What Is A Timeshare? Read And Find Out If You Would Benefit From Owning One.

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 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 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.

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.

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.

Owning a timeshare unit is 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. Having a timeshare property is not much different. Make sure you are aware of the yearly maintenance costs and 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.

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.

Want to find out more about how to buy or sell a timeshare, then visit Emil Yau’s site to learn more about selling timeshares and other timeshare information.

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