Is a timeshare a good investment?
That depends on what your criteria is for qualifying a good investment. In Real Estate a good investment usually requires a return on investment. Your initial investment is the purchase of Real Estate( The Timeshare Unit). If you are going to resell the Timeshare unit , can you make a profit? You should do your research and see if the timeshare unit you are purchasing is able to be sold at a higher price than what you are paying. Other timeshare investors purchase timeshare units solely for the purpose of renting them for a profit. If you are interested in renting for a profit make sure that you can rent the unit for a higher price than you are paying for the annual maintenance fees, taxes and advertising cost. The answer is Yes, timeshares can be a good investment.
What is ROFR or Right of First Refusal?
Some resorts have the right of first refusal. This is the right ,that if an owner has contracted to sell the property the resort can take over the contract and purchase the property from the owner. If they decide to buy the property this is known as exercising the right of first refusal. If they decide not to buy it is known as waiving the right. When the resort/developer decides to exercise the right of first refusal they must follow the price and terms of the contract submitted.
Do I get the same benefits from buying on the resale market as I would from buying directly from the resort?
Not always. Some resorts do not allow some of the benefits to transfer on the resale market. For example some resorts do not transfer the reward points associated with the unit. Most purchasers find this not to be of much value considering that the price they are paying on the resale market can be 30% to 80% less than the resort is charging.
Should I pay upfront closing costs when I sell my timeshare?
Never pay any upfront closing costs, title fees or any other kind of upfront fees. Many timeshare owners fall prey to scam companies making false claims that they have a buyer and or can sell the timeshare if the owner is willing to pay a fee. Do not fall victim to this kind of scam. Only work with Licensed Real Estate Brokerage Firms when selling your timeshare. Timeshares are Real Estate and should be handled with the same skill and diligence as any other type of Real Estate.
What is the difference between a fixed week and a floating week.
A fixed week is a set week every year that you can use your timeshare. The week is usually defined as a number. For example week 1 could be January 1st through the 7th. Week 7 would be Presidents week. Week 52 would be New Years week ect.
Floating weeks are when you can use your week within a number of designated weeks for the season that you are purchasing. For example if you are purchasing a Platinum Season at Marriott’s Aruba Ocean club, you can reserve one week usage within the specified weeks in the Platinum Season, being weeks 1-17,51 and 52.
What is described by seasons
The seasons are described in different ways by different developers. Red season is known as a high season. Platinum season is known as a high season. In ski country the Ski weeks are the high season. High season is known as a top season with the exception of a Platinum Plus which stands for the most prime or highest valued weeks.