Are you one of the over 70 percent of Americans who consider taking an annual vacation important?
Taking regular vacations doesn’t just give you the opportunity to travel to new destinations and relax. It’s good for your mental and physical health and can boost your happiness and strengthen your social relationships.
In an ideal world, most people would vacation throughout the year. But this world is far from ideal. Vacations cost a lot of money, which a lot of people don’t have. This is probably why you’re wondering whether you should buy a timeshare.
Read on for expert insight that will help you make an informed decision.
What Is a Timeshare?
We all dream of owning a vacation home in an exotic, seaside location. Sadly, this remains an unattainable dream for most, seeing that vacation properties are going for about $500K at the moment. A timeshare enables you to own a piece of vacation property at a fraction of the cost.
The property will have several owners (timeshare holders) and they’ll share ownership costs while enjoying exclusive access to the property. Usage of the property will depend on the timeshare agreement, i.e., fixed week, floating, fractional, and points-based system.
Fixed week usage, for example, allows you to use the property during a fixed week every year, while floating usage gives you time flexibility, but depends on availability.
Key Things to Consider Before You Purchase a Timeshare
On the surface, buying a vacation timeshare looks like an attractive prospect. However, you can end up making regrettable mistakes if you rush into buying one. It’s important to evaluate some key factors before making a decision.
Start by considering your vacation lifestyle. If you’re always taking multiple vacations every year without fail, a timeshare can be a good deal for you. But if you’re never sure whether you’ll take a vacation or not, you may buy a timeshare that you’ll only use sparingly.
Next, look at the cost of timeshare acquisition. This will vary depending on location and type of property, but the bottom line is you should be able to afford what you’re looking to buy. If the timeshares that are in your financial range don’t excite you, it’s best to shelve the idea until you can afford better timeshares.
Pro tip: Checking out timeshare resale listings can help you find a great deal. These Hilton resale listings, for example, are a good place to start.
The Trouble with Exiting a Timeshare
You’ve probably heard stories of frustrated timeshare owners who couldn’t get out of the agreements as easily as they went in. Although timeshare terms and conditions vary from property to property, they’re generally designed to be hard to exit. If you don’t read between the lines before signing it, you could be stuck with a bad investment that sucks money out of your purse.
As such, it’s best to have an exit strategy. Reselling is the go-to option, but on the resale market timeshares usually go at heavily discounted prices.
To Buy a Timeshare… Or Not?
Ultimately, the decision to buy a timeshare comes down to your personal preferences. It’s true that timeshares sometimes have a bad reputation, and deservedly so, but they can also be an ideal way for you to enjoy your vacations at the best destinations without spending a boatload of money.
Stay tuned to our blog for more lifestyle tips and advice.