Buying a Timeshare: Understand the Types, Pros, and Cons
Are you the type of person to make impulsive decisions based on your mood or feelings? You’re not alone. Sadly, this habit can be damaging when investments and wealth management are involved. Many people have impulsively bought timeshares without looking further into the risks and benefits of such a deal. And many of them eventually need a timeshare attorney because they regret their purchase, especially when it starts causing stress on their finances.
Qualified, experienced, and bar-admitted timeshare attorneys can guide you in legally getting out of the timeshare. But while timeshare cancellation is possible, it can be a daunting legal process. It’s often better NOT to buy a timeshare than to regret it later.
If you’re still thinking of buying a timeshare, though, you must truly understand what you’re getting into. Here’s what timeshare attorneys would like you to know:
Types of timeshares
There are four types of timeshares:
A floating timeshare lets you choose a convenient time to lease or occupy the property within a year for a given number of years. However, other shareholders could snap up the prime periods if you’re not fast enough.
2. Fixed week
This type of timeshare involves buying a specific unit of a property in the same week each year. You hold your right as the contract dictates, and you can rent out or trade units as you please. A timeshare attorney advises ensuring that the property is in a touristy location before investing in this type of share.
3. Points club
This is like a floating timeshare, but with higher points to accumulate to buy into the club or property. You can stay at different locales on a first-come-first-served basis.
This timeshare gives you the right to lease the property for a given number of days annually, within a stipulated number of years. After that, the developer regains ownership.
Pros of a timeshare
A seasoned timeshare attorney will probably tell you there is nothing good about timeshares. There is no way to ‘win’ in this deal. An average timeshare owner uses their timeshare only five times in 15 years of ownership. You also have to worry about maintenance fees and paying off the loan. It’s why many buyers regret their purchase and seek timeshare cancellation.
Cons of a timeshare
Timeshares come with running costs and annual fees that can cause financial strain. They can be hard to sell, too. It’s even riskier to buy timeshares overseas because the country may not have the best consumer protection laws, which means you can lose your property without compensation.