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Timeshare Consumers Association

Timeshare can be an economical way of enjoying high quality self catering accommodation 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. If you are new to timeshare, please read what is timeshare

Before considering the purchase of a timeshare please read our report on the costs of using timeshare accommodation  HERE Renting timeshare accommodation just for time you want to use it, usually through the internet  is now cheaper than buying a timeshare EXCEPT for school holiday periods when owning a specific week of timeshare is still the best option.

Firstly - decide why you want a timeshare or fractional.

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 an exchange organisation facility to visit different resorts and countries each year. There are over 5,000 resorts world wide to choose from. Please read How exchange systems work

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 Gold Crown/Five Star resort. These are the resorts rated highest by the exchange companies
• in the Red period - the most popular time of the year for that specific resort. School holidays are usually better still (often dubbed "deep red").
• 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. .

If you are considering buying timeshare weeks solely with a view to re-selling them at a profit, particularly if they are offered to you by a re-seller or developer, the advice is simple - DON'T. You will find that they are impossible, or virtually impossible, to sell on - and you will be required to pay annual charges on weeks which you most probably cannot even use, perhaps for years. Do not be misled by salesmen's figures and projections. It just does not work. ALL timeshares sold as an "investment" are fraudulent

How to buy.

You can buy a "resale" timeshare for less than 1/10th the resort price. Talk to an  honest resale broker

In almost every case you will be able to buy the week you want from an existing owner at less than  half  the price charged by the developer through an onsite sales operation.   Buying from an existing owner means getting exactly the same quality and standards that the original owner had when they bought new - often with a full lifetime of use still available.  With a large number of owners wanting to sell, it's a buyers market where many bargains are to be found.
 

The buying choices are:-

1. From a professional reseller. By far  the easiest method - provided you take a few precautions.

Deal only with a reseller who:-

• Gives you not less than 14 days cooling-off period
• Places buyer's money (and sellers Ownership Certificate) in an independent stakeholder account
• Certifies to the buyer that the week being purchased is free of all debt
• Confirms whether the week has been banked with an exchange company - and whether this banking is available to the buyer

Resellers should search out a specific week for a buyer if they do not already have it in their inventory.    You should only deal with resellers who are recommended by TCA

And if you are looking to buy RCI Points  (click here) for specific help from owners themselves. 

2. From the Owners Club, Management Company or a contracted agent

Many owners ask their Club (or Management Company) to sell their week. At resorts where the developer has finished selling "new" weeks this is a convenient way for owners to sell and has the  benefit of allowing the buyer to see the resort on a try before buy basis before committing themselves.

Contact the resort and ask if they have an owners resale program.

3. Directly from an owner. This can be the cheapest option - but there are pitfalls for the unwary.  And buying on eBay can be very cheap with many weeks only costing 99pence as owners  rush to get out.

Points to keep in mind:-

• The seller should have set up an escrow arrangement with their solicitor (or accountant) into which you should place your money and the seller their Ownership Certificate. Do not do business, even with someone you know, without this form of security. Only when you are completely satisfied should you instruct the solicitor to release your money to the seller and the Certificate (properly endorsed into your name) to you.  The TCA have an escrow service for members . Details
• Check that the owner actually owns the week and that the Management Fees are up to date by contacting the Management Company (and the exchange company if you are offered a banked week). The seller should give you the contact information. Make sure the exchange company is informed of change of ownership before transfer as the owner can still use the week.
• Agree with the seller which of you pays the cost of transferring the ownership name - for a "Right of Use" ownership this will vary from £70 to £850 but for a "Deeded" ownership the  charge could be  £1500

4. From a developer (or his marketing company).

Only buy from a developer if you cannot find the week you want from one of the above options. And be prepared to pay (sometimes substantially) higher prices.
 

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 Nov 2004) 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.

• £500 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.
• £1,000 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.
• £1,500 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
• £2,000 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.
• £3,000 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.
• £4,000 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 when you may have to pay up to £5,000.

When you find what you want - bargain hard, it's a buyers market

You can buy one week of really good quality timeshare for no more than £2,000.

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.         If your are tempted to buy into  incomplete accommodation ensure that:
• all your money is held by an independent stakeholder -  see here
• all your money is returned to you if you do not get use of the accommodation within the time stated on the agreement.
• Never buy into a resort which does not have an Owners Club or Association. You could be at the mercy of the developer or Management Company for ever.  And definitely avoid any resort which has an owners "Action Group" - they know something!.
• Don't 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

If you have already signed a purchase agreement which you now regret, Click Here

Never consider timeshare as a "financial" investment - you will be lucky to get back 10% of your outlay when you sell if you originally bought from a developer, a bit more if you bought from a resale.