The vacation property market has long been advertised as a safe investment and a guarantee of peaceful holidays anywhere on the planet, which has developed into an excellent destination for tourism and recreation. However, the reality often turns out to be quite different, especially when it comes to the so-called timeshare properties, which are transferred by inheritance.
According to experts, selling a timeshare is extremely difficult, since the secondary market is oversaturated, and interest in such offers is minimal. In practice, this means that the value of timeshare properties is often symbolic or even zero, while the obligations remain completely real.
The main problem lies in the very nature of this type of property. They do not represent classical real estate, but rather a contractual right of use, which is associated with ongoing costs. In many cases, owners are required to pay annual maintenance fees, as well as additional amounts for repairs or renovations of the complex. Even more serious is the fact that these contracts are often long-term or indefinite, which allows the obligations to pass to the heirs.
So instead of receiving an asset, the heirs actually acquire a financial obligation from which they can hardly be freed. In some countries, the legislation still provides for the possibility of renunciation of inheritance through the so-called “disclaimer of interest“. This is a formal procedure in which the heir declares that he does not wish to acquire the relevant asset. However, for the refusal to be valid, it must be made in in writing, within a certain period of time - usually up to about nine months - and provided that the heir has not used the property or derived any benefit from it.
If these conditions are not met, the waiver may be impossible and the obligations remain in force. This is where one of the most serious risks lies - the lack of sufficient information. For many elderly owners, the timeshare is a valuable asset and a symbol of family memories, but for the next generation it often becomes an unwanted burden.
Experts warn that even if all heirs give up the property, this does not always solve the problem completely. In some cases, it remains part of the assets or passes back to the company, but the financial obligations do not always disappear automatically.
Timeshares continue to be offered as an affordable alternative to a second home, but in reality they often turn out to be illiquid assets that are difficult to sell or transfer. Instead of an investment, they become a long-term liability.
The conclusion is that not every opportunity for a „secure vacation investment“ is actually profitable. In many cases, the line between asset and liability is extremely thin, and in the case of timeshare properties it is often crossed imperceptibly, with the price being paid by the next generation.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen at imot.bg