Living in an accommodation or a hotel can get expensive. So, one often chooses alternatives like timeshares, which are low-cost housing options that let one enjoy an inexpensive stay at one’s property. Each co-owner can use the space for a specific duration in the year, making it convenient and cost-effective in the long haul. However, the flip side to this is buying one and making seven of these mistakes that could affect one’s long-term investment.
Lack of research
Co-owning a timeshare is no easy feat and will require tons of research. Therefore, one must not buy the first listing in their search feed or the one offered by an agent. Potential buyers need to learn everything they can about the timeshare, including what’s in and around the area and the resort. Additionally, buyers should understand the company they are dealing with, buyer and seller rights, exit terms, and other crucial details. Besides, hiring a lawyer to handle this process could also help ease the legal process.
Impulsive buying
Most errors occur because one fails to carry out ample research. Each property and market differs, so one should not sign the agreement based on impulse. While the sales representative might offer attractive deals and offers to complete the sale, one needs to take their time with the decision. This will ensure the individual is well-prepared to co-own the property.
Not considering maintenance costs
Individuals who own timeshares use them only during the holidays. However, the property will require maintenance throughout the rest of the year, which may involve heavy upkeep costs. Not considering these costs could affect one’s investment.
Co-owners should create a plan to maintain the property when it isn’t in use. They must account for additional maintenance costs, such as fees paid to hired individuals for cleaning the space or mowing the lawn. Calculating maintenance costs and keeping an emergency fund could help one better manage it.
Overspending
A timeshare does not have a fixed value. The price will differ based on factors like the property’s size, location, amenities, and convenience. Therefore, one must factor in what one expects from the space before one decides to co-own.
While a property offers a beachfront view, one may not necessarily require it. The buyer should set a budget so that they avoid overspending. One should also account for the finances required for any unforeseen incidents at the property. Setting a budget helps one filter the search to choose from the properties one can afford to co-own.
Not being flexible
While a permanent vacation home appeals to many, making a trip annually to the same spot could become monotonous for others. Therefore, one should consider the type of property the timeshare offers so they do not get bored easily.
Even considering the maintenance fees associated with this regard might prove useful. For instance, instead of spending money on yearly maintenance in a single location, one could simply spend the same sum to travel to luxury resorts in and out of the country. One could also speak to the agents to determine if they offer other properties or agreements with other resorts.
Giving in to scams
The real estate business is large, which means several things could go sideways if one isn’t too careful. For example, one could easily be tricked into investing in a timeshare when neither the place nor the agent exists, resulting in a massive financial loss.
Buyers should ensure they do a background check on the seller or company. One could inquire about them in real estate circles before moving on with the purchase. Individuals could check out a resale company on the Better Business Bureau website and conduct an online search to determine if there are reviews. The more information one has on a company, the less likely one might get scammed.
Skimping on bargaining
Most salespeople present a property beautifully and set a high price to match the presentation. Unfortunately, one may fall prey to this tactic and agree to the price set by the representative. One should ensure they research the property well in advance before meeting the sales representative. This way, one could attempt to bargain the price of the property to a comfortable figure.
