Timeshares are a big part of the vacation travel industry. Travelers who can’t afford to own a home abroad, or who don’t want the worries associated with exclusive ownership, often see timeshares as an affordable alternative.
However, unscrupulous sellers, shabby properties, and unexpected hidden costs have brought a lot of bad publicity to the industry. A well-informed consumer can avoid common mistakes.
It is always risky to buy a property without being seen, but many people do it when they buy timeshares. If you shop in an area where you want to vacation, you may be unpleasantly surprised when you arrive at your destination.
However, many timeshares are purchased with the intention of exchanging them for others in different locations, and in this case, the location of the property is a bargaining chip, not the actual physical property. Timeshares in prime locations like Hawaii are easier to trade than others.
Recently, large corporations such as Disney, Hilton, Marriott and Hyatt have entered the timeshare market and their properties have a uniform standard around the world. First, you should know that if you buy a new unit directly from a timeshare company, it can cost up to 60% more than if you bought from the resale market.
Buying from a timeshare company is more expensive primarily due to the company’s marketing costs, which include free travel, meals, and vacation activities for potential buyers. Most of the clients of these timeshare companies buy on impulse, without any intention to buy when they first entered the timeshare seminar. Hard Sell Tactics and “Buy It Now, Unique Deals !!!” they are the rule, and to avoid being pressured into doing a bad deal, the best tactic is to avoid these sales presentations altogether.
Try the resale market for better deals. Timeshare resales are listed on many websites, on eBay, and with independent timeshare brokers. The search term “timeshare resale” produced approximately 500,000 results on Google, so there are many services to choose from.
If you buy directly from an individual, a reseller or attorney can handle the closing for a fee of $ 300 to $ 500.
If you’re buying a timeshare for resale value, consider regular real estate instead. Timeshares do not increase in value in conjunction with conventional real estate. From a strictly financial point of view, timeshare is a bad investment.
Most real estate increases in value, but this is not always the case with timeshares, especially those bought directly from timeshare companies. If you get a good deal on a resale timeshare in a prime location, your value may go up a bit. But generally timeshares are like cars: they are commodities that are used and resold for less than the original purchase price. Don’t think of timeshares as real estate; you are buying a vacation plan.
Also, unless you buy from a prime location, changing them may not be easy. Timeshares are often sold on the grounds that the buyer can trade a week in one location for a week in another location. This is only true if the location is requested by other vacationers. Otherwise, expect to vacation at the original location every year.
To find out whether or not you will be satisfied with a timeshare, it may be a good idea to rent one for your next vacation. Many timeshare units are placed on the rental market by owners who were unable to vacation in the allotted time, and these units are often rented at bargain prices. Check the same websites that offer timeshare resales for available rentals.
Some timeshare properties offer a new “point” system. Instead of earning a week each year, buyers purchase a set amount of “points.” These can be redeemed for a week-long stay during peak season, for longer periods out of season, or even distributed throughout the year in two- or three-day segments.
Some large hotel companies, such as Marriott, also offer a points system whereby a stay at their hotel earns points on the company’s timeshare system. Point systems can be confusing, so make sure you have a clear understanding of the services you are purchasing. For example, find out how much advance notice is required to reserve a week at the resort during peak season, whether points have an expiration date, and whether points can be transferred to other facilities in the same resort chain. However, when it comes to vacation planning, the point system offers more flexibility because the buyer is not locked into the same week every year.
Most importantly, don’t forget the annual maintenance fee. Timeshare owners are responsible for paying a portion of the property’s maintenance. These annual fees, including maintenance and real estate taxes, generally range from $ 300 to $ 700 per property week.
In short, timeshares can be a good buy if they offer some flexibility in terms of transferring to other places and scheduling your vacation. The typical timeshare is a small condo with kitchen facilities and one or two bedrooms, ideal for a family vacation, and since these units rent for $ 150-200 per night, buying a timeshare can be one more way. cheap to travel. However, if you are a mobile traveler who likes to stay in a different city each night, a single person who doesn’t need the extra space, or if you travel at unpredictable times, then a timeshare may not be suitable.
