Should you purchase a fixed term or floating rate?
Purchasing a timeshare is just like purchasing any other real estate except that you are only buying a specified amount of time. Seeing as you are buying part of a property most often owned by a resort, the cost of the property must be less than staying at the resort to make your investment worthwhile.
Timeshares you buy can either be for a fixed amount of time or for a floating period of time. A fixed term means that for a specified period every year, you have access to the property. This is a deeded agreement, which means you own a property for a period of time every year. If you opt for a floating agreement, then you select the time of the year that you will be going to the property - for example, spring - and then each year you choose which time during the spring season you would like to use the timeshare. The latter can become complicated depending on how many other people are competing for time during that period.
Another option to consider is to lease a timeshare. Just like leasing a home, you pay a certain amount of money to use the property and once your time is up you have no rights over the property. The same perks apply to leasing a timeshare that apply to leasing a car. When your lease is up you simply walk away from the timeshare without having to go through the hassle of selling. Make sure you know the pros and cons of timeshares before making any arrangements.
As with any property, when you decide to sell you want to make sure you strike the best deal. You can list your timeshare online or choose to go through an agent or broker to sell the timeshare for you. You can do this with the yacht timeshares as well.
The first thing to consider when selling is the price of similar properties. Knowing the going rate is key to making sure you get the best deal. The amount of time you purchased will also be a major factor in selling your share. If you own time during peak holiday seasons, you may find it easier to sell than if you own time during the off-season.
It is important to let potential buyers know what your surrounding area has to offer. If a buyer is looking for a secluded hideaway and your listing is in a city centre, this should be clearly stated in the listing. It's also beneficial to let people know what local tour companies there may be, and any other features that may entice a buyer.
If you need someone to take a timeshare off your hands only temporarily, then instead of selling, consider renting your share. There are bargain seekers out there who are looking for a vacation deal without the responsibility of owning a property. Since resorts can hike up the price of their accommodations every year, offering a lower-cost accommodation may be in your best interest. You might be surprised at how many people are looking to nab a timeshare property in today's vacation market.