1) NEVER BUY DIRECTLY FROM THE DEVELOPER!
Timeshare companies employ lots of commission-based sales personnel and offer costly incentives (like gift cards, theme park tickets, etc) to get you to sit down with these sales professionals. This costs money. Who pays for it? YOU do when you purchase through one of these sales presentations. Even though we are satisfied with our timeshare purchase, we now know that we could have saved THOUSANDS by purchasing elsewhere.
How can you purchase without going through the sales presentation?
- Buy direct from the company. Bluegreen Vacations, for example, has their own timeshare broker called Pinnacle, which sells the same units and member benefits as the sales teams for around half the price you will find at a sales presentation (or "owner update" as they like to call them).
- Buy from a timeshare broker. Thousands of timeshare owners are always looking to sell their units and points, either because they are dissatisfied with the timeshare experience or because of lifestyle changes that makes them no longer convenient or economical. Many of these sellers contact brokers to sell for pennies-on-the-dollar of the original purchase price.
- Buy on eBay. Some sellers use eBay instead of a broker. These properties can literally sell for as little as $1! Be careful though. Check out your seller and the title company they intend to use on the internet before you purchase. Some title transfer companies are better than others.
2) NEVER Take Out A Loan or Mortgage for a Timeshare Purchase
Remember that the purchase price is just the beginning of your timeshare expenses. The real costs are in the annual maintenance fees, club dues, RCI fees (if applicable) and other costs. Adding a monthly mortgage payment to that will probably erase the cost benefit of your timeshare as compared to a traditional hotel. Also, there are several less expensive options for purchase that should not require a mortgage (see #1 above).
3) NEVER Trust the Sales Department
I hate to say it, but I must. My experience with everyone else at Bluegreen Vacations has been wonderful. From maintenance to housekeeping to reservations to management, EVERYONE has been friendly and professional - EXCEPT the sales personnel. The sales staff will mislead, distort, distract, confuse and, yes, even lie outright to make a sale. I have heard stories about a few who have been truthful and helpful but they are the exception, not the rule.
4) Do Not Buy A Timeshare To Start a Rental Business
While there are some individuals who manage to earn a living by renting their timeshare properties to others, most who attempt it fail miserably. Additionally, in our current economy there is a glut of timeshare properties on the market so rental prices are exceptionally low. Rental may be option as a one-time means of getting your value out of unused points, but I do not recommend this as a career. Also, while some sales personnel cite rental income as a benefit of ownership (see #3 above), most timeshare companies have policies in place to discourage the commercial renting of their properties.
5) Do Not Purchase A Timeshare As An Investment
Some salesmen (see #3 above) will argue that since your timeshare is a deeded property you can therefore resell you property later at a profit. The reality is that there is a glut of available timeshare properties available, so the resale price is pennies on the dollar. Maybe someday the market will change (I hope!), but don't count on it!
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