Timeshares today are misunderstood by many and sometimes carry a “scam” like connotation to them. This is simply bad gossip 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 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 widely purchased ownership duration is one week each year.
Depending on what time of the year you own the timeshare the price may vary. For example, a timeshare property in the month of April in Florida will be much higher than in August. So the rates may vary with varying season and demand. Some resorts give color coding to different seasons depending on the demand. For example some resorts term high demand season as red season meaning the prices of the timeshare will be highest in that season.
While timeshares make desirable vacation spots affordable, they also can be great investments as properties are real estate purchases. They can prove difficult to sell, however, which is why they should not be purchased only for investment reasons.
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.
This is very similar to purchasing real estate. You normally would not just buy a house on a whim. Owning a house is a very specific commitment financially. Owning a timeshare property is the same. Do be sure to make yourself aware of the yearly upkeep fees so then you can decide for yourself if owning a unit is the best thing for you. Make sure you think you will actually use it or be able to rent it. If you purchased a car or a house and did not use it, no matter how great a deal it was, you are not able to realize the value of it.
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 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 .