In the midst of daily chores, work and responsibilities, many people look forward to their vacation time each year. The timeshare industry has become a way for travelers to enjoy a variety of destinations during a purchased week or allotment of time. Vacation ownership gives customers the flexibility and choice of visiting multiple locations, usually with condominium-style accommodations.
There are several variations of vacation ownership that differ depending upon the hosting resort or hotel chain. Deeded timeshares allow a buyer to officially own a piece of a resort's property. Depending upon the terms of sale, the owner is entitled to a specific week every one or two years during a specified season. Owners of deeded timeshares usually own their property for the rest of their lives unless specified otherwise in the purchase contract.
Another form of vacation ownership is called a "right to use" option. These can be called by a number of names, including vacation club. Users of vacation club properties pay for their choice of fixed or floating weeks of time that vary based on season and availability.
If you purchase a deeded timeshare, you are legally purchasing a mortgage. You will be responsible for yearly maintenance fees that include your percentage of the property taxes. Just like a home mortgage, property taxes are deductible on your federal income taxes. Timeshare owners in a vacation club will charge you a yearly membership or maintenance fee as well. These fees are used for normal property upkeep and enhancements.
If you make a timeshare purchase, check your state's laws regarding a reviewing period. Timeshare tours can be pressuring to customers, and most states mandate a period of 72 hours or more to review your contract. If you feel that you are unable to meet the obligations associated with your timeshare, these states give you the legal right to rescission. A right to rescission, or "cooling off period," allows a buyer to void a timeshare contract without penalty. Check with your state's attorney general's office to find out the laws that apply to you.
Most vacation ownership companies participate in international exchange programs. In exchange for a yearly membership and exchange fee, vacation owners can "bank" their vacation time. The exchange program mitigates a trade between owners to allow people to travel outside of their resort property. The most popular of these programs are Resorts Condominiums International and Interval International, more commonly known as RCI and II.
According to the American Resort Development Association, more than 80 percent of timeshare owners are pleased with their decision to purchase vacation ownership. The benefits of timeshare ownership include vacation flexibility and reliable accommodations. Families enjoy knowing that they can rely on a regular vacation, regardless of their personal financial circumstances.
In addition to direct purchase from a resort, you can buy timeshares at a discount from resell brokers. Resellers provide a brokerage for owners to list and sell unwanted timeshares in exchange for a fee or commission. You can also purchase a timeshare from websites like eBay and Craigslist.
Location plays a large role in vacation ownership. Properties in areas of high tourism like Orlando or Las Vegas will cost substantially more than resorts in central Texas or northern Maine. When you buy a timeshare, remember that areas in high demand are more appealing on the private market if you decide to sell in the future.
Never buy a foreign timeshare without first understanding that U.S. laws do not apply outside of American borders and U.S. territories. Consider consulting a legal professional before signing a contract, even if incentives are offered for purchase. Get the incentive offers in writing and make an educated decision without the pressure of a sales environment. Check the seller's reviews and rating with the Better Business Bureau.
