Are you planning on your next travel abroad? This is to let you know that you can own a vacation property that you can use for whatever reason usually within a space of one year. We understand this can be a very emotional and impulsive decision. This is maybe why lots of questions usually arise about timeshares in wealth management and planning firms. Inquisitions are now on the rise like never before because much like there is high level of travel scam, timeshare scam is equally on rampage. Timeshare reviews seem to be doing a little to guide peoples’ decision too.
Aside from all of these, a lot of tourists usually have to deal with financial distress especially when they want to get out of their timeshare units. We think that if you’re buying a timeshare, you will have a place to vacation regularly. You will equally want to understand the different types of timeshares and the pros and cons associated with timeshare purchase, rent or hire on a general outlook.
Types of Timeshare
To better understand timeshares and brilliantly inform your purchase or rental decision, here are the four major types of timeshares;
Fixed Week: In this case, the buyer usually owns the right to a specific unit in the exact week year in and out for as long as the contract agreement stands. Usually, there is predictability but little flexibility and potential for a long-range boredom. When you purchase a fixed rate timeshare, you can rent out your block of time or trade with someone else. We think that it is best to buy fixed week type of timeshare only if you have a highly desirable location.
Right-to-use: When you are on this arrangement, it means that you have leased the property for a given period in a year for an agreed number of years. This also means that the developer maintains the ownership of the property.
Floating: With this agreement, you as the buyer can reserve your own time during a given period of the year. There is a larger option, freedom and flexibility than with the fixed option. Getting the exact time you want in this case can be very difficult especially when other shareholders have snapped up the prime periods.
Points Club: This is somewhat similar to floating timeshare. However you can stay in various locations depending on the amount of points you have accumulated from buying into the property in question or purchasing points from the club. The points accrued here are used like currency and timeslots could be reserved on a first-come basis.
Pros and Cons of Timeshare Deals and Purchases
There are many benefits to securing timeshares as part of your travel and vacation plans. Below are some of the important benefits of timeshare deals;
- If you can predict your travel plans to locations like Puerto Vallarta, then you have a guaranteed vacation destination. It is usually like this in other tourist destinations too.
- If you’re on a timeshare package, you have the opportunity to trade times and locations with other owners. This will allow you to travel to new places at will.
- Unlike when you own a vacation home which may be vacant for a huge part of the year, you have the opportunity to pay for only what you will use. This means that instead of very expensive properties, this is more affordable and you don’t have to worry about a year round maintenance.
- If you are not able to make your trip to your destination at a time, timeshare makes it flexible for you to rent out your block if you can’t use it. Some contracts might however not permit this. Some websites exchange service may charge you to play matchmaker role.
On the flip, there are cons to timeshare purchase and deals could be sometimes worrying. Some of these are;
- Timeshare scams have been reported in many vacation locations and so you might need to be extra careful or get yourself acquainted with honest and objective timeshare scam reviews.
- There are annual maintenance fee for timeshare whether you use it or not
- Timeshare are hard to sell so you might have to let it out most times with very steep discounts.
- You might have some challenges purchasing timeshare in foreign currencies. In Mexico for instance, foreigners are not allowed to hold direct property title within 30 miles of the coast and 60 miles of international borders. This means that most of the time, they might have to opt for “right-to-use” timeshares.
To stay above the darkish waters of shady timeshare deals while also avoiding the disadvantageous end of the deals, you might need to get yourself acquainted with news and information about your travel destination on travel reviews sites. Some of them have comprehensive details about the most important things you should know and the best deals to opt for.
If you are still interested in timeshare purchase, here are few but important advises for you
- Think of it as a lifestyle purchase than investment
- Analyze your vacation pattern over a few years period before making your decision
- Be wary of timeshare sales people and ask critical questions before succumbing to deals
- If you must borrow to purchase timeshare, you rather not buy one