Timeshare Attorney Las Vegas
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WHAT IS A TIMESHARE WORTH?
Timeshare Defense Attorneys can assist you in understanding all of your rights and obligations under a timeshare contract. Contact us for consultation.
Is Your Timeshare an Investment?
A timeshare investment is the purchase of a property or the right to use a property during specific periods, usually annually. The buyer can use the property to generate a financial return through rental income or appreciation of the property value.
A timeshare is not a traditional investment. A timeshare’s worth, or value is not tied to the stock market or other financial instruments. You will need to pay annual timeshare maintenance fees. The value is based on the property’s perceived value and the demand for its use at any given time.
Before considering whether you want to buy a timeshare as an investment, it is important to carefully evaluate the costs and benefits and consider alternative investment options. For complex matters like timeshare resale, resort properties, or to purchase timeshares, consult with a knowledgeable attorney.
Your Timeshare’s Value
Timeshare investment returns are comparatively low, and the selling price of a timeshare can fluctuate based on changes in the market and the overall demand for vacation properties.
What your timeshare is worth can vary widely based on several factors, including:
- The location, type of property
- Level of luxury
- Demand for the property
Different timeshares are worth different values. Marriott Vacation Club, Hilton Grand Vacations, and Disney Vacation Club have different resale market values.
Timeshares usually sell for much less than their original purchase price and are considered depreciating assets. Timeshare Defense Attorneys can assist you in understanding all of your rights and obligations under a timeshare contract.
10 Reasons Why People Buy Timeshares
Timeshare properties are sold on the strength of the following apparent benefits:
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Access to a luxury vacation property
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Fixed annual vacations
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Use of resort amenities
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Opportunity to generate rental income
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Ability to exchange vacation time with other timeshare owners
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Option to purchase a points-based system for more flexible vacations
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Financially accessible alternative to purchasing a vacation home
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Convenient and worry-free vacation planning
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Ability to pass down the timeshare to family members
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A sense of community with other timeshare owners
Although this sounds like a good arrangement, there are a few additional factors a buyer should consider before buying resort properties or vacation clubs, so it is always important to have a lawyer review your contract before signing it.
What You Need to Know About Timeshares
There are several things a savvy buyer should know about owning a timeshare. These include understanding their rights and responsibilities for the duration of the arrangement. A skilled lawyer with experience handling timeshare agreements can be instrumental in this process.
Timeshare Terms and Conditions
Before purchasing a timeshare, understand the terms and conditions of the ownership, including:
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The length of time you will own the timeshare
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The fees involved
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The restrictions on the use
It’s also important to research the reputation of the resort and the timeshare brands. While looking for the best vacation clubs, you also need to consider the timeshares cost. In some vacation clubs, valued members can enjoy extra guaranteed vacations, longer stays, car rentals, and much more.
Consider talking to current timeshare owners and reading online reviews to better understand what it’s like to own timeshare units.
Timeshare Points vs. Fixed Week
In a fixed-week timeshare, the owner has the right to use the property for a specific week each year.
In a points-based timeshare, the owner has a set number of points that can be used to reserve time at any affiliated resorts. The owner can also exchange their points at other affiliated resorts. Points-based timeshares offer more flexibility, but they can also be more expensive.
Resort timeshare ownership can be more restrictive, but it can also be less expensive than a points-based timeshare.
Vacation Clubs Vs. Timeshares
Vacation clubs and timeshares provide the owner access to a vacation property. However, there are a few critical differences between the two.
Vacation clubs offer more flexibility in terms of the length of time the owner can stay at the property and more properties to choose from.
Timeshares offer a more defined property ownership, with a specific week or set of points each year.
Vacation clubs are often less expensive but may offer a different level of vacation ownership and control over the vacation property.
Vacation Exchange
Vacation exchange is a benefit that allows you to take a vacation in a different location each year without having to pay for a separate vacation.
However, there are often fees associated with exchanging vacation time, and not all timeshare resorts participate in vacation exchange programs.
Listing Your Timeshare as Rental Income
One of the apparent benefits of owning a timeshare is the ability to generate rent income by renting out your vacation time to others. You can list your timeshare for free on various websites, such as VRBO or Airbnb. By renting out your timeshare, you may be able to offset the cost of ownership when you do not use the timeshare.
It is difficult to manage rentals, they attract scammers, and they are risky. It is your responsibility to repair any damage done to the property by your tenant.
Consider the Following Potential Drawbacks of TimeShare
For some people, a timeshare purchase is a great fit. However, you may be concerned that owning a timeshare puts you at risk. Timeshare sales presentations are slick, high-pressure affairs highlighting benefits and concealing risks.
Consider the following disadvantages.
Timeshare Financing Is Often Pricey
Financing a timeshare can be expensive, as the interest rates are often higher than those for other consumer loans. Some timeshare companies charge high processing fees and other fees associated with financing.
What does the average timeshare cost? According to the American Resort Development Association (ARDA), timeshares can be pricey and often include several “hidden costs.”
Before you consider financing a timeshare, compare the terms and interest rates of different lenders to get a good deal.
Be Aware of Annual Maintenance Fees and Other Costs
Rising annual maintenance fees are responsible for many problems associated with owning a timeshare. Timeshare costs include a range of fees, and the upfront ones are payable as the purchase price.
These fees can include the following:
- Maintenance fees: A timeshare maintenance fee is an annual fee that covers the costs of maintaining the property, including utilities, housekeeping, and groundskeeping. These fees can range from a few hundred to several thousand dollars per year, depending on the property type and location.
- Property taxes: Property taxes vary and are also an annual fee often included in the maintenance fees.
- Special assessments: Special assessments cover the costs of unexpected repairs or upgrades to the property. These fees can be substantial and are often unexpected.
- Exchange fees: If you choose to participate in a vacation exchange program, additional fees may be associated with exchanging your timeshare for another property. These fees can include application fees, exchange fees, and reservation fees.
- Financing fees: If you finance your timeshare purchase, there may be additional fees, including interest, loan origination fees, and closing costs.
Consider all the costs, including annual and maintenance fees, associated with owning and using a timeshare. Make sure you carefully review the terms and conditions and ask the timeshare company about them.
It is a good idea to check with your state’s consumer protection agency and the Attorney General’s office to ensure that the timeshare company is reputable and that the terms and conditions of the contract are fair and reasonable.
Timeshare Points May Lose Value Over Time
Timeshare points may lose value over time. This is because the number of points required for a vacation at a particular resort may increase over time, reducing the value of your own points. Additionally, the resort’s popularity may decline, reducing the value of your timeshare points.
Avoid Paying Retail Value When Buying a Timeshare
It is normally possible to avoid paying retail prices. Many timeshare salespeople, however, use high-pressure sales tactics to get you to buy at the full price.
If you are intent on buying a timeshare, consider purchasing a resale on the timeshare resale market, which is often much less expensive than purchasing directly from the developer. You can buy a secondhand timeshare for less on the secondary market, and they often come with the same rights and privileges as a new timeshare.
How We Can Help
Before making a purchase, be sure to fully understand the terms and conditions of the timeshare and consider carefully consider the disadvantages, costs, and benefits to you and your family.
Help may be only a phone call away. Timeshare Defense Attorneys have years of experience dealing with all aspects of timeshare ownership. Your first consultation will be free. Give us a call today so we can assess your unique situation.
