Would You Like To Timeshare?
Would You Like To Timeshare?
Timeshares are a large part of the vacation travel industry. Travelers who cannot afford to own a home abroad, or who don't want the worries associated with exclusive ownership, often see timeshares as an affordable alternative.
However, unscrupulous salespeople, poorly maintained properties and
unexpected hidden costs have brought a lot of bad publicity to the
industry. A well-informed consumer can avoid the common pitfalls.
It is always risky to buy property sight unseen, but many people do
this when they purchase timeshares. If you purchase in an area where
you wish to vacation, you may be unpleasantly surprised when you arrive
at your destination.
However, many timeshares are purchased with the intent of trading them
for others in different locations, and in this case the location of the
property is a bargaining chip, not the actual physical property.
Timeshares in prime locations such as Hawaii are easier to trade than
others.
Recently, big corporations such as Disney, Hilton, Marriott and Hyatt
have entered the timeshare market, and their properties are of a
uniform standard around the world. First, you should know that if you
buy a new unit directly from a timeshare company, it may cost up to 60%
more than if you purchased from the resale market.
Buying from a time-share company is more expensive primarily because of
the company's marketing costs, which include free trips, meals and
vacation activities for prospective buyers. Most customers of these
timeshare companies buy on impulse, without any intent to purchase when
they first walked into the timeshare seminar. Hard-sell tactics and
"Buy-it-NOW-one-time-only-offers!!!" are the rule, and to avoid being
pressured into a bad deal, the best tactic is to avoid these sales
presentations altogether.
Try the resale market for better deals. Time-share resales are listed
on many websites, on eBay and with independent time-share brokers. The
search term "timeshare resale" produced approximately 500,000 results
on Google, so there are plenty of services to choose from. If you buy
directly from an individual, a resale broker or a lawyer can handle the
closing for a charge of $300 to $500.
If you are buying a timeshare for the resale value, consider regular
real estate instead. Timeshares do not increase in value in tandem with
conventional real estate. From a strictly financial point of view, time
shares are poor investments.
Most real estate increases in value, but this is not always the case
with time-shares, especially those bought directly from timeshare
companies. If you get a good deal on a resale timeshare in a prime
location, it may increase somewhat in value. But usually time-shares
are like cars -- they are commodities to be used, and are resold for
less than the original purchase price. Don't think of timeshares as
real estate; you are buying a vacation plan.
Also, unless you buy in a prime location, swapping them may not be
easy. Timeshares are frequently sold on the claim that the buyer can
trade a week in one place for a week at another location. This is only
true if the location is in demand by other vacationers. Otherwise,
expect to vacation in the original location each year.
To find out whether or not you will be happy with a timeshare, it may
be a good idea to rent one for your next vacation. Many timeshare units
are placed on the rental market by owners who couldn't get away to
vacation at their alloted time, and these units often rent at bargain
prices. Check the same websites that offer timeshare resales for
available rentals.
There is a new "points" system being offered by some timeshare
properties. Instead of getting a week each year, buyers purchase a set
number of "points." These can be redeemed for a week's stay during the
peak season, for longer periods during the off-season, or even spread
over the year in two or three day segments.
Some large hotel companies such as the Marriott also offer a points
systems whereby a stay at their hotel earn points in the company's
time-share system. Points systems can be confusing, so be sure you have
a clear understanding of the services you are buying. For instance,
find out how much advance time is required to reserve a week at the
resort during peak season, whether the points have an expiration date,
and if it is possible to transfer the points to other facilities in the
same resort chain. However, when it comes to vacation planning, the
points system offers more flexibility because the buyer is not locked
into the same week every year.
Most important, don't forget the annual maintenance fee. Time-share
owners are responsible for paying a portion of the property's upkeep.
These annual fees, including maintenance and real estate taxes,
typically range from $300 to $700 per week of ownership.
In summary, timeshares can be a good buy if they offer some flexibility
in terms of transferring to other locations and timing your vacation.
The typical timeshare is a small condo with kitchen facilities and one
or two bedrooms, ideal for a family vacation, and since such units rent
for $150-200 per night, a timeshare purchase may be a cheaper way to
travel. However, if you are a mobile traveller who likes to stay in a
different town every night, a single person who doesn't need the extra
space, or if you travel at unpredicatable times, then a time share may
not be suitable.
Author Bio:
J Shipper www.timeshares-now.info
Additional Links of Interest:
All-Inclusive Hawaii Vacations
Going2Oahu Hawaii Cruise Superstore
Hawaii Hotels
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