Did you know that nearly ten million households in the United States own at least one part of a timeshare?
Buying a timeshare is something that some people question if it is a good investment. Others may not even understand the benefits of timeshares.
So, what is a timeshare and how does it work? This is your guide to owning a timeshare.
What Is a Timeshare and How Does It Work?
Timeshares are properties that people typically have a chance to buy or lease for a set period of time throughout a calendar year. These are typically vacation properties in destinations that people have the opportunity to use for one or two weeks per year.
You will have to pay a set amount of money to own a timeshare and then get assigned a period of time every year to enjoy this property.
However, there are some situations where the property will let you be a little more flexible with the dates you use it. These properties typically use a point system where if you build up a certain amount of points, you can add or change dates throughout the year.
On top of the initial cost of owning a timeshare, you will likely have to pay yearly maintenance fees to keep the property and its services up to date.
Types of Timeshare Contracts
There are two main contracts that you can get for timeshares: shared deeded contracts and shared leases.
A shared deeded contract typically allows someone to own a property for a fixed week every year. This can lead to up to 52 different people owning the same property if it is sold for a week at a time.
Then, there is a shared lease, which means that you are paying money to a property to use for a specific amount of time.
However, the main difference here is that you cannot own the property outright in this situation. Here, you will be signing up to use the property for, say, 10, 20, or even 30 years.
Can You Get Out of a Timeshare?
One important question some may have is if they sign up for a timeshare for a long period of time, can they sell the timeshare if they can no longer use it as intended?
Well, the answer is it can be difficult sometimes, but it is possible to sell your timeshare with the help of a broker.
Of course, doing this effectively is going to depend on the exact terms of your ownership and if it qualifies. Some contracts may not let timeshare owners re-sell their property, while others could be a little more accepting of selling to a third party.
Buy a Timeshare
This is just a brief guide on understanding the world of timeshares better. Do you want to know more about what is a timeshare and how does it work?
Check out our Finance section for more information.
