The pros and cons of purchasing a timeshare should always be considered in a rational way before making a decision. It is important to consider your choice of lifestyle, as well as your financial condition and giving weight to the advantages and disadvantages. For instance, if you are quite wealthy. The purchase price will be easier to pay that if it represents a substantial amount of your savings. The cost will also affect how you evaluate the pros and cons of other aspects of the investment. In either case, it is always wise to thoroughly research your decision.
First, we'll look at some of the advantages to timeshare ownership. To start with, timeshare properties can be quite economical when contrasted with buying standard real estate that you would only occasionally use. For instance, you could buy a piece of real estate for $200,000, or you could purchase a timeshare property were only $10,000 and pay an annual maintenance fee of $500 per year. Assuming you own a the timeshare for a period of 30 years, the total cost will be as follows:
(30years x $500)+$10,000 = $25,000 total.
Compare it with buying the real estate property; you will save $175,000. Isn't that a lot of money? Is it wise to invest that much extra money for once a year use?
Consider instead, that you spend $1200 a year to stay in a hotel during your vacation. To be fair, we need to consider that cost for the same 30 year period.
30 years times $1200 equals $36,000. This is still $12,000 more than the $25,000 you would pay to own the timeshare property for your lifetime.
Apart from saving money you get the comfort of your home. In a hotel you might get only a suite. But a typical timeshare condo has two or three bedrooms, one or two bathrooms, a kitchen, a dining room and even a laundry room. Also timeshare units are usually fully furnished. Most of the timeshare properties have an indoor or outdoor pool also these days. In addition to that you also get resort facilities. What more somebody might want when they get all these facilities and comfort of home?
If you have a timeshare you don't have to worry about the upkeep and maintenance of the condo. It is taken care of by the developer. Now compare this with buying a real estate property for the life, you have to do all the maintenance.
A somewhat overlooked advantage of owning a timeshare is that it almost forces you to take a vacation each year. If you have a timeshare, you definitely make it a point to go for a vacation at least once a year so that you can take full advantage of the property. Also, you are also saved from the hassles of planning a vacation every year since you know where you're going and when well in advance.
Most of the timeshare companies are associated with other timeshare companies. This allows the exchange of timeshare. This is one of the many reasons why people prefer timeshare.
Let's quickly examine some of the cons of timeshare ownership. One of the common complaints people have with timeshares is the use of high-pressure sales techniques during a sales presentation that an unknowing customer is lured into after receiving a free gift from the timeshare company. It is wise to thoroughly research the company before going into the presentation and ensure that they have a good reputation for being honest and easy to deal with.
You'll lose some of your free capital when you have to pay a large fee upfront. Also, when you finance the cost through a loan you will be paying extra money in interest costs. Lastly, don't forget about the annual maintenance fees and any association fees.
Timeshares are one of the most difficult types of real estate to resell. Furthermore, they typically depreciate on the resale market vice appreciate. These facts are cons to timeshare ownership.
A final consideration is the flexibility of your timeshare property. You might have a floating week and an exchange program to take advantage of, but you'll have to plan your timeshare vacation months in advance. Remember that you are on a first come, first served basis with the other timeshare owners. If you have a fixed week, the lack of flexibility is an even greater con.
If you are interested in timeshares a good place to learn more is in aTimeshare Forum. We Own Timeshares.com is a new social network full of Timeshare Information and it has a great forum too. 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 today.
Friday, July 9, 2010
Timeshares – The Best Way To Have Your Own Vacation Place For A Small Price
Timeshares allow vacationers to become part-owners of their favorite vacation resort. The individuals sharing a specific vacation accommodation may use that place at specified times during the year. The fees that have to be paid are not so much more expensive than renting the place while at the same time offering the “timesharer” more control. They may be re-sold or rented out to other people or exchanged for other shares in the same or other localities.
Someone who exclusively owns accommodation shoulders the total cost of the unit as well as all the responsibilities of maintaining it. If the owner resides in the place for most of the year, the cost of owning and maintaining it will be worth his while. On the opposite end, considering that he will only be staying in for a few weeks or months in a year, paying for full ownership of a seasonal accommodation and shouldering the regular costs of maintenance as well as the annual taxes for the place is not a wise financial move for the average individual. Full ownership of seasonal accommodations is only resorted to by people in real estate who purchase housing for the purpose of renting or re-selling them.
That accounts for the fact that timeshares have become very popular for regular vacationers who find it quite reasonable to pay a small maintenance fee as well as his pro-rated share in the taxes for the place, and always have the accommodation ready for him when he needs it. Although similar to renting, this is actually an investment of sorts that can be regained with the proper technique.
While there are many different kinds of timeshares, we are considering here deeded timeshares which offer the people the convenient middle option where they have deeds of periodical ownership for leisure accommodations and pay only for that period for which they will be owning it in a year. Just as the ownership of the accommodations is shared, so are the annual taxes paid on a proportional basis.
As the owner of a deeded timeshare in a resort accommodation, a person may lease the place to a third party and even re-sell his ownership. Of the two, leasing will be a better way to recover expenses and make profits since the owner will be receiving payment for as long as the accommodations are occupied by others. Re-selling timeshares are not usually lucrative business moves because a great part of the original expenses incurred in the initial purchase have to do with expenses not related to the value of the property. Consequently, if the timeshare is re-sold on the basis of the property’s value, the re-seller will be lucky to sell at a break-even price.
One of the most attractive features of timeshares for vacationers is the fact that they can be exchanged for other timeshares in other locations. This is especially useful for people who want to go to a different vacation spot ever so often. All they need to is to publicize their timeshares as being open for exchange and wait for the appropriate party to transact with. Exchanges may be conducted between leased or deeded ownership. For the purpose of facilitating exchanges for vacationers, the companies which sell or lease these units will usually have website where such exchanges may be advertised. This is one very good way for them to promote their units to the public.
There are many reasons to use timeshares, from a short getaway to a long retreat, knowing that there are timeshares almost everywhere now: http://www.timeshares4you.info
Someone who exclusively owns accommodation shoulders the total cost of the unit as well as all the responsibilities of maintaining it. If the owner resides in the place for most of the year, the cost of owning and maintaining it will be worth his while. On the opposite end, considering that he will only be staying in for a few weeks or months in a year, paying for full ownership of a seasonal accommodation and shouldering the regular costs of maintenance as well as the annual taxes for the place is not a wise financial move for the average individual. Full ownership of seasonal accommodations is only resorted to by people in real estate who purchase housing for the purpose of renting or re-selling them.
That accounts for the fact that timeshares have become very popular for regular vacationers who find it quite reasonable to pay a small maintenance fee as well as his pro-rated share in the taxes for the place, and always have the accommodation ready for him when he needs it. Although similar to renting, this is actually an investment of sorts that can be regained with the proper technique.
While there are many different kinds of timeshares, we are considering here deeded timeshares which offer the people the convenient middle option where they have deeds of periodical ownership for leisure accommodations and pay only for that period for which they will be owning it in a year. Just as the ownership of the accommodations is shared, so are the annual taxes paid on a proportional basis.
As the owner of a deeded timeshare in a resort accommodation, a person may lease the place to a third party and even re-sell his ownership. Of the two, leasing will be a better way to recover expenses and make profits since the owner will be receiving payment for as long as the accommodations are occupied by others. Re-selling timeshares are not usually lucrative business moves because a great part of the original expenses incurred in the initial purchase have to do with expenses not related to the value of the property. Consequently, if the timeshare is re-sold on the basis of the property’s value, the re-seller will be lucky to sell at a break-even price.
One of the most attractive features of timeshares for vacationers is the fact that they can be exchanged for other timeshares in other locations. This is especially useful for people who want to go to a different vacation spot ever so often. All they need to is to publicize their timeshares as being open for exchange and wait for the appropriate party to transact with. Exchanges may be conducted between leased or deeded ownership. For the purpose of facilitating exchanges for vacationers, the companies which sell or lease these units will usually have website where such exchanges may be advertised. This is one very good way for them to promote their units to the public.
There are many reasons to use timeshares, from a short getaway to a long retreat, knowing that there are timeshares almost everywhere now: http://www.timeshares4you.info
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