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.
Wednesday, November 10, 2010
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.
Desperate timeshare owners falling for scams
Selling a timeshare vacation property has always been a challenge. These days, it can be nearly impossible. The market is flooded with units for sale. People who are struggling to make ends meet are desperate to liquidate.
Con artists are cashing in on that desperation. Fraudulent telemarketers across the country are taking in millions of dollars by making promises they cannot keep.
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They say they have a buyer lined up whos ready to buy your property, explains Jeanette Kopko with the Dallas
Better Business Bureau. And they make it sound like you need to pay their fee right away or this buyer is going to slip out of your grasp.
But the bottom line is always the same: There is no buyer. All the company does for the money if it does anything at all is list your property for sale.
They just lie to you, says Catherine Aviolo of Chicago.
Catherine and her husband, Joe, are both unemployed construction workers. They need to sell their timeshare in Florida to pay off their mounting credit card debt.
One day they got a call out of the blue from a company in Texas that guaranteed to sell their unit within six months. Catherine and Joe thought their prayers had been answered.
The caller said theyd have to pay a small fee for the service: $399 in advance. Thinking this was a sure thing, the Aviolos came up with the money. But the company never came up with a buyer.
Every time we contacted them they said they had no one interested in it because we were asking too much money, Catherine says.
The timeshare is still on the market and the company wont refund the money. The Aviolos are now on what telemarketers refer to as a suckers list because this summer they were contacted by at least 14 different timeshare resellers. All wanted money up front.
John Davis, who lives in New Mexico, got taken by a timeshare resale con artist for $2,200. Davis was thinking about selling a unit he hadnt used much recently. Thats when he got an unexpected call from a telemarketer who said his company had a buyer. The deal would close in 30-60 days, but Davis would have to pay the closing costs in advance.
They sounded legitimate, he recalls. And he wanted to cash out of the unit, so he gave them his credit card number to cover that enormous fee.
Davis waited the 60 days and nothing happened. When he called the company he was given excuses. This went on for months. Finally, the company stopped answering the phone and Davis knew hed been burned.
They told me exactly what I wanted to hear and I fell for it hook, line and sinker.
Law enforcement agencies across the country are reporting a spike in complaints about timeshare resale scams.
It is very large and growing problem, says Terence McElroy, communications director for the Florida
Department of Agriculture and Consumer Services, which licenses telemarketers in the state. A lot of people really need to unload their timeshares, and unscrupulous telemarketers are able to exploit this situation.
Timeshare resale complaints are now the most commonly reported consumer problem to the Florida
Attorney Generals office. Since the beginning of the year, more than 8,500 people have filed complaints.
The increasing level of fraud in the timeshare resale industry is alarming, says Florida Attorney General Bill McCollum.
His office has active lawsuits against nine timeshare resale companies and is investigating 49 others.
Illinois Attorney General Lisa Madigan says her office has
seen victims taken for as much as $5,000. Madigan tells me the fake resellers often send timeshare owners bogus documents that look legitimate to make the potential sale seem real.
While some of the scammers still take a credit card numbers over the phone, Madigan says most now want the money wired to an out-of-state bank account.
Wire the money and you might as well throw it in the garbage, because youre not going to see it again, she says.
By the time people realize they've been taken and complain to the authorities, the con artists have closed their bank account, disconnected their phone and moved to a new location.
Its not easy to resell a timeshare. The market is weak, and the number of available units is staggering.
If youre lucky you may be able to get 10 cents on the dollar trying to sell it in the resale market, says Ed Perkins, contributing editor at
SmarterTravel.com.
Thats why most real estate agents wont bother with a timeshare resale, which means youre on your own. Your best bet is to sign up with a legitimate listing organization. Perkins says theyll charge you around $25 to post your message on their bulletin board.
Con artists are cashing in on that desperation. Fraudulent telemarketers across the country are taking in millions of dollars by making promises they cannot keep.
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They say they have a buyer lined up whos ready to buy your property, explains Jeanette Kopko with the Dallas
Better Business Bureau. And they make it sound like you need to pay their fee right away or this buyer is going to slip out of your grasp.
But the bottom line is always the same: There is no buyer. All the company does for the money if it does anything at all is list your property for sale.
They just lie to you, says Catherine Aviolo of Chicago.
Catherine and her husband, Joe, are both unemployed construction workers. They need to sell their timeshare in Florida to pay off their mounting credit card debt.
One day they got a call out of the blue from a company in Texas that guaranteed to sell their unit within six months. Catherine and Joe thought their prayers had been answered.
The caller said theyd have to pay a small fee for the service: $399 in advance. Thinking this was a sure thing, the Aviolos came up with the money. But the company never came up with a buyer.
Every time we contacted them they said they had no one interested in it because we were asking too much money, Catherine says.
The timeshare is still on the market and the company wont refund the money. The Aviolos are now on what telemarketers refer to as a suckers list because this summer they were contacted by at least 14 different timeshare resellers. All wanted money up front.
John Davis, who lives in New Mexico, got taken by a timeshare resale con artist for $2,200. Davis was thinking about selling a unit he hadnt used much recently. Thats when he got an unexpected call from a telemarketer who said his company had a buyer. The deal would close in 30-60 days, but Davis would have to pay the closing costs in advance.
They sounded legitimate, he recalls. And he wanted to cash out of the unit, so he gave them his credit card number to cover that enormous fee.
Davis waited the 60 days and nothing happened. When he called the company he was given excuses. This went on for months. Finally, the company stopped answering the phone and Davis knew hed been burned.
They told me exactly what I wanted to hear and I fell for it hook, line and sinker.
- More on selling your timeshare
- Tips for selling your timeshare
- Seling a timeshare is no picnic
Law enforcement agencies across the country are reporting a spike in complaints about timeshare resale scams.
It is very large and growing problem, says Terence McElroy, communications director for the Florida
Department of Agriculture and Consumer Services, which licenses telemarketers in the state. A lot of people really need to unload their timeshares, and unscrupulous telemarketers are able to exploit this situation.
Timeshare resale complaints are now the most commonly reported consumer problem to the Florida
Attorney Generals office. Since the beginning of the year, more than 8,500 people have filed complaints.
The increasing level of fraud in the timeshare resale industry is alarming, says Florida Attorney General Bill McCollum.
His office has active lawsuits against nine timeshare resale companies and is investigating 49 others.
Illinois Attorney General Lisa Madigan says her office has
seen victims taken for as much as $5,000. Madigan tells me the fake resellers often send timeshare owners bogus documents that look legitimate to make the potential sale seem real.
While some of the scammers still take a credit card numbers over the phone, Madigan says most now want the money wired to an out-of-state bank account.
Wire the money and you might as well throw it in the garbage, because youre not going to see it again, she says.
By the time people realize they've been taken and complain to the authorities, the con artists have closed their bank account, disconnected their phone and moved to a new location.
Its not easy to resell a timeshare. The market is weak, and the number of available units is staggering.
If youre lucky you may be able to get 10 cents on the dollar trying to sell it in the resale market, says Ed Perkins, contributing editor at
SmarterTravel.com.
Thats why most real estate agents wont bother with a timeshare resale, which means youre on your own. Your best bet is to sign up with a legitimate listing organization. Perkins says theyll charge you around $25 to post your message on their bulletin board.
Wednesday, October 6, 2010
Timeshare Deals – Where Are the Best Timeshare Vacation Deals?
If you are familiar with timesharing, you already know that developer’s prices for timeshares tend to be through the roof. But there are definitely deals available. So if you’ve been wondering where the best timeshare deals are, we’ll take a look at some of your options here for buying timeshare resales. Timeshare resales are definitely the best way to get a timeshare vacation deal.
While occasionally you will find owners advertising their timeshares in the real estate section of your local paper, if you really want to get the best price, online is the best place to start your search. Of course, if you do want to keep an eye on your newspaper, that might be a good way to find a timeshare another owner needs to get rid of because they can’t afford it anymore. Even if it isn’t a property that you want, you might be able to sell it yourself online and take that cash and put it towards the resort you really like!
But assuming that’s too much hassle, let’s take a look at where to find the timeshare deals online. Here’s a few of my favorite places to scout for bargains.
Ebay
I’ve picked up one timeshare on Ebay already and I’m always on the lookout for another deal. I bought a Royal Holiday Club timeshare for 0 plus closing costs and transfer fees. After adding up everything, I paid a total of 0 for a timeshare membership that includes resorts located in lots of urban locales such as New York City, San Diego, London and Paris. The original owner probably paid twenty or even thirty thousand dollars for this timeshare, but I picked it up for a song.
So it definitely pays to shop Ebay if you know what you are looking for. Just make sure you add up the winning bid amount plus the other costs involved to make sure that you are truly getting a good deal. I’ve seen some auctions that didn’t look so hot after you added in closing costs, transfer fees and the maintenance fee. Beware of any supplemental charges. This occasionally happens at resorts that suffer some weather damage – such as hurricanes, etc.
CraigsList
While I think the sellers on Ebay have a better understanding of the timeshare resale market than Craigslist sellers do, that’s primarily because Ebay sellers tend to actually be real estate companies. If you see a timeshare listing on Craigslist though, it is likely the owner selling their timeshare directly. Now often, the initial asking price is overinflated, but if you keep track of the listings that interest you, it can be worthwhile getting in touch with the seller a month or so down the line and see if they are ready to accept reality yet. If they are, then you might be able to avoid any heavy closing costs for the sale by either doing the due diligence yourself or searching for a closing company that won’t charge you an arm and a leg.
Timeshare Owners forums
Have a particular brand of timeshare you are interested in buying? Use your Google search skills to find an owners forum, message board or mailing list for your favorite brand of timeshare. There are forums for Worldmark owners and forums for Hyatt owners and message boards for DIsney Vacation Club owners. So search around. Also there are general timeshare message boards too, such as the TUG forum (Timeshare Users Group). Most timeshare forums will have a Buy/Sell section on the boards so owners can trade or sell to each other. It’s a good place to find a really nice timeshare that may never wind up on Ebay.
You can also find great timeshare deals on Emma’s website: Time Share Resales. For more helpful articles on timeshares and how to get the best deals, be sure to check out Emma’s tips on Orlando Timeshare Promotions and Are Timeshares a Good Buy?
Timeshares and Money - Are Timeshares Worth the Cost?
Many people have one primary question when thinking about buying a timeshare. Does it make financial sense or does it make sense at all to buy a timeshare? Well the answer can be both yes or no depending on who is buying and for what purpose it is being bought. In this article we will discuss why it makes sense to buy a timeshare. One of the most traditional answers could be that you own it, whereas when you rent a hotel room or something similar you don't own it. Timeshare industry has grown by leaps and bounds since its inception in this country and many notions that people had earlier have been clarified. Timeshare sales are no longer a small business. Big hotels and resorts are into timeshare business now. It is estimated to be a Five billion dollar a year industry worldwide and approximately two million Americans have timeshares. You might be wondering what lured so many people in America alone to timeshares. Here are some reasons.
When you stay at a hotel, you're basically paying rent to the hotel for the use of a room. assuming you vacation for one week a year and that your average hotel cost is $900 for the week, if you were to do this for 30 years. The total cost for staying in a hotel will be $27,000. However, if you were to purchase a timeshare for $10,000 and pay the $450 annual maintenance fee, the total thirty-year costs for using the timeshare will be $23,500. So in reality, you are saving $3500 to stay in a property that you own, instead of paying a hotel to rent the room.
But here is the interesting fact. You still get to own your timeshare property which will earn some money if not the original price. So your actual expenditure on your vacation will be way less than renting a hotel suite. Then who can ignore the comfort of a home in a timeshare property. A typical timeshare unit has two or three bedrooms, more than one bathroom, a kitchen, a laundry room and a pool plus not to forget all the resort facilities.
Do you see the advantage in that? Another advantage could be the ease of planning your annual vacation. With a timeshare, you generally know exactly when and where you are going to go each year.
How many hotel rooms can accommodate large families and friends? With a timeshare vacation you can invite who ever you want and can host reasonable size gatherings.
A timeshare is like money lying safely in your bank. You can sell it whenever you want. Not only that if you buy a deeded plan, the timeshare gets inherited to your heirs also.
Compare the timeshare with buying a vacation home. You don't have to worry about upkeep and maintenance also. The management company will take care of everything. You just have to pay the maintenance fee for that. But what a pleasure you can live like you are living in a hotel and still get a feel of your home and have to do nothing.
Apart from these benefits, timeshare companies offer you so many discounts like bonus weeks, discounts on airfare, car rentals, attraction tickets, restaurants and much more. there are many reasons owning a timeshare does make sense, it all depends on your vacation needs, but the benefits of ownership can be great and can save you a lot of money in the future.
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.
When you stay at a hotel, you're basically paying rent to the hotel for the use of a room. assuming you vacation for one week a year and that your average hotel cost is $900 for the week, if you were to do this for 30 years. The total cost for staying in a hotel will be $27,000. However, if you were to purchase a timeshare for $10,000 and pay the $450 annual maintenance fee, the total thirty-year costs for using the timeshare will be $23,500. So in reality, you are saving $3500 to stay in a property that you own, instead of paying a hotel to rent the room.
But here is the interesting fact. You still get to own your timeshare property which will earn some money if not the original price. So your actual expenditure on your vacation will be way less than renting a hotel suite. Then who can ignore the comfort of a home in a timeshare property. A typical timeshare unit has two or three bedrooms, more than one bathroom, a kitchen, a laundry room and a pool plus not to forget all the resort facilities.
Do you see the advantage in that? Another advantage could be the ease of planning your annual vacation. With a timeshare, you generally know exactly when and where you are going to go each year.
How many hotel rooms can accommodate large families and friends? With a timeshare vacation you can invite who ever you want and can host reasonable size gatherings.
A timeshare is like money lying safely in your bank. You can sell it whenever you want. Not only that if you buy a deeded plan, the timeshare gets inherited to your heirs also.
Compare the timeshare with buying a vacation home. You don't have to worry about upkeep and maintenance also. The management company will take care of everything. You just have to pay the maintenance fee for that. But what a pleasure you can live like you are living in a hotel and still get a feel of your home and have to do nothing.
Apart from these benefits, timeshare companies offer you so many discounts like bonus weeks, discounts on airfare, car rentals, attraction tickets, restaurants and much more. there are many reasons owning a timeshare does make sense, it all depends on your vacation needs, but the benefits of ownership can be great and can save you a lot of money in the future.
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.
Friday, July 9, 2010
Timeshare Ownership: The Pros and Cons of Timeshares
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.
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.
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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