For those who can't afford to buy a vacation home, or simply want to save money by only paying for the time they will use their vacation home, timeshares provide a solution. But before you take the leap and buy a timeshare, make sure you know all the different types and how they're used.
A timeshare is a piece of property that is shared by multiple owners or is used by several parties throughout the course of a year. Timeshare owners pay a certain amount to use the property for a period of time, usually a period of a few days to a week each year. The cost depends on the location and the property, but it also takes into account the period during which the property can be used by the buyer.
Some timeshares are sold as deeded, meaning that the property is divided into fractions of a year (usually weeks) and sold outright as real property. Deeded timeshares include all the rights and responsibilities of any other piece of property. Right to use timeshares give the buyers the right to use a piece of property during a certain period without transferring ownership. These are very popular because property taxes are typically paid by the owner, and buyers do not have to deal with the complications of owning property internationally.
In the early days of timeshares, the most common type was the fixed week ownership, meaning that the timeshare owner may only use a property during a set week of the year. Also available are timeshares with floating week usage, meaning that the timeshare owner can use the property for a week during a certain period of the year. Timeshares can also have rotating weeks in which each timeshare owner uses the property according to rotating schedule within a given time period.
For those who want a variety of possible destinations, there are points programs. With these, an individual doesn't actually buy or lease a timeshare, but he buys a certain number of points per year from a company that holds timeshares in many locations. The buyer can then redeem these points to use any of the properties in the company's catalog, as long as they have enough points.
Many have complained that timeshares are overpriced and that the rules governing them can be too complicated. Additionally, some have been dissatisfied because they face losing the money invested if they don't use the property during a specified time period. For these reasons, it is important to shop around and make sure you're getting the best deal.
