Timeshare Pointers

Timeshare vacation properties can be an economical way to guarantee relaxing vacations in comfortable surroundings at attractive resort locations. The concept of a timeshare is simple. Instead of paying the full purchase price for a vacation home that sits empty for most of the year, you buy only the portion of time that you intend to use the property for vacation, usually a week.

However, when you start shopping for timeshare properties and comparing ownership options, the variety of different types can be confusing. Let's take a quick look at the fundamentals.

First of all, there are two basic types of timeshare ownership: deeded and right-to-use. When you purchase a deeded timeshare, it's yours to do with as you please--you can vacation in it, let your friends and family use it, rent it out to others, and in some cases, even leave it to your heirs. If you buy a deeded timeshare (sometimes also called "fee-simple"), then you actually have ownership. Your deed is recorded with the local government just like any other piece of property. This is a great option if you plan to keep the timeshare and use it regularly. A variation on the deeded timeshare is a leasehold. You still have ownership, but only for a specified term.

Now let's compare that with a right-to-use timeshare. With the right-to-use arrangement, you are only buying the right to use the property--you don't actually have any ownership or interest in the real estate. Most right-to-use agreements are in effect for a specified number of years. After your right-to-use expires, the property will revert back to the owner.

Once you get past the basic deeded versus right-to-use decision, there are several regarding the week that you own or use. A fixed-week timeshare means that you own or have the right to use the property during a particular week every year. The weeks of the year are usually numbered from one to 52, and you'll know exactly when and where your annual vacation will be. More popular vacation times and weeks containing holidays will almost always be more expensive, if they're even available for purchase.

A floating-week timeshare offers some flexibility in your vacation schedule. Depending on the resort, you may be allowed to choose a week within a certain range (like between weeks 20 and 32), or you might be able to choose any available week during the year. Yet another version is the rotating week timeshare where your week rotates through the year. Rotating weeks are less flexible, but might give you a fairer shot at prime vacation weeks.

A different variation on timeshare purchase is the points system. You purchase a number of points, which can then be used to buy time in a resort. Typically, larger properties and more highly-valued weeks require more points, with smaller units and less attractive weeks available for fewer points.

These basic ownership types should help you understand most of what you'll encounter as you begin your search for the perfect timeshare. As you should with any vacation purchase, make sure that the property and ownership type fits your lifestyle, budget and future plans. Buying next year's vacation in advance is supposed to reduce your stress, not add to it.

Some folks still cringe at the very word: timeshare. Perhaps they are thinking of the impossible restrictions and lack of options that defined the timeshares of yesterday.

Happily, things have changed dramatically in the last 20 years. Today, timeshares offer a great amount of flexibility and freedom.

Rachel Rush, who lives in New York, said that when she visited a timeshare community in Florida, she was hesitant, because she remembered how rigid the rules were when she was a child.

“When I was a little girl, my parents owned a timeshare,” she said. “We had to go to Colorado the second week of every April. If someone was sick or there was a wedding or funeral, we were just out of luck. No vacation that year.”

As she listened to the presentation and asked lots of questions, Rachel realized that things were different now, and that owning a timeshare might be a great option for her.

Instead of being locked into visiting the same location each year, today’s timeshare owners can usually choose from a long list of vacation spots. Some companies offer locations all over the world. Some lucky timeshare owners are even offered a cruise as an option.

Even with all of the great improvements, timeshares are not for everyone. If you only take a vacation once every five years, then this isn’t the investment for you. For others, who usually do take at least one week of vacation each year, timeshares are often a good option.

Before buying, do your homework. Shop around and ask a lot of questions. Different companies offer different options. If certain locations are important to you, make sure the company you are researching has a property at that location. It’s easier to trade properties within the same company than it is to try and trade between companies.

Also, don’t jump on the first offer. Purchasing a timeshare is a perfect time to break out those negotiating skills. Buyers will be surprised just how much timeshare companies are willing to shave off of the initial offer.

Keep in mind that it isn’t always easy to sell timeshares. If you are looking for a short term investment that you can turn around and sell in a year or two, this may not be your best option.

The changes in the industry make purchasing a timeshare a great way to have access to gorgeous properties all over the country or all over the world. With a little research and good negotiating skills, you can have many “homes away from home” without having to break the bank.

Happy Vacationing!