When considering buying a timeshare, you should look for the best deals. Timeshares can be purchased for as little as $500 or less. If you’re planning a family vacation, you can take advantage of the timeshare perks to enjoy more trips economically. However, it’s a good idea to look at the costs as well as the benefits before you sign on the dotted line.
Timeshares can come with many fees, including maintenance fees. These fees go towards maintaining the resort’s amenities and facilities. In addition, you may have to pay property taxes and utilities. Depending on the resort, you can expect maintenance fee increases of 5 to 6% per year. The amount you end up paying depends on the type of timeshare you’ve bought.
Some resorts send special assessment bills for major updates. You may also have to pay for hurricane damage. This is not a small expense and should not be taken lightly.
Purchasing a timeshare is a great way to have a lifetime of vacations. Oftentimes, it is cheaper than staying at a hotel. Moreover, it provides you with the opportunity to travel to a popular destination. But how do you know which timeshare to buy?
For starters, you can buy a timeshare in the United States or in Mexico. However, in Mexico, you’ll only have the “right to use” the timeshare. As a result, you may not be able to sell it and will have to pay an escrow fee.
Another option is to get a loan for the purchase. Most banks won’t offer financing, but there are options for those who qualify. A 401(k) plan can provide you with a loan of up to 50% of the vested balance. Of course, the interest rate is higher than a bank. It also comes with the risk of foreclosure.
Buying a timeshare isn’t a big deal, but you should consider the maintenance fees. Many times, these fees are not included in the initial price of the unit. To get a sense of how much you’ll need to pay, ask the salesperson about the annual maintenance fees. While you may be tempted to skip out on the upkeep, a missed payment could cause you to pay more in the long run.
Another factor to consider is the insurance. This should be a consideration, as your coverage can increase as you age. Also, if you’re thinking of renting out the timeshare, you’ll have to make sure your property is insured.
Although the timeshare industry is booming, there are plenty of bad apples in the game. Be aware of the sales pitch that touts the timeshare’s ability to trade. Generally, these salesmen try to sway you into paying more than you need to. Even if you do get out of your timeshare contract, you’ll be lucky to receive a fraction of the original purchase price.
The best way to avoid these pitfalls is to price shop. Compare the cost of an annual vacation to what you’d pay to rent a similar vacation at a hotel. There are also some great sites for price comparisons, such as AirBnb. By doing so, you’ll be able to identify a good resale deal and a bad one.