What Is Timeshare and Vacation Ownership?
Vacation ownership is the shared ownership of a resort property for a specified period of time. In simple terms, it is an advance purchase of your future vacation accommodations. Resort villas are traditionally larger and more deluxe than simple hotel rooms. Condominium-style timeshare villas normally are fully equipped with spacious kitchens, generous living areas, and ample room for family or friends. Most timeshare units range from studio villas up to four bedroom vacation homes.
If you vacation consistently, timeshare ownership may be a choice you want to consider. Rather than purchase a full-ownership home or condo in a leisure destination such as the beach or mountains that you can only use for a few weeks each year, vacation ownership allows you to purchase only the amount of time that you need. It also divides the cost of property management and upkeep among all the fractional owners. This type of shared ownership system can give you the luxury and privilege of the resort lifestyle in an affordable and obtainable ownership package.
Ownership of a timeshare interval is very similar to ownership of a full access condominium except that your usage rights are limited to a certain period of time. The ownership can be conveyed to you by deed, or by a leasehold interest which is commonly referred to as a right-to-use ownership. Also, one of the primary benefits of timeshare ownership is that the onsite resort manager is responsible for maintenance, cleaning, and repair of the condo- leaving the timeshare owner free from many of the hassles associated with the traditional ownership of a secondary vacation home.
A deeded interest in a timeshare property is owned much like a home. A legal conveyance document is filed in public records and protects your ownership rights. It is an ownership interest that can be sold, gifted, or transferred to your heirs. This is the most common form of vacation ownership in the United States. Examples of this ownership type are some Marriott Vacation Club, Hyatt Vacation Club, Hilton Grand Vacations Club, and Starwood Resorts ownerships.
A right-to-use interest, or leasehold, is common for vacation properties outside the United States, but this form of ownership is becoming increasingly popular with American developers and there are now numerous forms of this ownership type throughout the timeshare industry. In this type of of timeshare interest, the resort retains legal ownership of the property and gives you a leasehold or license to use the property for a specific term. Upon expiration of your lease, your vacation ownership will terminate and return back to the developer. Examples of this ownership are the Disney Vacation Club ownerships, The Royal Resorts in Mexico, and standard memberships with the WorldMark by Trendwest Vacation Club. The usage remaining on a leasehold interest is a primary factor in determining the value of these properties. With a right-to-use ownership, you should ensure the terms and conditions of the leasehold and usage are fully disclosed to you prior to making a decision to buy.
Making a decision between a deeded and non-deeded timeshare ownership can be confusing.
Whenever possible, I personally recommend a leasehold that has a specific expiration date. The lure of owning something in perpetuity may sound great, but the reality is that you will be paying various fees each year of your ownership- and if your ownership is forever so too is your financial responsibility. Ending a timeshare ownership can be a very difficult task. One of the largest complaints about timeshares is the failure of the industry to create a stable secondary market. Resale prices are often pennies on the dollar from the original purchase price, and in some cases it is almost impossible to even give away an unwanted timeshare. Before making any timeshare purchase, be sure to fully research the secondary market and ensure that you completely understand the usage rights and financial responsibilities it entails.
A constant complaint about the timeshare industry in general is the manner in which it is often marketed to consumers. Some resort developers still rely on enticing prospects into a sales presentation with the promise of free gifts. Then, they utilize high pressure tactics and intentionally confusing information to create an impulse purchase. Furthermore, consumers are often unaware of state mandated rescission periods- and other consumer safeguards that are in place until it is far too late to make any changes. The best rule of thumb is to NEVER purchase a timeshare on the initial sales presentation. If the salesperson's offer is valid and truly has merit, you'll be able to walk away and make the decision to purchase after careful research. If the salesperson tells you the offer is only valid "today", that is a clear indication they don't want to risk giving you time to think. Just say no! If you have an interest in owning a particular resort or program, give yourself an opportunity to look into the possibility of purchasing that same timeshare from an existing owner as a resale. Resale pricing can be up to 95% less than a timeshare developer's best offer.
Using the services of a licensed resale broker can be vital in ensuring your are fully aware of any restrictions and limitations of the ownership you purchase. It is important to understand that vacation ownership is a commodity that is intended for personal enjoyment, and thus is not a traditional real estate investment. Timeshares and vacation ownership do not normally appreciate over time. Because of this fact, buying a timeshare from the resale market can save you tens of thousands of dollars! A resale specialist can provide you with helpful information about the different types of timeshare ownership available, and can assist you in making an informed decision of which property will be meet your needs and lifestyle. I'm always happy to provide you with a referral to a licensed resale broker within our network.
Finally, a last bit of advice to anyone considering purchasing a timeshare. Renting a timeshare reservation from an existing owner is a great way to experience the benefits of the timeshare lifestyle while still avoiding the financial obligations of ownership. Plus, when you rent from a current owner- you do not have any obligation to attend a sales presentation. Unless you believe that you will consistently use the same timeshare program year after year, renting will always be a better financial decision!
Do you have more questions? Call and speak with an associate at (321) 396-2599 from 10am to 10pm EST.
If you vacation consistently, timeshare ownership may be a choice you want to consider. Rather than purchase a full-ownership home or condo in a leisure destination such as the beach or mountains that you can only use for a few weeks each year, vacation ownership allows you to purchase only the amount of time that you need. It also divides the cost of property management and upkeep among all the fractional owners. This type of shared ownership system can give you the luxury and privilege of the resort lifestyle in an affordable and obtainable ownership package.
Ownership of a timeshare interval is very similar to ownership of a full access condominium except that your usage rights are limited to a certain period of time. The ownership can be conveyed to you by deed, or by a leasehold interest which is commonly referred to as a right-to-use ownership. Also, one of the primary benefits of timeshare ownership is that the onsite resort manager is responsible for maintenance, cleaning, and repair of the condo- leaving the timeshare owner free from many of the hassles associated with the traditional ownership of a secondary vacation home.
A deeded interest in a timeshare property is owned much like a home. A legal conveyance document is filed in public records and protects your ownership rights. It is an ownership interest that can be sold, gifted, or transferred to your heirs. This is the most common form of vacation ownership in the United States. Examples of this ownership type are some Marriott Vacation Club, Hyatt Vacation Club, Hilton Grand Vacations Club, and Starwood Resorts ownerships.
A right-to-use interest, or leasehold, is common for vacation properties outside the United States, but this form of ownership is becoming increasingly popular with American developers and there are now numerous forms of this ownership type throughout the timeshare industry. In this type of of timeshare interest, the resort retains legal ownership of the property and gives you a leasehold or license to use the property for a specific term. Upon expiration of your lease, your vacation ownership will terminate and return back to the developer. Examples of this ownership are the Disney Vacation Club ownerships, The Royal Resorts in Mexico, and standard memberships with the WorldMark by Trendwest Vacation Club. The usage remaining on a leasehold interest is a primary factor in determining the value of these properties. With a right-to-use ownership, you should ensure the terms and conditions of the leasehold and usage are fully disclosed to you prior to making a decision to buy.
Making a decision between a deeded and non-deeded timeshare ownership can be confusing.
Whenever possible, I personally recommend a leasehold that has a specific expiration date. The lure of owning something in perpetuity may sound great, but the reality is that you will be paying various fees each year of your ownership- and if your ownership is forever so too is your financial responsibility. Ending a timeshare ownership can be a very difficult task. One of the largest complaints about timeshares is the failure of the industry to create a stable secondary market. Resale prices are often pennies on the dollar from the original purchase price, and in some cases it is almost impossible to even give away an unwanted timeshare. Before making any timeshare purchase, be sure to fully research the secondary market and ensure that you completely understand the usage rights and financial responsibilities it entails.
A constant complaint about the timeshare industry in general is the manner in which it is often marketed to consumers. Some resort developers still rely on enticing prospects into a sales presentation with the promise of free gifts. Then, they utilize high pressure tactics and intentionally confusing information to create an impulse purchase. Furthermore, consumers are often unaware of state mandated rescission periods- and other consumer safeguards that are in place until it is far too late to make any changes. The best rule of thumb is to NEVER purchase a timeshare on the initial sales presentation. If the salesperson's offer is valid and truly has merit, you'll be able to walk away and make the decision to purchase after careful research. If the salesperson tells you the offer is only valid "today", that is a clear indication they don't want to risk giving you time to think. Just say no! If you have an interest in owning a particular resort or program, give yourself an opportunity to look into the possibility of purchasing that same timeshare from an existing owner as a resale. Resale pricing can be up to 95% less than a timeshare developer's best offer.
Using the services of a licensed resale broker can be vital in ensuring your are fully aware of any restrictions and limitations of the ownership you purchase. It is important to understand that vacation ownership is a commodity that is intended for personal enjoyment, and thus is not a traditional real estate investment. Timeshares and vacation ownership do not normally appreciate over time. Because of this fact, buying a timeshare from the resale market can save you tens of thousands of dollars! A resale specialist can provide you with helpful information about the different types of timeshare ownership available, and can assist you in making an informed decision of which property will be meet your needs and lifestyle. I'm always happy to provide you with a referral to a licensed resale broker within our network.
Finally, a last bit of advice to anyone considering purchasing a timeshare. Renting a timeshare reservation from an existing owner is a great way to experience the benefits of the timeshare lifestyle while still avoiding the financial obligations of ownership. Plus, when you rent from a current owner- you do not have any obligation to attend a sales presentation. Unless you believe that you will consistently use the same timeshare program year after year, renting will always be a better financial decision!
Do you have more questions? Call and speak with an associate at (321) 396-2599 from 10am to 10pm EST.