I hope you're not one of those people who paid full-price for a timeshare! Here are some basic rules to save (your cash.



Rule number one – Never buy from a developer unless it is a genuine closeout. The very first timeshare I ever purchased was from a promoter that had nearly sold out his resort and had a few weeks remaining that he wished to “blow out" so he could start a new project somewhere else. I paid $1999 for a week that in the previous year was being sold for $15,999 by the same builder!

Don’t be pressured by sales tactics on timeshare tours where they start out very high on the price and then mysteriously find ways to keep discounting the price until you feel that it’s a great deal you can’t possibly refuse. Up to 70% of the cost of a timeshare is marketing costs. It is not uncommon for a builder to hire a marketing company and give them 50% of the sale proceeds. Unfortunately, in spite of promises made by salespeople, most timeshares resell for only 20-50% of their original purchase price. But this can sometimes be an opportunity for savvy buyers!

Always do your homework. Do you want to buy a timeshare just for exchange purposes or do you intend to use the resort? It really does make a difference. If you are seeking a timeshare for exchange it is important you fully understand the rules of the exchange companies (like RCI). Each onehas similar rules concerning exchanges. As a general rule, last minute exchanges are “first come, first serve". It makes minor difference whether you are trading an expensive high season week or an inexpensive off season week. So, that week you buy on livingoffdividends.com/store for $100 may do the job as well as a $9000 high season week if you have the flexibility to travel on short notice and choose from a variety of resorts and areas available.

However, if you want to exchange into top notch resorts in high season it becomes more important to own something that is in high demand. Exchange companies operate under the principle of “comparable exchange" meaning they try to match the vacation experience provided by what you own to where you want exchange to. So, if you owned a 2 bedroom, 2 bath condo at a 5 star resort in Waikiki, Hawaii in the peak of season a comparable exchange would be to a 2 bedroom, 2 bath, 5 star in Cancun, Mexico in February.

In other words, you have to tailor what you purchase to the vacation experience you are seeking.

Where to buy? A great places to buy is http://livingoffdividends.com/store/Real-Estate/Timeshares-for-Sale. It is not unusual to find timeshares for under $100. The important thing is to know what you are buying. Contact the resort and inquire about the unit and week you are interested in. As the new owner you are liable for any back taxes, unpaid maintenance fees and assessments. Do a search on the internet for “timeshare user groups" and search for the resort you are interested in to see if there are any problems you should be aware of.

Another source of cheap weeks is from homeowner associations at resorts. Contact resorts you are interested in and inquire about homeowner association weeks for sale. These are weeks that are owned by the homeowners usually because they were signed over to them in exchange for releasing the owner from back maintenance fees and taxes owed. Usually the association only wants to recoup the back fees owed and is not terribly interested in making a profit. See if the resort has a website for owners. There will usually be weeks listed for sale there. If there is an owner’s forum it will provide you with a n idea on how well the property is managed and experiences that owners want to share.