Timeshares are a great way to secure a vacation spot each year. But if you’re not careful, they can quickly turn into a burdensome financial obligation.
One of the biggest financial mistakes people make is buying a timeshare without fully considering all the costs. This includes the initial purchase price, maintenance fees, and other expenses.
The best thing to do is to get a real estate agent to help you research your options. They’ll help you compare different types of ownership and find the right one for you.
Once you have an idea of what type of timeshare is best for you, it’s important to understand the terms and conditions that come with it. Then, you can make an informed decision about whether or not it’s worth the investment.
If you’re looking to invest in a timeshare, you should look for a property that is in an area where the value of your investment will appreciate. This is usually the case for homes that are located near tourist attractions or in areas where tourism is expected to increase.
You should also consider how much you will be able to use the property. For example, if you can’t afford to visit your timeshare during the holidays, you may want to look into renting it out for extra income.
Another option for funding a timeshare purchase is an unsecured personal loan from a bank or online lender. These loans often offer lower interest rates than those available from the developer’s designated lender, and they can be used to cover all or part of your timeshare purchase.
Some lenders specialize in helping you pay for your timeshare, and they can help you determine if the property is a good investment. For example, some lenders will consider the resale value of your timeshare when determining whether or not it’s worth financing.
If the resale value of your property is greater than the cost of financing, you can still sell it for a profit. However, you will probably have to pay the developer for their marketing and sales expenses.
In many cases, developers will add about 40 percent to 60 percent onto the selling price of your timeshare to pay for these fees. This is why timeshares are generally not considered an investment vehicle.
Besides, you should be aware that timeshares don’t typically appreciate in value over the long term. In other words, it’s very unlikely that you will make a profit on the sale of your timeshare.
So if you think your timeshare is not a good investment, it’s important to try to sell it as soon as possible. This can save you money and hassle in the long run.
If you’re still in the market for a timeshare, here are some ways to avoid making a mistake:
Avoiding High-Pressure Sales Tactics
The high-pressure sales tactics that most resorts use are what keep many people from realizing that there are better options. In fact, a recent survey found that more than half of consumers say they would never buy a timeshare again because of the sales pressure they experienced.