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Thinking of buying a timeshare?

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Real Estate Agent

What is a timeshare and what are the pros and cons of timeshares? Let’s begin by defining a timeshare. Atimeshare is a type of property ownership in which you share ownership of a single property with a group of people. You are bound to a specific place and time each year. There is also another type of timeshare ownership that is based on a points system. In this case, you purchase timeshare points that can be exchanged for the use of a variety of destinations and resorts.

So why a timeshare? Well it’s probably because you just got back from vacation and you can’t wait to go back and visit that island again.You had such a great time that you want to go back over and over again. Before you decide to purchase a timeshare, here are a few things you should know. You need to know what the pros and cons prior to considering a timeshare. So here it goes.

 

Pros

There are a few advantages that come with owning a timeshare. First, Many people buy timeshares for the opportunity to exchange or trade units with other owners, allowing each one to experience a different place in the world every couple of years. Second, you only pay for a timeshare during the time that you are using it. Because you are sharing the cost with others, there is much less financial strain. Third, annual maintenance fees insure your timeshare and resort upkeep and any repairs that it may need. Your fees also pay for on-sight management and insurance so there is always someone looking after the property. Lastly, a timeshare is a guaranteed vacation. A timeshare is a vacation destination that is guaranteed to be there one week a year.

Cons

On the flip side, there are some disadvantages of owning a timeshare. First, rescheduling your vacations may be hard to do. Owners keep their weeks,and may be reluctant to swap weeks with you. Second, the concept of timesharing is based on prepayment of your vacation. For some, it is hard to give up money for a vacation you won’t experience until months later. Third, you are contractually obligated to pay maintenance fees for as long as you own it. Maintenance fees cover the grounds and housekeeping services, utilities, insurance, on-site management, keeping facilities and appliances up and running etc. Lastly, always check if the timeshare belongs to an Owner’s Club or Association. If not, you may be dealing with a scam or hoax. Research the resort and management company to be aware of any outstanding complaints.

So there you have it. Now its up to you. I hope that this short article will help you decide if timeshare resorts are for you.

Show All Comments Sort:
carol edson
MTS - Alameda, CA
Travel !

Hello there, timeshare business is a very tricky thing , i was involved on a timeshare scam and was a very bad experience for me..if you need more info or tips about timeshare scams, you could take a look to this : 

 

http://www.timesharescam.com/blog/category/timeshare-scams-and-fraud/

Sep 30, 2015 07:38 AM
Gordon Newton
Newton Group Transfers - Gilbert, AZ
The #1 Trusted Name in Timeshare Exit

Hey Sam Marji thanks for this article. I know it's an older one, but from time to time, I do search for good timeshare articles since I am in the business of helping people get out of them.

Timeshares can be a great way to vacation, under certain circumstances. Here are my recommendations:

1. NEVER buy directly from the resorts. They are selling you what you can get for pennies, or even free, unless you are buying into a brand new timeshare community. Even then, you need to ask yourself it if is worth it to pay both a mortgage and maintenance fees for several years (until the mortgage is paid off). It won't likely save you money while you have a mortgage.

2. Know that they come with annual maintenance fees that do not go away. Once you are no longer using your timeshare, you will feel this pain, It is the #1 reason that people want to get out of their timeshares. They also have other fees such as special assessments from time to time that are not optional for owners.

3. Make sure you know that it will likely cost you money to get out of your timeshare. As long as you account for this (and don't buy from the resorts) you can enjoy making memories with your family year after year.

Lastly, please know that timeshares are not financial investments and do not appreciate in value. In fact, if you buy one from the resort, it will typically depreciate from the moment you acquire it and you will immediately be upside down in your timeshare mortgage.

 

Mar 23, 2018 10:08 AM