So, you decided to purchase a timeshare as an investment. You may have been invited to a free vacation seminar at a timeshare resort or watched a timeshare informercial on TV claiming that you are missing out on the greatest investments in your lifetime. Before deciding to purchase a timeshare you should consider these facts:
- Timeshares are not investments. In fact, they almost always depreciate and never appreciate in value.
- It is next to impossible to sell timeshares as the seller. Just try searching for timeshares on eBay. They are on sale for the fraction of the price. Some are priced as low as a penny.
- Timeshares are for eternity. Not only you, but your family is bound by a contract which holds your family responsible for your timeshare.
Wait, for eternity? Yes, for eternity. Many timeshare buyers are surprised after their purchase that their entire family is bound by this “eternity” clause. How is this possible? Perpetuity clause. Perpetuity clause is defined as an annuity or periodic payment that has no definite end or continues forever. Meaning your timeshare dues are responsible not only by you, but in case of your death, it is responsible by your spouse, your children, your grandchildren, your descendants….Well you get the idea.
Some may counterpoint by stating that their “investment” is a gift that is bestowed to their next of kin after their passing. But as I have stated before, timeshares are not investments. It is not uncommon that resorts charge upwards of $30-$50 markup on their timeshare cost to offset expensive advertising fees and increase revenue. Aside for the initial price, can your family members make a trip to their newly acquired timeshare annually to the same resort for the same timeline? Even if you wanted to change the date or location, it will either cost you extra or get you a cheaper location for the same maintenance fee (points) you pay. Ask your timeshare sales representative about the perpetuity clause and if they are willing to remove it from the contract. Most likely, removing it will be a deal breaker for them.
So how do you get rid of it? Sellers should err on the side of caution when selling their timeshares. For instance, you should strictly avoid listing companies. They require an upfront listing fee of at least $300 and there are no guarantees that your unwanted timeshares will sell through their company. There would not be any eBay auctions for a fraction of its price if timeshares are sound investments and easy to sell.
Are there any solutions out there? Yes, companies like Safe Hands Transfers are dedicated to helping timeshare owners who are frustrated with their timeshares and have their money squandered by supposed listing companies. But, the best solution is to prevent yourself from getting in this predicament. Research before you meet/contact the resort or timeshare company. Upon your meeting, read the contract in its entirety and make sure you ask the right questions before proceeding.
Article Source:http://www.articlesbase.com/travel-tips-articles/timeshare-is-for-eternity-1641849.html
