Are you aware that timeshares are now sold on a points basis? This is because timeshare developers were discovering issues with the operation of deeded sales. In effect they could only sell a property once per week of the year and this was seriously limiting their profits.
A traditional timeshare purchase allows you one week in your chosen unit. When this is recorded as a deed then there can only be 52 recorded owners per year. This meant a finite number of buyers and a need to build more properties, at a substantial cost to the developer.
The Evil Solution
Timeshare developers came up with another way of selling their timeshares. You no longer buy access to a specific property. Instead you buy access to a week in one of their resorts. There is no specific location or unit, which means that this is no longer real estate deal.
These are technically branded as vacation ownership and not timeshares. The developer became capable of selling points for each unit, infinite times. There was no real means of verifying whether you would ever have access to your property or not; because you no longer own a property. All you have is a right to stay in one of their resorts providing there is space and the developer says it is okay!
Some developers have gone one step further and encouraged the points to be treated like currency; allowing you to seemingly trade points with other timeshare owners.
However, you will quickly find that this is not a feasible arrangement. In fact, the points from one company have no intrinsic value to another company. You cannot sell the points you have bought because it is impossible to determine what it is really worth; but it is a good marketing point!
In fact there are several unofficial exchanges which have been created, but since it is so difficult to establish the value of a point the majority of transactions on these sites turn out to be fraudulent.
Interestingly the points can no longer really be referred to as an investment. The small print states you have to pay your dues or you lose the points; this makes it a service agreement and not an investment.
Why Timeshare Points?
The creation of the point system allowed developers to oversell units and generate much bigger profits than with deeded sales. The more points that are sold the less your point is actually worth. Not only does this make it impossible to use them as investment or exchange them, it also means that every year becomes a lottery as to whether you will get the vacation you thought you were buying.
Ten years ago your timeshare purchase may have gotten you a luxury unit on the other side of the world; today you will be lucky to make it to another state.
Fidelity Resource Management offers a free evaluation of your timeshare contract situation, and retains expert contract attorneys for your cancellation. In the majority of cases the contract can be legally cancelled and your credit score can be protected. Don’t delay, seek help today.
Call us today at 877-218-3223!