Buying a timeshare is an exciting prospect: you have a potential lifetime of dreamy vacations at high-end resorts to look forward to.
That's why the timeshare industry continues to boom, with over 1,500 resorts located across the US, making it a $10.5 billion industry.
But, before you jump into buying just any timeshare, you should know what to expect, like how timeshares work and what options are available to you.
Keep reading to learn the details of selecting timeshares, so you can choose the one that best suits your style and budget.
What Is a Timeshare?
In real estate, a timeshare is a fractional ownership model of a shared home. Multiple investors can own the property itself, or investors can share the right to use the property during allocated times.
Timeshares can even be structured as lease agreements. Often these properties are condominiums, but the timeshare model can be applied to various types of real estate, including:
Apartments
Cabins
Campgrounds
Vacation resorts
Selecting Timeshares
Owning a timeshare is a good idea if you already spend a generous amount of time traveling to popular vacation destinations, as you can exchange timeshare accommodations.
With brands likes Hilton, Disney, Windham, and Marriot, there are more options now than ever before. For those who are pre-approved, financing options are also available to lessen the initial cost.
Deeded Ownership Timeshare
In this model, the investor bears partial ownership of the property. The percent of ownership equals the amount of time that is purchased. And if 13 people each buy four weeks at a timeshare, then 13 deeds will be issued.
Leased Ownership Timeshare
In a leased model, investors can lease ownership for a period of time. This method may or may not include the ability to sell or transfer your interest to another party.
Right to Use Timeshare
A right-to-use contract is similar to leased ownership, where the buyer purchases the ability to use the property in agreeance with the contract's guidelines.
There are two different time structures for visiting a right to use timeshare:
Fixed week ownership
Floating week ownership
In fixed week ownership, the owner has the right to visit during the same week each year. You can choose the week in the initial arrangement, but the dates will remain the same each year.
Floating week means the owner has access during a particular season or period. This period is chosen by the resort and offers some flexibility to choose any week within that season.
About Timeshare Points
Managing a timeshare can be tricky, but many resorts have made it easy with "club" point systems. Point systems are key to understanding the benefits that come along with this timeshare style.
Points-Based Timeshare
Under points programs, owners can gain points in two ways. You can receive points upon purchase, or you can trade in one of your weeks in exchange for points.
These points work similarly to hotel points or airline miles. The more you spend, the more points you earn. Then, you can redeem the points to book a stay at any property across that resort's network.
When comparing prices, the cost of a timeshare resort is minimal compared to the lifetime of vacation destinations it offers.
At Hilton resorts, you can use their HGVC points chart to see all the locations where you can redeem your points and how many points you need for each.
Your Vacation Awaits
Timeshares offer flexibility and can ensure you get the most out of your vacation time each year. If you've been thinking about selecting timeshares, now's the time to take action.
Did you find this article helpful? Check out the travel section of our blog for tips on making the most out of any vacation!