Monday, June 09, 2014

The Great Dilemma - Buying a Timeshare for Use or for Trade?

While buying into a timeshare might seem like a simple premise, the process deserves quite a bit of thought. New, soon-to-be owners in particular are confronted with a collection of questions that
deserve some major consideration. One among them is the question whether to buy at a resort where you intend to vacation every year or to buy into a resort that offers the most potential trading power.

The advantages of buying at your favorite resort are numerous. The security of being assured a consistent week at one of your favorite vacation spots is great, and makes for very reliable vacation planning. Your unit size and type is generally guaranteed, and very ideal when you expect to be traveling with larger groups. When you buy at your favorite resort, you know what you're getting, and you know that you'll have a great experience, like you always have.

Buying into a resort for trading power is a bit more complicated, and involves a bit of gambling. Many owners who take this route begin by hunting for bargain-priced resales, typically belonging to one of the big-name resort developers and affiliated with a major exchange company. While the new owner might not have any interest in the resort they've bought into, they're aware of the resort's "trading power" among exchange companies and will exchange into the locations that they are interested in.

As one might imagine, this can be risky - there's no guarantee that you'll be able to exchange into the particular location you desire. New owners will also need to have a strong knowledge of the resort they're buying into as well as the demand of the locations they'll want to consider. However, a smart owner who understands the demands of market can use their new resale to exchange into any number of resorts - imagine being able to visit a new location each and every year!

Ultimately, the decision depends on whether you're looking for security or flexibility, as well as your experience with timeshares and the market. Someone looking to just break into the world of timeshares is quite likely better served by selecting a resort that appeals to the interests of their families - somewhere you can visiting. After all, there's no reason that you can't choose to exchange or rent out your week for some extra cash if you're craving a change a pace. However, the seasoned owner desiring even more options might very well be served by checking out some resales for trading power. 

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