7 Key tips for buying a timeshare property
Wellness tourism in America is worth more than $639 billion. Vacations are a common phenomenon, especially during the summer. Every other family requires a place to reside when holidaying and thus the need for timeshare. Timeshare property provides a home away from home.
It’s important to do your homework before buying a timeshare property. Keep reading for 7 key tips for buying a timeshare property.
Familiarize with the existing types
Timeshares differ depending on the privileges that you’re to enjoy. Some timeshare offers a fixed timeframe to stay at a given property, for instance, a specific week every year.
Other timeshares have a floating timeline. Here, you can opt to reserve the property at any time of the year. The problem with this type is you have to compete with other holders for rare reservations.
A right-to-use timeshare allows an individual to use the property for several years. The actual ownership rights belong to the company; thus, you can’t sell it. In such cases, it will be wise for you to invest in a membership and lease.
Points based timeshares do exist too. Your points will accumulate depending on your loyalty with a specific company. This factor mostly applies to companies that relate to travels. You may also opt to buy points. The points guarantee vacation exposure.
Your vacation budget estimates will be vital in selecting an appropriate timeshare plan for you.
Stick with reputable brands
The timeshare business is so lucrative that fraudsters tend to take advantage of it. They will capitalize on your naivety and desperation if you aren’t careful.
Often, they will call and offer you a buyer for your timeshare. They inflate the prices, making it hard for you to resist. You should always ignore their mouth-watering deals. They’ll extort money from you in the name of transfer fees.
In case you are to sell your property, search for reputable companies online. You may also opt for referrals and reviews to be safe. Scams relating to property issues are on the rise, thus need for caution.
If you are a victim of the situation, seek legal guidance to recover your property. Hiring an expert to assist you in buying and selling of timeshares will save you blushes in the future.
Understand the cost of timeshare
The average selling price of a timeshare is around $22,200. The price will at times vary depending on the location of the property.
Mountain cabins and beachfront will have you pay that amount upfront. It’s worth it since you have an option of selling it. Holding into one timeshare for a long time will be beneficial to you in the long run.
Apart from the initial cost, timeshares come with additional fees, e.g., the maintenance fees. ARDA estimates of the average annual maintenance fees are $980.
Other fees, e.g., transfer, recording, and assessment fees may apply depending on the location. These additional costs may exaggerate the overall cost. In some other cases, you may pay taxes for the timeshare property.
A thorough evaluation of the contracts will help you to decide wisely.
Stay away from developers
Developers are a plaque in this sector. They inflate the cost of timeshare to maximize their profits.
Always stay away from the developers and deal with the real owners. Owners are realistic, unlike the development companies. It is upon you to carry out some research and identify potential resale sites.
At times you have to consult real estate experts. They will help you to differentiate between developers and owners. This approach will go a long way in saving you some cash.
The internet has made it easy when searching for a timeshare. You no longer have to search for physical offices. Instead, it is done online.
Know what you are buying
Timeshare companies keep away competitors by offering you incentives. These incentives shouldn’t deceive you into preferring companies than actual owners. Direct interaction with the owners will guarantee you more benefits.
You should also take note of the kind of interest you own after purchase. Timeshares have different benefits, e.g., selling, renting, or exchanging.
Buying timeshare in a developing property requires you to deposit money to a local bank account. You will also have to capture a non-performance clause in the contract. The approaches will assist you in getting your money back in case the developer goes bankrupt.
Analysis of contract details is essential to avoid challenges in the future, e.g., the additional fees.
Understand individual state laws
Most states have come up with laws to minimize abuse of timeshare agreements. The most dominant of them all is the ‘right of rescission.’ The law will allow you to include an opt-out clause in your transaction.
The time limit for filing claims varies in different states. States, e.g., Florida, takes virtually ten days, and the initiation of the refund begins. Some states have stronger laws than others. If you’re considering purchasing a timeshare property in Phoenix, AZ, be sure to check out The 5 Best Suburbs of Phoenix, AZ to ensure you’re getting the most for your money.
You should be wary of companies that need you to sign agreements in other states. Accenting the contract will bring troubles since the states may be having lenient laws.
Familiarizing with state laws should be a priority. Opting out should also be through official communication via mail or formal letters.
Never pay full price
Real-estate transactions are usually negotiable, and so are timeshare prices. Rushing to pay will push you out of the negotiating phase.
Its initial pricing ranges at an average of $16, 000, which is way lower than the cost of hotels. The low price doesn’t mean that everything will go to your plans.
You may at one point decide to change your mind on the timeshare and opt for another. This will only be possible when payment is not made in full. These companies take longer to refund, which is a disadvantage to you.
Full payment at once may come to haunt you when disaster strikes. After all, there are options thus no need to rush.
Timeshares isn’t an investment
Timeshare is not your ordinary real estate investment. It depreciates over time. Contact us for professional guidance on timeshares and appropriate real estate investment.