For many, the word “timeshare” conjures up visions of pushy salespeople and shady business practices – the industry often tries to call it “fractional ownership” now instead to avoid the negative connotations. But for every person I know who has gotten burned, there are just as many other friends who are perfectly happy with their decision, especially families who need more space than a hotel provides.
In many foreign markets, there’s not much of a mortgage industry and you need to have the full purchase price on hand to buy a vacation home. A timeshare can help you get a week or two away each year for far less – if you do it right, and for the right reasons. The best way to be sure you’re getting a deal, with little downside risk, is to buy on the secondary market. More on that in a minute.
Most people look for ways to save money on their next vacation. Too many people concentrate only on budget flights while others scour the globe for the world’s most inexpensive locales, the latter usually resulting in greater savings. Lodging usually ends up being the main vacation expense though, especially in popular beach or ski resorts, so the key is to find cost-effective, yet well-equipped lodging. Many travelers find that timeshares are a budget-friendly alternative to renting a hotel room, especially when there’s a family traveling together. That’s because the nature of timeshares dictates that they’ll be divided among multiple owners; meaning that you can get high-quality amenities for a fraction of the cost of renting a hotel room of similar quality.
Once you own your property outright you’ll only pay an annual or biennial maintenance fee, plus the occasional special assessment fee to ensure that your property is well equipped and up to date. Traveling on a budget can be easier and more predictable this way when you’ve done an appropriate amount of research and read the agreements carefully.
Many vacationers have also purchased timeshares as a way to travel the globe on a budget. Contrary to popular belief, a timeshare won’t tie you down to one destination for the rest of your life. There are a couple of ways that you can use your timeshare to travel the globe. You can either purchase a property that is affiliated with a large exchange company or you can buy timeshare at a point-based vacation club. Both of these programs will allow you to trade your week at your “home resort” for a resort anywhere in the world within the network, but it’s up to you to determine which method works best for your lifestyle.
Timeshares can be a great way to travel the globe, but they’re not for everyone. Consider your vacation lifestyle. Determine whether you’ll be able to take annual or biennial vacations. And consider whether your maintenance fees will be a burden on your budget, or beneficial to your travel. Check out this great How Timeshares Work article to understand what you would be getting into.
If you decide they’re right for you, consider purchasing your timeshare as a resale to save thousands off the original price. I would strongly advise doing this over buying directly from the resort after you’ve had too many margaritas. The resale value of a timeshare is hard to determine until there’s a real market of buyers and sellers. If you buy on the secondary market, you’ll have a much better idea of the true worth of what you are getting.
