacation home might have an interest rate of 6% to 8%, which is much lower than what a timeshare developer charges. To see how much more you'd pay for a vacation home loan than for a timeshare debt financed by a developer, check AmeriSave's current mortgage rates.
With a deeded timeshare, you own a small part of a piece of real estate. The county keeps a deed with your name on it, and you can sell, rent, or give the property to your heirs just like any other piece of real estate. A right-to-use or leased timeshare, also known as a non-deeded timeshare, only lets you use it for a certain number of years. The developer keeps the deed, and your rights end when the lease ends.
Deeded timeshares may allow you to deduct some of the interest and property taxes you pay on the loan, but non-deeded timeshares usually do not. You will have to pay maintenance fees for both types of contracts for as long as you have them. Think about how long you want to be on vacation and whether the deed's ongoing obligation fits with your financial future when choosing between the two. The Resource Center at AmeriSave has information on how different types of property ownership can affect your finances.
Instead of a set week at a single property, you buy a certain number of points each year in a points-based timeshare. You can use those points to book stays at properties in the resort chain's network. You can choose from a number of locations, unit sizes, and travel dates. The number of points needed for a stay depends on how popular the property is, how big the unit is, what time of year it is, and how long you're booking.
Some systems let you roll over points you don't use to the next year or borrow points from next year's allotment. Others reset your balance every year, so you can't carry over points. Before you buy in, ask for a detailed redemption chart so you can see exactly how many vacation nights your annual points will get you. The sales pitch may make it seem generous, but staying at popular resorts during peak season can quickly drain your balance. If you have questions about vacation property financing as an option, the AmeriSave team can help you understand your choices.
If you're still within the cancellation window, your main options are to use the state-mandated rescission period, sell on the resale market at a lower price, contact the developer about deed-back or surrender programs, or hire a lawyer who specializes in timeshare exit cases. The costs, timelines, and chances of success are different for each path.
Be careful of exit companies that ask for a lot of money up front and promise results that are guaranteed. The FTC has taken a number of actions against fake timeshare exit companies that charged fees and never followed through on their promises. To find out about voluntary surrender programs, call the owner services department at your resort. Talk to a lawyer who has worked with timeshares before if that doesn't work. If you're thinking about using your vacation money to buy a home instead, AmeriSave's home loan resources can help.
The American Resort Development Association (ARDA) says that the average price of a timeshare is about $23,940. Prices are very different depending on where the resort is, how big the unit is, what time of year it is, and whether you buy from the developer or the secondary market. Buying directly from the resort is usually the most expensive option because it includes the developer's marketing and sales costs. If you've decided that a timeshare is right for you, you should look into the secondary market because resale timeshares are often 50% to 70% less than the original retail price.
The total cost of owning a timeshare for 10 years can be more than $42,000 for just one week of vacation per year, especially when you factor in the yearly maintenance fees that average $1,480 and go up every year. That's not even counting the costs of travel, exchange fees, or special assessments. To find out which option is better for your budget and long-term financial goals, compare that total to the current mortgage rates for a vacation home.
It depends on what kind of ownership you have. Deeded timeshare owners usually pay property taxes as part of their maintenance fees or as a separate bill. This is because they own a small part of real estate that is recorded with the local county. People who own timeshares that aren't deeded or leased usually don't pay property taxes directly because the developer keeps the deed and takes care of tax payments as part of running the whole resort.
Like other real estate owners, deeded owners may be able to deduct some of those property taxes from their federal income tax return. The IRS lets you deduct property taxes on second homes, which can include deeded timeshares. Ask a qualified tax professional for help with your particular situation. If you have more general questions about the costs of owning a home, how to pay for it, and how taxes work, go to AmeriSave's Resource Center for guides and other helpful information.
It depends on how much money you have, how often you go on vacation, and whether or not you want to build equity. A vacation home gives you full ownership, the freedom to schedule your time, the chance for the property to go up in value, and the chance to make money by renting it out when you're not using it. A timeshare costs less at first, but it doesn't build equity, has annual fees that go up over time, and can be hard to get out of if your situation changes.
When you add up all the fees, a mortgage on a vacation home costs about the same amount per year as a timeshare for many families. But you own a real asset at the end of the mortgage term. The person who owns the timeshare doesn't have anything to show for it other than the vacations they've taken. If the numbers are close, the vacation home usually has more long-term value. AmeriSave has second home mortgage options that can help you look at both options and choose the one that works best for your family's needs and budget.
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