Timeshare ownership takes the stress out of vacations. You're not saddled with the mortgage and upkeep of a second home that you may use only a few weeks out of the year. When you purchase a timeshare property, you purchase just the time you need -- and you lock in future vacations at today's low prices. That's a considerable benefit with hotel rates on the upswing.
At a timeshare resort, units are divided into usage intervals, commonly one week. You purchase only the number of weeks you plan to vacation each year, typically one to two weeks. Owners pay an annual maintenance fee to cover maintenance and management of the property so that when you arrive for your vacation, you are guaranteed a care-free, relaxing visit.
Some timeshares are sold on a points system which places a point value on the size and quality of the accommodations as well as the desirability of each week in the year. For example, purchasing weeks at a Vail ski resort timeshare may cost you more during peak January/February ski months when demand is highest than during summer months.
Most timeshare purchases provide you with a deeded real estate interest in the property. In some programs, such as Vacation Clubs, your membership purchases the right to use, but not own the club's properties. (See our January 16 post for a rundown on different types of vacation ownership.) There may be financial and tax advantages to deeded ownership, but it is the desire to invest in leisure time that generally drives timeshare purchases.
A variety of accommodation factors affect the price of timeshare properties, including:
- Square footage of the unit
- Number of bedrooms and baths
- Luxury features such as fireplaces, hot tubs, whirlpool baths, etc.
- Resort amenities
- Location
- Season of use
Next time: The advantages of timeshare exchange
