5 Important Things to Know About Timeshare

An exotic vacation to a dream destination at a price that fits your pocket!! Sounds mind-blowing? But how about repeating the same plan every year? The same way salespeople make you buy timeshares every year.

Let us learn more about it in this article.

Timeshare is an arrangement where a group of people owns the same property. Owners use this property as a holiday home at the different time. It is a terrific way to utilise a property to the fullest.

The property can be anything such as a villa, a house, an apartment, or a cabin. Timeshares can be bought anywhere either in your own country or overseas. The only problem in this scheme is it is ownership for the long term.

Timeshares are easily available online. Salespersons selling timeshares can be seen occasionally at different malls. They use many sales techniques to get people to sign up immediately. Here are some insights of what timeshare is all about and how to sell or buy them:-

How does a timeshare work?

A timeshare can also be called as a holiday or vacation club. It can be based on specific time or points. Timeshare scheme price depends on a number of factors such as the location and size of the property, number of years of ownership etc.
  • A Specific time-period timeshare scheme allows you to use a specific property at a particular period such as one week a year.
  • A point-based timeshare scheme depends on the number of points that you have collected. These points can be redeemed at various resorts and hotels. Under this scheme, the number of days you will get each year will depend upon the number of points collected. In many cases, double points are used during the holiday season. For example, if one day stay is equal to 2 points, then during holiday season one day will require 4 points. These points can also be redeemed for other travel related services.
Tips-Many comes with a calendar, which includes dates marked as the best time to get the full value of points and redeem them on special offers.

What happens when you do not use the property in your specified time?

You are allowed to swap or rent your timeshare to others via timeshare websites.

Annual fee

Even if you do not use the property, you still have to pay the annual maintenance fee. Some schemes also require you to pay an annual membership fee as well. For example, you have taken timeshare for 20 years, and if the maintenance fee is 400$ and membership fee is 50$. Then after paying the upfront fee, you will be paying (400+50) 450$ every year or 9000 in 20 years. Failure to pay addition year fee, (450$ of the above example) may lead to cancellation of the timeshare with no payback of upfront fee.

How can you borrow money to purchase timeshare?

Very few banks support timeshare schemes. It’s hard to borrow from the bank. Ask your scheme operator to arrange for the loan as they have tie-ups with many such agencies. Before borrowing be careful to check the following:-
    • The lender is established under a proper license.
    • terms of the contract
    • financing repayments
    • cooling-off period

Timeshare is lifestyle expenditure

Do not get timeshare thinking you will sell it off later. It is defiantly not that kind of investment, which you sell at a profit. As in this case, the supply is always greater than demand. There are loads of timeshare schemes available for sale with very few people interested in buying a timeshare. Moreover, you have to compete with the already existing seller. Timeshare sellers advertise at a very high budget. Many times, they even give gift cards, cheap movie or theme park tickets to attract buyers. Advantages 1) You can use luxurious and expensive properties at a more affordable rate 2) It is great for those who like perfectly planned holidays 3) There is flexibility in using the property. You can easily rent your property to others or give it as a gift to your friends and family. Disadvantages 1) Timeshare exchange program in form of renting requires additional payments. 2)  Annual maintenance and membership fees. 3) Selling existing timeshare is a tough job. 4) Even if you succeed in selling your timeshare chances are you will sell at a loss, and this kind of loss cannot even be claimed.

Summing up

Points to keep in mind before buying
  • You cannot always be sure of visiting a property every year.
  • It is perfect for those who like to travel to the same place at the same time of the year.
  • The value of timeshare depreciates with time, which is the reason many banks do not lend to buy them.
  • Most of the people who get a timeshare, lend the upfront money from the creditor, provided by the developer, which charges a high rate of interest.
Once you have read the article you will know that timeshare is not suitable for everyone. Although it seems cost-effective but very, few might actually use it efficiently.]]>

How to Get Started With Saving Money?

Imagine having enough money in your account to support any unexpected needs, to cover-up any major purchase etc. The feeling you get when you’ve money when you need it is unmeasurable. Who doesn’t love having a plentiful amount of dollars in your savings account! But when it comes to getting started with saving money, it seems like the hardest thing to do.

One of the harsh realities which were summed up from a survey is that almost 47% of Americans would have trouble finding $400 when suddenly asked for. If you also fall under that 47% then, it’s time to change it. Saving money not only helps you to be prepared for any unexpected needs but also pushes you to spend less than you make.

The money you earn gets spent at the end of the month, and nothing left to contribute towards your savings. With the rising day-to-day expenses, it might seem like an impossible task to save money. You might be thinking about how to get started with saving since I don’t see a room to save any money with my current economic situation. If that’s the case, then it’s right time to analyze your spending habits and match it with your income to know the weak areas. Once you have the statistics ready, you will know where you can push the money towards your savings.

We share with you 5 simple steps to get started with saving money and prepare for a financially secure future.

5 Simple Steps to get started with saving money:

Get started with saving money and make a meaningful progress towards a financially secure future by following these 5 simple steps mentioned below:

  • Set up a separate savings account

Some of you might have a bank account already but there are still many who don’t have one. So, the first step to take towards building your saving is set up a separate savings account. Different banks offer better interest rates and thus, you need to have a check on the interest rates offered before you set up a savings account. Also, you need to check on the minimum balance to be maintained since you’re planning to start with a small amount initially.

  • A small amount can make a huge difference

Start with a small amount so that it doesn’t pinch your pocket. Maybe, consider putting 1% of your income into your savings account and do it consistently without fail. Gradually, you’ll notice that you’ve cultivated the habit of contributing towards savings and you’ve some money that you can use for any sudden expense. Remember that every small amount you contribute towards savings is going to be a stepping stone for a financially secure future.

  • Fix an amount for automatic transfer

Once you get started, perseverance only will yield results. When you get your paycheck, fix an amount to automatically transfer every month from your checking account into your savings account. This will eliminate the temptation to spend the extra money on other things and instead help you to focus on building your savings nest.

  • Analyze and make a practical budget

If you’re left with no money to save after all your expenses, then it’s time to re-evaluate your budget. Ask yourself the following questions to analyze where you’re going wrong:

  • Are you spending on things that are actually not worth it?
  • Can you differentiate between your “needs” and “wants”?
  • Are your “wants” taking more from your pocket?
  • Do you buy things out of your monthly list?

Analyze your “wants” and see where you can cut down on the expenses. How about going for a manicure 3months once instead of every month? How about cooking your meal or eating out at a local eatery and cutting on fine-dine restaurants? Plan to contribute towards regular saving by reducing your expenses wherever possible.

  • Everything takes its own time

When you start with a small and consistent amount to build your savings, then remember that it’s going to take some time to show a noticeable difference. Saving doesn’t happen in a day. Set your financial goals along with a timeline to achieve those and start contributing towards them gradually. Cultivate the habit to check your progress every now and then. This will motivate you to focus on your goals and gives you strength to face any financial situation.

Summing up:

When you think about saving money, it doesn’t have to be a big step always. You are free to take your own steps but just remember it’s important to get started somewhere. So, follow these 5 steps to get started with saving money and see the difference yourself. Once you get started, you have already changed your status from the 47% to the ones who’ve some money in their savings. And that itself is a huge achievement to celebrate.

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How to Deal With Tax Penalties and Interests

If you have got unrecorded tax returns, the income tax office can charge you for the quantity of back taxes owed, with enough interest and penalties to exponentially increase your original bill. Taxpayers who are victims of bizarre circumstances often request for penalty abatement in search of tax relief. In several cases, once a person requests for penalty abatement, the authority removes 100 % of the penalty. You will be able to get penalty abatement if you consult a professional to deal with the matter.

Tax Penalties

Go for professional help

Often common people with no knowledge get confused about dealing with their taxes and penalties. It is necessary to seek the help of a reliable tax relief firm to offer you guidance. Getting penalty abatement is beneficial if you do it right. A professional tax lawyer or certified tax resolution specialist has the expertise to offer you real guidance on dealing with your taxes. They can compose a legal letter, explaining your circumstances and citing recent or past proceedings where the verdicts were in favor of the taxpayer with a similar set of circumstances as yours.

Come clean or be ready to go behind bars

Those who don’t file and pay their taxes are guilty in the eye of the authority. You can be prosecuted and fined for not paying your taxes. The longer you wait to file, the dimmer the chance for the authority to grant penalty abatement. The penalty for filing late is mostly 5 % every month of the calculable tax quantity due which may double or triple your bill.

It’s never too late to file a return

If you do not file a return, you are guilty. A substitute for this won’t offer you credit for deductions like exemptions for your spouses, children, taxes and interest on your home and business. The rules and regulations are there, however they enable taxpayers or their tax lawyer or specialist to file corrected returns at any time. This can bring you into a position to negotiate for penalty abatement.

Get your facts right with supporting documentation

To qualify for tax relief and penalty abatement, you need to have a reasonable cause. There are no exhausting and quick rules when it comes to penalty abatement; however there square are some general pointers. Your tax lawyer can assist you in deciding if you qualify. The income tax office can consider conditions like a death in the family, a divorce with missing tax records, a civil disturbance, your inescapable absence, a theft or destruction of your tax records or a victim of tax fraudulence. Be ready to support your reasonable cause with proper documentation. If somebody died, bring an authorized copy of their death certificate. Same applies in case of divorces. If your house or business was broken into or destroyed, or if you were cheated, bring the police reports and insurance documentation. The more the detail is, the better.]]>