With the average vacationer spending nearly $1100 a week for their vacation housing, imagine if you had a timeshare that cost around that much per month.
If you invest your money wisely, you could have a permanent vacation spot that you never had to worry about paying for. Buying a timeshare is a great investment for people with flexible schedules or who are close to retirement.
Before buying a timeshare, you need to know some of the basic tactics of saving money on it. Here are six tips you can use when you’re on the hunt for a timeshare.
1. Buy into the Resale Market
Just like cars or electronics, the value of timeshares can be higher when they’re bought brand new from a resort or developer.
There are thousands of units in every high traffic timeshare region, which are available at resale prices. Just running a few searches online can yield results that give you an idea of what the local market looks like.
After a marriage ends or a loved one passes, some people end up buying a unit that they can’t afford. Others simply change their minds about a unit after they’ve had it for a couple of years.
When you buy from a reseller, you’re buying from someone who is looking to get rid of their place. You’re sure to get a good deal as you help them unload an asset they no longer want to keep.
2. Lockout Units Give You Options
Lockout units give you a second option when it comes to your timeshare.
If you don’t want to have to move things out of your unit every time another guest arrives or you rent it out, having a small area can maintain your privacy.
Having to travel or entrust someone with the car of your belongings can make it seem like a hassle to leave anything at your timeshare. On the other hand, having to restock the place with basic amenities every time you visit is another type of hassle.
You can solve these issues by having a separate lockout area to work in.
Your lockout unit puts up a barrier between you and your guests. It lends privacy to the place in case you need a last minute getaway.
Until you decide to retire permanently, you could build a luxurious home office in your lockout unit for when you need to have a working vacation.
3. Know Tthe Area
Make sure you visit the area you’re investing in before signing your name on the dotted line. Buying in an area that looks great in photos but isn’t any fun will make you regret your purchase.
Take a week off to cruise the region and get a taste of what life is like in the area. Get to know the transit system, where the best places to eat are, and where the entertainment is.
The last thing you want to do is to end up stuck someplace where you feel bored. You might as well have stayed in the office during your vacation.
Get to know the neighborhood where you’re thinking of buying. Take a look at the history of prices in that area. Is it growing or is it on its way down?
Look for a place that’s growing, where there are new investments and new buildings being put up. Look for a newly thriving business area over a sleepy area where there’s not a whole lot to see.
4. Think about Your Family
If you’re thinking about bringing kids to your new place, think about what it has to offer for them.
If every trip needs to be family-friendly, consider how you’ll be entertaining the kids as they age. In case they play sports, make sure there are places for them to ride their bikes on their own later.
If you’re thinking about finding a place for your extended family to visit, make sure you have enough space. As your parents age, you might want to take them on vacation with you a little more often.
Make sure everyone has adequate privacy, even if you find a place that’s a little smaller than you’d have liked.
5. Get a Local Broker
You need to hire a local broker when it’s time to make an investment.
This way, you’ll have someone to advise you on what’s happening with the market. You’ll be able to get an insight into whether you’re investing in a region that’s on its way up or one where the market is peaking.
You don’t want to make a mistake with your timeshare as you’ll be stuck with this investment for years to come. Take a look at My Timeshare Attorney with some additional help looking over the paperwork. This will ensure that the contract protects your rights while helping you get a good deal.
6. Check out the Rental Market
If you’re planning to rent your timeshare out while you’re not around, do your research on the rental market.
Some places can offer 2-to-1 rates for Airbnb over a standard lease. Other units might be highly priced with a low-demand rental market.
If there aren’t enough people clamoring over your timeshare, you’ll be stuck paying for a unit that you only spend part of your time in. Rather than paying full-time for a part-time residence, renting out your timeshare could save you some serious bucks.
Buying a Timeshare Is a Great Investment
For people who love to travel or someone who is looking to make passive income, buying a timeshare is a smart investment that can grow your wealth. If you rent it out at the right rate, you could not only pay it off quickly but start saving for your own retirement.
If you’re thinking about becoming a timeshare landlord as part of a side hustle, check out our guide to finding the perfect side job for your lifestyle.!