Timeshares can be a convenient way to enjoy a week or so of vacation every year at a different place.  When purchasing a timeshare, you either buy a property with other owners or you purchase the right to use a certain piece of property.  The latter is perhaps the more common of the two.  With right to use timeshares, people normally purchase accommodation at a resort or hotel.  It could be a room, a suite of rooms, or a separate unit.

On the outset, when buying timeshare property, one must pay the cost of the property.  If you are lucky enough to have that much money, then you can pay the whole amount outright.  Another option would be to pay in regular installments.  On top of this amount, timeshare owners have to pay a yearly maintenance fee.  This is used for the upkeep of the unit.

The maintenance fee covers a variety of things, depending on the timeshare company and the arrangements.  Some of them are furnishings and carpet, property taxes, insurance, cable television, phone and utilities.  While a timeshare owner would have to pay this fee, some consider this a small price to pay for the hassle free upkeep of their “property.”

One thing about timeshare maintenance fees, though, is that they increase almost every year.  The rate at which the maintenance fee increases vary, again depending on the nature of the agreement, the company, and the economic situation year after year.  On the average, however, you can expect your maintenance fee to increase anywhere from 2% to 4% annually.

If you think about it, a 2%, or even 4%, increase is not that substantial.  Let us say you are paying $200 each year as a maintenance fee.  At 2%, the increase would be 4 dollars a year.  So the next year, you would have to pay $204.  It would be $208.08 the next year, $212.24 the next, and so on.  If your arrangement is that you will own the timeshare for several years only, the chances are that your maintenance fees would not be too much.  However, as it is with most cases, you have ownership for quite some time.  At 2% increase each year, you will end up paying quite a lot for your maintenance fees after 10 years of ownership.  More so if the increase is at 4%!

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