You would be surprised to know how many people nowadays are still preferring to invest in a timeshare property. It’s practical, safe, and more affordable than you can imagine. So, here is a comprehensive guide to things that you need to know before buying a timeshare.
But what is a timeshare?
It’s easier than we think to explain it. A timeshare, also known as holiday ownership, is a property that has multiple parties with the right to use this property.
You usually have access to a “shared” property at a specific “time”. Timeshares are sold for cruises, recreational vehicles, camping, and many other types of travel-oriented properties, but its most popular use is for condominiums, and in general resorts.
There are many flexible property varieties offering options beyond a single timeshare destination and a specific time of year, but there are some downsides as well. Let’s check more about this popular type of investment.
What are the timeshare costs?
Timeshare owners pay for access to their unit for a specified period of time. They also often share maintenance fees, management fees, and maintenance costs in common areas such as swimming pools and tennis courts.
You may have final costs associated with purchasing your share, and you may even be liable for a portion of property taxes.
Fees vary and must be disclosed when you purchase a unit. It is important to read all the fine print before purchasing a timeshare because you are likely committed to paying at least part of your annual costs for a substantial period.
However, you can always avoid extra headaches, by finding a professional timeshare exit company that will help you to cancel timeshare reviews of seaside in California or wherever you may have your timeshare property.
After all, it’s not good to get stuck in a timeshares contract that is not fulfilling your needs.
Buying from a Timeshare Developer
The people who build and sell new shares are called developers. Its sales practices are generally governed by the state law where the property is placed.
Therefore, it’s fundamental to familiarise yourself with the laws of the state and/or area in which you plan to buy before closing the deal.
Research the commission schedules for the state and/or area in which the development is located. Agent websites are often the best places to find information about the laws governing the initial sale of timeshares.
Developers often provide direct financing for new timeshares, but most resales — units purchased from individual owners — are paid for in cash.
Buying a Timeshare Resale
Timeshares or resales can usually be purchased for a fraction of the cost of new units. Resale values can provide a clue on the value of the timeshare program and its properties.
Other Financing Options
Funding directly through the developer can be costly in interest rates. It might be better to find the money by other means if you want to buy some time.
Some options include real estate loans, you can borrow from your retirement funds, etc. Or if you own an unlimited credit card, it can be other sources of loan as well. You just need to know how to deal with the high-interest rates, of course.
Pros of Investing in Timeshare
Committing to a timeshare means having less expensive holidays. It’s generally cheaper in the long run than resort packages or other hotel accommodations, for example.
This industry is much more regulated updates nowadays, so you’re not likely to get burned if you choose a reputable developer.
Cons of Investing in Timeshare
This is not an investment that will be valued, like buying a vacation home.
Resale options may be limited. Don’t compromise unless you’re sure you want to use sharing for years to come—which means spending your holidays in the same place year after year after year.