- Understand the contract.
It is easy to sign a timeshare contract, but it may be hard to get out of one. Make sure you understand all of the terms. When do you get to use the property? Do you get the same property every time? What is your yearly total cost of ownership? Are there set dues and fees? How much can the dues and/or fees increase each year? Who manages the property? Who do you contact with contract questions?
- Walk away from high pressure sales.
There are good timeshare deals, and there are timeshares deals that require high pressure sales. Walk away from a sales pitch if you feel pressured to make a decision on the spot. The last thing you want is buyer’s remorse after signing a binding contract. You should also research the company you are doing business with, or at the very least check their rating on the Better Business Bureau. Walk out the door if the word free comes out of a sales persons mouth.
- Location, location, location
If you want to trade, you need a desirable location. You will probably not get the best trades with Vegas or Aspen in the summer.
- Timeshares are not investments
The stock market is for investments, timeshares are for vacations. The value in a timeshare is the quality of your vacation. You should feel good about breaking even, should you decide to sell your timeshare. You can rent some timeshares, but again, feel lucky if you break even.
- Maintenance fees
All timeshares have maintenance fees. You will pay an annual fee, even if you do not use the timeshare. Read the contract, and make sure you understand the terms of the maintenance fees.
You may never tire of your timeshare if it is in a desirable location and time of year. You may have the option of exchanging your timeshare through a timeshare exchange broker should you want to explore other locations.
- New or resale
You can save a considerable amount of money by purchasing a timeshare from a previous owner, maybe even 50% or more.
- Fixed week vs. floating week
Fixed week means that you get the same week every year (IE: 4th of July). Flex week means that you can claim a week within a range of weeks.
Any profit from the sale of your timeshare is taxable. Selling at a loss is typically not deductible.
- Donating a timeshare
You can donate your timeshare to a charity
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