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DOES IT MAKE SENSE TO BUY A VACATION TIMESHARE

Many people have a question when thinking of buying a timeshare. Does it make financial sense or does it make sense at all to buy a timeshare? Well the answer can be both yes or no depending on who is buying and for what purpose it is being bought. In this article we will discuss why it makes sense to buy a timeshare. One of the most traditional answers could be that you own it, but when you rent something you don’t own it. Timeshare industry has grown by leaps and bounds since its inception in this country and many notions that people had earlier have been clarified. Timeshare is no more a small business. Big hotels and resorts are into timeshare business now. It is estimated to be a Five billion dollar a year industry worldwide and approximately two million Americans have timeshares. You might be wondering what lured so many people in America alone to timeshares. Here are some reasons.

Consider this fact you pay rent to stay in a hotel. You pay the rent for staying in a hotel for a week. Suppose it is $900. If you consider a period of 30 years, multiply the cost of living in a hotel for 30 years with $900. It will be $27,000. You spend that much amount and only get a suite with only a bathroom. Now consider this, if you buy a timeshare for $10,000 which has a maintenance fee of $450 annually. The cost for 30 years will be $10,000 plus 450 multiplied by 30. The answer will be $23,500 which is $3,500 less than renting a hotel suite. But here is the interesting fact. You still get to own your timeshare property which will earn some money if not the original price. So your actual expenditure on your vacation will be way less than renting a hotel suite. Then who can ignore the comfort of a home in a timeshare property. A typical timeshare unit has two or three bedrooms, more than one bathroom, a kitchen, a laundry room and a pool plus not to forget all the resort facilities.

Does it make sense now? It does because it also saves you from the hassle of planning your vacation each year because you know when you have to go in turn offering you a guaranteed vacation every year.

How many hotel rooms can accommodate large families and friends? With a timeshare vacation you can invite who ever you want and can host reasonable size gatherings.

A timeshare is like money lying safely in your bank. You can sell it whenever you want. Not only that if you buy a deeded plan, the timeshare gets inherited to your heirs also.

Compare the timeshare with buying a vacation home. You don’t have to worry about upkeep and maintenance also. The management company will take care of everything. You just have to pay the maintenance fee for that. But what a pleasure you can live like you are living in a hotel and still get a feel of your home and have to do nothing.

Apart from these benefits, timeshare companies offer you so many discounts like bonus weeks, discounts on airfare, car rentals, attraction tickets, restaurants and much more.

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HOW TO HANDLE TIMESHARE PRESEMTATIONS & SALES PEOPLE

It can be confusing for a starter to decide from where to buy his first timeshare from resale market or directly from timeshare resort or developer. It can be a hard decision to make with both having its own advantages and disadvantages. Buying timeshares in the resale market like auction websites or advertising through classifieds is a recent concept compared to buying from developers which has been there since its inception. Internet has brought everything to the doorsteps of the people and thus benefiting the timeshare market also. Websites such as eBay.com, bidshare.com and redweek.com provide prospective buyers with more information on the property and also wide variety of buying options.

The scenario was totally different a decade ago when the buyers used to buy timeshares through timeshare presentations hosted by timeshare developers. The decisions taken to buy timeshares were mostly based on one’s impulse rather than research and analysis. But with the advent of internet auction sites a user has more powerful tools to research the prices in advance even if he is going to a presentation. The buyer can make a more informed choice today than earlier. Buyers can also avoid the trauma of sitting through a timeshare presentation by buying through resale market. The presentations sometimes take ninety minutes and can go even longer. At the end of the presentation the buyers who were brought in on the pretext of a free gift are subjected to high pressure selling techniques, and this yield to sign a paper and buy a timeshare.

Now talking about the cost comparison, a developer’s timeshare offer includes the cost of advertisement, presentation, free gifts etc. which is whopping 40% of the cost of the timeshare and sometimes this exceeds the cost of the timeshare resale. On the other hand if one buys a timeshare through a resale market one can buy the timeshare 30% to 50% cheaper. Also buying through a resale market offers you more choice and freedom to select your desired unit. You know that you are getting the best price. It is definitely worth saving thousands of dollars by buying a resale.

But there are good reasons to buy from a developer. There are many reputed companies that have ventured into timeshare business like Marriot, Disney, and Hilton etc. When you are buying through a resale market there is a margin of doubt whether your investment is secured or not and the trust factor is low. Where as the timeshare developers spend fortunes in the development of timeshares and have great reputation and thus can be easily trusted. They give you the best and the latest amenities which you can never get from a resale unless it’s a relatively new unit. Another high point of buying through a developer is that they offer many incentives and benefits to their customers in the form of bonus weeks, discounts on attraction tickets, car rentals and much more. On the other hand these benefits may not be available to you if you bought your timeshare through resale market as many developers does not allow timeshare resale units with same amenities compared to those who bought directly from them. Also the developers usually offer many financing options that you may not get if you buy from a resale market.

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KNOW YOUR TIME SHARE RIGHTS

One of the biggest reasons why many people fall into the trap of scammers and frauds is that they do know their legal rights when buying a timeshare. It is always a good practice to know your rights when you are signing any contract or agreement. As with any other industry timeshare industry is also prone to unscrupulous tactics by some people. Everyday you hear a story of somebody being duped into buying a timeshare and the property doesn’t even exist or in some cases, is not up to the standard and what they were promised. We here these horror stores and we should learn from these. Here are few things that you should remember while buying a timeshare!!!!!!

To understand our rights let us understand different types of timeshare plans first. They are basically of two types. A deeded and title timeshare and the second one are right to use also as called license to use timeshares. A deeded and title and ownership means the buyer owns the timeshare and acquires a specific facility for a specified length of time each year, for a specified number of years (generally 40 years) and a deed. A right to use timeshare means the buyer has the right to acquire all the above mentioned things except the deed i.e. title. A deeded timeshare is inheritable whereas a right to use timeshare is like a lease which expires after certain number of years

Timeshare industry has also acquired the reputation of used car industry in terms of selling tactics they use. It starts off with an invitation to a presentation offering you an expensive gift. When you actually go there it turns out to be a pressure selling session of a used car dealer who doesn’t want you to go out unless you sign a paper. And the expensive gift also turns out to be a mere gimmick. And the people have to go through the trauma of sitting through the presentation which goes on for two hours also sometimes, full of pressure selling tactics. But as per the law the people are supposed to be informed about the length of the time they have to sit before receiving a free gift. Also they must be informed about the physical condition of the facility. The timeshare companies are also legally not permitted to misrepresent the market value of the timeshare property. They are also not supposed to misinform you about the resale or exchange potential of the timeshare property.

The law also prohibits the timeshare companies from not including the oral promises that were made before the purchase of the property in the written contract and also including any kind of fees that were never ever mentioned orally. The rules may vary from state to state. Some states also have a cool-off period usually of two weeks to allow you to cancel your contract should you change your mind.

Apart from these rights one should also consider things such as do you really want to buy the timeshare? Did u check out the facility? Did you contact the better business bureau? Did you talk to existing owners in the timeshare property? Do you plan to rent it? Do you plan on reselling it? Do you plan on exchanging vacation sites frequently? The answers of all these questions should be found out before making a final decision about buying a timeshare.

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TIPS FOR RENTING A TIMESHRE—SPLENDID RESORT VACATIONING

Although it is not the best of the ideas to rent a timeshare but in some cases it works out to be more economical than other options. Timeshare rentals were not so easy to find earlier as the owners of timeshares don’t make any profit when they rent out their timeshare units and also very less people had timeshares. Over the past few years the popularity of timeshares has grown tremendously and there are many big names entering into the business now. There are over two millions American who have timeshares. The timeshare rentals are available because some owners have no other option but to rent out their units as they couldn’t use it due to their hectic schedules. The timeshares can be rented through timeshare resorts who rent the units on behalf of their owners. Timeshare units can also be rented through brokers dealing with timeshare rentals and sales. But always be careful while approaching the brokers because the timeshare industry has witnessed many frauds and scams due to some unscrupulous brokers. Make sure the broker is a licensed broker and reputable also. One can also rent timeshares on auction sites like eBay in travel section and also bidshares.com which is timeshare exclusive website.

But how will the timeshare rentals work out. Let us do some math. If you rent a hotel or a room in a resort the rent per night typically costs around $200 per night. Which means it is around $1,400 for a week’s vacation and if you have more people and if you need another room it will end up totaling $2,800. Compare this to a timeshare rental which may cost $150 per night. The total would be $1,050 only for 2-3 bedroom units. The benefits you get are immense. A timeshare unit gives you more room compared to a hotel suite and is better furnished. Typical timeshare units have two to three bedrooms, one to two bathrooms, a kitchen, a dining room, a laundry room and indoor or outdoor pool. Most of the timeshares are strategically located to the attractions. And they are located in some of the finest vacation resorts of the world. Timeshare resorts provide more amenities and conveniences compared to hotels. The timeshare resort also offer discounts on air travel, rental cars and tickets to many attractions. The resorts have many facilities like golf club, tennis courts, athletics, marinas and many more recreational activities. You can invite all your friends and family to the unit and have a gathering as well, all in the comfort of a luxurious unit.

But few things have to be considered before opting for renting a unit. Try to select the best location if possible like near the pool or other resort facilities. You don’t want to be left out when others are making full use of these amenities, the point is in busy seasons the pools and other facilities are overly crowded, so more near you are to these facilities the better chances you have. And do not hurry in deciding a timeshare unit; nowadays more and more units are being available as many big resorts have ventured into this business. So, shop around and go with the best price. Some timeshare units can be without kitchens, make sure you rent the one with kitchen as it can save you few extra bucks by saving you from eating outside. Also do your home work by researching about the resort from where you are renting the unit. In this age of internet, the resources are easily available which provides you with the reviews of the resort and more information to make you knowledgeable. It’s also a smart idea to rent the timeshare unit near the attractions which will save the cost of renting a car. Idea place would be one which is easily accessible to public transportation. One can also share rental units with other interested parties by dividing the unit into two. Renting a timeshare definitely makes a strong financial sense compared to hotels and motels.

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