Is Westgate Timeshare a Good Investment?

Absolutely not. Generally speaking, buying a timeshare, including one from Westgate Resorts, is rarely, if ever, a sound financial investment. Timeshares are complex, come with a multitude of fees, and depreciate rapidly, making resale extremely difficult and often resulting in significant financial loss.

The Allure and the Reality of Timeshares

Timeshares, particularly those offered by prominent companies like Westgate, are often presented as a pathway to affordable vacations and guaranteed getaways. The sales presentations, frequently high-pressure and emotionally charged, paint a rosy picture of idyllic vacations, fixed travel costs, and a legacy to leave to future generations. However, the reality for many timeshare owners is far removed from this carefully crafted image.

Westgate Resorts is one of the largest timeshare developers in the United States. They boast a vast portfolio of properties in desirable locations. Their extensive presence can be alluring, leading potential buyers to believe in the value and liquidity of their product. But let’s peel back the marketing layers and examine the underlying issues.

The Steep Initial Cost and Hidden Fees

The initial purchase price of a Westgate timeshare can be substantial, often tens of thousands of dollars. However, the upfront cost is just the tip of the iceberg. Timeshare owners are typically responsible for annual maintenance fees, which can increase over time, regardless of whether they use their timeshare. These fees cover property upkeep, management costs, and other operational expenses. Special assessments for unexpected repairs or upgrades can also surface, adding to the financial burden. It is not unusual to find owners paying more in annual fees than they would for a comparable vacation rental.

The Depreciating Asset Dilemma

Unlike real estate that can appreciate over time, timeshares typically depreciate rapidly after purchase. The resale market for Westgate timeshares (and timeshares in general) is saturated, making it difficult to recoup even a fraction of the initial investment. The reasons for this are multifaceted:

• High Inventory: The sheer number of timeshares available for resale far exceeds the demand.
• Lack of Perceived Value: Potential buyers often view timeshares as a liability due to the ongoing fees.
• Competition from Other Travel Options: The rise of online travel agencies and vacation rentals provides more flexible and affordable travel options.
• Resale Market Difficulties: Some companies make it very difficult to resell a timeshare unless they are involved and take a significant commission.

The Limited Flexibility and Availability

While Westgate offers a variety of properties and exchange programs, actual availability can be limited, especially during peak seasons. Booking desired dates and locations can be challenging, requiring advance planning and flexibility. Timeshare owners may find themselves unable to use their timeshare when and where they want, leading to frustration and unused weeks. This defeats the initial promise of guaranteed vacations.

Understanding the Alternatives

Before investing in a Westgate timeshare, it’s crucial to explore alternative vacation options that offer greater flexibility, control, and financial sensibility.

• Vacation Rentals: Services like Airbnb and VRBO provide a vast selection of properties, from condos to villas, at competitive prices. You have the freedom to choose the location, size, and amenities that suit your needs.
• Hotel Rewards Programs: Loyalty programs offered by major hotel chains can provide significant discounts and perks, rewarding frequent travelers with free nights and upgrades.
• Travel Agencies and Online Booking Sites: These platforms offer a wide range of travel packages, allowing you to customize your vacation according to your budget and preferences.

Frequently Asked Questions (FAQs) about Westgate Timeshares

1. What are the advantages of owning a Westgate timeshare?

While objectively few, potential (though often overstated) advantages might include: guaranteed accommodations during specific times (if availability allows), access to resort amenities, and the perceived ability to “lock in” future vacation costs (though maintenance fees undermine this).

2. How much do Westgate timeshares typically cost?

The initial purchase price varies significantly depending on the resort, unit size, and time of year, but can range from a few thousand dollars to tens of thousands of dollars.

3. What are the annual maintenance fees for Westgate timeshares?

Maintenance fees can vary but are typically several hundred to over a thousand dollars per year and are subject to increase.

4. Can I rent out my Westgate timeshare if I’m not using it?

Yes, some owners rent out their timeshares. However, there’s no guarantee of recouping your expenses, and Westgate may have restrictions or charge fees for renting.

5. How easy is it to resell a Westgate timeshare?

Reselling a Westgate timeshare is notoriously difficult due to the saturated resale market and high inventory. Expect to sell at a significant loss or struggle to find a buyer at all.

6. What are the cancellation policies for Westgate timeshares?

Cancellation policies are stringent. After a brief rescission period (typically a few days), it’s challenging to cancel a timeshare contract without incurring significant penalties.

7. Are there any alternatives to buying a Westgate timeshare?

Absolutely. Consider vacation rentals, hotel rewards programs, travel agencies, and online booking sites for more flexible and cost-effective vacation options.

8. What should I look for in a timeshare contract before signing?

Carefully review all terms and conditions, including purchase price, maintenance fees, usage rights, cancellation policies, and resale restrictions. Seek independent legal advice before signing anything.

9. What is the rescission period for Westgate timeshares?

The rescission period is a short window (usually a few days) after signing the contract during which you can cancel the purchase without penalty. This is your only guaranteed “out.”

10. What happens if I stop paying my Westgate timeshare maintenance fees?

Failure to pay maintenance fees can result in late fees, penalties, and even foreclosure, which can negatively impact your credit score.

11. Can I donate my Westgate timeshare to charity?

Donating a timeshare is possible, but many charities are hesitant to accept them due to the ongoing maintenance fees. Even if you find a charity willing to accept it, the tax deduction may not offset the initial investment and fees paid.

12. Does Westgate offer a buy-back program?

Westgate may offer a buy-back program in some cases, but it is typically offered at a deeply discounted price, far below the original purchase price. Conditions and availability of such a program are often limited.

The Bottom Line

While the allure of guaranteed vacations and resort amenities can be tempting, the financial realities of owning a Westgate timeshare often outweigh the benefits. The high initial cost, escalating maintenance fees, depreciating value, and limited flexibility make it a questionable investment. Carefully consider the alternatives and weigh the pros and cons before making a decision.