Timeshare is the term used to describe vacation ownership. It allows travelers to stay in a specific property during certain times of the year. This is a convenient way for people to own real estate in beautiful locations. However, there are also some negatives to timeshare. In addition to the fact that it’s a very crowded market, there are also plenty of scams to look out for.
Timeshares are often misunderstood by consumers. Many people have purchased a timeshare after hearing a sales pitch, without really knowing what it is. Sadly, many people end up with a heavy timeshare burden that they regret.
The concept of timesharing has roots in Europe in the 1960s. Today, there are over 6,500 timeshares worldwide. During that time, the industry has seen colossal revenue growth. In 2011, the industry accounted for $6.5 billion in sales.
But, it’s important to remember that even desirable timeshares lose their value when they are sold. For that reason, it is important to make an informed decision about purchasing a timeshare.
Timeshares are usually small units located in big resorts. Each timeshare owner shares a unit with other owners. They all have a week of access to the unit. Most of these units are around 1000 square feet and have two or more bedrooms. Typically, these units are located in resorts on the beach or near lakes.
When you purchase a timeshare, you are responsible for paying the purchase price as well as the maintenance fees. If you ever find yourself in a financial bind, you may be able to sell your timeshare. You will also need to pay taxes and any special assessment fees.
Another drawback of owning a timeshare is the fact that you cannot make improvements. While you might be able to afford to do that with a regular vacation home, you won’t be able to with a timeshare. Plus, you can’t choose when you want to use your timeshare.
A common myth about timeshares is that they will save you money. This isn’t always the case. Depending on where you live, your annual maintenance fee might be lower than the cost of maintaining a vacation home over decades. And, you have to remember that you have no say in how much of a maintenance fee you’re charged.
You should also be wary of the resale market. Thousands of timeshare owners are looking to sell their properties. Beware of untrustworthy resellers who offer you an exorbitant upfront payment to buy your timeshare. There are also some state laws that allow you to cancel your timeshare after rescission. However, this isn’t a guaranteed process and can be difficult.
Some of the most common reasons for selling a timeshare include age, relocation, divorce, illness and job loss. Regardless of the reason, you should never buy a timeshare without first doing your homework. Also, a timeshare should be affordable.
To be safe, be sure to check with the Real Estate Board to verify that you can legally advertise your timeshare. Otherwise, your marketing efforts could be considered illegal.