What are some things to consider when purchasing a time share?

Answer 1

Ask about future costs.You will have a set time to go to the same place all the time, every year, whether you want to or not. Exchanging places is not as easy as advertised, and usually requires additional fees. Exchanging times is even more difficult than exchanging places in some properties. You will be encouraged to take a more expensive place and pay the difference. Taking a less expensive place does not get you a refund.

Interest on the loan is not tax deductible.

The "investment" might not increase in value at all, or if it does, will probably not increase as much as other possible types investments. Therefore, do not consider it an investment. It is a pre-payment of future vacation costs, and as such might very well be a worthwhile expenditure. But it is not an "investment" in the usual sense.

Ask about costs for "maintenance" or common area expenses. These expenses will be payable every year forever in addition to the original purchase price. They will increase every year and will be payable whether or not you actually go to the place in any year.

You will be guaranteed a place to go each year. This is an obvious advantage, and probably the only one.

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Time-sharing can be an affordable way to own a vacation home. Before you buy, you should be able to answer YES to all these questions:

• * Are you POSITIVE you want to spend ALL your vacations there?

*Have you visited the facility? Are you satisfied with its quality, with the stability of the management, and with the terms of the contract? Have you checked out this time-share development with the Better Business Bureau, the Attorney General's Consumer Protection Office or your Legal Assistance Office? *Have you talked to some long-time owners in this time-share facility? *Can you afford both the facility and the round trip travel costs each year?

DO NOT BUY IF:

* You want to rent out the facility.

* You plan on reselling it.

* You plan on exchanging vacation sites frequently.

BUYING TIPS

BEWARE OF ANY PROMOTIONS THAT:

• * Will not physically take you to the facility. (Some promoters claim the place is built when it is really only a hole in the ground.)

* Offer you a special price "for that day only."

* Subject you to a long and harrassing sales pitch.

* Will not let you take the contract home to study.

DO NOT SIGN A CONTRACT ON THE SAME DAY AS THE SALES PITCH.

If the price is fair, it will still be in effect the next day. Many people readily admit they became much smarter the day after they signed a time-share contract.

It is important to know first if timeshare is what you really need. The location, the type of timeshare, the period of time and the timeshare resort or company will considered later.