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˙ţRisks involved in buying Timeshares

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Buying Timeshares can be rewarding for many people. It might a money wheel for some. Last but not the least; it can be a profitable investment for many. But the story doesn t end here itself. While many people may reap the rich benefits of timeshares there are several others for whom the timeshare investment was nothing more than a mere fraud and dream resorts turned into nightmares. Thus investing in a timeshare should always be done with high alertness and caution. Before signing a contract or a check always weigh in both the benefits and the risks involved. If proper precautions are not taken these money spinners can turn into money losers. Always read the finely written statements before signing a contract.



The timeshares are basically classified into deeded and non-deeded plans. In a deeded plan, an individual buys an ownership in a piece of real estate property. The owner usually gets the title of the property and the property is also inheritable to the heirs of the owner. Where as, in a non-deeded plan or right to use plan, an individual buys a lease, a club membership or a license that lets you use the property for a specific amount of time each year and for stated number of years. But in both the cases the cost of the unit is directly proportional to the season of the year and length of time an individual wants to buy. The rights of the timeshare owner ceases after the lease expires in right to use timeshare.



Every individual takes adequate care while making a major investment. And this applies in the case of buying a timeshare also. You must read all the documents carefully and understand fully what you are getting for your investment before signing any agreements or paying any fees. A professional advice might also be critical involving big timeshare investments. So take expert advice from people who have bought timeshare before or your attorney. Here is a checklist of what all people should consider before buying a timeshare property.



- If you are buying a timeshare from a timeshare resale company verify that they are licensed brokers. Easy way to verify this is by asking the license number of the broker. Then you can verify that with the State Department which deals with these kinds of transactions and know about the history of the broker. Be vigilant when you are buying a timeshare from a non-licensed firm, your money would be at stake as the non-licensed firms wouldn t have much to lose, so greater chances of fraud exist.

- Keep in mind that timeshares are for personal recreational use and do not expect profit or loss. A resale of timeshare may or may not reap good return.

- If you are buying a right to use timeshare watch out, if the sponsor declares bankruptcy, you may lose your rights.

- If you are buying a timeshare in a property where the facilities have not been fully installed take a written commitment from the seller that they will be finished in a specific amount of time.

- Any claims made by the seller about the returns on the investment in timeshare should be questioned because the future value of a timeshare depends on many factors.

- Do not get impulsive when buying a timeshare. Read each and every paper thoroughly. Take adequate time in researching, analyzing and making a decision to buy a timeshare.

- Never believe in the word of mouth, neither on phone or face to face. Request everything in writing especially the promises that were made orally.

- Try to find out whether the exchange program will be guaranteed or not. Sometimes it isn t. So make sure to find it out before buying. Buying a timeshare without an exchange program is not worth the money because you will get bored going to the same property every year and also you will not have the flexibility of schedule if you don t have exchange facility.


 



 

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