When the word “timeshare” is heard today, many people shy away. I understand as well since timeshare solicitations have a bit of a “sneaky” feel to them. I personally think a timeshare is a great idea. This article is to objectively define for you what is and what isn’t a timeshare.
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.
The idea of a timeshare property originated in Europe in 1960s when the property rates were skyrocketing and it was impossible for people to afford a full time vacation house. But by sharing the ownership the burden of maintenance and other costs on single person were greatly reduced.
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.
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.
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.
For me personally, I am part of a family that owns some timeshares. For us it is a great investment because we know we will take vacations often. Similar to “renting” vs “buying” a house, since we will consistently use this property it makes sense for us to own it. After it is paid off, we will continue to use it and enjoy it. And the extra value is that owning these units “forces” us to take vacations every year, and this is priceless.
I hope you have found a lot of good information in this article and that it helps you to decide if a timeshare is for you or not .
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.
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