What Is A Timeshare? Read And Find Out If You Would Benefit From Owning One.

Timeshares and timeshare presentations today are great ideas and great assets. However they are also misunderstood as well to the point where when the word “timeshare” is heard some people shy away. This article is to objectively set the record straight on what a timeshare is and what it isn’t.

A timeshare is a name given to a piece of property shared among number of owners.

Timeshare properties used to be tied to condominium resorts but they have evolved now to also be included as offerings by hotels, campgrounds, and even cruises. The options continue to grow every day.

The idea of a timeshare property originated in Europe in 1960s when the property rates were skyrocketing and it was impossible for people to afford a full time vacation house. But by sharing the ownership the burden of maintenance and other costs on single person were greatly reduced.

The difference between a timeshare property and regular property is that you own the property only for a specific amount of time.

It used to be that the time you could use the property was much more strict, but as timeshare ownership and management has evolved, so has the restrictions on time you can use your property. The options are becoming much more flexible each day.

The most common timeshare ownership duration is a week.

The cost of a property will of course vary depending on where it is, how desirable it is, and even what season the ownership is. Like basic economics, supply and demand will determine the pricing of a property and its “trade in” value.

Timeshare offers not only a great vacation but can also be a great investment. However, they should not be purchased only as an investment.

If you do not plan to use your timeshare or rent your timeshare, I would advise against buying one because selling a timeshare can be difficult. If you use your timeshare, then it is a great investment because you are then owning instead of renting so to speak. Just like real estate property, they can be inherited by your children. Just like real estate property, they can be rented out if you do not plan to use your week for that year. Just like real estate property, they can be paid off leaving the rest of your vacation time “free” for the rest of your years to come (maintenance fees will still apply). Unlike real estate property, units can be put into a pool where you can then trade for other units. So for example we own a unit in Hawaii, but if that year we want to go to Florida we can put our unit into a pool and then see if there is a Florida unit we can use in its place.

Owning a timeshare unit is not for everyone.

This is very similar to purchasing real estate. You normally would not just buy a house on a whim. Owning a house is a very specific commitment financially. Owning a timeshare property is also a financial commitment. Do be sure to make yourself aware of the yearly upkeep fees so then you can decide for yourself if owning a unit is the best thing for you. Make sure you think you will actually use it or be able to rent it. If you purchased a car or a house and did not use it, no matter how great a deal it was, you are not able to realize the value of it.

On a personal note, we are part of a family of timeshare owners. It is a good investment for us because we know we will use it. And similar to a house with a 30 year mortgage, when this timeshare is paid off we only need to pay maintenance fees and can enjoy the “property” for the rest our lives and even pass it on to our heirs. Besides that, we find a lot of value in our timeshares because it “forces” us to take a vacation together. We personally live hectic lives and this really holds us accountable to relaxing and taking a vacation with our loved ones.

My hope is that I have explained well what a timeshare property is, and that you are able to use this information to decide whether or not a timeshare makes sense to you.

Learn more about all things related to a timeshare: Stop by Emil Yau’s site where you can find out all about selling a timeshare and other useful timeshare information