The short answer: “It depends.” And it depends on a lot of things… first, how you define “bargain.” You see, that’s relative to value, and it’s also dependent on usage or satisfaction. Depends on what you compare it to.
We can probably all agree on this: that a vacation in a luxury condo at a resort is probably more enjoyable than a vacation in a hotel room. This is a dream timeshare property. This is particularly true for a vacation involving multiple people…usually children, but could be multiple people who are other adults or friends. Having space, multiple rooms, a kitchen are all advantages. Add activity programs, sometimes “bargains” or special offers at area attractions, a concierge to reserve things for you… it all becomes nice to have items.
But do you have to be an owner to enjoy a timeshare? Definitely not, as a search both on the Internet and in many major newspapers (if you can still find one that hasn’t stopped running) will turn up “lots” of rentals, both from private landlords and from companies that specialize in renting out time or space. . for owners
In fact, one of the key things to take from this article is this: Before you buy a timeshare, you need to rent it. Not just once, but several times and from different companies. You should rent your timeshare with these goals in mind: First and obvious is to look at the quality of the company and the units. Is the condo you’re receiving well-maintained…or at least apparently so, starting with the room and things like “Is the carpet clean?”; “Is the furniture comfortable and durable?” “Do the room amenities like TV, DVD, etc. work and work?” Then, as you move into the property: Is the pool clean and well-maintained? Is there a good program that is right for my family goals and needs? How does the property look from the outside? Even looking up… Does the roof appear to be in good condition? If you are in a multi-story unit, is there an elevator? If not and you have a special need…ask about reservations and can one with a need get on the ground floor? Here are some of the obvious things to see in the “real world” compared to what the timeshare sales agent will show you in the model unit(s)
Now while renting, the second part of the reason is to have the opportunity to meet and talk to real owners. In most cases where there is a pool, this is a great place to start. But the tours, the “family barbecues”, etc. they are also other places where owners gather.
Some of the key things to ask are the ease and availability of making reservations and getting the place and time you want. More on that in a moment. You want to ask about maintenance fees. What are they? Are they consistent from year to year?
Before proceeding, you should know and ask in the sales presentation: Is the company a timeshare? I am considering purchasing a unit with (or in) actual ownership of a complex or the entire complex and control of 100% of the units. , or do they only own and control a percentage of them? How much or what percentage on multiple resorts…particularly if you are thinking of buying from a company that has MULTIPLE resorts. You are working to find out what the REAL availability is…not what a timeshare sales shark will tell you.
At one point, he bought a unit; he had physical ownership of a unit for a period of time at a given location. It was yours, no questions asked, for that time and place. But as the industry has evolved, it’s moved to a points system where you essentially have nothing but points and a piece of paper that says you have X points and these points can be used as money to rent or use a certain unit. in a certain place. location at any given time… and that essentially your point value will fluctuate substantially as to what you “buy”. The price of the unit you want, in points, is set and reset arbitrarily by timeshare ownership depending first on location and season. That is the “superficial” reason, but the underlying reasons have to do with the profitability of the timeshare company. They can, will and do escalate a unit’s point cost on a fairly regular basis without needing to consult you! In most cases, the value of your points depreciates on a regular and not necessarily constant basis.
Occupancy of a timeshare unit is very important to a timeshare company. Even if you’re supposed to be paying for it yourself, you’re not producing as much revenue as possible for the business, and let’s face it… if you have points, you may not be using them every year, you’re using a “banking” privilege, so your unit is vacant . This represents a revenue opportunity for the company and they sell that unit of time to many sources. Not totally unlike airlines about reserving a seat. Or an HMO that bills every month, even if you don’t use a doctor…and then you want to make an appointment only to find out you can’t get one for two months with at least one doctor of your choice!
Now this article may seem to have a negative bias, and not all timeshares are operating in a scam mode. But many are and a scam is when you’re hoping to get something but the availability isn’t there and your bargain vacation just disappears. Therefore, you must find the difference between what the sales agent tells you and the experiences of the owner in the real sense. You are now learning how to buy a timeshare in the real world.
In considering that, there are a couple of other things you should know: First, if you’re buying a timeshare at almost any price, you’ll find selling it exceptionally challenging. If you buy it new… and we’ll talk about this in a moment, you will NEVER be able to sell your timeshare for anything close to the original investment cost. In fact, if you can sell it for half the money you put into it, you’re doing exceptionally well.
Is a timeshare a value or does it represent a bargain vacation? Again, it depends on what you compare it to. If you like the idea of a condo and resort and compare it to what you might have to pay “as an outsider” in renting a nearly identical unit, it may be…but you need to know your actual costs and usage. IF you pay $10,000 for a unit or number of points and plan to keep and use it for 10 years, its capital cost, not including any interest if you bought it on a “pay-as-you-go plan,” costs you $1000 a year. Then you will have maintenance fees. Let’s say this is $800 per year, so on a 10 year basis your cost is $1800 per year. You use this for 2 weeks or 14 nights. The math is simple: $128 per night. You’ve had a nice condo for less than the price of a hotel room at any resort. But you need to do the math and figure out how many years you really can or will want to use this. We all reach some point where our vacation and travel goals change. Kids grow up and don’t want to go on vacation with mom and dad, or have families and don’t have space. We all get older and maybe we don’t want to travel or we can’t. What happens then? To get rid of annual maintenance fees, you need to divest yourself of the property in some way, and if you’re even thinking of donating your timeshare to a nonprofit, forget it. Because of these various maintenance fees, you don’t have an asset that you can donate… you’re transferring a liability. Talk to your prosecutor about this.
So, to get back to the main topic of this article, “How to Buy a Timeshare,” and to answer the question, “Timeshare: Bargain or Scam,” you need to make comparisons. First of all, you MUST stick hard to sales resistance and decide and dive in to accept some of the offers to visit the timeshare sales sites. You do this to see the amenities of the various companies before you go and rent. But get the most massive doses of sales resistance you’ve ever had. Never again will you experience such sales pressure applied in as many ways as you do in a timeshare presentation. The carrot will come first…the wonderful comforts; the appeal to emotion, fun. Then comes the bribery part now, along with the fear of loss. It’s here today in this special and we’ll include not just the kitchen sink, but the entire contents of it.. well, you get the idea. Resist the first offer and double up. You resist that and decide to exit the process where you are scheduled to collect the gifts you were promised just for coming, but you are NOT done! You have to face a group of closers or secondary managers! These people know what they’re doing and they know every sales trick in the book, and if you don’t take the “carrot,” they have, and aren’t averse to using, “the big stick.” Don’t be surprised if you are essentially labeled “ignorant” if you pass up this opportunity.
But IF you can resist this sales pressure, go to a few presentations from different firms. Accept their meal certificates and anything else they offer you (find out first if the incentive is given, whether you buy or not).
Now that you’ve narrowed down your selection to a couple of preferred companies, start looking for timeshare rentals and go for it: rent a timeshare.
Finally, it comes to the main question: Do I want to OWNER a timeshare? You have determined that if you own a certain business, it has some benefits that are worth your investment. This can be control and access to a certain place at a certain time. That is probably the main reason. You may like the (then) affiliation with an exchange company like Interval International (this may change).
So if you decide to buy it, it’s time to do it on the resale market for about half the price of a new fair purchase. How to buy a timeshare on the resale market could be the subject of a whole new article as this one is approaching 2000 words… but in short, let me tell you that you need to know a couple of basics: what kind of writing or property Will you get, and is there any retroactive liability for unpaid maintenance fees that you will be responsible for?
In conclusion, we’d say if you’re at a point in your life where you can look at ownership and usage and forecast it for 10 years or so and you really want to be certain you’re getting the times and places you want, that may not be available. for you as a renter, and if you can get the unit at an acceptable price, then you may have purchased a very cheap vacation. You may not be on vacation right now, and we all read that a good vacation goes a long way towards good mental health. If you OWN your timeshare, you may feel you MUST vacation, if only to get value for your investment. Go ahead, buy one. But if you only go on vacation from time to time; You’d rather take the unknown risk of finding a rental when you want it versus the unknown of what the maintenance fees will be; how your investment will appreciate or depreciate, then rent. You will never have to face the question “How do I get rid of this timeshare?”