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The
RIGHT Way
to Buy a Timeshare Membership & When It REALLY Makes Sense
If you like high-pressure sales and want to receive the freebie
offers (e.g., reduced-price tickets to Disney World, free radios, free
telephones or watches, greatly reduced lodging fees at a resort, etc.)
then take a timeshare tour … BUT DON'T BUY IT! These deals can sound
great under pressure ... for example, a full-week every year forever
(the contract is willable) in a 5-star gated condo community within 10
miles of Disney World in Orlando, Florida with pools and golf, 52-inch
TV's and 2 or more bedrooms. Consider this, you pay only $16,000 up
front (a special discount as a new guest off the normal $28,000 price -
you save $12,000). Let's look at this deal financially before I show you
a better way. We'll assume you never want to exchange your location for
another which should save you $200+ per year in exchange fees. If you
only paid the $16,000 for the best condo on the property, you get one
week which means the timeshare seller thinks his condo is worth $16,000
times 52 weeks which comes out to $832,000! When was the last time you
saw a condo worth almost a million dollars? All you have to pay is $400
more in maintenance fees every year (which goes up every year with the
Consumer Price Index) and the place is yours for a week. But hey, $400
per year to stay in a 5-star suite "anywhere in the world" is
a great deal right? Yes it is, but you still have to pay airfare to get
there - tack on an extra $1,000 for a family of four to fly to Hawaii or
Europe ... make it $4,000 or more to go to Australia. Add another $300
for a rental car for a week. Your $400 vacation is now $1,700 to $4,700
... or is it?
Let's explore that $16,000 you paid up front. If you invested that
$16,000 in the best mutual fund market (see our free report), you could
get an average return of 18% per year on your money which amounts to
only $2,880 the first year (only $1920 if you prefer an S&P500 Index
fund). Surely, with $3620 (i.e., $1,700+$1920) to $7,850, you could get
a week anywhere in the world ... maybe even 2 or 3 weeks. What happens
if you decided to travel cheap instead? That one-time investment of
$16,000 could grow to well over $2.2M by the time you are age 65 (see
our publication)! But you don't want to put life on hold ... you want
vacations. Okay, so consider this, you can buy a very nice ocean view
high-rise condominium fully-furnished in the heart of Myrtle Beach, SC
for about $80,000. So, what if you put your $16,000 towards a Myrtle
Beach condo and took out a mortgage for the rest (i.e., $64,000). At
6.25% APR, a 15-year mortgage would cost you $548.75 per month. That's a
LOT more than $400 per year! True, but you could also turn the condo
over to the local management to rent it out for you ... if you were
going to stay there every week, you would be buying a home, and $549 per
month would not be expensive. Now, in Myrtle Beach, with a $549 monthly
mortgage, management fees, replacement costs, etc. all thrown in, you
can make a profit every year by renting out your condo. Then throw in
tax deductions, you can actually be Paid to own the condo! Oh yes, you
can also stay there for free for up to 14 days per years with no tax
consequences.
Now, your $16,000 investment gives you big tax deductions, a FREE
2-week vacation at a 5-star resort every year, actually PAYS YOU to own
it, AND you can sell it anytime you want for a profit! Oh yea, and you
save your $400 that you were going to put into your timeshare
maintenance fee every year. But you say, "I can sell my timeshare
at a profit too, and Myrtle Beach is NOT Disney!" True, but Myrtle
Beach is HOT during the summer when your kids are out of school, and
Florida is downright Blistering, ... but you can still take your $400 of
annual savings and drive to Florida. Go between September and May when
it's not quite so hot and the crowds aren't so huge, and you can get
nice accommodations at the Marriott for $60 per night (see out discount
travel tips) or at a Comfort Inn for $32 per night.
Now, it's also true you can sell your timeshare, ... or can you? This
is where the real trick is! If you really want the benefits of timeshare
... you want a guaranteed week every year for only $400+ per year, you
want the freedom to go anywhere in the world for the same price, you
want the gated community (even though anybody that makes at least
$23,000 per year can buy there ... and all sales prospects can get in),
... then you have to remember you can sell your timeshare. In fact, a
recent poll showed that 58% of timeshare owners were trying to sell
their contract, but only 3% of those surveyed had succeeded; now, this
should tell you something about buying from the timeshare companies!
Over half of the current owners are trying to sell! So, if you really
want a timeshare and the current owners really want to sell but can't,
then there is a "Buyers Market" out there for timeshare ...
and the PRICES Show It! Buy your timeshare off the secondary market. You
don't have to worry about working the deal by yourself. Go to one of the
nationally-known realtors (e.g., Century 21) offering timeshare resales.
The recent deals I found on the Internet include the $16,000 deal
described above for only $4,000! You can get the best of both worlds,
take your $16,000 and buy a timeshare resale, invest the rest in a condo
that pays you to own it; this way you get at least 3 weeks per year of
prime vacation. Or take you $16,000 and invest it in our recommended
mutual fund or stock strategies, retire as a multimillionaire AND get
your annual one-week 5-star vacation.
Here are a few Timeshare Resellers to help you get started on your
quest: Century21 Timeshare Resales (800-987-5783) at http://www.timeshare-resales.com/
, Timeshare Resales of the Americas (800-789-2718) at http://www.tra-resales.com/
(this site has a nice search engine where you can enter the location you
want, and it lists the resells available from lowest price to highest -
there were over 25 properties in Orlando listed for less than $2,000
when I looked & over 3400 properties available, Timeshare Resales
Worldwide (800-498-8638) at http://www.timeshareresalesww.com/
.
If you are going to buy a timeshare, here are few questions to ask:
How much is the annual maintenance fee? What index is the maintenance
fee tied to? Are any of the annual fees tax-deductible? Are there any
other fees when you check in or check out such as maid fees, cleaning
fees, etc.? What do you have to pay for the amenities (golf fees, etc.)?
Is this a limited-period timeshare (e.g., you get one week per year for
only 20 years) or does it last forever? What happens if you don't/can't
pay the maintenance fee one year ... Do you have to pay in arrears
before you can use your week the following year? Is the week you are
buying a "Peak Week"? Is the resort you are buying a 5-star?
What are the fees to exchange weeks or locations? Who is the timeshare
affiliated with (this affects where you can exchange and how easy or
difficult it is to exchange)? Is there a transfer-of-ownership fee?
Incidentally, NEVER Buy a timeshare before you see the property! In
fact, I recommend you offer the seller a contract to buy contingent on
you staying in their unit during their week for the price of their
annual maintenance fee; this way you really know what you're getting AND
you get a nice inexpensive vacation at a 5-star resort! If you already
have a timeshare and wish to sell it, you can go to the same
organizations and websites listed above. If you want more references, go
online to http://www.HotBot.com
and enter "timeshare resale"; you'll get lots of companies
from which to choose.
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