The Secret to Making a Successful Timeshare Purchase
Everyone has heard the horror stories associated with purchasing a timeshare property. Huge payments, poor accommodations, stolen funds, and resorts that shall we say have “lost their appeal”!
Well once you have decided to go the Timeshare rout for your vacations it is important to take into account a few factors when making your purchase decision. A Timeshare can be owned forever but most are sold after 8-9 years. This makes the price you pay very important if you hope to avoid a major loss when the time comes to sell.
When purchasing a Timeshare make sure the seller has an escrow arrangement with his or her solicitor (or accountant) to administer the sale of the property and handle the transfer of funds and title. Only when you are completely satisfied should you instruct the solicitor to release your money and certify the transfer. If you are offered a banked week, then check that the owner actually owns the week and that the Management Fees are up to date by contacting the Management Company and the exchange company.
Make sure the exchange company is informed of the change in ownership before transfer and always be sure you understand who in the purchase agreement (seller or buyer) will assume the costs of transferring the ownership of the unit. A «Right of Use» ownership transfer may cost from $140 to $1,700 and the transfer costs for a “Deeded» ownership may amount to as much as $3,000.
Only buy from the developer of the resort as a last choice alternative and if you do have to go that route be prepared to pay substantially higher prices for your Timeshare units.
The starting price for «sleep 6», peak season week in good quality resorts in most of Europe should be in or around $4000 and should provide good exchange power and minimum losses on resale. In the UK a larger unit in peak school season at a top class resort should cost you between $6,000 and $10,000, and most of your money should come back when you resell. Once you find what you want, bargain hard! It’s a buyers market so take advantage!
