Benefits and Drawbacks of Timeshares in Mexico

August 4, 2018 at 11:46 am

When deciding whether to purchase a timeshare in Mexico, there are both benefits and drawbacks to consider. As with any financial decision, it makes sense to thoroughly examine each angle before coming to a conclusion. Continue to read below to learn more about the pros and cons to determine if owning a timeshare in Mexico is for you.

Benefits and Drawbacks of Timeshare in Mexico pros and cons

  • Compare Timeshares to Stand Alone Vacation Homes: When compared to purchasing a stand alone vacation home in Mexico, a timeshare is a smarter choice if you are able to get away for a week or two at a time. If you can’t travel more than that, then there is no point in owning a stand alone vacation home that will end up unused most of the year. If you purchase a timeshare in Mexico, you only spend money on the time you are there, and don’t waste precious resources on maintenance and upkeep for something you aren’t using. Since timeshare maintenance costs are divided up amongst each timeshare owner, the cost is low and affordable for everyone.
  • Timeshare Advantages: One of the best parts about committing to a timeshare in Mexico is the fact you secure a vacation in your preferred destination. Life can sometimes pass us by with the responsibilities of work and family life, and we often forget to make time for ourselves. As an owner of a timeshare in Mexico, you prioritize what really matters – quality time for you and your loved ones in a beautiful, relaxing setting. Additionally, if you choose a timeshare in Mexico that is part of a group of resorts, you will be able to visit other resorts within the group. One example of a great timeshare group is The Villa Group that offers amazing timeshare resorts in the best destinations in Mexico such as Cabo San Lucas, Cancun, Loreto, Puerto Vallarta, and Riviera Nayarit. When you own a timeshare in Mexico through The Villa Group, you are permitted to use your week of vacation time at different resorts within the group so you can add some spice and variety to your getaways.
  • Make Time for You and Your Family: In addition to carving out some much needed time for yourself, do you also hope to share your timeshare in Mexico with friends and family? Most timeshare companies will let you share as long as you plan ahead and notify the resort you will have guests. Unable to vacation and don’t want to lose out? It is possible you can also rent out your block of time if you are unable to use your timeshare week for whatever reason, just make sure to check the details of your timeshare contract to confirm. It’s a good way to make some extra money!
  • Are there Timeshare Disadvantages? This all sounds great, so are you wondering what the drawbacks are? In regards to maintenance, monthly fees are minimal but they can go up over time. And it is important to note that whether you use your timeshare or not, the monthly maintenance fees must be paid. Also, used timeshares or timeshare resales are sometimes difficult to sell when compared to new timeshare units. However, it is more likely you won’t ever want to sell your timeshare as it will guarantee quality family vacation time that is priceless.

As you can see, there are benefits and drawbacks to having a timeshare in Mexico. What do you think?

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Fractional Timeshares

July 11, 2018 at 11:15 am

You may have heard about fractional properties and you thought they are basically the same as a traditional timeshare. While both traditional timeshares and fractional timeshares are great investments, you should also know that there are major differences between the two. Fractional timeshares and traditional timeshares have many differences and you can learn more about their differences by reading below.

  • Yearly Use and Ownership Numbers

Approximately fifty-two owners share one unit with a traditional timeshare, and this is designed so that each timeshare owner can have one or two weeks at the property each year. Approximately four to sixteen owners share a unit with a fractional property. With a fractional timeshare membership, you will get to use the unit more times each year than a traditional timeshare. Typically, the fractional owners can spend anywhere from three to twelve weeks each year at the property for their vacations. If you feel like you don’t get enough vacations in a year, then a fractional ownership could be a great investment for you.

  • Maintenance and Wear and Tear

One important difference that exists between fractional ownership and timeshare ownership is the wear and tear that occurs at the property. It is important to know that with a traditional timeshare ownership there can be up to fifty-two owners for one single unit. There will be a new family arriving each and every week at the property, which means the traditional timeshare will receive a lot of traffic. The traditional timeshare property will have a lot of wear and tear due to the sheer volume of visitors it receives, which means that the property will likely become older more quickly. Due to the large amount of traffic the property receives each week, that usually results in more damages, too. Fractional properties have less owners and there isn’t a big turnover either. The staff knows all of the guests and each vacation experience for fractional owners is a great one. Fractional properties have well-built construction for each unit and the décor is upgraded. Only high end fixtures are used at the fractional properties and you can expect to have more amenities and the best services when compared to traditional timeshare properties.

  • Required Income

The required income needed to qualify to be an owner with the fractional ownership versus the traditional timeshare is a noteworthy difference. To be qualified for a traditional timeshare ownership, the minimum income required will start off at $75,000. To be qualified for a fractional ownership, you will have to make at least $150,000. With the large income discrepancy required for a traditional timeshare ownership and fractional ownership means that the clientele will tend to be at a higher level for fractional owners. Fractional owners are used to living a higher standard and they expect the best amenities and service from the staff, too.

  • Second Home Connection

Usually, traditional timeshare developments are very large and they often have hundreds of units. Fractional properties are much smaller and there are usually only fifty units, which provides a more exclusive environment that some people are looking for when it comes to selecting their vacation destination. Traditional timeshare owners are not as connected to their unit and property because they only spend seven days at the property each year. For a fractional property owners, they often consider their unit and property as their second home. One similarity between traditional timeshare ownership and fractional ownership properties is the ability of spend your vacation time at another property that is within the network of the resort. Fractional property owners can use their weeks at another resort property just like the traditional timeshare owners do as long as the resort is within the resort group’s exchange network.

There are many differences between fractional timeshares and traditional timeshare ownerships. Knowing the differences between them will allow you to know which one is best for you. Do you want to invest in a traditional timeshare ownership or a fractional timeshare ownership?

 

The Effect of the Timeshare Industry on a Community

February 23, 2018 at 10:38 am

For most communities that are dependent on tourism, the timeshare industry brings significant benefits. Some people may consider timeshare as a scam, while others love it. Others may be indifferent about timeshare. With such varied reactions are natural, one cannot deny the positive impact the timeshare industry has on the local community where the timeshare operates.

timeshare industry

The effect of the timeshare industry on a community

The following benefits may surprise you as these go beyond those offered by traditional tourism forms like hotels and others. Here are some of the positive effects that timeshare offers on a community.

  1. Stable jobs: From sales staff to construction workers, timeshare generates several jobs for the community. The jobs are at various levels like executives, service staff, architects, and more.
  2. Repeat Tourism: Timeshare encourages repeat tourism in the community which results in a more stable economy. With this scenario, business providers and investors can easily predict the needs of the community in terms of services and infrastructure.
  3. Promotion of the Destination: The destination’s profile will increase amongst all kinds of visitors including those who are still curious about the timeshare industry. The positive feedback and promotions to friends and families raise other people’s awareness. Only when people feel that they belong can they have this kind of support.
  4. Tax Generation: Tax generation that extends to VAT as well as income tax on earnings is another great benefit that the timeshare offers to a destination. Those working in the industry and especially those who come into the place spend their money in the local economy. More taxes are generated and these are plowed back into the local economy. As a result, services and infrastructure improve.
  5. Extension of the Period of Stay: Timeshare owners usually chose to stay for longer periods of time in their chosen destinations.
  6. Higher Purchasing Power: Timeshare destination benefits from visitors with higher purchasing power. They spend more on local services, restaurants, and other items. The certain level of income that owners have is one of the requirements when they desire to become timeshare owners.
  7. No Competition Against Traditional Hotels: Hotels usually cater to visitors who do not necessarily visit more than once or twice. This means that people who return to a destination to stay at their timeshare are not the same individuals that hotels target. The two industries complement one another and not compete against each other.
  8. Local Community Involvement: Timeshares are not always all-inclusive. There are some who would choose an all-inclusive option but most visitors would rather spend money in local stores and dining places.
  9. Constant Occupancy: Timeshare helps provide a consistent level of occupancy, supporting other branches of the tourism industry like car rentals, restaurants, travel agencies, and other local trade.

There is no denying that timeshare provides a positive impact on its community.

 

Timeshare Ownership Types

April 3, 2015 at 8:22 am

If you are new to timeshare and want to find out more about the different timeshare ownership types then this article is just for you. Here you will find a brief interaction to the various timeshare ownership types on offer so that you can make informed choices about your vacation purchases.

While most of us think that timeshare is timeshare, there are, in fact various different timeshare ownership types from right to use timeshare to deeded fractional properties to vacation clubs and more.

Right-to-use

The term right to use is not so much a category of timeshare ownership as a factor you will find in most timeshare products. What it means is that you do not “own” your vacation property, but you own the right to use it for a set period of time, such as 1 week for 25 years. You own a membership at a resort not bricks and mortar. In practice, it is a similar experience to owning a property, but you are not responsible for owner taxes and other such fees.

Fixed Week Timeshare Model

When timeshare first began, most companies worked on a fixed week model which meant dividing up a property into weekly segments and selling a fixed week of the year. Now this worked out fine for the popular seasons, holidays and winters in sunny destinations but meant there were some weeks of the year that were not so popular. The price of the fixed week would be calculated according to the popularity of the week.

Fractional Ownership

While timeshare ownership types are fractional by nature, the term fractional ownership refers to the fractionated ownership of a specific property. In this case your purchase is deeded and you in fact do own part of the vacation property, which is yours like any real estate to sell, bequeath and so on as part of your estate.

Vacation Clubs

The vacation club model is the most popular form of timeshare these days as it provides great flexibility. A vacation club will usually serve more than one resort in various destinations so that you can use your membership to stay at different places rather than purchase a share of a particular unit. Some vacation clubs work by giving you discounts on resort accommodation while others are a points based system that you can exchange for accommodations.

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