Timeshare ownership is a unique real estate ownership arrangement. In case you didn’t know, most people who purchase timeshares purchase them for vacationing purposes.
Instead of purchasing a property that you own outright by yourself continuously throughout the year with a timeshare you purchase a right to use the property for a certain period of time and you typically own just a fraction of the whole property.
There are many variations of ownership that have been developed in the timeshare industry over the last three decades. Each ownership variation has been designed to offer more amenities and flexibility to allow you to enhance your vacationing experience.
Is Buying A Used Timeshare A Good Idea?
Buying a resale timeshare may be the best way to go for your vacation dollar. Some brand new timeshares cost over $30,000. Purchasing a used time share can save you up to 60% over the normal retail cost of the initial purchase. In many instances you can just take over the monthly maintenance fees. Some people are just happy to get rid of them.
Do Not Think Of A Timeshare As An Investment?
I would not think of a timeshare unit as an investment. It is extremely rare for a timeshare to go up in value. There is no real ownership comparison between a fee simple ownership model (a single family residence for example) to a fractional condo ownership model (a timeshare for example).
I would only buy a timeshare because you will enjoy it. The slick timeshare salesman make timeshares sound like an investment, but they are not. You will have maintenance fees for as long as you have it.
Why Are Timeshares Cheaper On The Resale Market?
Let’s face it, timeshares are not really investments. People buy them for enjoyment. I do not think Warren Buffett holds too many timeshare units in his portfolio.
When you are buying a timeshare new from the developer, you are paying for the administration and marketing costs of the developer. When you buy a timeshare from a private party, those developer costs have already been paid.
It is a buyer’s market for timeshares. Many people are tired of paying the monthly payments and the maintenance fees and are happy to get rid of them. If you are going to buy a resale timeshare, do not feel bashful about negotiating the price.
In divorce cases you do not see too many people fighting over who gets to keep the timeshare. One spouse usually wants the other party to have it.
What If I Want To Stay At A Different Resort With A Timeshare?
If you want to stay in different places, you should make sure that the timeshare you are getting has exchange privileges. RCI is one of the biggest exchange companies. With this style of program, you get points that you can redeem at different resorts. You want to make sure these privileges and points accrued can be easily transferred when ownership is transferred.
I Need Flexibility With My Timeshare
Not everyone can schedule their vacation at the same time each year. Lets face it, life is more hectic now than it was years ago. If you need flexibility with your timeshare make sure that the resort you are looking at purchasing from has flextime. This allows you to be able to trade your week or weeks for a different time that works for your schedule.
A timeshare can make a lot of sense for the right type of vacationer. Do your homework and research before you go to the presentation. The salesperson does not have your interest in mind. They only care about their commission and may not give you all of the details. The wrong thing to do is to hope that it will all work out without knowing all of the details. You do not want to make a bad decision with a timeshare. They are hard to get rid of if you do not like it.