Every individual waits for that time of the year, a much deserved vacation and time away from the hectic activities of day to day life. Do you typically wonder where to go? Where to stay? Etc. Smart people plan their vacations long before they actually go out for one. And even smarter people buy timeshare property for vacations to have a peace of mind and a place where they love to enjoy and cherish their most beautiful memories. Everyone wishes to have a timeshare property at their favorite vacation place. Here we discuss some of the important things that you have to remember while buying a timeshare.
1) The first thing to do before buying any timeshare is to understand the types of timeshare. There are basically two types of timeshare plans. A deeded plan, in which you actually buy a piece of real estate property and own it along with other owners but, you can use it only according to the timeshare agreement. A fixed unit, fixed week, deeded timeshare allows you to own a specific timeshare at a specific time each year. A floating time agreement allows you to be flexible about the dates that you can use your timeshare. But reservations may be only first come first serve as many owners would like to go for that option. Right to use timeshare or a non-deeded timeshare is a leased timeshare. Again it is classified into fixed unit and floating time just as in the case of deeded timeshare. However, you will no longer have rights to the property after the lease expires.
2) Do your homework regarding the location before making a timeshare investment. You will want to decide whether you'll be able to go there every year. Some research on the prices of alternative accommodations available in the location would not hurt, either. Why buy a timeshare if an available alternative is less expensive? At the same time, however, consider your comfort level. The less expensive alternative accommodation may not give you the same level of comfort as the timeshare you're considering. It depends on which factor, cost or comfort, you consider most important.
3) You should always know what rights you will have in the timeshare before you buy. In some cases your rights may be violated. Timeshare properties are usually governed by legal paperwork known as Covenants, Codes and Restrictions. These documents establish the rights of timeshare owners and also govern management of the timeshare.
4) Rethink your decision if you want to buy a timeshare purely as an investment rather than for vacation purposes. Timeshares are not the most profitable types of properties when it comes to reselling. They typically don't have good resale value, and the resale process can be difficult because of competition from the original owner. Timeshares are, however, good investments in a Lifetime of Vacation Enjoyment (LOVE).
5) While you may think that the cost of buying a timeshare is simply the cost of buying only the real property. You may be wrong. You should always calculate the total cost of timeshare which includes mortgage payments, maintenance fees, taxes, travel cost, closing cost, broker commissions, financing charges etc. Compare the cost of similar alternative accommodations with the total cost of owning a timeshare now. Remember that hotel accommodation rates increase at a rate of 2-3% a year.
6) Carefully read every piece of paper before you sign any agreement. Don't believe any of the promises made by a salesman; instead, make sure everything is in writing. Investigate the seller's reputation and find out whether the seller is licensed to sell timeshares. Lastly, you should never accept a property with unfinished facilities. If you do, make sure the seller signs a written commitment to finish the facilities within a specified time period.
1) The first thing to do before buying any timeshare is to understand the types of timeshare. There are basically two types of timeshare plans. A deeded plan, in which you actually buy a piece of real estate property and own it along with other owners but, you can use it only according to the timeshare agreement. A fixed unit, fixed week, deeded timeshare allows you to own a specific timeshare at a specific time each year. A floating time agreement allows you to be flexible about the dates that you can use your timeshare. But reservations may be only first come first serve as many owners would like to go for that option. Right to use timeshare or a non-deeded timeshare is a leased timeshare. Again it is classified into fixed unit and floating time just as in the case of deeded timeshare. However, you will no longer have rights to the property after the lease expires.
2) Do your homework regarding the location before making a timeshare investment. You will want to decide whether you'll be able to go there every year. Some research on the prices of alternative accommodations available in the location would not hurt, either. Why buy a timeshare if an available alternative is less expensive? At the same time, however, consider your comfort level. The less expensive alternative accommodation may not give you the same level of comfort as the timeshare you're considering. It depends on which factor, cost or comfort, you consider most important.
3) You should always know what rights you will have in the timeshare before you buy. In some cases your rights may be violated. Timeshare properties are usually governed by legal paperwork known as Covenants, Codes and Restrictions. These documents establish the rights of timeshare owners and also govern management of the timeshare.
4) Rethink your decision if you want to buy a timeshare purely as an investment rather than for vacation purposes. Timeshares are not the most profitable types of properties when it comes to reselling. They typically don't have good resale value, and the resale process can be difficult because of competition from the original owner. Timeshares are, however, good investments in a Lifetime of Vacation Enjoyment (LOVE).
5) While you may think that the cost of buying a timeshare is simply the cost of buying only the real property. You may be wrong. You should always calculate the total cost of timeshare which includes mortgage payments, maintenance fees, taxes, travel cost, closing cost, broker commissions, financing charges etc. Compare the cost of similar alternative accommodations with the total cost of owning a timeshare now. Remember that hotel accommodation rates increase at a rate of 2-3% a year.
6) Carefully read every piece of paper before you sign any agreement. Don't believe any of the promises made by a salesman; instead, make sure everything is in writing. Investigate the seller's reputation and find out whether the seller is licensed to sell timeshares. Lastly, you should never accept a property with unfinished facilities. If you do, make sure the seller signs a written commitment to finish the facilities within a specified time period.
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