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Did You Know, Informed Timeshare Decisions,

Average Cost of Timeshares: The True Cost of Ownership

When you signed your timeshare contract, you were probably sold on the idea that the agreement would make vacationing more affordable. But, as you’ve likely discovered, timeshare ownership can end up being far from a good deal. In fact, these pre-paid vacations can become a major financial burden, involving high interest rates, unexpected assessments and escalating maintenance fees.

So, what is the average cost of owning a timeshare? The price tag can vary depending on individual contracts and whether you finance your purchase. But, on average, your timeshare could be costing you about $6,000 annually (we’ll break down the figures in more detail below because these yearly costs go beyond the mortgage).

Committing $6,000 a year for lodging alone hardly constitutes a budget-friendly vacation. As you know, you need to build expenses like airfare, airport transfers, meals and excursions into your vacation budget.

At Timeshare Termination Team, we’ve helped hundreds of families get out of timeshare contracts, freeing up their budgets so they can vacation on their own terms. If owning a timeshare is something that no longer fits your lifestyle or budget, or if the timeshare was passed down through an estate, Timeshare Termination Team offers a Money-Back Exit Guarantee™ to help you gain freedom from your timeshare burden. To get started, contact us for a free consultation.

Here’s a breakdown of the true costs of timeshare ownership:

Mortgage and Interest

The average cost of a new one-week timeshare interval is $22,942, according to the American Resort Development Association. Unless you can pay cash for the timeshare, you’ll need to take on a loan to finance your timeshare. This isn’t like taking on a residential mortgage, however, where interest rates have been at all-time lows (under three percent in some cases). Instead, the timeshare salesperson will likely refer you to a partner lender who can quickly approve your loan. This approach comes at a high cost: Typically, these are 10-year loans and have interest rates that range from 14-18%—and sometimes they’re as high as 20%.

Let’s do the math: 

If you paid 18% interest on a $22,942 property with a 120-month term, your purchase prices will more than double at maturity, amounting to $49,606. That means you’re paying $26,664 in interest on the property, and you only own a sliver of it.

Your costs for mortgage and interest alone would be $4,956 a year, or $413 a month. For a more accurate representation of your annual mortgage and interest, visit our mortgage calculator.

Escalating Maintenance Fees

Much like having an HOA, timeshares come with maintenance fees that individual owners are required to pay. These fees cover things like maintenance and repairs, and may include landscaping and pool maintenance as well as administrative costs.

These maintenance fees can vary depending on the size of your timeshare, ranging from $640 a year for studios to $1,290 for units with 3 or more bedrooms, according to the American Resort Development Association.

On average, though, maintenance fees cost timeshare owners $1,000 a year, with an average increase of 4-5% annually. On the conservative end, if your maintenance fees go up by 4% every year, your annual maintenance fees could be as high as $1,480 by 2028. Even after you’ve paid off your timeshare’s mortgage, you’ll need to continue paying maintenance fees.

Special Assessments

Special assessments are fees that can be difficult to budget for, but are bound to pop up. These fees are in addition to the maintenance fees you’re already paying, and are charged to timeshare owners when the resort incurs extra expenses, like repairs from a natural disaster, tax increases or remodels.

Special assessments are divided among active owners, and they can range from $3,000 to $6,000, or more.

Timeshare Exit Options

When you add up mortgage, interest and maintenance fees, the cost of timeshare ownership can amount to roughly $6,000 a year. Some years, if you get charged a special assessment, your timeshare could cost you even more.

Ready to free yourself from the burden of timeshare ownership? With a team of expert advisors and in-house attorneys, Timeshare Termination Team aims to provide the safest, most trusted timeshare termination experience. Our You First Approach™ helps clients achieve a safe, legal and permanent timeshare contract exit.

The first step is to contact us today to schedule a free consultation.




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