Timeshare is an ideal piece of property for those who love to travel. This piece of property can be used for specific time of the year so that vacations will not require any additional spending on lodging. They are also located in ideal places in popular destinations so you’ll always enjoy your vacation when you’re in your timeshare.
But your selection of a property can easily become a nightmare if you don’t proceed with caution in a timeshare. Without caution, you can easily end up with a wrong property and be forced to spend thousands of dollars for something that you will not enjoy.
1. Choosing a property based on timeshare presentation – do not make your decisions based on the presentation you’ll attend. Most of these presentations are very tricky. You could be in a presentation that offers free food with wine which can make you tipsy and be pressured to sign an agreement.
2. Know what you like – before knowing more about various timeshare properties, know what you want in a timeshare property. This will help you decide faster and select the better property. If you just visit various properties online without knowing what you want, you could end up with the wrong property.
3. Avoid bad resale tactics – there might be a company that will call you out of nowhere asking you if you could resell your timeshare. This is often a scam since they will ask you to pay-up a listing fee. The results of their services are never guaranteed and usually will not have any result.
4. Timeshare vs. vacation club – aside from timeshare, there are timeshare companies that may offer membership of a vacation club. This is not a timeshare since you will have to earn points first before you can use them in your preferred vacation. It’s almost the same as your regular vacation.
5. This is not an investment property – Do not think that purchasing a timeshare can lead to a good investment plan. Selling your timeshare for a higher price after a few years do not frequently happen and they often depreciate.
6. Know the additional free structure – timeshare properties will naturally ask for maintenance fees. The least amount is $300 a year but do take note that some timeshare properties actually charge based on inflation. That means your annual fee for maintenance may increase.
7. Forget about financing – while financing can allow you to pay for a small downpayment, the interest rate from these companies are not the same as regular mortgage plan. To avoid any financial trouble, pay for your timeshare upfront. The rate of a 20-year timeshare is usually from $15,000 and could increase for better properties.
8. Be careful with unfinished property – an unfinished timeshare property is a good investment if you know what you’ll get after the unit is finished. To avoid being scammed, place your payment in an escrow account so that they will be assured that your payment will arrive and you get the timeshare you expect.
9. Know the timeshare’s effect on your finances – a timeshare property will really have an effect on your finances. Before you agree to spend on a timeshare, know if the timeshare will not affect what’s important for you and your family.
10. Extensive research – never purchase a property without proper research. Know the surroundings of the timeshare you will be purchasing and compare rates of your timeshare to other properties in the same area. Through extensive research, you’ll be able to purchase the property you want without paying too much or being scammed.