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.