Think carefully before buying a timeshare home
When it comes to buying into a timeshare property scheme, it’s a case of buyer beware.
Australia’s financial services regulator, ASIC, has released a report into timeshare schemes that reveals “a high level of discontent” among participants.
“Timeshare memberships are complex and give rise to long-term financial commitments,” ASIC commissioner Danielle Press said.
Data sourced from the Australian Timeshare Holiday Owners Council shows consumers pay an average of:
- $23,000 for their membership
- $800 in ongoing annual membership costs
- 13.5% p.a for their loan interest rate
“ASIC is concerned about the sales tactics used by timeshare operators that harness a range of well-known behavioural techniques to propel consumers toward a purchase decision such as the use of time-bound ‘exclusive’ offers,” Ms Press said.
“We saw consumers spend large sums of money on a purchase they did not expect to make and then enter into ongoing financial commitments under time pressure.”
If you own a timeshare or are thinking about getting one and want to know how it would impact your home loan, give me a call.
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