What Is A Timeshare? Read And Find Out If You Would Benefit From Owning One.
March 2nd, 2011 by Emil Yau, under Vacations. No Comments
Timeshares and timeshare presentations today are great ideas and great assets. However they are also quite misunderstood to the point where when the word “timeshare” is heard some people shy away. This article is to objectively set the record straight on what a timeshare is and what it isn’t.
A timeshare is a name given to a piece of property shared among number of owners.
Timeshare properties used to be tied to condominium resorts but they have evolved now to also be included as offerings by hotels, campgrounds, and even cruises. The options continue to grow every day.
Timeshare first originated in the middle 1900′s when property was so expensive that it was getting increasingly difficult for people to afford a full time vacation resort property. Similar to owning a condominium in a condo complex, all owners also share in the costs of maintenance of the timeshare property.
The difference between a timeshare property and regular property is that you own the property only for a specific amount of time.
It used to be that the time you could use the property was much more strict, but as timeshare ownership and management has evolved, so has the restrictions on time you can use your property. The options are becoming much more flexible each day.
The typical duration of a timeshare ownership unit is one week.
The cost of a property will of course vary depending on where it is, how desirable it is, and even what season the ownership is. Like basic economics, supply and demand will determine the pricing of a property and its “trade in” value.
Timeshare offers not only a great vacation but can also be a great investment. However, they should not be purchased only as an investment.
Timeshares are not purchased to be sold. They are purchased to have forever. That is where you will realize the value of a timeshare unlike regular real estate just because the resell value is so low. Similar to real estate, timeshares can usually be inherited to your children like any other real estate property. Most people rent their timeshare to others when they do not use their timeshare. This has a double advantage. You earn rent also along with appreciation of the property with passage of time. Timeshare properties are exchangeable and can be traded with other properties in most of the cases. While it may be easy for the owners of the red season timeshares to exchange their unit with other owners in any season it might be impossible for owners of low season timeshare owners to get a high season timeshare unit in exchange. That is why timeshares can be a good investment. Selling your timeshare is difficult though and that is why timeshares should not be purchased only for investment purposes.
Owning a timeshare unit is not for everyone.
Make sure to go into buying a timeshare in a similar way that you would go into buying a house or other property. Do your due diligence, know the costs, figure out what the value is to you, and then figure out if it’s a worthy investment for you. Also, figure out if you are going to use it or be able to rent it. If you purchased a house (or anything for that matter) and didn’t use it, no matter how good a “deal” it was, it is probably a burden.
On a personal note, we are part of a family of timeshare owners. It is a good investment for us because we know we will use it. And similar to a house with a 30 year mortgage, when this timeshare is paid off we only need to pay maintenance fees and can enjoy the “property” for the rest our lives and even pass it on to our heirs. Besides that, we find a lot of value in our timeshares because it “forces” us to take a vacation together. We personally live hectic lives and this really holds us accountable to relaxing and taking a vacation with our loved ones.
I hope this article has been helpful! Do your research now and see if a timeshare is for you!
Looking to find hints on how to sell timeshare, then visit atimeshare.typepad.com, a site full of tips and advice related to all things a timeshare and more.
