Timeshares are a way for travelers to share costs and access property for a specified time frame. These properties vary in size and offer a variety of amenities including washers and dryers, televisions and kitchen appliances.
There are many advantages and disadvantages to using a timeshare. The most obvious advantage is that you can stay in a vacation home without having to rent it when you are not using it. This gives you more flexibility when it comes to using it. A downside is that if you need to sell your timeshare, you may have to put it on the market for a while before you get your money back.
However, if you do decide to purchase a timeshare, make sure you do your homework. If you don’t, you could end up in a tough situation.
The opportunists in the timeshare business are out to get your cash. They will often try to hoodwink you with promises of exorbitant up front fees, free gifts and other gimmicks. Unless you can prove that you really do need these items, you could end up spending more than you can afford.
It’s a good idea to consider the amount of maintenance and other fees that will be required. For most properties, the maintenance fee is about $786 per year. Even though it’s a small amount, this can add up. You’ll have to pay to get the property insured, keep it up to date, and more. In addition, you might have to pay to have the property appraised.
When you buy a timeshare, you will typically receive a 1/52 interest in the unit. That means that you have the right to visit the property on a certain week each year. While the most common type of timeshare is a fixed-week arrangement, you can also opt for a floating-week ownership.
Other types of timeshares are “right-to-use” or “non-deeded.” Non-deeded timeshares are usually cheaper than their deeded counterparts, but you will have to deal with more stringent transfer restrictions.
One of the biggest timeshare facts is that you will never know what you will use it for. Many people end up spending thousands of dollars on a timeshare, only to have it spoiled by the owner.
Some of the other timeshare facts are that you can expect to pay high interest rates on your mortgage, and you will have less control over when you can use your property. And although you can usually cancel your contract within three to 15 days, you might have to pay a registration fee, which you won’t want to do if you are attempting to sell your timeshare later on.
Finally, there’s the fact that the industry is littered with scams. Despite its popularity in the 1970s, the timeshare industry is currently in decline. Although there are still some great vacation properties available, many of the older ones are not worth the money.
Another timeshare fact to think about is the fact that there are 204,100 timeshare resorts in the United States. Most of these resorts are large resorts that have modest sized units, but some are much larger and can accommodate large families.