Paradise. Whether it is defined for you as snuggling up next to a fire in a log cabin tucked away in the mountains or frolicking along some white sandy beach with your significant other, it’s still a nice picture. Many of us have picked up a real estate magazine while on vacation and said, “Honey, we really should get a place here and come back every year.” However, once you took one look at the price tags on the properties where you’d like to call your “second home”, the dream somehow disappears. Most of us cannot afford the million dollar postage stamp-sized houses in a perfect locale.

So, an affordable alternative is a time share. You split the cost of this great bungalow with at least 51 other people wanting a piece of paradise. That is a great investment that you’ll have for life that would be affordable and convenient to those participating. In addition, those who are selling the timeshare might even throw in the offer to use points to travel to other places that make it sound like you could travel for practically nothing. Sound too good to be true?

It is. There are thousands who purchase time shares yearly, so many that the sale and resale markets of timeshares are their own industries. Here are five things to think about when considering purchasing a time share:1. No spontaneity. Let’s just say that you’ve had a rough week at work and you need a couple days to unwind and relax at your timeshare. You can’t “just go.” You have to plan ahead and check to see when you are assigned to stay at your timeshare and must go for a week or are penalized with fees for shorter stays. Many times, you pay a premium for the high season timeshare and in some plans you are only able to use the unit in alternate years and not yearly.

2. Fees, fees and more fees. Sure, you’re only paying $143 a month for the unit, but what about the other fees that are hidden somewhere in that four page contract? There’s the maintenance fee every year or two years that could be as high as $500 or $600. The timeshares that have locations around the world charge $99 to use other locations than the one you signed up for, and sometimes they charge another $99 administration fee to be part of this global network yearly (even if you don’t use it). There are many more opportunities to hit you with fees, but you get the idea.

Also keep in mind that those who sold you the timeshare are also profiting from the sale and interest payments you are making to them on a monthly basis, so even if you don’t use it (which they are planning on), they’ll make more of a profit, as they will continue to sell more timeshares to the same unit than could possibly use it in a year’s time.

3. Realize your true travel habits. During the sales presentation, they’ll wow you with all of the worldwide locations that your timeshare could be used at (with that small $99 exchange fee and/or points). However, you may have never traveled to South America or Africa, nor are those destinations in your upcoming travel plans. How many locations would you realistically use? Are those numbers just as impressive? In addition, when is your unit available to you? Is it during the travel times you and your family would normally go? Can you use it each year, or only the odd numbered years in January or during the holidays in December? How convenient is it to you and your normal travel plans?

4. Do the “points” add up? You usually don’t have enough most of the time if your timeshare is on the point system. However, they would be more than happy to sell you more points to make it worth your while each time you’d like to use it, especially during peak travel season.

5. What are they selling the timeshare for and what have recent re-sales sold for? This one I would not trust the salesperson’s word as gospel. Do your research. Know a little about what it is you are about to commit to. Get on the internet and see what people are getting for them on eBay or one of the timeshare re-sale websites. Chances are that you will be paying a premium if purchasing them at the resort/condo community.

You may be thinking that if it isn’t for you, then you can of course sell the timeshare. This you can do, but you will be guaranteed to be taking a loss especially if you bought them from the onsite agent. Re-sale websites can help you to move the timeshare, but they will do it with money up front, a huge commission or both.

Be an informed consumer when it comes to timeshares. You may be better served to put that $143 a month into a high interest savings account and plan your trip to paradise on your own terms without the pressures of a timeshare salesperson.

Your “No Bull” Realtor,

Kathy Smith

Russell & Jeffcoat Realtors, Inc.

(888) 808-4Moo ext. 0

(803) 781-5729

http://www.kathy.smith.net/