There are several types of properties that you can choose to invest in. timeshare- a property where you can spend your holiday once a year- is one of the such types which people find interesting to invest in. sometimes, it can turn out to be an emotional decision. Mainly, because there are few technicalities that might cause financial distress on the part of the buyer. Even the sellers, have to face few challenges at certain pints. Regardless of whether you are going to buy or sell timeshare, it bears some bright as well as dark sides- just to help you take an informed decision.
Let’s find out here, what things you must consider before investing in this business:
Helps you Save on Travel Expenses:
Owning a timeshare helps you save money. Especially, when you get one with facilities. For instance, if your timeshare has laundry or kitchen facilities, you save money instead of spending on these facilities.
You ONLYPay for What You Use:
it’s a big plus that you pay for what you use, unlike many vacation homes. An expensive property becomes, thus, an affordable one. Isn’t it good to have a vacations in a luxurious home, without staying hard on your pocket? Moreover, the maintenance of such property becomes no more your headache.
You Have a Guaranteed Destination Accommodation:
Since, you own a property at your destination, you don’t have to worry about booking a hotel or resort. You will not worry about the availability of the accommodation. It’s your property that you can use on your will and save money on other hotels or resorts.
Trading in Timeshare and Travel:
An interesting benefit about timeshare is that you invest in diverse experience in travelling. Here’s how: there is always an open option to trade your time and location with other community members. You can visit to new places in different times in trade of your location and time. Isn’t it good to travel to different places every year and collect memories and experience?
You HAVE to Pay Fees, No Matter What:
It is true that you don’t need to worry about the booking fee or maintenance, however, you have to pay annual fees. Moreover, the rates are increased which is out of control of the owner. In case you don’t pay the fees, you become liable for assessments for not being able to pay. This can result of loss of your timeshare.
Selling Timeshare Can Be Harder:
You might find yourself in a situation when you need money or want to sell your timeshare. In that case, it becomes difficult to sell as you will have to sell on unreasonable discounts. This is because of better deals prevailing in market. Keeping in mind this fact, it is better to buy a secondhand timeshare.
No Claims in Case of Loss:
A big dark side of selling timeshare is that if you sell your timeshare at loss, you will not be allowed to claim your capital loss through Internal Revenue Service, unlike other investments and properties.
Few Tips for Buyers:
- Timeshare unleashes more as a lifestyle instead of investment. You need to pay more, regardless of using your property.
- Before spending money on a fixed destination, analyze whether you really like to go to same place every year? What if someone doesn’t trade timeshare. It gives you a fixed type of vacation every year.
- Since, timeshare depreciates in value, it is not wise to lend money from banks for this purpose. In case, developers finance your money, they can go after your other assets if you become unable to pay.
- Check if you are offered race period to reconsider your buying decision and cancel before commitment.