Buying a timeshare can be an intimidating process. After all, you’re getting a lot of promises and selling your hard-earned money to an industry that wants your business. So it’s important to know some basic facts about timeshares before you sign on the dotted line.
There are several different types of timeshare ownership, and each type offers different advantages and disadvantages. The most basic and economical type is fee-simple ownership. In this arrangement, each owner receives a 1/52nd interest in a specific unit or apartment at a resort.
Another popular form of timeshare is interval ownership, which gives you access to a resort during a set number of weeks each year. These periods can be as short as one week, or as long as six months.
Some timeshares allow you to exchange your points for different resorts within the same brand, giving you more flexibility. You can also use your points for vacations at resorts outside of your brand’s portfolio.
Other timeshare options include fixed week usage, floating weeks, and biennial ownership. While these options offer more flexibility and convenience, they can be more expensive than fee-simple ownership or interval ownership.
You can also expect to pay annual maintenance fees. These are required by the resort or HOA and cover upkeep and maintenance of the property. The average maintenance fee is $1,120 per year, but that can vary depending on the size of your unit and resort popularity.
The cost of your timeshare purchase should not exceed a third of your total vacation budget. The remaining two-thirds should be used for other travel needs and expenses.
For many families, a timeshare is an excellent investment that provides a lifetime of memorable family vacations at a fraction of the cost of other options. But the question of whether or not it’s worth it is a personal one.
Do you really want to visit the same place every year for decades and have no control over where you’re staying? If so, a timeshare may not be right for you.
If you’re not sure whether a timeshare is right for you, consult an expert. They can help you make an informed decision based on your unique circumstances and the benefits and drawbacks of different timeshare ownership types.
Ultimately, you need to ask yourself if your vacations are worth the upfront cost of a timeshare. If you’re not able to travel often, or you don’t like the idea of visiting the same resort each year for decades, then a timeshare might not be the best option for you.
There are plenty of other ways to enjoy a luxury vacation without spending a fortune. Besides, you might be able to find a timeshare resale at a much lower price than purchasing directly from the resort. In fact, timeshare resales are becoming increasingly popular, especially in more developed areas, because these properties typically sell at a significantly lower price than those sold direct from the developer.