Timeshare Shock Horror Stories About as Iain Maitland reveals in this article, 'Timeshare Shock-Horror Stories' ….

A recent Which? scare story has led to more timeshare owners deciding to sell up.  As many as 90% of timeshare owners want to sell on their timeshares. And just as  many timeshare companies do not want to buy these back. There is relatively  little resale potential in most unwanted timeshares. That's because supply  exceeds demand especially in former hotspots such as the Spanish Costas. 

*  In  some cases, you can buy a second-hand timeshare for little more than the cost of  taking over the original owner's maintenance contract. Some timeshare owners,  especially those who have lost their job and/or separated or divorced, simply  want to offload an expensive commitment they can no longer afford. 

*  Do  the sums though, comparing what you are paying for the timeshare (including  maintenance costs, flights there and back etc)  with what you would spend on holidays.  It may be cheaper (and more flexible) simply to book package holidays as and  when you want them!           

*  Think  about leaseback schemes.  You  will see plenty of ads for these in the travel pages of the daily and Sunday  newspapers. They are especially popular in France and other  mature markets. The idea is that you buy a property from the developer at less  than its true market value; say, 70% for example.  You stay in the property for so many weeks a year; typically six spread out across the seasons. You then leaseback  the property to the developer who lets it out to other holiday-makers for the  remaining weeks of the year. 

*  There  are various tips and tactics. If you are buying, you'll get the best deal by  investing at the off-plan stage, before anything is built. The key is to do the  maths again. Talk to local agents, view other properties etc to assess the true  value of the property. The developer's valuation and an independent valuation  may differ; often by the value of the .discount.. Research to assess what the  property will be worth at the end of the leaseback period; talk to others who  have invested earlier in particular.   

*  Avoid  new timeshares.   The bottom line is that new timeshares simply  do not stack up financially when you do the number-crunching. New timeshares are  only profitable for the companies selling them. I looked at an apartment on the  Costa del Sol a while ago; the figures I was  given summed up the .typical. costs of a new timeshare. 

A  week's timeshare was £20,000. The cost of the apartment  if you bought it outright was little  more than about £150,000. If the company sold 30 timeshares (which they could  probably do at that time), they'd be generating  £600,000; a hefty profit of a  property worth only 25% of that.   

What's  more, the company behind the timeshare also added on various other management  and administration charges!  Clearly, the timeshare company profits most. From the would-be buyer's  viewpoint, you need to consider if the cost of a holiday to the same type of  property at the same time each year will work out cheaper. It will, especially  if you book early or late and get the best deals.           

*  Consider  holiday property bonds.  You  should see lots of ads for these in those travel pages of the national press.  Holiday bonds simply take in money from lots of  holiday investors. They then buy into various properties which their members can  use for holidays. These holiday bonds offer holiday opportunities in both mature  and emerging markets.  What  you do is to invest in a holiday bond which gives you points based on the sum  you have invested in it. The minimum investment might be anything from £2,000 to  £5,000.  You can then use your  points to take holidays in a variety of holiday properties. Each holiday  property will be available for a certain number of points depending on its  location, size, facilities, and so on.  All  you will normally pay above and beyond your investment is service charges for  the costs of cleaning the property etc during your stay.  Again, you need to do your sums . what  you'll pay upfront, what you'll get, how those prices will compare with  straightforward holidays, and so on.     

*  Get  the best holiday prices . book very early or very late. When you are looking at  any of these deals, always compare them to the cost of ordinary holidays. It is  often cheaper just to holiday as and when and where you want!