Timeshare can be an economical way of enjoying really high
quality self-catering holidays world wide. If you make the right purchase
decision, you can look forward to years of excellent holidays - but a costly
disaster if you make the wrong decision.
1. To go to the same place every year because you like the area and the
resort - then you should buy the exact week, in the exact apartment or lodge
in your chosen resort. If you cannot get the exact unit and week, you may be
able to up-grade later when another owner wants to sell as existing owners
are generally the first to hear about a resale.
2. Or to make use of the RCI exchange organisation facility to visit
different resorts and countries each year. There are over 3,700 resorts
world wide to choose from.
3. To get the best possible choice of places to exchange into you need
maximum "bargaining power". This bargaining power comes from the demand for
the week that you own in relation to the demand for the week you want to
exchange into - the greater the demand for the week you own, the better your
choice. If buying more than one week try and balance the values or a two
week exchange can be dragged down to the lower value
The best weeks to own for maximum "bargaining power" in weeks are:-
in a RCI high star rated resort, the UK is also rated highly.
in the Red period - the most popular time of the year for that specific
resort.
in a 2 bedroom or larger unit.
Don't forget that you will have to join an exchange organisation - for a
fee - and pay an exchange fee each time you exchange. And Management Fees
can become a factor if they are too high - they have to be paid every year
whether you use your week or not. .
Gives you not less than 14 days cooling-off period
Places buyer's money (and sellers Ownership Certificate) in an independent
stakeholder account
Price guidance
Timeshare can be forever - but most owners want to sell after 9 years - so
the price at which you buy is important if you are not to make a major loss
when the time comes to sell. The following are "guide" prices (current Dec
2002) to what is available in the market and, if you buy at these prices,
you should recover most of your initial outlay when YOU come to sell.
£1,750 for a studio (sleep 2) Peak season, in the Canaries, Spain or
Portugal. Exchange power will excellent for peak in RCI points but poor in
lower times or in weeks (but a fraction of the cost) - but use it for ten
years and it will be a bargain. Enjoy the luxury quality of timeshare for a
pittance.
£1,750 gets a 1 bedroom unit in high season or a 2 bedroom in mid a season
week in most resorts in Spain etc. or a smaller unit. lower season, in the
UK. Exchanging power is modest, as is future selling price. This is the
starting price for family holidays in Spain.
£2,000 puts you into the larger apartments, higher season in Spain etc.
But probably not in the UK, (unless there are no facilities) nor into a Gold
Crown/Five Star resort. Moderate to good exchange power and modest loss
when the time comes to sell. This is the starting price for family holidays
in the UK
£3,000 is the starting price for "sleep 6", peak season weeks in good
quality resorts in most of Europe. Fairly good exchange power and future
sale price.
£4,000 is the starting price for 2 bedroom and larger, peak school high
season weeks in a top class resort in most parts of Europe including the
UK. Excellent exchange power and most of your money back when you sell.
£7,000 is the maximum you should ever pay unless you MUST have a very
special week in a very special resort, such as a sleep 6 in a Gold
Crown/Five Star resort during the school holidays. Then you would even
pay £10,000.
You can buy one week of really good quality timeshare for no more than
£4,000.
And, finally, some DON'Ts
Never buy into an apartment which is not yet built or into a resort with
incomplete leisure facilities, even when they are "promised". Timeshare
promises have a nasty habit of failing to materialise.
Dont buy if you think the Management Fees are too high. They are unlikely
to go down. And watch out for levies.
As a guide, management fees should be around £250/week in warmer climes
and £330 in cooler climes. If they are much more (or less!) than these
figures you could have problem in the future. And it is absolutely
essential that there is a contribution to a sinking fund perhaps around
10% of the fee.
Don't rush your buying decision. Take time to choose what you want and
where. Never buy at a presentation - you are making a decision to spend a
large sum of money within only a few hours of first seeing the product.
Take weeks, even months, on your decision and getting the best deal - then
you can feel comfortable about your purchase for the years to come. A hasty
decision is often regretted at leisure