A timeshare is a vacation property that is used for a specific period, usually measured in weeks or months. It can be purchased as a specific week or month, or through a points-based system. Prices vary based on location and unit size, and owners can purchase multiple units or borrow points from future years. Some timeshare companies also allow owners to exchange unit locations with other members. Payment is made only once at the time of purchase, and timeshares can be passed down to family members or sold on the open market.
A timeshare is real estate used for vacations with a specific, recurring period of use, usually measured in weeks or months. The range that is purchased can be a specific week, such as the first week of May or the month of December. Usually, the interval repeats every year or every two years.
Some timeshare slots operate on a points-based system whereby owners purchase points with corresponding vacation time values. Instead of purchasing a particular week or month, the owner can purchase points and choose any available week at a particular timeshare location. For example, a week of vacation can cost ten thousand points. At one dollar per point, that vacation interval would cost $10,000 US dollars (USD). If the owner wanted to reserve two weeks, he would pay $20,000 USD.
Point values and dollar amounts vary based on the timeshare’s geographic location and unit type. Units in more desirable locations, such as those located in beach resort communities or urban high-rise buildings, command a higher price than units in less desirable locations. Larger units are also likely to cost more to book than smaller ones.
Many interval timeshare companies allow a buyer to purchase multiple units. A family could host a reunion by reserving multiple units at a timeshare complex, for example, if they had enough points to do so. Also, timeshare companies often allow members to borrow points from future years. If an owner had only 10,000 points but needed 20,000 points to reserve two units, he or she could borrow the next year’s points. Since that owner has used all of his points for that year and the following year, he will not be able to use the timeshare slot in the following year.
Other timeshare companies allow a buyer to buy into national and international clubs through which they can exchange unit locations with other members. If the owner’s timeshare unit is in California, but he or she wants to vacation in Hawaii, he or she may be able to trade their unit with an owner who has a unit in Hawaii. The Hawaii property owner may use the California unit during the owner’s interval.
Regardless of whether the timeshare slot has a set time period or is based on a point system, payment is made only once, at the time of initial purchase. The interval or points are renewed at the preset time. Interval timeshares are typically vested in the new owner, and can be passed down to family members, and are listed and sold through agents or on the open market.
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