Unlike a vacation property that could end up being vacant for the most part of the year, timeshares allow you to pay only for what you use. This gives people the ability to own high-end properties at a more affordable rate. In addition, since you only stay at a timeshare for a particular period of time, you can avoid the costly year-round maintenance. These are only few of the many benefits of owning a timeshare. Here are five tips for people who are currently in the property market for timeshares:
Identify Different Types
Timeshares are categorized into four types – fixed week, floating, right-to-use, and points club. Fixed week ownership pertains to owning the right to a specific property in the same period of time each year for as long as the contract is active. Floating, on the other hand, grants the buyer some flexibility as to when he/she wants to use the property for the year. As you can see, there are different pros and cons to each type of timeshare ownership.
Analyze Your Vacation Patterns
Look at your vacation times over the past few years. DO you visit the same spot at the same month? Or perhaps you try to mix the destinations up, like going summer camping in Colorado or skiing in Vermont? A more predictable and consistent vacation pattern works best for potential timeshare owners.
Skip the Middleman
You can purchase timeshares at a significant discount if you purchase through an owner rather than a development agency. Use a resale website to browse through and connect with timeshare sellers.
Pay With Cash
Mortgage loans for timeshare properties are usually attached with higher interest rates, with some going as high as 20 percent, according to Professional Timeshare Services. Paying with cash can yield better deals. Similar to cars, timeshares depreciate in value over time, which is why a lot of resellers want to get it off their hands as fast as possible. You don’t want to hang on to a depreciating timeshare property while paying off high interest rates on your mortgage.
Know the Specifics
Due to a lot of reports of abuse on timeshare usage, most states have put in place an opt-out provision for timeshares owners. The “Right of Rescission” clause gives consumers the right to back out of a sales contract for up to a week. Another specific detail to know is how to trade your timeshare interval for a timeshare at another location. This comes in handy when something in your life changes and you can’t use the timeshare at the allotted time.
Being a timeshare owner is an exciting lifestyle investment. Make sure you’re buying into the right timeshares by planning and preparing meticulously. Use the five tips above as a shopping template.