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Should I Invest In a Timeshare Property?

Dave Ramsey

Family Inspiration, Money, & Jobs

Question: Some friends recently offered me a timeshare. It’s an older place on the beach, and they’ve had it for about 20 years. I’d have to pay a transfer fee of $100, plus a yearly association fee of $500. I know you’re not a big fan of timeshares, but does this deal sound okay?

Dave: In essence, you’re looking at $500 a week. I know the $500 is technically an annual association fee, but you’re basically paying $500 for your week at the timeshare. And in the future, say five years from now, the association fee could increase. You might be paying $1,000 a year at that point — again, for your week.

In actuality, the numbers you’re talking about right now aren’t completely terrible. Still, it’s not a huge blessing. In my mind it’s kind of like, “How would you like a kick in the knee that’s not too hard?”

If it were me, I’d much rather spend my $500 a year on travel and be able to go and stay wherever I wanted. Not only does this free you up it that area, but you’d only spend the money when and if you did it. With a timeshare, you get charged whether you show up or not.

This one’s not as bad as if you’d have to pay $8,000 for the opportunity. But if these were my friends making the offer, I’d have to say no thanks.

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Dave Ramsey

Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations and The Dave Ramsey Channel on iHeart Radio. Follow Ramsey on Twitter at @DaveRamsey and on the web at