Timeshares can be both good and bad. Seriously.
Many people absolutely love their timeshares, and many people are trying their hardest to get out of them
Let’s look at what is a timeshare and how they can be both good and bad, depending on the person. We will also try to help you figure out if a timeshare is right for you.
A timeshare is a way for you to share a property with other people. They are usually vacations properties or condos located within a resort in a popular vacation area.
Usually, what you are paying for is the right to spend an allocated amount of time in the property. Depending on the company selling the timeshare, you can sometimes own a share of the physical property, but typically what you own is a fixed number of days to spend on the property.
The amount of time you are entitled to is normally a week, but this too can vary depending on what company you are buying from.
You can choose to spend the time that belongs to you however you want: you can spend that time in the property yourself, or you can let your friends and family use that property during the time that belongs to you.
However, since the property is not entirely yours, there are constraints on the physical changes you can make on the property. How to go about any changes needed or wanted will be specified in your timeshare agreement.
When you sign the timeshare agreement, you are acquiring the rights to make use of a certain property in a certain location for a certain amount of time.
Normally, you will be allocated the use of the property for one week a year. Traditionally, the most common type of timeshare would be buying one specific week in a specific location and a determined condo within that location. Nowadays, timeshares are more flexible.
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We now have what are called floating weeks. This method allows owners to make a reservation for any week of the year. This works on a first-come, first-served basis, but there may be some restrictions.
For example, an owner can use their winter floating week during any period that falls within certain dates in the winter season. Pricier timeshares will grant access to more “premium” dates.
Most timeshares now also have a system called timeshare points. In this system, your ownership of the week in a timeshare turns into points that you can use as a sort of currency in various vacation opportunities.
You receive a certain amount of points each year that allows you to choose where you book your holiday with greater flexibility in regards to destinations, accommodations, time of the year, etc.
Deed vs. Right to Use
These are the two main types of timeshares. A deeded timeshare works just like any other deed on a property. You own a portion of the property and may rent, sell, or give away your deeded part in any way you please.
The only constrictions come when making repairs or changes to the property, which have to be made in agreement between all the owners of the property.
The right to use, on the other hand, means that what you are paying for the right to use the property for a certain period of time.
The duration of each lease will depend on the company who retains ownership of the property and offers you the timeshare option. Once the lease is over, you no longer have rights to use the property, and the resort can do what they please with the property.
Timeshares have certain benefits over hotel stays or temporary rental properties. The main advantage is the living space itself. With a timeshare, you have access to large bedrooms and common areas, a comfortable,and, usually, privileged views.
Aside from being more comfortable than a hotel, people are attracted to these properties because of the rights of ownership they provide. You are buying a holiday home, and you can spend your holidays at the same place every time if you so desire. It’s like a home away from home.
You can choose to revisit your favorite vacation spot as many times as you want and find rest within that familiarity, or you can opt for discovering new places each and every time.
Plus, most of them are in popular and coveted vacation spots around the world. You can choose not only where you want to go next but also to rent your timeshare.
Renting your week or your points when you know you won’t use them is a great way to cover the expenses or maintenance fee of the property and save a bit for your next holiday.
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A timeshare resort, as the name implies, are resorts that offer rooms with many bedrooms, private balconies with a view, full-sized kitchens, and top-of-the-line accommodations and amenities.
When you buy a timeshare, you can choose to spend your allotted time in the home resort of the timeshare where you will have priority booking your stay each year.
When choosing your timeshare resort destination, make sure to take a good look at the amenities that each one offers. They are usually one of the greatest advantages to choosing a timeshare in a specific destination. There are all kinds of options, depending on what type of holiday you favor.
However, the biggest attraction when it comes to timeshares versus hotels are the accommodations. Timeshares are perfect if you travel with a lot of family or as part of a large group.
Depending on the option you purchased, you have accommodations with up to four bedrooms. This is ideal for a group of friends, for example, since everyone can have their own space to relax.
There is usually more than one bathroom, which can make for a much more pleasant stay. Common spaces like the living room, balcony and kitchen are also much roomier than in a hotel. The extra space provides a homier atmosphere for everyone.
Have you ever been offered a vacation deal that is almost too good to be true? There is usually just one condition: attending a mandatory timeshare meeting.
Of course, you are not required to buy a property, only to listen to the company tell you all about timeshares. In return for your time, you get a dream holiday at a steal. This is a timeshare presentation.
Timeshare companies offer promotions in exchange of getting you to listen to their timeshare offers. While it is undeniable that the promotions can be very tempting (they really do offer great prices), the great catch is that you are required to attend the mandatory meeting.
Now, this might not seem like a big deal. A 90-minute presentation in exchange for a dream holiday? Sign me in! But you should be cautions before accepting.
First of all, the meetings rarely last longer than 90 minutes, but sometimes the company might keep you for the full day, which means that you’ve lost a big chunk of time that you were supposed to spend relaxing on your free time.
Also, the presenters at these meetings apply a lot of pressure to get you to sign on to a timeshare deal. They will use many means to convince you that you need to buy a timeshare, and you might walk away from that meeting with far more than you bargained for.
Another catch is that, should you fail to meet any of the requirements of the promotion you signed up for—like not attending the presentation—you will have to pay the full price for the holiday that was supposed to be a steal.
There isn’t a clear type of consumer for timeshares. People who buy them have a myriad of different reasons for doing so: some consider them to be a cheaper alternative to a vacation home and an alternative to renting a less comfortable hotel room for their holidays. These time shares also have very nice amenities like balconies and scenic views.
It is important for potential buyers to consider that, even if they are cheaper than vacation homes, timeshares do come with maintenance fees that need to be included in their budget.
If you want to spend your holidays in the same place but don’t want to invest in a vacation home, a timeshare could be a good alternative.
However, a timeshare should not be looked at as an investment in real estate. Timeshare value decreases quickly, and the market for reselling is already saturated. While renting it might be a viable option, there are expenses generated by the timeshare that don’t make it a sound investment option in the real estate industry.
If you own a timeshare and the time comes to get rid of it, you have a variety of options, ranging from the simple to the more complicated.
Your first option is to call the timeshare developer. Although most of the large timeshare developers offer some sort of take-back program, they don’t usually advertise it. If you don’t want to hold on to your timeshare anymore, contact your developer and ask them about any free exit alternatives they might have.
As we’ve said before, the second option is to rent out your timeshare. This way, you can use the rent to cover the maintenance fee for the property without feeling the strain in your pocket.
A third option is to sell it. Contrary to ordinary real estate property, the value of a timeshare does not appreciate as time goes by. Rather, it depreciates, so don’t expect to gain back your original investment. Also, this option is usually not the fastest available as it can take a while to sell your timeshare.
As a last resort, you can transfer the ownership to a friend or a family member. If you’ve already paid off the mortgage, you only need to transfer the deed to another person. But it gets a little more complicated if you’ve yet to finish paying off the timeshare.
What you should avoid doing at all costs is simply stop making your timeshare payments. Since it is a legally binding contract, stopping your payments will mean that you will have to face financial consequences.
If you are looking to get rid of your timeshare, one thing you must always remember is to stay vigilant. There are a wide variety of scams that will promise to get you out of your timeshare agreement and ask for a lot of money as an upfront fee.