Important Things to Know About Timeshares
Although a prudent purchase for some, timeshares may end a costly burden for many others who find themselves chained to a unusable, unaffordable and unsellable property. To prevent any regrets, buyers should make certain they have all of the information they need to understand before signing their names on the dotted line.
Timeshares Aren’t an Investment
Agents pitching timeshares will frequently tout the climbing cost of units as proof that they are a fantastic investment. But this appreciation in cost usually applies only to new units, as well as the resale market. Actually, timeshares tend to depreciate in value fast. According to the site Smart Travel, some resales can be scooped up for no more than 10 cents on the dollar.
Know the Real Price
Among the selling points of timeshares is the fact that future holidays can be paid for in advance. In fact, the majority of timeshares must continue to be compensated for for so long as they’re being used, in the form of care fees, which may escalate over time. Also, if you’re considering paying for the timeshare with a loan, ask to see a final number of just how much you’ll be paying for the timeshare; interest payments can accumulate.
You Might Be Unable to Exchange It
According to resort companies, one of the benefits of timeshares is your ability to exchange themif you get tired of visiting the same place every summer, just trade your timeshare with someone else. But, not all timeshares are equally desirable, meaning exchanging can be quite hard. And, as stated by the financial site Kiplinger, listing your timeshare on trading networks will cost approximately $100, and an extra fee of $150 per transaction.
Promotions Can Mislead You
Many timeshare buyers have been pressured into creating their purchases during a few of the notorious timeshare presentations. Lured by a free dinner or a low-cost weekend getaway and then forced to sit through an extended sales pitch, many cling to a barrage of high-pressure tactics and promises about the quality of the house, its current price, and its resale value and market value. Should you receive any promises, get them in writing before signing anything. If you feel you’ve been tricked or lied to, consult a lawyer.
Know that the Company’s BBB Rating
According to the Better Business Bureau, some timeshare companies are little more than scams. Be particularly suspicious of companies which, in exchange for a hefty fee, offer to”move” the title of your timeshare and take it off your hands. If you have any doubts about a company’s credibility, check if they are a part of the Bureau and, in that case, find out what customers are saying about them.