When you buy a timeshare or timeshare resale, you’re basically prepaying for vacations you’ll enjoy taking with your family and loved ones year after year. Saying this though, everyone has their own preference. You may prefer to buy a timeshare, whereas the idea of something like vacation rentals may suit someone else better. It’s all about what works best for you and your requirements. For those who are interested in getting a timeshare, it might be a good to look at the pros and cons.
General Notes on Vacation Ownership
1. Vacation ownership requires advanced planning, especially if you plan to vacation during peak season at your home resort or elsewhere.
If you can only vacation at a certain time of year and have a favorite location you enjoy, then you would want to consider purchasing a fixed week at a resort at the destination of your choice.
2. Exchange opportunities should be a secondary consideration.
Vacation ownership is one of the best ways to ensure you and your family enjoy vacation time with each other every year, but you should consider buying a timeshare primarily to use at the resort where you purchase – with exchange opportunities being only a secondary consideration.
3. Sometimes developers restrict the benefits that transfer to a resale purchaser, thereby affecting its resale value.
4. Some developers have a right of first refusal option on resales, which requires a notice to them when a buyer and seller enter into an agreement. The developer then has the option of matching the price and terms of the sale.
5. Vacation ownership is a financial decision but should not be purchased as a financial investment.
Although most timeshares provide an interest in real estate, it doesn’t necessarily appreciate in value the way your home does – it is simply an investment in quality vacations in the future for your family and loved ones.
It is important to carefully weigh the pros and cons before making the decision to purchase a timeshare interest and see if it will work for you and your family and the way you like to vacation.
The Pros of Vacation Ownership:
1. Name brand vacation ownership ensures consistency and quality of your accommodations in condominium style units.
Typical unit sizes range from furnished studios to four bedrooms that include separate living and dining areas, fully equipped kitchens and may include an in unit washer and dryer. Because of the spacious, condo type units, there is room for the family to enjoy quality time together while saving money on meals because you don’t have to go out for every meal.
2. Purchasing a vacation ownership (vacation club, points based ownership or weekly timeshare interval) may save you vacation dollars when compared to the rising costs of hotel rooms.
3. If the annual fees, e.g. maintenance fees, taxes and/or club fees are less than what you would pay to rent a similar accommodation, it would make sense that you may want to consider purchasing a vacation ownership.
4. Vacation ownership can give you access to many locations worldwide.
Even if your timeshare was purchased in a specific location or with a certain resort chain, if you enrolled in the exchange company affiliated with your resort, you have the option to exchange for a different destination or resort nationally or internationally.
5. Timeshare intervals cost less and are less expensive than a vacation home with the significant costs of taxes, maintenance and upkeep which you are solely responsible for.
If you can only take a vacation for a week or two each year, vacation ownership can make more sense because you only pay for the time you actually use it.
The Cons of Vacation Ownership:
1. Timeshares and vacation ownership may be difficult to resell.
You’re unlikely to recoup your original investment, but if you must sell, review your original contract carefully. Some developers have a right of first refusal option on resales. In addition, some developers restrict the benefits that transfer to a resale purchaser, thereby affecting its resale value. You could always rent fantastic Cabo villas instead.
2. There are annual homeowner or maintenance fees you must pay.
Fees vary based on the timeshare, unit size and amenities, and may increase yearly. In addition, special assessment fees can be charged for unexpected expenses.
3. Determine which option of vacation ownership works better for you.
If you have found the destination you like to vacation every year, and you only have a certain time of year you can take a vacation, then you should consider purchasing a fixed week at that location. However, floating timeshares (and vacation club or points based vacation ownership programs) offer more flexibility but again, it requires advanced planning and floating vacation ownership is given on a first-come basis.
4. Your money is tied up.
When you buy a timeshare, you’ve basically prepaid for vacations you’ll be taking in the future. Unless you paid for your timeshare in total upfront, just like with a mortgage, you’ll be making monthly payments.
If you do decide to purchase a timeshare interval, you should consider purchasing a timeshare resale from a licensed timeshare resale professional such as Advantage Vacation. Purchasing a timeshare resale can save you literally thousands of dollars versus purchasing direct from the developer
Advantage Vacation is a licensed timeshare resale brokerage located at the Lahaina Cannery Mall in Lahaina, Maui. We specialize in Maui timeshare resales and Hawaii timeshare resales of name brand timeshares.
We can assist you in purchasing Hilton timeshare resales on the Big Island or the island of Oahu. We also have Marriott timeshare resale listings on Maui and several of the other Hawaiian Islands. If you are a fan of Westin, we would be happy to assist you with the purchase of a Westin timeshare resale. Advantage Vacation is a member of the American Resort Development Association (ARDA) and offers the best buys on the timeshare resales market today. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed.
We are leaders in the timeshare resale secondary market, have been in the timeshare industry for over 30 years and are Accredited Members of the BBB with an A+ Rating. Advantage Vacation is using Twitter and Facebook to help educate people on the changes in the timeshare industry along with current timeshare tips, up to date timeshare news and timeshare FAQ’s.
We hope you will follow us and our blog, Timeshare Blogging by Advantage Vacation for the latest timeshare news and reviews. If our site does not answer your question or questions, please email us your question and we will answer it and add it to our library. Make your voice heard – what questions do you have?
At Advantage Vacation you can be assured you are working with professionals who believe that honesty and integrity are the most important aspects of the business they are in – timeshare resales. Our business has been built on relationships and we pride ourselves on providing excellent service to our clients.
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