Did you know that timeshare sales increased by 7 percent in the year 2019 across the United States of America? Buying a timeshare has continued increasing in popularity because it provides a stress-free vacation experience for those that want to relax and return to their favorite resort year after year.
One of the biggest selling points of the timeshare industry is the fact that you don’t have to plan a vacation. You’ll know exactly where you’re going and when you’ll be going there. You’ll have no problems diverting all of your energy and focus into enjoying your yearly resort getaway.
Whether you want to buy a timeshare as a place to enjoy a yearly family vacation or you want a place in a beautiful location, timeshares provide a lot of benefits. It is important that you know the mistakes to avoid making when you decide to buy a timeshare.
Continue reading this article to learn more about the common mistakes made when buying a timeshare.
What Is a Timeshare?
Before you dive into the mistakes that people make when buying a timeshare, it is important that you know exactly what you’re investing in. When you buy a timeshare you’re purchasing the right to stay at a resort or even a particular condo during a certain time each year.
Each year gets broken up based on the amount of traffic that is normal and the most desirable time to visit the resort. Purchasing a week during the high season will cost you more money than if you get your timeshare during the low or medium season. The other factor that impacts the cost is the size of the timeshare unit you buy.
Most major timeshare resorts in the timeshare industry have transitioned into using a points system to determine when you have your week at the timeshare. The points system works by purchasing a certain amount of points to put towards your next resort getaway.
This gives you much more flexibility and maximized your ability to enjoy the perks that you purchased when buying a timeshare. it also makes it much more appealing to potential buyers if you decide that selling a timeshare is the right move for your finances.
Common Mistakes When Buying a Timeshare
Buying a timeshare in a place that you love is a smart travel decision that comes with a lot of different benefits. When you decide to buy a timeshare there are certain mistakes that you need to look out for and avoid making. Here is a closer look at the common mistakes that timeshare buyers make.
Attempting To Sell or Rent Your Timeshare
Timeshares aren’t allowed to get claimed on your taxes by the IRS because you’re not considered to own the property you’re staying at. You’ll find plenty of timeshares for sale online for what seems like ridiculously low prices. This could make you doubt your decision to buy a timeshare in the first place.
Timeshares are a great investment if you’re purchasing them for the right reasons. Do you want a place to spend a week of vacation each year with your family without the stress and hassle of planning a vacation and finding hotels to stay at? Then a timeshare is a perfect investment for you.
If you’re purchasing a timeshare with the intent of selling timeshares for a profit or renting it out then you’re making a massive mistake. You’ll never make a profit from taking either of these approaches. Even if you found someone to rent your timeshare, you’ll still only get money from that transaction one week out of every year. It is a poor investment to make if you like growing your wealth.
Not Doing Your Research On Timeshares
As with any major purchase that you consider spending money on, you should do your research on different timeshare resorts and locations. Check out the websites of the biggest timeshare resorts like the Disney Vacation Club and Hilton Resorts. Look around their websites and check out the different resort locations that they offer.
Another great approach to take is to read online reviews and get a better feel for what to expect when buying a timeshare. There are even online forums where you can join and learn more about the experiences that other timeshare owners have had. This research will prepare you and help you understand what you’re buying.
It will also provide valuable information about which resorts might fit what you’re looking for when it comes to your vacations. Maybe you’re a person that loves spending time at the beach. You’ll want to do research to find great timeshare options at a beach you like.
The same goes for someone that wants more of an alpine mountain experience. There is no point in dropping the money on a timeshare resort in a location that doesn’t interest you or fit what you want from your vacations. Not doing research is one of the worst mistakes to make when buying a timeshare.
Making Impulse Buys
It is difficult to keep from buying something when you learn more about it and allow yourself to think of the benefits you’ll gain. Impulse buying is a huge mistake when it comes to timeshare resorts. Timeshare presentations vary wildly when it comes to what you should expect, but they always do their best to make their resort sound incredible.
Ultimately, the goal of these timeshare presentations is to build impulse with you and get you to make a purchase without doing your research and considering the consequences. If you’re planning on attending a presentation for timeshares then you need to have plenty of discipline and self-control.
The primary reason that you should attend a presentation is to get a better feel for what to expect from the timeshare resort. You’ll learn more about what is available. You also need to avoid purchasing your timeshare from the developer. You’ll get much better pricing by purchasing through a broker on a resell timeshare.
No one wants to spend hundreds or thousands of dollars only to get home and have second thoughts or even buyer’s remorse. Avoid an impulse buy at all costs when considering buying a timeshare.
Not Being Flexible
One important thing that people don’t often consider when buying a timeshare is to have realistic expectations of what you’re getting with your money. Timeshare resorts in Europe are often much more basic when compared to their North American counterparts.
North American timeshares tend to be much more luxurious. Ultimately, it comes down to what you want from your timeshare ownership and how flexible you are.
Not Knowing Your Vacation Budget
While your timeshare purchase might be affordable and well within your budget, you still need to account for how you plan to get there. This is especially true if your timeshare isn’t near the airport you’re flying into. In that case, you’ll need to pay for your flight and either a shuttle or a rental car to get to your timeshare.
Some timeshares come with a fully equipped kitchen that is loaded with food for you if you wish to cook. Some don’t include that. If that is the case then you’ll need to think about your food expenses for your vacation. The amount of money spent on food will add up quickly if you’re visiting your timeshare with the whole family.
This is a big deal for the first couple of times that you visit your timeshare for a resort getaway. After going a couple of times you’ll have a much more firm idea of what you’ll be spending with each vacation at your timeshare.
Not Knowing Your Timeshare Location
Another common mistake that people make when buying a timeshare is not knowing the location that they’re purchasing in. You might like the sound of a place or the idea of having a vacation there only to find that it is a nightmare to travel to or spend time at.
The worst thing you can do is buy a timeshare in a location that you’ve never traveled to or spent time at. You’ll find yourself wishing that you’d waited. This is especially true if you enjoy traveling and seeing new locations. You might discover a place that you like much more.
This isn’t a huge deal if you got your timeshare through a timeshare resort like Disney Vacation Club or Hilton Resorts since they have tons of other locations you can visit. Smaller timeshare resorts won’t have this option so you need to avoid buying without visiting first.
Consider Buying a Timeshare Today
Buying a timeshare is a great investment if you’ve found a place in the world that you love visiting and spending time at. You’ll have a guaranteed vacation each year and your only expenses will be your travels to get there and your meals. Avoid impulse buying when it comes to timeshare resorts and do your research to make sure that you’re getting the experience you crave.
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