The timeshare industry keeps getting a bad reputation, and yet there are many people who still pay thousands of dollars for them. In fact, time shares are one of the top sellers in the hotel industry; however, that doesn’t make them a good purchase. Learn more about timeshare scams and why buy timeshares might not be a wise financial movement.
What is a timeshare?
Timeshare ownership, also known as fractional ownership or vacation club membership, is a very special type of ownership or use rights that several parties share. Timeshares can be generally found in important vacation spots. In most cases, the resort owns the property, so your purchase is not legally considered real estate; you only own the right to use the resort during a specific week of the year.
Most timeshares are sold for weeks known as “intervals”, which mean you purchase a specific week of the year, to use it during a certain number of years. However, there are also other plans, such as the Points-program, in which you buy a certain number of points and exchange them for a specific room and length of stay.
Timeshare sales are extraordinarily successful in the travel industry, and a very profitable business for the resorts. Every timeshare unit is sold to 52 different people, one for each week of the year, and each week is sold for at least $15,000 USD, that means that the resort gets about $780,000 USD for each unit. That is without considering other expenses, such as the maintenance fees.
Nevertheless, many people buy timeshares, not because they wanted to, but because they were practically forced to it. Timeshare presentationsare particularly known for being misleading and high pressure, which is the main reason why most people feel they were scammed.
10 Reasons why NOT to buy a timeshare
These are 10 reasons why not to buy timeshares:
- You will have to pay expensive timeshare maintenance fees, which are likely to increase each year
- It will be extremely difficult to sell it, not to say almost impossible, being that the resale market poor is
- If a natural disaster occurs, or if there is a remodeling taking place at the resort, you will have to pay special assessment fees
- Timeshares do not increase in value, in fact, they devalue almost 70% at the moment that you first purchase it
- There are lots of hidden fees, and all of them need to be paid on time, whether you use your timeshare or not
- Doing a timeshare exchange is a difficult process, and perhaps it may be more trouble than it’s worth.
- Timeshare salespeople will tell you that you can rent your timeshare in case you don’t use it. What they don’t tell you is that renting your timeshare requires a lot of paperwork and the payment of extra fees.
- If you do not do your payments on time, they will send you to collections very quickly.
- Contrary to what you might believe, timeshare travel is expensive, being that you have to cover a lot of yearly fees
- They are definitely not for spontaneous traveling. You are attached to a specific week of a year
The best way to get out
Unfortunately, due to the misleading tactics used to sell timeshares, there are lots of people who have become a victim of a timeshare scam, and the best solution to get out of the trap is by cancelling the contract.
At Mexican Timeshare Solutions we strive to give back freedom to people who purchased timeshare under the wrong reasons such as the financial investment spiel. Call us for a free consultation on how we can help you cancel your timeshare contract. Remember, our service is risk free as we work based on results so you do not waste any money paid up front.
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