A Few Questions to Ask Yourself to See If Buying a Timeshare Might Be Right for You
People are buying timeshares in record number. As the price of hotels continues to go up, people are turning more and more to an alternative way of taking their summer vacations. In addition, the large hotel chains are noticing this difference and responding by providing larger, more luxurious condo resorts to make their timeshare programs more attractive. As a former timeshare professional, buying a timeshare is definitely not for everyone. But if owning a timeshare is something that has interested you, then here are some simple questions to ask yourself to see if owning a timeshare would be right for you.
Do you like to travel? This may sound silly, but there are definitely people who don't like to travel, so obviously they should not buy a timeshare.
What type of accommodations do you prefer to stay in? Most timeshare resorts are full scale condominiums that are fully furnished, stocked kitchens, washer/dryer, and all the conveniences of home. One advantage of this setup is that it allows you to save a lot of money by giving you the option to eat in and cook instead of having to eat out every meal. But I do realize this is not appealing to everyone.
What types of places do you like to vacation? You can find timeshare resorts in just about every single major travel destination in the world. But if you have a few favorite places you go year after year, then make sure the timeshare program you are looking into has resorts in that area. But if you like to stay off the beaten path in more remote locations, then purchasing a timeshare for your vacations is probably not a good idea.
How many nights a year do you typically vacation? If you vacation for a combined total of 7 nights throughout the year, where you pay for a hotel, then timeshare is definitely something you should consider. If you travel less than 7 nights per year, then a timeshare would not be worth your while in my opinion.
How much do you typically spend per night on a hotel? This is a big factor in determining if a timeshare is right for you. If you are looking for the cheapest place you can find and paying $50 is painful for you, then a timeshare is not for you. But if you enjoy staying in nicer places and pay between $100 - $200 per night, then timeshare might be something you should consider. Let's do some math.
The typical cost to purchase an ownership in a timeshare company that would allow a family of 4 to stay for 7 nights every year would cost anywhere between $15,000 and $20,000 depending upon the company. This may seem like a lot of money, but let's consider the alternative of staying in hotels. Let's say this same family spends on average $100 per night. That would equal $700 per year. In the next 20 years, they would spend $14,000. This is assuming that there is no inflation. Also, this is assuming they are only renting one hotel room and for any family that has two teenagers, they can attest to how uncomfortable it can be for two parents, a 17 year old girl and a 15 year old boy to be sharing one room with two beds for an entire week! So eventually this same family will have to rent 2 rooms, doubling the cost for at least a few years of their families summer vacation. In addition, they will have to eat out every meal in a hotel while in a timeshare they can save money by cooking meals in.
The bottom line is that a family of 4 who spends only 7 nights a year in a hotel would have spent well over $20,000 in their 20 years of vacationing. If they had put that same $20,000 into a timeshare, they would be able to vacation for the rest of their lives and not pay anymore money! They wouldn't be subject to inflation and plus they could give it to their kids and their kids could vacation for the rest of their lives as well.
Hopefully this has helped you understand the ins and outs of timeshare and helped you think about whether buying a timeshare is right for you.
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Showing posts with label Timeshare. Show all posts
Showing posts with label Timeshare. Show all posts
Wednesday, June 11, 2008
A Timeshare Insider Answers the Basics About What a Timeshare is and is Not
What Exactly is a "Timeshare?"
The word "timeshare" unfortunately has left a bad taste in many people's mouth primarily because of the slick, often unprofessional, high pressure way in which it was sold. Much of that has changed now, but the stigma still remains. But I also know that out of my friends and family, up until recently when I started to sell timeshare that very few of them actually knew what it was. So after educating my friends and family on what timeshare is and is not, I thought I would write this article to help others understand what a timeshare is and if it is right for you.
Timeshare was started back in the 1960's in Europe as most of Europe traditionally takes summer vacations for several weeks at a time. So many people would go stay in hotels on the beach for 4-6 weeks. After a while, a group of entrepreneurs thought there must be a better way than "renting" a hotel when they go there as often as they do. So friends started getting together and buying apartments to use while on their summer vacation and each family would get to use the apartment for a certain amount of time. The more you paid towards the purchase price, the more you got to use the apartment, thus the beginning of "timesharing".
At its core, the timeshare or vacation ownership industry (as it is now called) has changed very little. You purchase a "share" in either a single resort or a network of resorts. You can then use that share every year to go stay in resorts around the world at no cost. And similar to before, the larger the share you purchase, the longer you can stay, the larger the room you can get, and the nicer the resort and season you can travel in.
In today's world of timeshare, most timeshare companies have gone to a points system to allow timeshare owners more flexibility. Instead of being locked into the same time and same place as our friends in Europe started out, you usually will now have the option to use your "points" to stay 1 day or 5 days, in Maui or in Florida, in a 1 bedroom or 3 bedroom condo, your choice. So they really have tried to create a more flexible summer vacation experience for people as lack of flexibility had long been the Achilles heal for the timeshare industry.
Overall, owning a timeshare is great if you use it, but a waste of money if you don't. So if you are going to buy one, make sure you get out there and go on vacation!
Source
The word "timeshare" unfortunately has left a bad taste in many people's mouth primarily because of the slick, often unprofessional, high pressure way in which it was sold. Much of that has changed now, but the stigma still remains. But I also know that out of my friends and family, up until recently when I started to sell timeshare that very few of them actually knew what it was. So after educating my friends and family on what timeshare is and is not, I thought I would write this article to help others understand what a timeshare is and if it is right for you.
Timeshare was started back in the 1960's in Europe as most of Europe traditionally takes summer vacations for several weeks at a time. So many people would go stay in hotels on the beach for 4-6 weeks. After a while, a group of entrepreneurs thought there must be a better way than "renting" a hotel when they go there as often as they do. So friends started getting together and buying apartments to use while on their summer vacation and each family would get to use the apartment for a certain amount of time. The more you paid towards the purchase price, the more you got to use the apartment, thus the beginning of "timesharing".
At its core, the timeshare or vacation ownership industry (as it is now called) has changed very little. You purchase a "share" in either a single resort or a network of resorts. You can then use that share every year to go stay in resorts around the world at no cost. And similar to before, the larger the share you purchase, the longer you can stay, the larger the room you can get, and the nicer the resort and season you can travel in.
In today's world of timeshare, most timeshare companies have gone to a points system to allow timeshare owners more flexibility. Instead of being locked into the same time and same place as our friends in Europe started out, you usually will now have the option to use your "points" to stay 1 day or 5 days, in Maui or in Florida, in a 1 bedroom or 3 bedroom condo, your choice. So they really have tried to create a more flexible summer vacation experience for people as lack of flexibility had long been the Achilles heal for the timeshare industry.
Overall, owning a timeshare is great if you use it, but a waste of money if you don't. So if you are going to buy one, make sure you get out there and go on vacation!
Source
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