If you're new to vacation property ownership, you may find the language confusing. Timeshares, fractional ownership, vacation clubs: What do they mean and how do you tell them apart? In choosing the vacation home best suited to your lifestyle needs, budget and vacation goals, it's important to understand the terminology. Timeshare Giant is here to help.
- Timeshares include deeded property, right-to-use and points-based programs. Owners purchase one-week intervals at a property on either a fixed or floating calendar. Properties range from studios to multi-bedroom villas with many timeshares located at resorts that offer a wide variety of amenities. In addition to the one-time purchase price, owners pay an annual property maintenance fee.
- Fractional ownership is the shared purchase of a vacation property with other parties. Each buyer is allotted use of the property commensurate with the portion (fraction) of the property purchased. For example, 50% ownership would allow you to use the property for 6 months out of the year. Fractional properties are generally affiliated with high-end hotel companies so owners enjoy personalized services and other luxury amenities. In addition to the purchase price, owners pay an annual property maintenance fee.
- Vacation club members do not purchase actual property, instead their membership fee and annual dues buy them the right to use any of the vacation properties owned or operated by the club company. Club companies offer members a wide range of vacation properties, most with concierge services.
- Condo hotels sell a portion of their room inventory to the public. For an annual fee, owners may use their room for vacation purposes, corporate housing or rent it to generate income. Rentals are typically managed by the hotel, though proceeds go to the room owner. Buyers and their renters or guests enjoy hotel services and amenities.
