Timeshares today are misunderstood by many and sometimes carry a "scam" like connotation to them. This is really just bad press as I will share with you in this article why I like timeshare.
A timeshare is a name given to a piece of property shared among number of owners.
Timeshare properties have traditionally been condominium resorts but the choices of properties are increasing every day. You have hotels, motor home parks, campgrounds, and even cruises now offering timeshare options.
The idea of timeshares is said to have originated in the 1960's when it became increasingly expensive to own a vacation house. The idea of splitting not just the property but time for the property for a week was a novel idea to make it more affordable to own time in a vacation resort and also include ownership versus renting. With the sharing of cost of ownership, the cost of maintenance of the property also is spread amongst all the owners. This makes vacation property quite affordable for many people.
How a timeshare property differs from a regular real estate property is that you can only use the property for a specific time duration.
But as more and more properties are being converted into timeshare, flexible timeshare options cannot be ruled out. The flexible timeshare offers owners the option of choosing more than one timeshare destination and also more than one specific time of a year.
The most common timeshare ownership duration is a 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.
If you do not plan to use your timeshare or rent your timeshare, I would advise against buying one because selling a timeshare can be difficult. If you use your timeshare, then it is a great investment because you are then owning instead of renting so to speak. Just like real estate property, they can be inherited by your children. Just like real estate property, they can be rented out if you do not plan to use your week for that year. Just like real estate property, they can be paid off leaving the rest of your vacation time "free" for the rest of your years to come (maintenance fees will still apply). Unlike real estate property, units can be put into a pool where you can then trade for other units. So for example we own a unit in Hawaii, but if that year we want to go to Florida we can put our unit into a pool and then see if there is a Florida unit we can use in its place.
Timeshares are NOT for everyone.
Buying a unit is buying real estate. In the same way you would do your research and due diligence when purchasing a house, you must go into purchasing timeshare units in the same way. Know what you are getting, know the costs, and figure out if it is worth it for you. Know if you will actually use it or not or be able to rent it, because that is a lot of the value it provides. If you don't use it, it will possibly not be a wise purchase for you.
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.
My hope is that I have explained well what a timeshare property is, and that you are able to use this information to decide whether or not a timeshare makes sense to you.
A timeshare is a name given to a piece of property shared among number of owners.
Timeshare properties have traditionally been condominium resorts but the choices of properties are increasing every day. You have hotels, motor home parks, campgrounds, and even cruises now offering timeshare options.
The idea of timeshares is said to have originated in the 1960's when it became increasingly expensive to own a vacation house. The idea of splitting not just the property but time for the property for a week was a novel idea to make it more affordable to own time in a vacation resort and also include ownership versus renting. With the sharing of cost of ownership, the cost of maintenance of the property also is spread amongst all the owners. This makes vacation property quite affordable for many people.
How a timeshare property differs from a regular real estate property is that you can only use the property for a specific time duration.
But as more and more properties are being converted into timeshare, flexible timeshare options cannot be ruled out. The flexible timeshare offers owners the option of choosing more than one timeshare destination and also more than one specific time of a year.
The most common timeshare ownership duration is a 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.
If you do not plan to use your timeshare or rent your timeshare, I would advise against buying one because selling a timeshare can be difficult. If you use your timeshare, then it is a great investment because you are then owning instead of renting so to speak. Just like real estate property, they can be inherited by your children. Just like real estate property, they can be rented out if you do not plan to use your week for that year. Just like real estate property, they can be paid off leaving the rest of your vacation time "free" for the rest of your years to come (maintenance fees will still apply). Unlike real estate property, units can be put into a pool where you can then trade for other units. So for example we own a unit in Hawaii, but if that year we want to go to Florida we can put our unit into a pool and then see if there is a Florida unit we can use in its place.
Timeshares are NOT for everyone.
Buying a unit is buying real estate. In the same way you would do your research and due diligence when purchasing a house, you must go into purchasing timeshare units in the same way. Know what you are getting, know the costs, and figure out if it is worth it for you. Know if you will actually use it or not or be able to rent it, because that is a lot of the value it provides. If you don't use it, it will possibly not be a wise purchase for you.
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.
My hope is that I have explained well what a timeshare property is, and that you are able to use this information to decide whether or not a timeshare makes sense to you.
About the Author:
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.
