What is a Timeshare? Your Basic Guide to Timesharing
You may never have heard of the term timeshare. Even if you have, you might have no idea what a timeshare actually is.
A timeshare is the shared ownership of a resort or holiday home. Multiple buyers will purchase their share of the home from its owner, so they can spend a few weeks in their dream resort without having to buy the whole thing.
This might sound ideal, but there’s a lot more to owning a timeshare. Here is a simple guide to what timesharing is and whether or not they are worth spending your money on.
What is a Timeshare?
A timeshare is often also referred to as vacation ownership, although this term is quite misleading. With a timeshare, you don’t actually own the holiday home outright. Instead, you pay a smaller fee to own it for a small portion of the year (usually a few weeks or months).
Why Do People Buy Timeshares?
Most people choose to buy a timeshare so they can enjoy their favorite resort every year without having to fork out a large amount of money buying it. It enables you to choose an annual fixed date to jet off to your dream destination without the worry or stress that usually comes along with finding a great hotel.
Unlike a hotel room, a timeshare offers a resort that feels more like home. Essentially, you are buying a share of your desired vacation home or villa that provides private bedrooms, a kitchen full of the latest gadgets, and the perfect scenic location. Many people find it much easier to return to the same trusted place each year, instead of scrambling to find a nice hotel every summer before they get fully booked up.
What You Need to Know Before Buying a Timeshare
If this sounds perfect for you, there are a few things you should be aware of before you jump into buying a timeshare of your favorite vacation home.
Firstly, consider searching for the best timeshare exit companies so that you are covered in case you decide you want to leave it. Of course, you can try and see your timeshare, but they can be extremely difficult to get rid of, especially if your chosen resort is in an undesirable location.
Keep in mind that timeshares are not investments. They don’t work like real estate where you buy a property, fix it up, and sell it for a profit. You don’t gain anything for your money apart from a few weeks away in the sun. And even then, you are paying more and more every year for this.
You must also take into account that your payments are not fixed. When you sign the contract for a timeshare, the prices can vary annually depending on interest rates or inflation rates. It’s really up to your landlord how much you’re going to be charged. Aside from the annual payment for your timeshare, you will also be expected to pay regular maintenance fees that cover any repairs around the resort.
Final Thoughts
Ultimately, there are good and bad points to getting a timeshare. Make sure to do your research before committing to one so you don’t end up stuck in a contract paying for something you don’t want!
