Travel has changed a lot over the years. Most travelers are spending a lot of time on road trips, visiting places closer to their homestead, and spending more and more time in one place. This has lead many people to consider buying timeshares and vacation homes.
So if you’re one of them, you’ll get a kick from this article, as we will talk about the pros and cons of timeshares and help you decide if it’s right for you.
Let’s begin with understanding what a timeshare is – in essence, a timeshare is a “vacation property arrangement” that allows you to combine property costs with others with a secure allocation of time to use the property per year.
Is This a Good Idea
Let’s be honest timeshares don’t have a good reputation. Some critics have valid claims and others enjoy the perks that come with owning a timeshare.
But bear in mind, not all timeshares are created equal. In general, most timeshares share similar characteristics.
The Bottom line is you must know precisely what you’re letting yourself into and learn how you would contact a timeshare exit company should you need to in the future.
Timeshares are founded on the notion of fractional ownership in a property. Say for example you buy a one-week timeshare condominium each year, you will own1/52end portion of the unit. So if you decide to buy one month, you will own 1/12th of the division.
While other buyers purchase the rest of the fractions. There exists two general schemes namely: Deeded, where you buy the ownership interest of the property. You also have Non-Deeded, here you have the option to lease the right of the property for a specified period every year for an allocated amount of years.
Cost implications: Usually buying a timeshare is much less pricy compared to buying a vacation house directly, more especially if you buy it through the resale market. Having said that, you are likely to pay maintenance fees monthly, transfer fees, and service fees too.
Exclusive Lifestyle: Other properties provide timeshare spots even they are sold out to the general public. Vacation clubs like Disney Vacation clubs, for example, have weeks that are sold out. This means buying a timeshare by-owner may qualify you to be the selected few to enjoy the resort at a specified time.
Growing annual fees: most people buy a timeshare and discover later that their annual fees continue to increase year on year.
Sale presentations with too much pressure: the nature of timeshare presentations can be filled with lots of pressure. Several resorts get the buy-in of prospects by enticing them with a free meal or a discounted holiday for a couple of days in exchange for them attending a timeshare presentation. However, more often than not, the promise of a one-hour presentation results in several hours of high-pressure salespeople hounding you to seal the deal while they are supposedly hosting you on their resort property.
Before you jump right in, like any major item you want to buy, you have to take careful consideration before you sign on the dotted line. Because buying a timeshare includes a huge amount of money upfront and major recurring costs. So the rule of thumb that will help you decide if buying a timeshare is the best way to travel the world for you is to ask millions of questions to have clarity on the terms and conditions of the contract.