Did you know there are 1582 timeshare resorts in the US alone? Many people realize the benefits buying into a holiday property can bring. But do you know exactly how a timeshare works?
If you are interested in vacationing and have some money put aside, then let us help. Read on for our guide on timeshares explained.
What Is a Timeshare?
A timeshare is part ownership of a holiday property. You buy a share of it for a specific time period in the year. You can use this time to rent it out or have a vacation yourself.
There are many different variations of the timeshare. All of them have the advantage that they are cheaper than buying a whole property. You also do not have the combined maintenance and upkeep of owning a full holiday home alone.
How Does a Timeshare Work?
Timeshares work on the premise of fixed and floating weeks. A fixed week is a set week during the year in which you have the timeshare. Most properties will use an RCI calendar to determine weeks.
Floating weeks are times that can be used throughout the year, subject to availability. They are usually relative to tourist seasons, being high, medium, or low demand. You will buy into a certain season and be able to book the timeshare for a designated time in that period.
The Legality of Timeshares Explained
Timeshares either come under shared lease ownership or shared deed ownership. It is important to know which kind of timeshare you are buying into.
Under shared deeded ownership, you buy into the property itself. You are granted a percentage of it depending upon how much time you have purchased. It will specify when you can use the property.
In a shared, leased arrangement, the developer owns the deed of the property. Each timeshare owner has a leased stake, which determines what fixed week or floating period they have. This type of arrangement tends to be harder to transfer if you decide to sell on the timeshare.
As you are not buying into a full property, maintenance expenses in a timeshare are many less. However, this does not mean they are expense-free. In fact, you will have to pay some of the maintenance fees of the building and property.
In addition, you will also have to pay additional fees. Property assessments and repairs are the main ones. If the resort decides to upgrade all of its rooms, you also need to foot the bill.
Are Timeshares Worth It?
Timeshares often get a bad reputation, as people look at them as investments. However, people who look at timeshares as buying a long-term holiday rental are always happy with the results. You can discover more about the benefits of timeshares in top resorts here.
Speak to an Expert
Now you have had timeshares explained; you can see how much sense they make. You can find resorts available from many major hotel brands. Call them to speak with a representative.
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