Traditional rental costs will keep your dream vacation out of reach. Invest in a timeshare to get what you want every year without going broke.
But how do timeshares work?
If you’re new to timeshares, you’re not alone. Most families plan vacations through agents and pay regular rental prices. These can include standard hotel rooms with inflated costs.
If you’re in a position to vacation every year, a timeshare is right for you. You buy the right to visit a favorite vacation spot every year. Your investment saves you money with far better results.
Unlike a hotel room, a timeshare is a long-term investment. Instead of buying property, you’re buying time to use a certain property. This relieves you of the turbulent vacation rental costs of the market.
You share your investment with other timeshare participants. This brings down costs for everyone involved in the deal.
How Do Timeshares Work?
Think of a timeshare as vacation ownership. You own a week out of the year when a property you like is exclusive to you. If you find a property you love, it becomes a constant in the lives of your family.
Timeshares offer more flexibility as well. You have more freedom to use the property as you choose. You need only return it to the condition in which you received it.
You don’t have to worry about oversight by hotel management. Timeshares often come as condominiums or houses with full amenities. Once you invest, you’re guaranteed the location you want on every vacation.
Keep in mind that timeshares are investments. They are do-it-yourself vacations where you take more responsibility than in hotels. Unlike escapist vacations, you’ll be responsible for the property a week each year.
Are Timeshares Worth the Investment?
Don’t think of your timeshare as a property investment. They’re not investments you should leverage for financial gain.
Find value in the enjoyment it brings your family. You can also find value in you what you save on traditional vacations. This is assuming you already go on annual vacations.
If needed, you can learn how to cancel a timeshare without much difficulty. Some owners regret their investment almost immediately. Some simply grow tired of the property.
Most contracts guarantee a “Right of Cancellation.” They will include a rescission for the first 1 – 2 weeks of the contract. Retain all paperwork and you won’t need an explanation for canceling.
If the rescission period has ended, you may need an attorney. But getting out of a timeshare isn’t impossible. You must be cautious as with any other purchase.
Consider the word “worth” again. It may be worth it to your family and to your vacation budget. Think about whether the management aspect is worth it as well.
Takeaways When Considering a Timeshare
Thousands of people swear by their timeshares. They enjoy them every year. They chose the right properties and took steps to get what they want.
Are you still asking yourself, “How do timeshares work?” The following four takeaways should help you on your way. Remember why you’re taking this step – with the interest of your family in mind.
1. Decide on the Type of Ownership You Want
Not all timeshare contracts are the same. You should determine how you want to structure your investment first. Deeded, leased, and licensed timeshares are all different.
A deeded timeshare is similar to buying real estate. You will own the timeshare outright. You can sell it or rent it, but it cannot expire.
A leased timeshare gives you only the “right to use” the property. The lease will establish certain dates for use for a limited number of years. You may or may not be able to renew the lease when it expires.
A licensed timeshare will require some sort of membership. Vacation “clubs” manage multiple timeshares which you can purchase for vacations. You earn “points” through the organizations as part of your membership.
Choosing the right contract depends on the desired timeframe and flexibility. Think carefully about your family plans before making a decision.
2. Choose the Right Buyer or Broker
You won’t buy a car from a sketchy seller. Apply that logic to your timeshare as well. Your ideal property can become a disaster without the right arrangements.
There are two channels for buying a timeshare: owners or brokers. Much like with rental properties, each has its advantages.
There are thousands of buyers to choose from. You can’t always get guarantees of accreditation as you would with a broker’s office. If they don’t have records of other buyers, the validity of their contracts may be questionable.
But the right owner might be a dream come true. He or she might be highly attentive to the property. This person might not have a list of properties to attend to, so yours always comes first.
As with any financial deal, initial arrangements will overshadow your future experience. Don’t walk in the door asking, “How do timeshares work?” Find a trustworthy partner and study their contract well.
3. Confirm the Condition of the Property
You should investigate the condition of your timeshare just as with any property. Confirm its condition with the owner or broker first. They should have proof of its working systems before you invest.
You will check the property to see if it’s something you want. Do some investigation while you’re scoping out the area. Take careful measures like you would when buying a house.
Again, this is an investment. Don’t make any transactions until you know exactly what you’re getting.
4. Determine Your Use Period
What will your vacation plans look like every ear? Many families vacation on the exact same dates. But you needn’t do this to take advantage of a timeshare.
A fixed-week timeshare is perfect for these families. They have access during the same week every year. There is no question about this arrangement.
Floating weeks allow you to choose any dates out of the year. This depends on the availability at the resort. You may have problems if the timeshare is booked all summer.
Flex time is much like floating weeks. However, you can only exercise your week during certain seasons. If you have flex time in the summer and don’t exercise it, it’s your loss.
There’s always more to learn. But this is all you need to get a head start. Never ask “How do timeshares work?” again.
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