First Time? 5 Facts You Must Know When You’re New To Buying Timeshare
Are you considering buying timeshare properties? If so, you are not the only one. After a few years in the doldrums, the timeshare market has once again come roaring back to life, as Americans look for secure, family-safe, and predictable vacation options. For those that are unable to purchase a vacation home outright, there are many reasons to buy timeshare properties instead.
Timeshares are much more affordable and allow people to experience a luxury vacation property at a time of their choosing every single year (or multiple times a year). However, it is important to know the ins and outs of timeshares before you buy. If you are buying timeshare for the first time, these are the essential facts you need to know.
1. Buying Timeshare Should Be for Your Enjoyment
First and foremost, you should only ever buy a timeshare for your own enjoyment and personal use. By this, we mean that you should never purchase a timeshare as an investment property. Timeshares never increase in value and you will not make a return on your investment. Timeshares are there to provide easier, better value vacation options for you and your family. Keep this in mind when looking for a timeshare for sale.
2. What Do You Own?
So, what is it you actually own when you buy a timeshare? According to the timeshare rules, you are purchasing a fractional portion of the property in question. For example, a timeshare property might be divided into 52 shares, one for each week of the year. If you purchase two shares, you have exclusive use of that property for two weeks of the year, and you own 2/52 shares in the property. This is why timeshares are so much cheaper than buying a vacation property.
3. Consider Buying Resale
When searching for the best timeshares to buy, you might be drawn to reputable, luxury brands such as Hilton. However, you should hesitate before buying directly from Hilton itself. Instead, you should look at the HGVC resale market, where you can grab a bargain by purchasing directly from the current owner. This will often save you more than 50% on the sticker price.
4. Look for Flexibility
Some people have the misconception that timeshares are limiting and that they tie you to a single property for a set part of the year. However, many of the largest timeshare companies offer flexible exchange programs. With these, you can swap your share for a season with another club anywhere else in the world, allowing you to try out other properties and destinations at no additional cost.
5. Don’t Forget the Fees
Finally, do not forget that the purchase price of the timeshare is not the only cost you will incur. All timeshares impose annual maintenance fees for the upkeep of the property, while some have additional fees for certain amenities or bonuses. These fees will often increase over time, so make sure to get a clear idea of how much you can expect to pay for your timeshare over time.
Make Smarter Real Estate Choices in 2022
Now that you know the key facts about buying timeshare properties, it’s time to look at your real estate portfolio. For insider tips on America’s real estate market, we have got you covered. Make sure to consult our expertly-curated Real Estate guides to make smarter investment choices in 2022.