Be Smart When Buying Timeshares
admin as Buying Timeshares
Jun|15|2008
One of my friends is currently very busy. In addition to running an Internet marketing consultant business, she is wrangling with US immigration to become a citizen and is learning how to become a US citizen. She is also currently learning how to buy a Florida timeshare. She’s learned a lot about timeshares, and has graciously allowed me to share her tips:
Avoid big promises. Salesmen who use high-pressure sales tactics or use words such as “perfect” or “free” are generally people to be wary of. Timeshares are an investment, so any promise that seems too good to be true often is.
Location is the most important part of a timeshare. If you want to trade your timeshare with other timeshare owners, it helps if you have a timeshare in a highly desirable location — such as Orlando — during peak summer or tourist season.
Get everything in writing and ask lots of questions. Timeshares vary widely, and some programs are points based, some are not inflation proof, some offer you ownership, while others need to be renewed. Always learn exactly how timeshares work, and keep in mind that only promises made in writing count.
Don’t confuse a timeshare as a real estate investment. Yes, some types of timeshares are assets, and they can even appreciate in value if they’re in a highly desirable location. However, if you want to invest in real estate you should be investing in foreclosures, rental properties, or other types of properties. Timeshares are really more of an investment in your future trips and vacations. They’re more of an investment in your peace of mind when you next plan your travel.
Know your own budgets. Know exactly how much you spend on vacation accommodations and other vacation costs when you travel. This will give you a sense of how much the timeshare can save you over time.
Do the math. In the initial few years, a timeshare may cost you more money than a hotel room. However, over time you may save money. Don’t plan on seeing a return on your initial investment right away.
Be sure to keep in mind quality vacation as well as costs. Timeshares are not just about money saved on hotel bills. They have other, more intangible benefits as well. For example, most timeshares come with wonderful amenities and kitchens — two things that you may not be able to get in the local discount hotel room. Compare the sort of vacation you might be able to have in a timeshare that offers you two bedrooms, a living room, and more space. Also, consider the amenities and the quality of services you can enjoy with a timeshare. Concierge services, for example, can ensure that you get tickets and transportation easily when you want it. A spa in the same building may save you on health club costs and on a long walk to the spa. Weigh these benefits against the costs to determine whether a timeshare is worth it for you.
Tips for Buying Timeshares
admin as Timeshare tips
Mar|24|2008
Buying timeshares can be a big commitment and a considerable investment. That’s why you will want to follow these expert tips to make sure that your purchase goes smoothly:
1. Take your time. Learn about timeshares, the types of contracts available, and the timeshares available in the areas where you want to vacation. The more you know about the market, the easier it will be for you to find a timeshare that you really like. If an agent or company is pressuring you to buy now, be wary.
2. Consider whether timeshares are right for you. If you like to visit the same spots and vacation every year, timeshares may be a great solution. However, if your vacation plans are helter-skelter or of you like to travel everywhere, timeshares may be too restrictive.
3. If you are interested in timeshares that use the points system make sure that you learn exactly how the point system works. You may find that it takes more points than you imagined to get the vacation or perks you wanted. Be sure to ask whether the points amounts increase – and if so, how often. Talk to people who are using the points system – are they able to travel the way they want with the system?
4. Do the math. When deciding how much to spend on a timeshare, add up maintenance fees, taxes, mortgage payments or leasing fees, travel costs, closing costs and commissions, and finance charges. Ask whether there’s a cap on maintenance fees, which are the one fee that will increase over time. Look at the total cost of the timeshare – does it still make sense for the amount of travel you are planning to do? Tally up the rental costs of nearby accommodations – will the timeshare save you money over these costs during the same time of year? If not, it is not a very good deal.
5. Research the location and the units. Visit the timeshare and speak with current and past owners. Talk to other local real estate agents about the timeshare and research the management company and builder – have other owners had trouble with them? Make sure that you research the neighborhood, too. Is the timeshare in an area you will enjoy visiting? What is the crime rate like? What is the atmosphere like? What is the noise level like at night, when you are trying to sleep?
6. Think twice if you are looking at your timeshare as a real estate investment. The future value of your timeshare is unlikely to increase and timeshares tend to be trickier to sell than traditional real estate. You should be buying your timeshare for your vacations, not for a future resale.
7. Get a copy of the most recent maintenance budget for the timeshare. What are the policies on management, repairs, and replacement furnishings? If something goes wrong, will it be easy and convenient to get it fixed? If you are being promised amenities in the future, get a specific date in writing and be sure that the company compensates you if the amenities are not installed by that time. You should never pay extra for amenities that may or may not be installed.
The Benefits of a Timeshare
admin as Timeshare
Feb|25|2008
Why buy a timeshare? There are many benefits to this type of ownership:
1. Less stress. Timeshares allow you to vacation without worrying about room availability and increasing hotel costs. Even if you like to travel to very desirable locations, with a timeshare, you will always have a room waiting and you will not have to worry about blowing your budget because the hotel costs have increased due to a popular local event. This allows you to plan and budget with confidence.
2. Flexibility. Many timeshares and vacation clubs allow you to travel virtually wherever and whenever you want. Even if you have specific weeks indicated, you can often exchange your weeks for another vacation time and another destination. Some timeshares even allow split weeks, so that you can take several smaller vacation over a year or can schedule a vacation even if your work schedule is hectic.
3. Financial gain. Depending on the type of timeshare you have, you can sell your timeshare, give it away or rent it out when you are not using it. If you do not vacation one year, for example, you can rent out your timeshare to another family and have more savings for your next vacation.
4. Savings. Timeshares often cost far less than hotels and resorts with the same amenities. Timeshares are also not affected by rapidly increasing prices, the way resorts and hotels are. Since most timeshares are equipped with washers, dryers, and kitchens, they can also help you reduce dining and dry cleaning costs while you are on vacation. Of course, timeshares cost far less than buying an entire cottage, condo, or other vacation property. All you need to pay for timeshares is the initial cost plus maintenance fees.
5. More space. Most timeshares are much larger than the standard hotel room. Even studio timeshares – designed for two people – include dining, living, sleeping, and kitchen areas and so easily dwarf the hotel rooms that would cost you much more anyway.
6. Coziness. Timeshares have all the accoutrements of home – including fully stocked kitchens and living rooms. Unlike impersonal hotel rooms, timeshares really allow you feel at home while you are on vacation.
7. More amenities. Timeshares generally offer more amenities than you would be able to get for the same price at a hotel. Some timeshares offer fully modern kitchens, separate living and dining areas, private balconies, wonderful views, and much more. This can allow you to enjoy more comforts and amenities than you thought, while still staying on budget.
8. Less planning. If you are staying at a hotel, you may need to book far ahead just in order to get a room – especially if you want to travel to a highly desirable destination or to someplace where a major event is taking place. You also have to try to coordinate your car rental, flight, and other plans to work with your hotel arrangements. Unfortunately, some hotels have a reputation for overbooking, so you may have to develop a contingency plan as well. With timeshares, your accommodations are taken care of and you only need to take care of the rest of your vacation when planning.