Timeshares and timeshare presentations today are great ideas and great assets. However they also seem to get some bad press as well 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 at its core is a piece of real estate that is owned by a number of owners.
Although the majority of the timeshare properties are condominiums resorts but it will not be a surprise if you find a hotel timeshare or a motor home timeshare or a cruise timeshare or a campground. The amount of timeshare units continue to increase daily.
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.
A technical definition of timeshare property is that an owner has specific time to share you own in a property.
The time that you would be able to use that property used to be more strict but as rules and policies evolve, the options of when you can spend time in your property are becoming much more flexible.
The most widely purchased ownership duration is one week each year.
Prices will vary depending on what time of the year your purchase is and what property you own. Some times and some areas are more desirable than others which is reflected in pricing. Supply and demand determine prices.
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.
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.
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 at its core is a piece of real estate that is owned by a number of owners.
Although the majority of the timeshare properties are condominiums resorts but it will not be a surprise if you find a hotel timeshare or a motor home timeshare or a cruise timeshare or a campground. The amount of timeshare units continue to increase daily.
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.
A technical definition of timeshare property is that an owner has specific time to share you own in a property.
The time that you would be able to use that property used to be more strict but as rules and policies evolve, the options of when you can spend time in your property are becoming much more flexible.
The most widely purchased ownership duration is one week each year.
Prices will vary depending on what time of the year your purchase is and what property you own. Some times and some areas are more desirable than others which is reflected in pricing. Supply and demand determine prices.
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.
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.
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.
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Learn more about all things related to a timeshare: Stop by Emil Yau's site where you can find out all about selling a timeshare and other useful timeshare information
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