Should You Invest In A Timeshare?
Summer is the time for family vacations, and depending on where you go, there is the chance you will be approached by someone wanting to sell you a timeshare. While the idea of getting a break from expensive hotel costs while being assured a vacation property is available for your use each year can be attractive option, it is important to be aware of both the pros and cons before handing over your money. In terms of property investment, a timeshare can leave you paying resort costs and fees for years into the future, while not affording you the same rights and interests as a regular property owner.
Factors That Make Timeshares Appealing
According to Market Watch, timeshares are a popular option when it comes to investing in vacation property, and roughly one out of every 12 Americans invested in a timeshare in 2014. Timeshare resorts are generally located in popular tourist destinations, and most offer the convenience of large, condo style rooms, well maintained grounds, and amenities such as pools, tennis courts, and workout areas. In most cases, you buy a share in a specific property for a specified week or weeks, but have the opportunity to exchange your shares for accommodations at other resorts, and at other times throughout the year, if you desire. In order to ensure you get the most out of your investment, Market Watch recommends following a few easy tips:
- Be prepared to negotiate. Timeshare presentations are often a hard sell, but stand your ground and do not be pressured to pay more than you can afford or what you think the timeshare is worth.
- Read the fine print, and make sure you know exactly what you are buying. Make sure you understand the terms of your contract, the dates available for you to use the timeshare, and the process for exchanging shares and using other dates or destinations.
- Beware of scams, and make sure the timeshare company you are dealing with is legitimate. Check their ratings with the better Business Bureau, and do not sign anything until you are sure you are ready to take the plunge.
The Disadvantages of Timeshares
While timeshares may be a great vacation planning tool, they are generally considered to be a bad investment in terms of return on your money. According to a USA Today report, timeshares have a high markup that can be as much as 60 percent. If you choose to sell, it will likely be at a loss, as your timeshare will not increase in value as other real estate investments do. In addition, when you sell you will likely have to pay commission or transfer fees to the timeshare company itself, which will eat up even more of your investment. It is also important when considering the total costs of your timeshare, to bear in mind that in addition to your initial purchase price, you will also be required to pay a yearly maintenance fee which, in some cases, can be quite expensive.
Reach Out to Us for Help
If you are considering buying a timeshare or other type of vacation property, contact our experienced New York real estate attorneys. At Cavallo & Cavallo, we provide the aggressive legal representation to help ensure your rights and assets are protected. We have offices in the Bronx and New Rochelle; call or contact us online today for a free consultation.