So, what is a timeshare? It is a type of vacation property ownership, whereby you have the right to use said property for a designated period of time. This
could be one or two weeks every year, or two weeks every other year. Obviously, the more time you purchase, the more expensive it will be. The agreement is
usually for a specified number of years, anywhere from 20 years to 99 years. If the timeshares are outside of the United States, they will most likely be
un-deeded; meaning your name will not appear on the title. Many resorts within the U.S. have deeded properties.
Typically, you purchase a timeshare from a resort salesperson or a developer. They may entice you while you are on vacation within the resort with a dinner
or a cash bonus if you give them 90 minutes of your time and listen to a presentation. Of course, they will tell you how wonderful it will be to own a little
piece of paradise. They will tell you how you will pay a low maintenance fee every month or every year. They will tell you how, if you want to travel to a
different destination, no problem, they have connections all over the world and you can choose to travel anywhere you want. They will tell you that it will
be easy to sell at any time.
Here is what they do not tell you: the maintenance fee that you pay will increase every year, until it becomes so expensive, it is hardly manageable. If you
want to travel to a different location next year, you will have a hard time getting your first travel destination choice if it is in high season and the
resort is in high demand. When it comes time to sell your timeshare, you only be able to sell it for a fraction of what you paid, because the initial price
includes marketing and administration fees. Timeshares are not considered to be good investments for this very reason. Your ROI will be extremely low.
As you can see, purchasing timeshares may not be the next great real estate investment you were hoping for; you own a piece of real estate in a very limited
sense and banks and lenders may be reluctant to give you a mortgage. If they do, you are probably looking at higher interest rates and tougher terms.
As with any investment vehicle, you need to do your homework. A good source for information is Apex Professionals and their Timeshare News. You will find a
constant updated stream of articles, news and videos. Timeshare News will give you everything you need to know about the pros and cons of timeshares. Apex
Professionals LLC is a premium resource. Don't go on your next vacation without reading what they have to say.
