In 2015, timeshare sales in the U.S. grew to more than 8.6 billion dollars. These timeshares are perfect for those wanting to own a piece of a resort. It’s the opportunity of a lifetime to get that dream vacation each year.
Additionally, timeshares are often larger than traditional accommodation. They have two bedrooms or more and often come with a kitchen and other amenities not found in hotels.
But, be careful. Timeshare deals aren’t always what they seem. While some will offer you a dream holiday each year, others can cost a lot of money in the long run.
Here are some tips to bear in mind when buying a timeshare:
Timeshares are vacation properties. They’re an opportunity for you to buy a share of a property and use it for a specific amount of time each year. They’re great for family vacations.
What we’re getting at is that timeshare deals aren’t financial investments. They’re not the type of purchase that will make you money.
Making an investment in a timeshare will enhance your quality of life not make you millions. Always think of your timeshare as the perfect vacation destination rather than a gold mine.
Different timeshares come with different schedules. Both the lender and the dates vary depending on the timeshare deal you buy.
A fixed schedule timeshare will give you access to your property on the same dates each year.
Floating schedule timeshares offer you a specific number of days in your property each year.
The benefit of these is that you can choose when you use up that time. You’ll have more flexibility to plan vacations around work and your family.
Combinable time timeshare deals allow you to divert your holiday from one year to the next. Instead of going on one short holiday each year, you can skip a year and accumulate time for the next.
Timeshare ownerships entitle you to one week in your holiday home each year. These types of timeshares have 52 individual owners, thus giving one week access to each owner.
Fractional ownerships are perfect for those of you who’d like more than a week’s access to your holiday home.
Depending on how much you choose to invest, your property could be available for anywhere between 2 and 12 weeks every year.
Rentable timeshare deals are best if you’d like to make a little money back. Instead of staying in your unit, you can rent it.
Remember, you can only rent the timeslots that you own. With this in mind, you shouldn’t see your new unit as a buy to rent opportunity.
You can also find timeshare deals where you can lend your unit to your family or friends.
The most limiting timeshares are those that are owner only. Your friends and family will not benefit from your investment.
Know This Before You Buy…
Negotiate the Price
As with any real-estate transaction, the price of a timeshare is negotiable. Don’t settle for the first offer you get.
While you may save a lot of money on hotels over time, you’ll also find that your location is limiting. I.e. You’ll go to the same destination each year.
To make the offer more tempting, timeshare companies will offer you gifts. This leads us to our next point:
Buy From an Existing Owner
Timeshare companies offer gifts because they know that you can buy your unit for less money from an existing owner.
While they’ll offer you various incentives, these will not equate to the amount you save by going to an existing owner.
The Best Deals Offer a Deed to a Property
The best timeshare deals are those that allow you to rent your property if you choose not to use your allocated time. These properties give you a deed to a property. They’re known as a “timeshare estate”.
This deed allows you to rent, sell, or leave your timeshare to your children or family when you pass away.
The only catch to these deals is that you have to pay your maintenance fees each year. These are the same as property taxes. If you don’t make them, the company with which you have a deal can foreclose.
Check Out the Right of Rescission on Each Deal
The “right of rescission” is a generous opt-out clause. It is to protect potential buyers from abuse on timeshare sales.
Timeshare deals with this clause allow you to cancel your contract up to a week before signing on the dotted line. Plus, it doesn’t matter what the reason is.
To avoid this clause, some timeshare companies ask you to sign the contract documents in a different state to the one you are buying in. This is to enter you into a contract in a state where you will not have the same buyer protection.
To make sure everything is above board with your contract, find a lawyer in your area that specializes in timeshare agreements.
Because of the popularity of timeshares, there are now thousands of scammers out there looking to make a quick buck.
If you receive cold calls offering to buy your timeshare and you haven’t advertised it, hang up straight away.
These companies collect thousands of dollars from you and then never complete the sale.
My Timeshare Attorney says there are other common promises timeshare scammers make:
- You’ll receive priority over others when booking a vacation
- The interest on your timeshare will increase, making you money in the long run
- You can rent your timeshare to make bucket loads of money
- You can sell your timeshare for a premium
Please note that while you can rent your timeshare, you should not buy it with the goal of making your money back. You may make a little income but it isn’t a sound long-term investment.
Hire a Lawyer to Make Your Deal
If you are buying a timeshare, it’s important you get the right legal advice.
The right lawyer will keep you safe from scams. Not only this, you’ll know everything you need to know to get the best deal possible.
At Halt, we link people with attorneys that can help them find the best timeshare deals.
To find out more about our services, contact us today!