Each year, vacation fans buy more than 350,000 timeshare ownership intervals. With compelling sales pitches and beautiful locations offered at significant discounts over hotel rack rates, it is easy to see why timeshares are so popular.
But purchasing a timeshare ownership is a significant investment. Before you buy, here are some mistakes with buying timeshares.
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1. Buying Without Visiting
Never judge a book by its cover or a timeshare resort from a glossy brochure. Although the views of sparkling pools and breathtaking vistas can be compelling, you’ll want to visit a timeshare before you make this significant purchase.
Ideally, stay at the timeshare for the same length of time and time of year that you’ll want to purchase an ownership interest. See if you are satisfied with the location’s maintenance. Check out the crowd levels while you are there.
If you are not satisfied with a stay before you buy, chances are you won’t be satisfied after you have purchased.
2. Buying More than You Can Afford
It is easy to get caught up in the excitement of purchasing a timeshare ownership. But before you sign the paperwork, make sure that you aren’t overextending your assets.
Most timeshare contracts require an initial deposit and then can be financed for a specified period of time. Initial deposit amounts, length of financing, and interest rate on finances can vary greatly.
Check all your options for timeshares and financing before you sign the paperwork. You may have options for different downpayment options to lower your monthly payments or could find other lenders that may offer better interest rates.
3. Not Reading the Contract
Not all timeshares work the same way. Some allow you to have flexibility for when you can use your timeshare. Some give you the same fixed timeframe every year. Make sure you read the contract to know exactly what you’re getting.
In addition, contracts have crucial information. What happens if there’s a disaster and your timeshare isn’t available for your vacation? What additional fees are required and how much can they go up each year?
Some types of timeshare companies, such as Hilton Grand Vacation Club Resorts, offer different types of locations and exchanges between locations. This means that you can use your vacation ownership at one location for a different location. But you’ll want to read the terms and conditions in the contract to see if there are additional costs or restrictions.
Purchasing a timeshare is a legally binding contract, so read all the details first. If you have anything you are unclear about, ask questions before you sign.
4. Not Factoring in Extra Costs
The biggest expense of a timeshare may be the purchase of the timeshare ownership itself, but there are other costs to owning a timeshare.
Most timeshares come with annual dues or fees. In addition, factor in the cost of travel to your timeshare destination.
5. Buying Too Much or Too Little
When you purchase a timeshare ownership, you are locked into a certain amount of timeshare for a set period of time. A timeshare contract that may be perfect for a new couple starting out may not provide enough space for the large family they will have down the road.
It is also possible to buy too much timeshare ownership. If you know that you only can take 2 weeks of vacation each year, then a timeshare ownership of 3 weeks means you have one week going to waste each year.
When you do your homework, you can avoid mistakes with buying timeshares. Timeshare ownership can be an amazing purchase providing years of vacation fun.
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