Warning From the NY State Attorney General June 1, 2009
Posted by Christopher Williams in : Timeshare Resource , trackbackHello,
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This information is taken directly from the A.G.’s website. See the below link for the complete story.
Important Considerations
Before you decide to buy a timeshare, you should examine whether the deal makes sense in light of the continuing financial and legal obligations involved. The purchase of a timeshare is likely to be a permanent benefit and commitment that you might have for the rest of your life.
Examine the special risks summarized at the front of the offering plan.
The factors to be considered include:
- In a right-to-use timesharing plan, if the sponsor declares bankruptcy, the rights of all purchasers may be terminated.
- Timeshares should be purchased for personal recreational use and not for profit or investment. Often no resale market exists for timeshares.
- Most real estate brokers will not list timeshares. You can try to sell your timeshare on your own, but this may bring you into direct competition with the sponsor who may have a large inventory of unsold units.
- Full control for the adequate operation and maintenance of the timeshare lies with the developer or a successor operator. Therefore, the facilities and services will be available only as long as the sponsor is able to provide them. During the early years of the project, the failure of the sponsor to meet his or her obligations will require a small number of timeshare owners to cover the costs of keeping the entire project going.
What’s It Worth? The Bottom Line
After the risks have been examined, you still have to decide whether the convenience and appeal of the timeshare is worth the price. You should compare the expenses with the cost of a comparable hotel or resort for the number of years you plan to own the timeshare and the time value of your money. Consider that you’re going to have to produce a down payment. If you borrow the balance due, in addition to any financing costs for the remainder of the purchase price, you have to factor in the annual timesharing charges necessary to maintain the unit. You might also be liable for any special assessments that timeshare management might deem necessary for future operations. These assessments are hard to predict and might arise when you least expect them. You will still be responsible for paying for typical vacation costs, such as meals, transportation and miscellaneous expenses. Again, you should consult with a financial advisor.
Comments»
I think this is good information the help people understand that buying a timeshare is and investment in a lifestyle not a financial investment. I think this article is a little to strong in what it says. If you think about the purchase before buying and make sure your lifestyle can accommodate this yearly vacation then it can truly save you a lot of money. I think the most important advice is to buy from a timeshare resale company such as buyatimeshare.com