Although the concept of timeshares is not new to the public people still seem to have many questions about timeshares. A few of the most important frequently asked questions that people enquire about are:
Is renting a timeshare better than buying it?
Buying a timeshare gives you a much bigger choice. As an owner of the timeshare the amenities you have access to are better and cost much less. Owners can get discounts on lodging, entertainment, food, travel and many other resort facilities. The average rental fee is way higher than the average maintenance fee and is also increasing every year. In addition to all the above benefits a timeshare owner has equity in the property which can be advantageous to the owner when he wants to sell it.
Is buying a timeshare a good investment?
This is a question that crops up time and time again – whether to buy timeshares as an investment. The answer is often disappointing though because it has been demonstrated that the value of timeshares actually depreciates with time and they can go down as much as 30%-50% depending on the location and season. A timeshare should be thought as an investment for life, for guaranteed vacations and better facilities. Also if you compare the cost of owning a timeshare with a hotel over a long term period, a timeshare would save you a lot of money.
Can you rent your timeshare to somebody else?
Sure you can – just as long as you are the legal owner of that timeshare i.e. you cannot rent out a timeshare that is received in exchange.
What is the procedure for making an exchange?
Most timeshare companies have a business network with timeshare companies and you are automatically enrolled into their exchange program. The fee for the first year is also paid by the timeshare developer in most cases. You can also go to a timeshare exchange company and put your timeshare up for exchange. But keep in mind a few things such as whether you will get a similar kind of unit i.e. you can’t expect to get a two bedroom timeshare in exchange for a one bedroom. Also plan in advance if you plan to exchange timeshare as it may take a while depending on the availability. Also remember there is a fee for exchanging timeshares.
What are fixed weeks and floating weeks?
In a fixed week plan you are entitled to use your timeshare only during a specific week each year and in a specific unit. But in a floating week you have the option of choosing within a range of weeks but only on a first come first served basis as many owners would like to do the same thing. The advantage of a fixed week is that your timeshare week is assured as is the unit you want. The floating week, meanwhile, is advantageous to people who have schedule conflicts with fixed unit timeshares.
Are there any other additional fees when you buy a timeshare?
The answer is yes. Typically there is a maintenance fee and other fees like a transfer fee if you are transferring a timeshare. There may be a property tax too.
Will I have to pay any upfront fees while buying/selling a timeshare through a broker?
The answer is strictly no. Experts say never ever pay an upfront fee to buy or sell or rent timeshare. Like any other industry, the timeshare industry is also prone to many scammers and frauds. There have been instances where people paid huge upfront fees and received nothing in return.