Timeshare investment decisions should never be made without proper research and knowledge about all the risks involved.
7 Tips For First-Time Timeshare Investors
There are many unhappy timeshare owners who made impulsive purchase decisions and ended up losing money in the process.
Given below are some tips for first-time timeshare investors.
1.Consider If The Investment Will be Worth It
Before investing in a timeshare property, the first question you must ask yourself is whether it is actually worth it.
Here are some other questions you should consider.
- Will you and your family be okay with going to the same destination every year for vacation if the exchange programs are difficult to access?
- Will you be spending more money investing in timeshare than going for a separate and nicer vacation?
- Will you be okay with not getting to go on vacation at a preferred time? Some timeshare owners regret their purchase because they weren’t able to select the weeks they wanted to spend at their preferred resorts.
2. Do Thorough Research
Don’t invest in any timeshare property without knowing the full details of the property including the terms and conditions of your contract.
Each timeshare investment is different and comes with its own rules and restrictions which you must be aware of.
- If you want more flexibility in selecting your vacation week, go for properties that offer floating week arrangements. Find out how many months in advance you have to reserve your week.
- Know the different types of timeshare contracts. In a lot of contracts you won’t be owning the property, but only using it for a period of time. Some investments have renting options in their contract.
- Compare the prices of different timeshare properties. Some properties charge more than 25,000 dollars a week and investing in them is a foolhardy decision. Search for nice properties which charge reasonable rates.
3. Know All The Expenses Involved
If you think a timeshare investment is a one-time payment – you are wrong. Unless you are okay with receiving annual bills, don’t invest in a timeshare property.
Apart from the initial investment cost, there are maintenance fees, administration fees, transfer club fees, assessment fees, and other hidden fees. Many timeshare owners end up regretting their purchase because they weren’t thoroughly aware of all the expenses involved.
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4. Look At The Available Exchange Programs
Many timeshare properties are affiliated with exchange companies which allow owners to exchange their unit for a comparable unit in another timeshare resort. However, there are certain rules and regulations in all the exchange models.
Invest in a property that is affiliated with a reputable exchange company. Some companies scam their customers and they end up losing money in the process.
5. Watch Out For Scams
The timeshare industry is filled with scammers who are looking for all possible ways to make money.
Some timeshare companies offer many incentives and perks to try and attract buyers and make them feel like they are saving money. But most of the time you can find cheaper and better options from other verified and reputable companies.
6. Look At Possibilities Of Exiting The Timeshare Contract
Before signing a contract, consider if the contract allows easy exit options or other options to sell the property in question without too many complications.
If you don’t see yourself owning a timeshare for many years, then this is an important step you don’t want to miss.
In case you own a timeshare and are looking for a good timeshare exit company with good values, you can check out Linx Legal.
7. Don’t Think Of Timeshare As An Actual ‘Investment’
It is a well-known fact that the value of timeshare properties depreciates over time.
If you think you are going to be saving a lot of money by investing in timeshare, then this is not for you. The majority of the time, owners who sell their timeshare don’t even receive 50% of the original price they paid for it.
Know all the pros and cons of a timeshare before making an investment. Don’t be fooled by clever sales tactics which many timeshare salespeople use to pressurize people into making hasty investments.
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