Timeshares are a large part of the vacation travel industry. Travellers who cannot afford to own a home abroad, or who don't want the worries associated with exclusive ownership, often see timeshare 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 maintance 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 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.
Many resorts to choose from with the exchange program world wide .
Lock in your timeshare vacation accommodations.
For example: If you purchase a timeshare today at $5,500.00, use it 10 years and sell it at the same price you paid for it originally...you end up with equity.
In contrast: if you rented a hotel room you would have useless receipts. As with most deeded resorts you can rent it , sell it , lend it , exchange it or present it as a gift of precious memories for that special event in your life... honeymoons, anniversaries, family reunions.
Time share makes sense.
Time share vacations are diverse.... from a log cabin next toski.jpg (15090 bytes) a trout stream to an exotic tropical paradise in the South Pacific to the exciting ski slopes of The Rockies, you can be assured that your accommodations are first class .
You don't have to be a millionaire to enjoy luxury vacations. You also get many benefits when you are a timeshare owner, travel agents ,discount air fares ,bonus weeks you can even gift these to your business associates and loved ones for that vacation of a lifetime .
Are you interested in Vacation Resort Ownership? Here is some basic information you will need to know before you buy a timeshare :
When you buy from an owner there is a TITLE company that will guarantee clear title for you. When you buy from an owner you pay far less than you would if you bought from a DEVELOPER or a BROKER .WHY? you are eliminating the middleman when you buy directly from a timeshare owner.
Types of Time-share Ownership: Deeded: You will have a recorded "Deed" with this type of ownership. Your period of ownership is forever.
Right-to-Use: This type of ownership is for a set amount of time. After the agreed time of ownership expires, ownership converts back to the Grantor. During your ownership, you can convey your ownership to another party.
Membership: This is not an ownership, it is a "Membership". You pay a large sum of money to buy into the membership plus there are annual membership fees. Be very cautious of this type of Time share. Usually the language in the membership agreement states: if you miss one of the annual payments, your membership will terminate. Some of these memberships can be transferred, some can not.
NOTE: Some Resorts also offer bi-annual ownership. (check your paperwork)
Periods of Time-share Ownership: Usually your time share period (check-in date) is numbered from 1-52. Week "1" starting in the first week of the year. Week "52" being the last week of the year.
"Floating/ Flex" periods. Which can be divided into Seasons (Blue Floating/Flex) (White Floating/Flex) (Red Floating/Flex). If your ownership is for a Floating/Flex period, you can check-in on different dates according to your ownership.
Blue Season (Good): Also known as "off season". This would be the time of year which the Resort and location is of the least demand. If you own a "Blue Floating/Flex" period, you will only be allowed to check in during these "off season" dates. If you are planning to buy a "off season" week, plan on getting it for a cheap price.
White Season (Better): Also known as "mid season". This would be the time of year which is between "Off Season" and "Peak Season". The time of year right before the "Peak Season" starts and right after the "Peak Season" is over. If you own a "White Floating/Flex" period, you are allowed to check-in during the "mid season" and the "off season" dates. If you are planning to buy a "mid season" week, plan on getting it for a reasonable price.
Red Season (Best): Also known as "high/peak season". This is the time of the year everyone wants to be at the resort (highest demand). If you own a "Red Floating/Flex" period, you can check-in any time of the year. If you are planning to buy a "peak season" week, plan on paying a pretty penny for it.
NOTE: Interval International (an exchange company for timeshare) rates Blue as Green, White as Yellow and Red as Red.
Size of Time-share Ownership: Studio: A small unit, usually similar to a hotel room. Sleeps two, sometimes four.
One Bedroom: Similar to a small apartment: a living room area, kitchen area, with a private bedroom. Usually sleeps four (two in the bedroom and two on a pull-out sleeper sofa in the living room area).
Two Bedroom: Usually sleeps six (two in one bedroom, two in the other bedroom and two on a pull-out sleeper sofa in the living room area). Some two bedroom units can sleep eight, if it has a loft.
Lock-Out: These units vary in size, usually divided into two separate apartments. Each with its own living room and kitchen areas. If you own a Lock-Out unit, you can use one and exchange or rent the other. These units can be big enough to sleep eight to twelve people.
Obviously a Deeded two bedroom unit during "Peak Season" would cost a lot more than a Studio unit during "Off Season". Of course, there are other factors to the value of a timeshare unit, but this is the basic frame work of timeshare value.
Costs of Time-share Ownership: Purchase Price: The amount of money paid for ownership plus any "transfer fees" (can range from $50 to $500).
Maintenance Fees: The amount of money paid annually for maintenance of your unit. This amount can range anywhere from $100 to $700.
Property Tax: The amount of tax to be paid by you for your time share unit. This amount is usually reasonable, ranging from $10 to $100.
Special Assessment: This the amount of money the Resort can require you to pay on a un-regular basis. Usually for a re-modeling project, check your timeshare documents for the max amount they can charge you and how often they can charge you. This amount can range from $20 to $400, you may want to check the Resort history record for past amounts and times.
Time-share Resale: Why not buy a time share directly from the owner? Buying a time share directly from an owner can save you thousands of dollars....No Commissions, No hidden charges ever!
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