Timeshares

Poll

The most important reason for buying a timeshare is because you and your family are going to use it. Don’t get drawn in by some slick sales pitch into buying an interest in a property if you are not likely to stay there and never ever buy a property purely as an investment.

If you buy a timeshare in a resort that you love and you plan on vacationing there every year, then it will turn out to be a great investment especially if you take into account savings on hotels over the years and other factors, says Patrick E. Dougherty, owner of Timeshares United, which handles timeshare properties worldwide.

“With time share ownership available for less than $2,000 a week, buying makes a lot of sense to many people. For about the price of just one vacation, you have a deeded luxury property you can use for years and years to come,” he says.

“And, if you don’t want to go back to your timeshare every year, you can rent it out and choose to stay at any one of 5,000 other resorts in 90 countries around the world. All the time, you have an asset that you can sell at any time if you need to,” Dougherty adds.

There are a number of things that potential buyers should be aware of, he says. It is usually much easier to sell a timeshare property in one the most popular resort area and the week being offered is also important. If you have a week at one of the most popular times of the year, you can sell at a premium,” he says.

That is why you must choose carefully when buying in the first place. You may love a particular resort but if it is not popular, you are not likely to find too many buyers. If you want to rent, you are also more likely to attract people if the property is in a top destination.

Equally, pick your week or weeks carefully. Remember that if you buy a week during the most popular times of the year, it will give you greater bargaining power when it comes to exchanging your week for one at another resort and it will also help you sell for a better price.

Resales offer some of the best bargains. If you buy from the resort developer you normally pay a premium which can be as high as 40% to cover sales costs and marketing. You don’t have to pay this premium when buying from an existing owner.

“People buy timeshares for a lot of reasons. Some get carried away and buy on impulse and then find they cannot use the property. Others buy but then their circumstances change and they can’t afford the management fees. In any event, these distress sales provide some of the very best bargains around if you can find them,” says Dougherty.