What You Need to Know Before Buying a Timeshare

If you are looking to stake claim to a vacation unit or units without the need to purchase an entire vacation rental, then a timeshare may be the ideal solution for you and your family.

Timeshares first hit the American market in the 1970s but are still going strong today. In fact, a recent study shows that more than 9 million households in the United States now own some form of a timeshare.

Before you buy a timeshare, it is important to understand the different types of timeshares and how they work.  It is also important that you will be able to answer and know the right answer to the question: Do timeshare cancellation companies work?

Here is a quick breakdown of the various timeshare options available.

 

3 Timeshare Ownership Options

There are three main types of timeshares available on the market today, including:

#1 Deeded Timeshare

With a deeded timeshare, you actually have part ownership of the timeshare property. This ownership is split between you and all the other timeshare holders, and it will remain yours until you choose to sell the property.

#2 Leased Timeshare

A leased timeshare is very similar to a deeded timeshare in that you still have a claim to the vacation property. However, most leased timeshare agreements are only for a set period of time. Once that timeframe has expired, you will have to repurchase or lose your stake in the timeshare.

#3 Right-to-Use Timeshare

Right-to-use timeshares have become very popular in recent years. Since you are not actually purchasing a specific unit, you will have no ownership of one specific vacation unit. Instead, you are simply paying for the right to use the property in accordance with your timeshare agreement.

 

3 Types of Timeshares

#1 Fixed Week

With a fixed week option, you will have access to the same timeshare unit every year for the exact same week.

This is great for families that have no problem taking vacations at the same time every year, and it’s good for those looking to purchase a timeshare in a high-demand vacation area.

The downside is that if for any reason you can’t go during your specific timeframe, you lose your vacation that year. However, some timeshare agreements allow you to sublet the property or change weeks with another timeshare owner if necessary.

 

#2 Floating Week

A floating week timeshare gives you and your family greater flexibility when planning your vacation. Instead of being limited to a specific timeframe during the year, you can choose when you want to go.

However, you will be limited to the set amount of time, such as one or two weeks per year,  specified in your timeshare agreement.

Some timeshare agreements even allow you to choose various vacation spots rather than being required to stick with one unit. The downside is that dates fill up very quickly, so you must make sure you can plan your vacation well ahead of time to be sure you get the dates and location you want.

 

#3 Points Club

With a points system, you have the flexibility to choose any available timeshare in any location owned by the timeshare company, as well as any week or weeks you want.

However, you must have earned or purchased enough points to reserve your vacation. The downside is that popular vacation spots can have a very high point value.

 

Are Timeshares For You?

Be sure to examine all of your options before making a final decision about which timeshare to purchase.

Always read all the fine print, and make sure you understand exactly what is and what isn’t included in your timeshare agreement.  If you want to sell or cancel your timeshare you’ll need someone who knows how to do this. For this, I recommend Wesley Financial Group to help you out.

This will ensure you make the best decision for yourself and your family.

Are you considering the idea of buying a timeshare?  Let me know in the comments below.

Cheers!