Going on a hotel travel to Mexico? Or maybe you’re looking for an accommodation to buy there?
If so, you can always try the timeshare system.
It’s an affordable way to own a vacation home, where you pay for usage rights during certain months of the year.
This lets you sync your vacation time with your work schedule – while maximizing affordability!
Timeshare Scams Do Exist.
It isn’t a common system for purchasing a vacation home. But no worries…
Below, we’ll show you some timeshare scams to avoid. Check them out, and take caution!
First – Most Scams Target Sellers
Most timeshare scams are of a resale nature. And they don’t target timeshare buyers. They target sellers that are desperate to get out.
Here’s how it works…
- Owner wants to sell their timeshare
- A company calls them up to buy the timeshare – while claiming to have a buyer waiting
- Same company asks the seller to send fees to complete the transaction
- Company disappears – seller can’t get their money back
Avoiding this scam is simple. Most of the scamming is done over phone and through wiring, without meeting any representatives.
Don’t do business with a representative that you haven’t sat down with.
Second, don’t pay or send fees to complete a transaction. Consult your lawyer first, and see if the fees to be sent are legit or necessary.
Only accept written agreements. Be sure that everything you’re promised is listed in the contracts you receive.
No Written Agreements = Scammer
Finally, don’t succumb to pressure.
Don’t fall for companies based on the promise that they have a “buyer on the spot” ready for the property.
What if I’m a Buyer?
Then the next tip is for you!
Second – Timeshare Ownership Can Come with Extra Fees
Those include insurance fees and repairing damages (furniture, appliances), which is also a form of scamming.
You might be asked to pay continuous costs for household fixes that you aren’t responsible for.
Even worse, as an insurance policy, you might be asked to pay a yearly “membership fee” to keep using your timeshare.
In essence, after buying your share – you get asked to pay rent on it.
And that might prove to be too expensive over a long period of time, where you’re better of finding a hotel!
How to Avoid that Problem.
First, get to know the other members owning the timeshare.
How many are there? The more owners there are, the better. This makes you less liable for damages you aren’t responsible for.
Also, a higher owner count means that your timeshare seller is reputable.
Second – Are the Repair Fees Reasonable?
If you’re asked to pay for fixes, ask for a bill. Try to see what the money is going into. Look to see if the money asked is justifiable.
Third – Timeshares Have Bad Resale Values
As we mentioned in the first point, the timeshare resale market is rife with scammers.
It’s hard getting rid of a timeshare, let alone finding a legit buyer. And the reasons are…
- Most vacation home owners don’t like sharing property
- Most people don’t like investing in a single vacation spot (for years to come)
And this means that…
Timeshares Aren’t a Good Long-Term Option.
With timeshares, you’re still paying a large sum for the right to use a vacation home. And this locks you into holidays at that home…
It makes it difficult to allocate money to a different place. You can’t visit different cities or even countries if you want to.
Basically, for the price of temporary ownership – you lose travel diversity.