The majority of people who invest in timeshares are unaware of the insurmountable amount of correlated costs. Even if you do manage to avoid being duped by a timeshare scam, these tricky investments still present other major complications. Take this timeshare advice to make sure you understand the depth of the investment you’re about to make.
There are usually two types of timeshares: Deeded and Right-to-Use. You will want to know exactly which one you’re planning to get involved in.
A deeded timeshare is when you own a part of the actual property itself, or part of a unit, for a specified amount of time. You can use that property for a predesignated length of time each year, usually a few weeks, but you will own your share of the property for whatever length of time determined by the contract. Some timeshares are for life, or for certain period of time — unless you decide to sell it, which in itself is inherently hard to do.
Right-to-use timeshares refer to an agreement between the property owner and yourself. Usually the land or property developer will split the resort up into sections, or units, and sell the rights to use them. In this case, you would purchase the right to use a unit at this location for a certain amount of years, but wouldn’t actually own any part of the property itself. Some right-to-use timeshares use a point system, allowing you to accumulate points for longer stays or to use at a sister resort.
After you’ve considered both of these options, make sure you do the rest of your homework. A staggering 85% of timeshare owners regret their purchases and attribute that regret to money, fear, confusion, distrust, and intimidation. Don’t get pressured into a purchase you aren’t fully committed to; use this timeshare advice before making any decisions.
- Look at alternatives such as renting or buying a similar property in that area.
- Visit the property and gauge the quality of the property, as well as talk to current owners to get their feedback about the choice.
- Hire attorneys to look over the contract to make sure there aren’t any surprises that you aren’t able to get out of later. Selling timeshares or trying to get out of a timeshare due to a misunderstood contract clause can be difficult.
Even if you believe the sales agent is sincere and you’re confident in buying a timeshare, you should still consult with timeshare attorneys. They’ll be able to tell you what the contract involves and other timeshare advice.