Timeshare resorts offer accommodation to owners who have purchased the right to stay for a specified period. Ownership is fractional, with one share for each week of the year. Options include owning shares during one season, purchasing flexible points, and using exchange companies. Advantages include lower costs and locked-in prices, but there are also large down payments, annual fees, and expenses associated with exchanging stays. Most owners sell their timeshares for less than the original purchase price.
A timeshare resort is a tourist establishment that specializes in providing accommodation to owners who have purchased the right to stay in the resort for a specified period of time. Timeshare resorts are often located in areas that have traditionally been considered popular vacation destinations and are often very similar to a conventional hotel. In fact, timeshares typically offer the same level of amenities, attractions, and features as conventional hotels and resorts.
Ownership in a timeshare is often referred to as fractional vacation ownership, as the owner purchases a fraction or share of a property. Ownership of a unit in a timeshare resort is usually split into 52 shares, or one share for each week of the year. Therefore, an owner who owns a 1/52 share in the timeshare has the right to use the unit one week per year.
In the simplest form of a timeshare, an owner purchases a specific amount of time and then stays in the resort for the same length and during the same period each year. This type of plan offers the least flexibility, but is generally the cheapest. For those who prefer the possibility of spending their holidays in different locations and times of the year, there are other options that can be considered.
Some timeshare resort programs allow consumers to own shares during one season of the year, instead of owning only one specific week during the year. This is a popular option for those who like to vacation during a particular season of the year but aren’t able to commit to the same week each year. There are also fractional ownership programs that allow consumers to purchase flexible points or shares. Owners purchase a set amount of points that they can use towards a resort stay. The amount of points required for a given stay may vary by room, time of year, and resort location.
Some programs no longer limit owners to just one resort. Businesses that own multiple properties may offer customers the option of staying at resorts other than their home property. Owners can also use the services of an exchange company. An exchange company connects timeshare owners and allows them to exchange the use of the timeshares they own for another owner’s comparable timeshare.
As with all real estate purchases, there are some advantages and disadvantages to owning a timeshare resort. The primary benefit of owning a timeshare is that it allows owners to stay in vacation resorts for generally less cost than renting a comparable hotel room. The buyer also locks in the price of staying at a resort during the term of ownership. Essentially, by prepaying for vacation rental accommodation when purchasing the shares, owners are able to lock in the price of the rental accommodation at going rates as long as they own the shares.
Some disadvantages of owning a timeshare resort interest include an often large down payment and an annual fee charged to the owners for maintenance, utility fees and property taxes. Additionally, there are typically fees and expenses associated with exchanging or exchanging stays with another owner. Another factor to consider is that while timeshares are often sold as investment property, studies have shown that most owners sell their timeshares for less than the original purchase price.
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