Timeshares have had some bad press in recent years with tales of investments gone wrong and misleading information given to purchasers.
A Timeshare is a form of ownership to use a particular property such as a holiday villa, apartment or cabin for a set period of time each year.
If you are considering a Timeshare holiday investment, what are the key things to keep in mind to ensure you make wise and considered decisions?
- Take all financial factors into consideration. Add up the maintenance fees, upfront costs and yearly usage fees and decide if that is within your budget.
- If you attend a Timeshare seminar, you don’t have to sign up on the day to purchase your holiday. Take time to think about it if you need to.
- As with all investments, make sure you thoroughly understand the contract of sale and get independent legal advice prior to signing.
- You have the right to a 7 day cooling off period after you do sign on the dotted line. The ASIC’s Money Smart website has further detailed information on your rights and responsibilities.
Timeshares can be difficult to sell and may not necessarily produce a profit for you. As with all markets, if there are many being sold at one particular time without a large demand, prices will be low, regardless of the local regular real estate market.
While Timeshares can be great for those who wish to have a long term commitment for somewhere to go for their holidays each year, they don’t usually offer terrific returns as investments. Click here for more expert information.