When investing in a timeshare, you don’t just enjoy its benefits but you can also be profitable from it. There are some who have enjoyed much from their timeshares while others are devastated with what they got. Everyone has their own preferences and expectations. Timeshares bring different response from buyers, renters or owners yet boils down between two things – love it or hate it. Therefore, when planning to acquire it, make sure you have properly researched, highly cautious and extremely alert. Although there is a long list of enticing timeshares on the web, you have to be keen enough to research and pay closely to the details. You may be getting something you overlooked due to excitement. Make sure you have read what you are getting and what not. It is important that you are aware of these things before signing up the contract. You don’t have to hurry – do not be affected with the pressures that the seller or the agent is putting on you. Read the contract from cover to cover.
There are two types of timeshare contracts – deeded and non-deeded. In a deeded contract, the buyer purchases the property along with its full rights as the owner of the property. This gives that person the title and the property and can definitely be handed over or inherited by heirs. However, in non-deeded contracts, the buyer only acquires the license or lease or the club membership that will only give the privilege to make use of the property at a certain period for each year. In both contracts, the price mainly depends on the marketing season and the time of the year the buyer wishes to acquire the property. For the non-deeded contract, the rights will expire when the lease becomes outdated.
To make sure what you will be going through, you can take professional advice – from a licensed agent or broker, timeshare experts or a lawyer to go over your contract. Here is a list for you to consider before buying a timeshare.
- First is to check the license of the company, especially when buying from a resale company. Note the broker’s license number and check it over at the State Department to confirm the legality to sell and verify the broker’s previous transactions. You have to go through with this to definitely ensure the validity of the business you are about to enter. There is definitely a great risk to jump into non-licensed companies and the chance on fraud and scams is higher.
- Resale timeshares may not give good profits. Timeshares are economically designed to accommodate inexpensive yet relaxing vacation spot.
- There is something you should take heed of when investing in a non-deeded contract. Sometimes, the owner might declare bankruptcy, thus loses you privileges.
- If you happened to buy a timeshare that is still under construction or in a renovation, you must insist to claim a written agreement with the seller that the repairs or the constructions will be done in a specific period. Lacking facilities should be put up in the agreed time limit.
- If there is anything else that should you know with regards to the profits of the timeshare. Ask for a statement – this can help you weigh its value in the future if ever you decide to resell it.
- Do not jump right into a property. Learn to research and study the market on timeshares. It is very important to be educated before jumping in into something.
- Do not settle on agreements done over the phone or face-to-face. Always put everything in a document signed by you and the seller. This is applicable to all necessary transactions involve.
- Lastly, when investing in a property, check on the flexibility on their exchange program. This will helpful for you to exchange facilities or schedule in the future. If the timeshare does not have it, then it will not be useful to you.