Things to Consider Before Buying a Timeshare
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Nothing in life is 100% perfect. Everything, including timeshares, has both advantages and disadvantages. Before investing in a timeshare, it is critical that you spend sufficient time seriously assessing the benefits of this money investment to you and your family. Never just accept what the developer or timeshare seller tells you. To maximize your satisfaction, it is essential to be aware of the many drawbacks associated with timeshares, and it is equally important to consider whether owning a timeshare suits your particular lifestyle – and your wallet.
One of the principal advantages of timeshare properties is that they are, in theory, so much more convenient, comfortable and considerably cheaper than hotel vacations. As opposed to owning a vacation home that you use just once a year, when you own a timeshare you ideally should not have to worry about upkeep. Maintenance is handled by a management company and, since a good timeshare unit should be occupied all year round, the assumption is that it will be in good repair. You will be charged annual maintenance fees, but these should only be for the period of time you have bought.
Timeshares are attractive because of their flexibility. Normally, you should be able to exchange the timeshare week(s) you own (use units in other locations, trade seasons or switch to a larger or smaller size unit). In some cases additional appropriate fees are involved.
Finally, unlike the money spent on hotel vacations, you should be able to sell your timeshare when you no longer need it and, at the very least, recuperate the money you paid for it. You will hear all of the above, and much more, from the timeshare seller.
Particularly in the context of the present economic meltdown, careful evaluation of the following potential problems is essential prior to investing in timeshares.
- Legal aspects of timeshares vary from one country to another, meaning that a timeshare owner’s rights are not the same in all countries. Be sure to check your contract if your timeshare investment includes exchanges overseas – even if these are in the same geographical region.
- Huge down payments: Due to the ever-growing popularity of the timeshare vacation option, advance payments have risen. If you are tempted by a given timeshare offer, make sure that the provider is really capable of providing all the amenities offered. Even when they are sincere, some timeshare companies unfortunately start selling their units while still negotiating with service providers (transport, accommodation etc). If these negotiations fall through, you will get less than what you paid for.
- Ask about the number of owners per timeshare unit. A unit with an excessively large number of owners will be subject to more wear and tear. Also, owners will spend a very short time in the unit, meaning that they may not have the time, or care about, repairing anything that needs to be fixed. The smaller the number of users, and the longer the time they spend at the property, the better it will be cared for.
- Carefully assess the real savings you will be making. Timeshares are generally purchased over time. Be sure to calculate whether interest costs make the investment worthwhile. Also, don’t forget that when you pay cash you will be losing interest you could have earned on that money.
- If you are buying a timeshare unit directly from the developer, it is important to know what the underlying property value actually is. Avoid paying a price that includes an excessively high premium. This will greatly compromise your ability to get your money back if you decide to sell the unit in the future.
- Read the small print in the management contract. Excessive management fees that can be increased at will are one of the most common problems associated with timeshare ownership. Make sure the management fees are reasonable.
- Keep in mind that the availability of timeshare rentals means that anyone can rent a timeshare unit like yours, without having to pay maintenance fees. If your annual maintenance fees are unreasonable, and if they keep rising, you may end up paying more in the future for a timeshare unit that you own than the person who is merely renting the unit next door.
- Finally, make sure to visit the unit before you commit yourself. Incredibly, many timeshare owners who purchase their units impulsively, mesmerized by the aggressive sales staff using high pressure selling techniques, don’t even ask to see what it is they are buying. All too many of them end up owning run-down units that cost more than hotels and are almost impossible to sell.
If sold at a fair price and managed well, timeshares can be a very wise investment. The timeshare concept is an excellent one that offers you the option of securing a prepaid, flexible vacation for years to come. Nevertheless, careful research is critical prior to purchasing timeshares – particularly in the current economic situation.
Tags: timeshare properties, fairfield timeshare resale, westin timeshare, timesharing
Posted on: Friday, December 18, 2009 at 4:51 am 
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