Table of contents
| Feature | Traditional timeshare | Luxury hotel stay | Pacaso co-ownership |
|---|---|---|---|
| Upfront cost | $20,000 - $30,000 | Cost of stay | Variable (equity benchmarked) |
| Ownership type | Right-to-use / points | None | Ownership shares via LLC |
| Annual fees | $1,000 - $1,500+ (Rising) | $0 | Monthly |
| Resale value | Depreciating | N/A | Possibility of appreciation |
| Exit strategy | Extremely difficult to cancel or sell back to the resort. | Stop booking | Resale shares to the Pacaso network |
What are timeshares?
Timeshares are arrangements where multiple individuals purchase the right to use a vacation property for a specific period each year, typically through a company that manages the property. Unlike co-owning a house, a timeshare buys you the right to use the property for a specific period of time throughout the year. Timeshare agreements can be arranged in two ways:- Deeded: The owner can use, rent, or sell the share of time they own in a single property.
- Non-deeded: The owner leases their time in a property, sometimes having the option to use multiple locations.
Timeshare pros and cons
While timeshare resorts provide a designated vacation destination with professional property management, they can also trap you into a tough-to-sell asset that depreciates in value. Here are some pros and cons of owning a timeshare.The pros:- Simplified planning: Makes vacation planning easier by giving you a set network of resorts to choose from each year.
- Professional upkeep: Maintenance and updates are handled for you, with costs shared across a large pool of owners.
- Resort amenities: Consistent access to high-end perks like pools, gyms, and private beaches without the stress of personal upkeep.
- Cheap resale entry: Buying from a previous owner can save you thousands upfront, provided you are comfortable with the recurring fees.
- Zero appreciation: Unlike traditional real estate, a timeshare is an expense, not an investment. They typically lose value immediately because they’re widely available on the resale market, often with little demand and ongoing fees that make them harder to sell.
- Financing hurdles: You can’t use a traditional mortgage. Buyers often resort to high-interest personal loans with no tax benefits.
- Rising annual costs: Maintenance fees are not fixed and often outpace inflation.
- Difficult to sell: Because the resale market is flooded and demand is low, you remain responsible for all fees until you find a buyer, which can take years.
Are timeshares worth it?
Deciding if a timeshare is worth it depends on whether you view it as a lifestyle choice rather than an investment. For some, the appeal is convenience, having a reliable place to return to each year, a set vacation schedule, and access to a network of resorts without the hassle of planning from scratch.A timeshare may be worth it for someone who values consistency, prepaid accommodations, and familiar destinations, and who isn’t concerned with building equity or resale value. However, for most travelers, vacations are still an ongoing expense rather than an asset, and the long-term costs and limited flexibility can outweigh the benefits.Before committing to a timeshare, evaluate these five factors:- Accommodation costs: Compare your total purchase price and annual fees against 10 years of hotel stays. While timeshares can offer more space and consistency, they often become more expensive over time due to ongoing maintenance fees and limited resale value, which can offset potential savings.
- Booking hurdles: Evaluate booking rules, especially if you plan to travel during peak or holiday periods. Popular dates are often in high demand and may require reserving 6–12 months in advance.
- Destination fatigue: Consider how your family’s interests may evolve over time and whether you’ll continue using the same destination. Even if your preferences change, you’ll still be responsible for ongoing maintenance fees, which are typically required every year for as long as you own the timeshare.
- Trading realities: Consider how trading works within the program, including availability at other resorts. While many clubs allow you to trade your week, high-demand locations often book quickly, and your ability to trade may depend on the demand for your home resort. A better timeshare alternative.
A better timeshare alternative
If you want the consistency of a second home without the resale trap of a timeshare, Pacaso co-ownership is the better alternative. Pacaso offers a fully managed LLC model that provides true real estate ownership rather than just right-to-use points. It is the smart choice for those who want a luxury home at a fraction of the cost, without the DIY hassle.Why Pacaso is the smarter way to own:- Turnkey management: From premium furnishings to dedicated local Home Managers, every detail is handled. Your home is professionally cleaned, maintained, and ready the moment you arrive.
- Flexible scheduling: Use the Pacaso app to easily book 6–7 stays per year. It removes the rigid fixed-week headache of traditional timeshare models.
- Financing Options: For qualified buyers, Pacaso offers financing up to 70% of the purchase price, making luxury homeownership more accessible than ever.
- Real estate equity: Unlike a timeshare, you receive ownership shares via an LLC. You own a specific portion of a luxury home (1/8 to 1/2), meaning your purchase is an asset, not a service.
- Proven resale value: You can sell your share at your chosen time and price. On average, Pacaso shares have historically sold for a 10% gain, in contrast to the 90% loss common in timeshare resales.
Choose Pacaso over timeshares
So are timeshares worth it? The answer is rarely, given other alternatives that provide greater flexibility and potential return on investment. Before committing to a timeshare, browse Pacaso’s listings to see if a vacation home better suits your needs.Are timeshares worth it? FAQs
01: What is the downside of owning a timeshare?
Timeshares often depreciate in value, have more expensive financing and increasing costs over time. Additionally, they can be hard to resell as some timeshare programs don't transfer to a second buyer.
02: Are timeshares actually worth it?
A timeshare can be a good investment, but there are things to consider like advanced booking, flexibility, depreciation and transferring the timeshare to heirs.
03: Do you ever pay off a timeshare?
No, since a timeshare is not owned, you never pay it off.
04: Will you regret buying a timeshare?
Some may regret buying a timeshare due to the increasing expenses and decreasing value. Timeshares may also be difficult to resell.
05: Is it easier to resell a Pacaso timeshare?
Yes. Reselling a Pacaso is significantly easier because it is deeded real estate, not a right-to-use contract.
While timeshares often lose 90% of their value and are notoriously difficult to offload, Pacaso shares are sold to the Pacaso network. Owners can set their own price, leverage Pacaso’s portfolio of current and prospective buyers, and have the Pacaso team support and enhance their marketing efforts.
06: Is it easier to visit a Pacaso property than a timeshare?
Yes. Pacaso’s scheduling app offers significantly more flexibility than traditional timeshares.
Most timeshares lock you into a rigid "fixed week" or a complex points system where you must book 12 months in advance to secure a spot. With Pacaso, you can book stays from two days to two years in advance, and owners enjoy an average of 6–7 stays per year.
