A resort vacation can be a great experience, but it can also lead to great mistakes like buying a timeshare. A timeshare is a system in which each residential unit at a resort has several different owners, and each owner has use of the unit for a fixed time during the year. A timeshare can also be set up on a lease system where the individuals holding timeshare rights do not own the unit.
Don’t get sucked in.
A timeshare can seem tempting while on vacation. You are having a great time, so you want to come back, and holding timeshare rights will allow you to avoid booking a hotel. You already have a familiar place to go. And, of course, you may be subjected to an aggressive sales pitch during your stay. So it’s important to remember that a timeshare is often not a wise investment.
Quite simply, don’t buy timeshares while on vacation. ??
This is true for a number of reasons. One is that you will not be making as rational a decision as you would if you were considering the decision over time. Another reason might come as a surprise: there are cheaper options if you want a permanent location at a resort. Instead of buying a timeshare from the resort, you can acquire the rights on the open market for a fraction of the cost. There is a significant resale market for timeshares, so it is better to find owners looking to unload their timeshare.
Timeshares almost never appreciate in value. In fact, the initial buyer typically pays for upfront costs that aren’t going to be recovered. Those costs are not part of the resale, so a buyer will almost always find a better price on the resale market. This is even more true in the wake of the economic meltdown. A lot of people can’t afford the holding costs or the travel costs to the resort. They may also need to cash in whatever they can from unnecessary assets, such as timeshares. As a result of these and other market forces, resale prices on timeshares are often around half of the original price. ??The resale market is easy to find.
A simple online search for timeshare resale will turn up several people looking to dump their timeshares. It’s better to go through that process from the comfort of home. If you don’t buy timeshares while on vacation, you will be able to compare prices and wait for a better deal.
When hiring a resale broker, it’s important to avoid scammers. The best way to do this is to pay attention to the broker’s terms. It’s better to have a broker who charges a flat fee, for example, than one who has an incentive to push you toward a more expensive timeshare.
In short, do not buy timeshares while on vacation. Go through the buying process from home so you have time to exercise the proper due diligence. This way, you will avoid overpaying our being the victim of an outright scam.
In short, do not buy timeshares while on vacation. Go through the buying process from home so you have time to exercise the proper due diligence. This way, you will avoid overpaying our being the victim of an outright scam.