Timeshare 101
-Vacation Ownership -Vacation ownership offers consumers the opportunity to own fully-furnished vacation accommodations sold in a variety of forms, such as weekly intervals and Points-based systems, for only a percentage of the cost of full ownership. For a One-time purchase price and payment of a yearly maintenance fee, purchasers own their vacation either in perpetuity or for a predetermined number of years. Owners share both the use and the cost of upkeep of their unit and the common grounds of the resort property. Vacation ownership purchases are typically financed by consumer loans of five to ten years, with terms dependent upon the purchase price and the amount of the buyer's down payment.-The Advantages of Vacation Ownership -Unlike a hotel room or rental cottage, which require payment for each use with rates that usually increase each year. Ownership at a timeshare property enables vacationers to enjoy a resort, year after year, for the lifetime of their ownership with only a one-time purchase price and payment of yearly maintenance fees. Timeshare ownership offers vacationers an opportunity to save on the escalating cost of vacation accommodations over the long term while enjoying all the comforts of home in a resort setting.Truly a home away from home, vacation ownership provides the space and flexibility to suit the needs of any size family or group. While most vacation ownership condominiums have two bedrooms and two baths, unit sizes range from studios to 3 or more bedrooms. Unlike hotel rooms, there are no charges for additional guests. Also, unlike hotels, most units include a fully-equipped kitchen with dining area, washer and dryer, linens, stereo, televisions, VCRs and more.Timeshare resort amenities rival those of other top-rated resort properties and may include swimming pools, tennis, Jacuzzi, golf, bicycles and exercise facilities. Others feature boating, ski lifts, restaurants and horseback riding. Most timeshare resorts offer a full schedule of on-site activities, such as sporting, recreational and social events for adults and children. The resorts are staffed with well-trained hospitality professionals, with many resorts offering concierge services for assistance with visiting area attractions.-How Vacation Ownership Works -Each condominium, or unit, of a vacation ownership resort is divided into intervals, either by the week or points equivalent, which are sold separately. The condominiums are priced according to a variety of factors, including size of the unit, resort amenities, location, and season. With timeshare, owning your vacation is considered a major benefit. Once a majority or other pre-set percentage is sold to vacation owners, the management of the resort is usually turned over to a Resort Property Owners Association (POA) or Homeowners Association (HOA). The vacation owners in turn elect officers and take control of expenses, upkeep and the future of their resort property, including the selection of a management company.-What Are Yearly Maintenance Fees? -Yearly maintenance fees are fees paid each year to a HOA for the maintenance of the resort. Just like taking care of a home, resort maintenance fees help maintain the quality and future value of the resort property. In a vacation ownership resort, maintenance costs are shared by all owners. They pay for on-site management, unit upkeep and refurbishing, utilities and maintenance of the resort's common areas and amenities, such as pools, tennis courts and golf courses. Just like residential condominium owners, after management has been turned over to vacation owners, they determine the fees through their HOA Board of Directors. The amount of the yearly maintenance fee typically depends on the size, location, and amenities of the resort. Maintenance fees are accessed and paid annually by each vacation owner.-There are a Variety of Vacation Ownership Products and Usage Plans -Today, there are several types of timeshare programs from which to choose, enabling consumers to purchase the type of vacation ownership that best matches their needs and lifestyle.Timesharing or Vacation Ownership is a term which describes a method of use and ownership. It denotes exclusive use of accommodations for a particular number of days each year. Usually sold by the week, it is also called interval or vacation ownership.The purchase of a timeshare interval can take various legal forms. Under a fixed-unit, fixed-week deeded agreement, the purchaser receives a deed allowing the use of a specific condominium at a particular time every year forever just like buying a house. Benefits may include the tax advantages of ownership, plus a voice in the management of the resort. Under this agreement, the owner may rent, sell, exchange, or bequeath the vacation interval.Under a right-to-use plan, ownership of the resort remains with the developer. The purchaser reserves the right to use one or more resort accommodations for a specified number of years, ranging generally from 10 to 50 years, after which all rights return to the developer. These plans come in a variety of forms, most commonly known as club memberships.Vacation intervals are sold as either fixed or floating time. With fixed time, the unit, or unit type, is purchased for a specific week during the year. That week is reserved for the owner every year, subject to cancellation if the vacation owner does not plan to use it in a given year. Floating time refers to the use of vacation accommodations usually within a certain season of the year. The owner must reserve his or her desired vacation time in advance, with a reservation confirmation typically provided on a first come, first-served basis. The purchaser may also receive a deed under a floating time arrangement. Within floating time, price differences are based on demand within each season.Vacation clubs or point-based programs provide the flexible use of accommodations in multiple resort locations. With these products, club members purchase points which represent either a travel and use membership or a deeded real estate product. These points are then used like currency to access the various size accommodations, season and number of days at the participating resort. The number of points needed to access the resort accommodations will vary by the members' demand for unit size, season, resort location, and amenities. A vacation club may have a specific term of ownership or be deeded in perpetuity."Lock-off" or "Lock-out" units allow vacation owners to occupy a portion of the unit and offer the remaining space for rental or exchange. The units typically consist of two bedrooms and two baths, or three bedrooms and three baths.Bi-annual Ownership, or alternate year ownership, allows use of a resort ownership product every other year and cost less than annual ownership at comparable resorts.-Why should I buy a resale-When you purchase a timeshare through the resort developer you're paying for development and marketing costs. These expenses range from 40-60% of the retail price. With a timeshare resale you save because the previous owner has already absorbed these costs. The same high season, 2 bedroom condo that sold for $20,000 is typically available through our brokerage for as little as $1,000. Information on the resale industry lets you travel to your favorite lake, golf club, ski hill or seaside resort at a price you can afford.
