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    Vacation Home Sales Specialists
  • Orlando Timeshare

     

    Buying a timeshare is about as much of a good investment as buying a new car. In the sense that….it’s a horrible investment!

     

    The one thing you can count on is that neither one of these purchases will never go up in value once you’ve signed the contract.

     

    Have you ever been walking down International Dr or some other touristy part of Orlando and suddenly you get approached by someone offering you freebies like tickets to a theme park or a free dinner at nice restaurant?…and all you have to do is attend a 90 minute timeshare presentation?

     

    The free gifts they offer can be pretty tempting and most people sign right up if they can fit it into their schedule. Just be aware that you will most likely have to sit through a high pressure sales pitch where the sales person will imply that buying a timeshare is a great investment like buying a vacation rental home in Orlando, but really that’s not the case.

     

    Definition of Timeshare

     

    The definition of timeshare is a vacation villa or condo of which you buy partial interest in. This means you only own a certain time frame, like one or two weeks out of the year when you can use it. Some companies work a bit differently than others but it’s all the same concept. Timeshares have a set price which you can pay all at once or you can choose to finance it. You can buy specific dates or you may have the option of using it at different times throughout the year. In addition to the set price, you also have to pay a yearly maintenance fee which goes toward the property’s upkeep and scheduled improvements until you either sell it or die.

     

    Cost of owning a Timeshare

     

    What most consumers fail to realize is that people pay an extremely high mark up when they buy from the developer….anywhere from forty to sixty percent! This cost covers building the timeshare development, realtor commissions and marketing expenses like all the great incentives they use to lure people in to the presentation. This is what makes buying a timeshare a really bad investment, just like buying a brand new car. As soon as you drive the car off the lot, it loses thousands in value compared to what you just paid for it.

     

    Buying a timeshare is even worse than the new car example. When you buy a timeshare, you lose about half the value as soon as you sign on the dotted line.

     

    Timeshares are ok if you plan to take vacations at the same resort every year or if you buy one that can be exchanged for other resorts. Just bear in mind that if you decide to sell it, you will lose a lot of money on the sale. Timeshares are very different than other forms of Orlando real estate in the sense that it will NEVER go up in value. You’ll be forced to sell it at whatever the other owners are selling theirs for in the same development. You will also most likely have to sell it on your own as most Orlando realtors won’t help you because they’re very hard to sell and the pricing is so low. If they do agree to help you, it will probably be at a 25 – 30% commission. Your other options would be to post your unit on sites like TUG or EBAY auction.

     

    Don’t hire real estate firms that try to charge you an upfront fee. They will probably take your money and produce zero results. Some timeshare owners get so desperate that they will try to just give away their timeshare just to avoid paying the high maintenance fees, especially if they no longer use the unit. Their so-called timeshare investment has actually become a financial liability.