Like any other type of investment, it is possible that your investment in a timeshare might end up being a scam or fraud. It can be mentally and financially devastating if this happens. It could take some time to recover from the backlash of timeshare fraud. If you have already been victimized by one of these notorious scams and frauds, you certainly can understand the trauma they cause for their victims. That dream vacation you might have been planning for a very long time ended up becoming a nightmare instead.
If you think you are the first person to ever be scammed in a timeshare fraud, think again. There are many more victims, maybe numbering in the hundreds, who have fallen prey to the unscrupulous actions of some companies. Timeshare properties, are, however, one of the safest ways people can go to many popular vacation destinations. How would you like to embark on a journey to some of the world's geographical wonders? What about enjoying a romantic beach resort getaway? These experiences sound exciting, but they are examples of the marketing tactics that scammers use to tempt people to think about purchasing a timeshare.
In cases of timeshare fraud, this is their first victory in setting a trap for you. However, this does not mean that every timeshare company who uses this tactic would be a scammer. The essence of that is to be precautions and not get impulsive about it in the first go. Always think and rethink before making a decision on buying a timeshare. Restrain yourselves to the maximum. One of the important criterion is selecting a right timeshare company.
As a rule of thumb, always go with large, well established timeshare companies who have been in the business for years. In this way you know their history very well and their reputation in the market. They are less likely to fraud a person than a new or a small company. This is applicable when it comes to the resale of your timeshare property.
You can sometimes avoid a timeshare fraud because the catchy marketing tactics used by the scammers often serve as a warning. Some of these companies may tell you about a gift that you have won, but the only way you can get it is by attending their free presentation. Once you fall into their trap and attend the presentation, you find out that it's just a gimmick. Then, they begin using pressure selling techniques, and they won't let you leave the presentation unless you sign a paper like those used car dealers who say "we will sell you this car at this price, but only if you buy it today".
They might tell you the property is only a five minute walk from the beach, but the reality is that it's 15 minutes away. Sometimes the property might not even be the same one they described in their presentation. They're able to take advantage of the fact that people won't go to Florida or Carolina to see the property before they purchase it. The property might not even exist at all, in some rare cases. This should teach you to read the fine print in any invitation you receive. Never give in to their pressure, and don't sign anything, either.
Consulting an attorney before you sign any contract or papers is always a much better idea. See if all the company's verbal promises are being carried out, or not. Before you buy, do some homework by finding out the going rate for timeshare properties in the location you're considering. Ask the timeshare company for the contact information of some of their previous customers, then make sure you call those people. Ask them to tell you everything you want to know about that specific timeshare company and their properties.
If you are interested in timeshare properties and want to find out more about Timeshare Fraud, you should check out We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership Forum social network. It is free to join and you can create your own profile in minutes. Share experiences and reviews of different timeshare locations and start asking questions in the forum to find out how others have avoided fraud with their timeshare properties. Visit today.
Tuesday, March 15, 2011
Timeshare Cancellation Through Donation
Donating a timeshare is a very popular plan of action for most timeshare owners. When someone is looking for a way to cancel a timeshare contract they will usually try to find a way to donate the property. They simply want to get out of paying the regular maintenance fees and random special assessment charges. So they figure that if they donate the timeshare they can free of it and not have to worry.
Most of the time owners will attempt to resell their timeshare. They will look into how they can sell a used timeshare and more often than not they realize that it is not the best way to end their timeshare ownership. They find to their surprise that reselling a timeshare can be nearly impossible. So once they have eliminated the option to sell their timeshare they look towards giving it away for free in an attempt to get rid of paying the fees.
Now when you research into donating a timeshare you will also be surprised to find out difficult that can be as well. It is just about as hard to sell a used timeshare as it is to donate it. There are a few reasons for this but the main one is simply that most of the charities that you might think to donate your timeshare to can't afford to own one. The same way you are finding the financial cost of ownership draining a charitable organization would be unable to pay the regular costs of ownership, not to mention a special assessment charge.
It would simply be a big drain on the charity to have to find a way to put a timeshare to use. Either by actually using it for their own purposes or finding a way to create a profit from renting it out or somehow selling it, the charity would have to be able to do something with it. The charity may have the resources to actually be able to rent it or sell it with some sort of financial gain, however, this situation is very unlikely.
Another big reason why it is nearly impossible to donate a timeshare is that most charities that actually will accept a timeshare donation will probably not accept yours. The few organizations that will accept a timeshare donation really only take in the very luxurious high end quality timeshare units. They are only interested in a timeshare that is probably actually worth something, a unit that they could easily rent out for a profit of some sort after paying for the cost of ownership. The average timeshare owner unfortunately does not have one of these valuable timeshares.
After exhausting the few timeshare removal options most owners become very frustrated and upset with their timeshare situation. They look for ways out, sadly many of these frustrated owners are taken advantage of by scammers who promise them that a buyer is ready and waiting for their timeshare. These owners really just need a secure way to get out of their timeshare contract and financial obligations. Thankfully there are such timeshare relief services available that will get a timeshare owner out of their contractual obligations once and for all. So if you are an owner who needs to escape your timeshare fees it is important to remember that your main focus should simply be to cancel your timeshare contracts.
Kaylene Norris is a timeshare advisor for Transfer America, a company that helps timeshare owners experience the Timeshare Freedom they need. Kaylene provides information about how to cancel a timeshare safely and securely without the hassle and worry of trying to sell. She has made it her personal mission to help timeshare owners get the information they need to make more informed decisions when it comes to buying timeshares, renting timeshares, or selling timeshares. For information about Transfer America, visit http://www.transferamerica.net.
Article Source: http://EzineArticles.com/?expert=Kaylene_Norris
Most of the time owners will attempt to resell their timeshare. They will look into how they can sell a used timeshare and more often than not they realize that it is not the best way to end their timeshare ownership. They find to their surprise that reselling a timeshare can be nearly impossible. So once they have eliminated the option to sell their timeshare they look towards giving it away for free in an attempt to get rid of paying the fees.
Now when you research into donating a timeshare you will also be surprised to find out difficult that can be as well. It is just about as hard to sell a used timeshare as it is to donate it. There are a few reasons for this but the main one is simply that most of the charities that you might think to donate your timeshare to can't afford to own one. The same way you are finding the financial cost of ownership draining a charitable organization would be unable to pay the regular costs of ownership, not to mention a special assessment charge.
It would simply be a big drain on the charity to have to find a way to put a timeshare to use. Either by actually using it for their own purposes or finding a way to create a profit from renting it out or somehow selling it, the charity would have to be able to do something with it. The charity may have the resources to actually be able to rent it or sell it with some sort of financial gain, however, this situation is very unlikely.
Another big reason why it is nearly impossible to donate a timeshare is that most charities that actually will accept a timeshare donation will probably not accept yours. The few organizations that will accept a timeshare donation really only take in the very luxurious high end quality timeshare units. They are only interested in a timeshare that is probably actually worth something, a unit that they could easily rent out for a profit of some sort after paying for the cost of ownership. The average timeshare owner unfortunately does not have one of these valuable timeshares.
After exhausting the few timeshare removal options most owners become very frustrated and upset with their timeshare situation. They look for ways out, sadly many of these frustrated owners are taken advantage of by scammers who promise them that a buyer is ready and waiting for their timeshare. These owners really just need a secure way to get out of their timeshare contract and financial obligations. Thankfully there are such timeshare relief services available that will get a timeshare owner out of their contractual obligations once and for all. So if you are an owner who needs to escape your timeshare fees it is important to remember that your main focus should simply be to cancel your timeshare contracts.
Kaylene Norris is a timeshare advisor for Transfer America, a company that helps timeshare owners experience the Timeshare Freedom they need. Kaylene provides information about how to cancel a timeshare safely and securely without the hassle and worry of trying to sell. She has made it her personal mission to help timeshare owners get the information they need to make more informed decisions when it comes to buying timeshares, renting timeshares, or selling timeshares. For information about Transfer America, visit http://www.transferamerica.net.
Article Source: http://EzineArticles.com/?expert=Kaylene_Norris
Thursday, January 20, 2011
Consider The Risks Before You Buy A Timeshare
There are both risks and rewards involved in buying a timeshare, largely depending on which timeshare company you choose to purchase one of these properties from. There are many people out there who have had nothing but enjoyment from their timeshare properties while others have seen their dream vacation property turn into a nightmare and a money pit due to the fraudulent machinations of scam artists. Buying a timeshare should be done with a great deal of caution and an awareness of the potential risks. Think carefully about the benefits as well as the risks as you consider buying and of course, always read the fine print before you sign anything.
Timeshares may be either deeded purchases or arrangements with no deed; these are essentially a long term lease which does expire eventually rather than an actual purchase. Deeded timeshares involve an actual deed of ownership which may be passed to heirs in a will and all of the rights of ownership. In either case, the price of the timeshare is determined by the amount of time the buyer has the right to use the property as well as the time of year that they are allowed to use it.
Buying a timeshare is an important decision and is one not to be rushed into. Read over any documents and contracts very carefully, making sure that you understand all of the terms and conditions spelled out therein. Never sign anything unless you completely understand what you're agreeing to. You may want to have your lawyer look the contract over before signing and you should definitely speak to someone who owns a share in the property. Before you buy a timeshare, keep the following points in mind:
-Check into the licensure of timeshare resale companies. You can inquire about this with the State Department, who will usually maintain records about the company's history as well. Be extremely cautious when dealing with an unlicensed firm - your degree of risk will be much higher than with a licensed company.
-A timeshare is meant to be a vacation property rather than an investment; you may not necessarily receive a good return on your investment if you resell.
-If you are buying a right to use timeshare watch out, if the sponsor declares bankruptcy, you may lose your rights.
-If you are buying a timeshare in a property where the facilities have not been fully installed take a written commitment from the seller that they will be finished in a specific amount of time.
-Any claims made by the seller about the returns on the investment in timeshare should be questioned because the future value of a timeshare depends on many factors.
-A timeshare should not be an impulse purchase. Read over all associated documents and consider the matter carefully before you decide.
-Especially if the seller makes any promises to you orally, ask to get it in writing; in fact, get everything in writing.
-Try to find out whether the exchange program will be guaranteed or not. Sometimes it isn't. So make sure to find it out before buying. Buying a timeshare without an exchange program is not worth the money because you will get bored going to the same property every year and also you will not have the flexibility of schedule if you don't have exchange facility.
If you are interested in timeshare ownership and want to learn more Timeshare Information, you should visit We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can create your own profile in minutes. Share experiences and reviews of different timeshare properties and begin asking questions in the forum. Visit today.
Timeshares may be either deeded purchases or arrangements with no deed; these are essentially a long term lease which does expire eventually rather than an actual purchase. Deeded timeshares involve an actual deed of ownership which may be passed to heirs in a will and all of the rights of ownership. In either case, the price of the timeshare is determined by the amount of time the buyer has the right to use the property as well as the time of year that they are allowed to use it.
Buying a timeshare is an important decision and is one not to be rushed into. Read over any documents and contracts very carefully, making sure that you understand all of the terms and conditions spelled out therein. Never sign anything unless you completely understand what you're agreeing to. You may want to have your lawyer look the contract over before signing and you should definitely speak to someone who owns a share in the property. Before you buy a timeshare, keep the following points in mind:
-Check into the licensure of timeshare resale companies. You can inquire about this with the State Department, who will usually maintain records about the company's history as well. Be extremely cautious when dealing with an unlicensed firm - your degree of risk will be much higher than with a licensed company.
-A timeshare is meant to be a vacation property rather than an investment; you may not necessarily receive a good return on your investment if you resell.
-If you are buying a right to use timeshare watch out, if the sponsor declares bankruptcy, you may lose your rights.
-If you are buying a timeshare in a property where the facilities have not been fully installed take a written commitment from the seller that they will be finished in a specific amount of time.
-Any claims made by the seller about the returns on the investment in timeshare should be questioned because the future value of a timeshare depends on many factors.
-A timeshare should not be an impulse purchase. Read over all associated documents and consider the matter carefully before you decide.
-Especially if the seller makes any promises to you orally, ask to get it in writing; in fact, get everything in writing.
-Try to find out whether the exchange program will be guaranteed or not. Sometimes it isn't. So make sure to find it out before buying. Buying a timeshare without an exchange program is not worth the money because you will get bored going to the same property every year and also you will not have the flexibility of schedule if you don't have exchange facility.
If you are interested in timeshare ownership and want to learn more Timeshare Information, you should visit We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can create your own profile in minutes. Share experiences and reviews of different timeshare properties and begin asking questions in the forum. Visit today.
Buy A Timeshare And Benefit From North Myrtle Beach Rentals
Timeshare rentals and ownership are becoming increasingly popular and North Myrtle beach rentals are just one place to try a timeshare out. However, why should you spend your time at North Myrtle Beach in South Carolina?
North Myrtle Beach is unsurprisingly a place of 9 miles of great, beautiful beaches. But when you get bored of the beach you will find amusement parks, well over 100 golf courses, shopping and over a thousand ways to dine. Given the beach and ocean, there are a multitude of different water sports to try as well as plenty of different types of fishing opportunities and riverboat cruises. Nightlife is not forgotten either as there are some great live theatre performances as well as the usual casino you would expect to find. Extend your area slightly and you’ll find plenty more to do. Visit and you will soon discover why this location has been named the “Grand Strand”!
You may wish to visit this resort and just rent or perhaps purchase a timeshare there. If you are thinking about buying a timeshare, this is a good place to get one as it is a highly desirable location. However, because of that, prices will be higher as the demand is there. Don’t forget if you do buy to ensure you take precautions against a fraudulent transaction. Given the location, if you do decide to buy a timeshare, then North Myrtle Beach rentals will certainly be possible and perhaps make you a profit over and above your timeshare ownership fees.
Wyndham appears to have a few timeshares available around the North Myrtle Beach area and “Peppertree By The Sea” certainly has some timeshare accommodations available for rental. Other websites you can try are Visitor’s Connection, Redweek Timeshare and Defender Realty.
Two popular choices for example are the Ocean Bay Club that is on the seafront (so no good if you are looking for a quiet vacation!) and offers spacious and elegantly designed accommodation. Or perhaps Fairfield Wyndham Westwinds will suit you with their excellent facilities including your own balcony looking out across the sea. These apartments rent out from between $60 and $200 a night.
So, if you are looking for a good location to buy a timeshare and help fund the investment, then North Myrtle Beach rentals is a good place to begin with.
If you need more information about all aspects of worldwide timeshares, visit our website, or ourtimeshare blog.
Wednesday, November 10, 2010
6 Tips for Timeshare Buyers
Every individual waits for that time of the year, a much deserved vacation and time away from the hectic activities of day to day life. Do you typically wonder where to go? Where to stay? Etc. Smart people plan their vacations long before they actually go out for one. And even smarter people buy timeshare property for vacations to have a peace of mind and a place where they love to enjoy and cherish their most beautiful memories. Everyone wishes to have a timeshare property at their favorite vacation place. Here we discuss some of the important things that you have to remember while buying a timeshare.
1) You need to understand the different types of timeshare properties before you buy one. Basically, there are two types of timeshare plans. The first type is a deeded plan, where you buy an actual piece of real estate and own it along with other owners, but you are only allowed to use it according to the timeshare agreement. A fixed week, fixed unit deeded timeshare permits you to own a specific timeshare property at a specified time each year. A floating time agreement gives you flexibility regarding the dates you can use your timeshare, but many owners prefer that option so you may need to make your reservations on a first come, first served basis. A non-deeded or right to use timeshare is a lease arrangement. Just like deeded timeshares, these plans are categorized into fixed unit and floating time arrangements. After the lease expires, however, you no longer have any rights to the property.
2) Before you buy, research the location. Decide whether you can go there every year. It also would not hurt if you looked into the cost of alternative accommodations available in the location. After all, why should you buy a timeshare when another option is less expensive? However, you should also think about your comfort. The alternative option might not give you the same amount of comfort as the timeshare. Your decision might depend on which factor you think is more important, cost or comfort.
3) Always find out your timeshare rights before buying. Your rights may be violated in some cases. In most of the cases the timeshare properties are governed by legal documents known as Covenants, Codes, and Restrictions. It establishes rights for real estate property owners and governs how the timeshare should be managed.
4) Decide if you want to buy a timeshare for investment purposes or for your vacations. Think again if your only purpose in buying is investment, because reselling timeshare properties is not one of the best ways to make money in real estate. Typically, a timeshares resale value is not that great, and the process of reselling is difficult because of competition from the original seller. Timeshare property is, however, an investment you can make in a Lifetime of Vacation Enjoyment (LOVE).
5) While you may think that the cost of buying a timeshare is simply the cost of buying only the real property. You may be wrong. You should always calculate the total cost of timeshare which includes mortgage payments, maintenance fees, taxes, travel cost, closing cost, broker commissions, financing charges etc. Compare the cost of similar alternative accommodations with the total cost of owning a timeshare now. Remember that hotel accommodation rates increase at a rate of 2-3% a year.
6) Read each and every document carefully before signing any agreement. Never ever believe a promises made by a salesman. Request everything in writing. Also find out about the reputation of the seller and whether he is a licensed timeshare seller. Lastly, never accept properties with unfinished facilities, if you do so take a written commitment from the seller that they would be finished within a specific time frame.
If you are interested in timeshares and want to learn more about owning a Timeshare Property, or if you want to network and associate with other timeshare owners, visit We Own Timeshares.com. We Own Timeshares.com is a new social network full of Timeshare Information. It is free and easy to join this timeshare social network. Create your own profile in minutes, share experiences and reviews of different timeshare locations and start asking questions in the forum.
1) You need to understand the different types of timeshare properties before you buy one. Basically, there are two types of timeshare plans. The first type is a deeded plan, where you buy an actual piece of real estate and own it along with other owners, but you are only allowed to use it according to the timeshare agreement. A fixed week, fixed unit deeded timeshare permits you to own a specific timeshare property at a specified time each year. A floating time agreement gives you flexibility regarding the dates you can use your timeshare, but many owners prefer that option so you may need to make your reservations on a first come, first served basis. A non-deeded or right to use timeshare is a lease arrangement. Just like deeded timeshares, these plans are categorized into fixed unit and floating time arrangements. After the lease expires, however, you no longer have any rights to the property.
2) Before you buy, research the location. Decide whether you can go there every year. It also would not hurt if you looked into the cost of alternative accommodations available in the location. After all, why should you buy a timeshare when another option is less expensive? However, you should also think about your comfort. The alternative option might not give you the same amount of comfort as the timeshare. Your decision might depend on which factor you think is more important, cost or comfort.
3) Always find out your timeshare rights before buying. Your rights may be violated in some cases. In most of the cases the timeshare properties are governed by legal documents known as Covenants, Codes, and Restrictions. It establishes rights for real estate property owners and governs how the timeshare should be managed.
4) Decide if you want to buy a timeshare for investment purposes or for your vacations. Think again if your only purpose in buying is investment, because reselling timeshare properties is not one of the best ways to make money in real estate. Typically, a timeshares resale value is not that great, and the process of reselling is difficult because of competition from the original seller. Timeshare property is, however, an investment you can make in a Lifetime of Vacation Enjoyment (LOVE).
5) While you may think that the cost of buying a timeshare is simply the cost of buying only the real property. You may be wrong. You should always calculate the total cost of timeshare which includes mortgage payments, maintenance fees, taxes, travel cost, closing cost, broker commissions, financing charges etc. Compare the cost of similar alternative accommodations with the total cost of owning a timeshare now. Remember that hotel accommodation rates increase at a rate of 2-3% a year.
6) Read each and every document carefully before signing any agreement. Never ever believe a promises made by a salesman. Request everything in writing. Also find out about the reputation of the seller and whether he is a licensed timeshare seller. Lastly, never accept properties with unfinished facilities, if you do so take a written commitment from the seller that they would be finished within a specific time frame.
If you are interested in timeshares and want to learn more about owning a Timeshare Property, or if you want to network and associate with other timeshare owners, visit We Own Timeshares.com. We Own Timeshares.com is a new social network full of Timeshare Information. It is free and easy to join this timeshare social network. Create your own profile in minutes, share experiences and reviews of different timeshare locations and start asking questions in the forum.
What You Need To Know Before Buying A Timeshare
There are a lot of people who find themselves the victims of fraud when buying a timeshare, usually for the very simple reason that they don't know what their legal rights are in this situation or how to protect themselves from scammers. Like any other situation which requires signing a legally binding contract, it's vital to know your rights and what recourse you have under the law. There are plenty of scams going around in the timeshare industry and you've no doubt heard about some of these yourself. There are fraudulent operators who will try to sell properties which are nothing like promised or in some cases, not even an actual property. Before you make any decisions about purchasing a timeshare, here's a few things to think about.
Your rights vary depending on what kind of timeshare you purchase - there are timeshares which involve a deed to the property as well as those which do not, often known as right to use or license to use timeshares. When you purchase a deeded timeshare, you'll have a deed to your timeshare property which gives you the rights of any other title to a piece of real estate they can even be passed down to your heirs. By contrast, a license to use timeshare is essentially a long term rental of the property in question with a predetermined expiration date.
Due to scams and some questionable sales practices used by timeshare companies, the entire industry has acquired an unsavory reputation. One common occurrence in the industry is a promise of a free trip or another gift which the customer sees as being worthwhile. Upon arrival, the potential buyer is then forced to sit through a lengthy sales pitch full of high pressure sales tactics, only to receive a gift which is not at all what they had been led to believe.
The law dictates that timeshare companies must disclose the length of the presentation ahead of time, that the company must give prospective buyers truthful information on the condition of the timeshare property and that they may not misrepresent either the resale or market value of the timeshare.
Buyers are also protected by provisions in the law which mandate that any oral promises made to a buyer must be included in the sales contract and that any fees associated with the timeshare purchase or ownership be disclosed both orally and in writing. Depending on the state, buyers may also be able to avail themselves of a period in which they may cancel the contract, typically for up to two weeks after signing the contract.
It's important to know your legal rights before purchasing a timeshare, you also need to ask yourself a few other questions such as whether or not you really need to purchase a timeshare or whether you've seen the property for yourself. You should also inquire about the timeshare company with the Better Business Bureau, speak with current owners of the timeshare for sale. Before you make your decision, you need to be fully informed and have decided if you plan to rent the property or if you'd rather have a deeded timeshare, whether or not you're interested in reselling the timeshare later and whether the property is in a location where you actually want to vacation in frequently.
If you are thinking about timeshare ownership and want to learn more Timeshare Information, you should check out We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can create your own profile in minutes. Share information and reviews of different timeshare locations and begin asking questions in the forum. Visit today.
Your rights vary depending on what kind of timeshare you purchase - there are timeshares which involve a deed to the property as well as those which do not, often known as right to use or license to use timeshares. When you purchase a deeded timeshare, you'll have a deed to your timeshare property which gives you the rights of any other title to a piece of real estate they can even be passed down to your heirs. By contrast, a license to use timeshare is essentially a long term rental of the property in question with a predetermined expiration date.
Due to scams and some questionable sales practices used by timeshare companies, the entire industry has acquired an unsavory reputation. One common occurrence in the industry is a promise of a free trip or another gift which the customer sees as being worthwhile. Upon arrival, the potential buyer is then forced to sit through a lengthy sales pitch full of high pressure sales tactics, only to receive a gift which is not at all what they had been led to believe.
The law dictates that timeshare companies must disclose the length of the presentation ahead of time, that the company must give prospective buyers truthful information on the condition of the timeshare property and that they may not misrepresent either the resale or market value of the timeshare.
Buyers are also protected by provisions in the law which mandate that any oral promises made to a buyer must be included in the sales contract and that any fees associated with the timeshare purchase or ownership be disclosed both orally and in writing. Depending on the state, buyers may also be able to avail themselves of a period in which they may cancel the contract, typically for up to two weeks after signing the contract.
It's important to know your legal rights before purchasing a timeshare, you also need to ask yourself a few other questions such as whether or not you really need to purchase a timeshare or whether you've seen the property for yourself. You should also inquire about the timeshare company with the Better Business Bureau, speak with current owners of the timeshare for sale. Before you make your decision, you need to be fully informed and have decided if you plan to rent the property or if you'd rather have a deeded timeshare, whether or not you're interested in reselling the timeshare later and whether the property is in a location where you actually want to vacation in frequently.
If you are thinking about timeshare ownership and want to learn more Timeshare Information, you should check out We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can create your own profile in minutes. Share information and reviews of different timeshare locations and begin asking questions in the forum. Visit today.
Tuesday, October 26, 2010
Timeshares: Are They Worth the Cost?
Buying a beach front property or a vacation villa may be easy for rich and wealthy but not for common middle class people. The introduction of timeshare concept gave hope to those people who could not afford to buy a brand new vacation home. That is one of the reasons why the timeshare industry has grown by leaps and bounds ever since its inception in the United States. One of the aspects of a timeshare property that attracts most people is that they can have a wonderful vacation home without having to worry about its upkeep and maintenance. But at the same time people have many misconceptions about timeshares.
Probably one of the biggest myths when it comes to timeshares is that people believe they have the same benefits as everyday real estate investments. However, this isn't true and the appreciation values are much different. Unfortunately when you own timeshares you don't get the same profitable returns as you would owning a house for a certain period of time. In fact, when it's all said and done you could end up losing money.
So the question that always comes to pass is whether or not it's worth buying a timeshare. It's not an easy thing to answer because there are several factors that come into play. Whether it's comparable rent for alternative accommodation, appreciation of timeshare properties or the finance rate, they are all things to consider. So we want to show you a simple calculation.
Your profitability investment should be the first thing to consider. Here you measure the comparable rental rate, the rate of appreciation, and the finance rate. When you total them all out you will end up with a negative number. So before you get started you should understand that you will most likely lose money in timeshares.
Take your rent for instance, and let's say it costs $1000. The cost of the timeshare itself is $10,000. So your overall rental rate is 10%. When you consider the maintenance fees, membership costs and other expenses, they could run you about $500. So in the beginning you save $500 your rental rate is 5%.
These can also turn into negative percentages as well. If the appreciation rate is 10% and the finance rate is 16%, once you add in the rental rate and appreciation and then subtract the finance rate you end up with a negative percent. So, you're losing 1% every year you compare it to your rent. Keep in mind this is only a rough calculation, because the depreciation rate and finance rates are going to vary.
The maintenance fee costs will be something to look into as well. The majority of them charge reasonable rates, but there are times when you come across others that are extremely expensive. Listen, you want this to be a profitable setup and in order to keep it that way you may think about renting out your week from time to time.
What it comes down to is you should add up your timeshare costs for the entire year. Considering everything above you could be looking at 520,000. Would you really pay that much if this was regular real estate? The profits end up lining the pockets of the developers and investors that sell the timeshares. If you just take the time to weigh all the factors you will be able to get the timeshares you desire.
If you are thinking about timeshare ownership and desire to discover more Timeshare Information, you should visit We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can set up your own profile in minutes. Share experiences and reviews of different timeshare locations and start asking questions in the forum. Visit today.
Probably one of the biggest myths when it comes to timeshares is that people believe they have the same benefits as everyday real estate investments. However, this isn't true and the appreciation values are much different. Unfortunately when you own timeshares you don't get the same profitable returns as you would owning a house for a certain period of time. In fact, when it's all said and done you could end up losing money.
So the question that always comes to pass is whether or not it's worth buying a timeshare. It's not an easy thing to answer because there are several factors that come into play. Whether it's comparable rent for alternative accommodation, appreciation of timeshare properties or the finance rate, they are all things to consider. So we want to show you a simple calculation.
Your profitability investment should be the first thing to consider. Here you measure the comparable rental rate, the rate of appreciation, and the finance rate. When you total them all out you will end up with a negative number. So before you get started you should understand that you will most likely lose money in timeshares.
Take your rent for instance, and let's say it costs $1000. The cost of the timeshare itself is $10,000. So your overall rental rate is 10%. When you consider the maintenance fees, membership costs and other expenses, they could run you about $500. So in the beginning you save $500 your rental rate is 5%.
These can also turn into negative percentages as well. If the appreciation rate is 10% and the finance rate is 16%, once you add in the rental rate and appreciation and then subtract the finance rate you end up with a negative percent. So, you're losing 1% every year you compare it to your rent. Keep in mind this is only a rough calculation, because the depreciation rate and finance rates are going to vary.
The maintenance fee costs will be something to look into as well. The majority of them charge reasonable rates, but there are times when you come across others that are extremely expensive. Listen, you want this to be a profitable setup and in order to keep it that way you may think about renting out your week from time to time.
What it comes down to is you should add up your timeshare costs for the entire year. Considering everything above you could be looking at 520,000. Would you really pay that much if this was regular real estate? The profits end up lining the pockets of the developers and investors that sell the timeshares. If you just take the time to weigh all the factors you will be able to get the timeshares you desire.
If you are thinking about timeshare ownership and desire to discover more Timeshare Information, you should visit We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can set up your own profile in minutes. Share experiences and reviews of different timeshare locations and start asking questions in the forum. Visit today.
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