Between going to work, taking care of family, and maintaining a home, daily life can get hectic. And after a long year of spinning a million plates and running in every direction, who wants to put up with the stress of planning a vacation?
Well, if you owned a timeshare, you wouldn’t have to plan! You could simply pack a bag and head out, knowing that your property is there waiting for you.
That said, it’s important to know what you’re getting into before you make the leap. How much is a timeshare? How do they work?
If you’re in search of the answers to these questions, you’ve come to the right place. For a quick guide to everything you need to know about timeshares, just keep reading!
How Does a Timeshare Work?
Rather than buying a vacation home outright, when you buy a timeshare, you’re investing in “fractional ownership” of a property. With this system, you’ll split the costs of ownership with other buyers. Then, throughout the year, each of you will get a certain amount of time to spend at the property.
Types of Timeshares
Sounds simple, right? Well, it gets a little more complicated. There are several different types of timeshare to choose from, and the details of your agreement and your timeshare schedules depend on the type of timeshare you buy.
In general, timeshares fall into one of two categories: deeded and non-deeded. With a deeded timeshare, each buyer purchases ownership interest in the selected property. The amount you pay will change the percentage of the property you own.
So, for example, if you want to spend a month out of the year at your vacation home, you would need to spend more than someone who only wants a week.
In a non-deeded timeshare agreement, you purchase the right to use the property without purchasing a percentage of the property itself.
When you’re choosing between the two, keep in mind that timeshares, in general, can be difficult to sell, and non-deeded timeshares are the toughest of them all. Now, these helpful tips can make the process easier, but you’ll still have limitations on the transfer of your property.
How Much is a Timeshare?
Let’s say you want to spend a week at the beach. You’d book transportation, lodging, and a few excursions, not to mention the cost of food and drink. All in all, you might spend around $2,000.
Well, with a timeshare, you’re buying a lifetime’s worth of vacations all at once. So instead of $2,000, you’d be looking at a price tag closer to $20,000.
In addition, you have to think about maintenance fees. To keep the property in good condition, companies charge around $1,000 per owner per year for maintenance.
If you buy your timeshare outright, you only have to worry about the maintenance fees. This is the smart way to go, as timeshare payments via a loan often come with high interest rates.
Is Buying a Timeshare Right for You?
Though buying a timeshare is a great option for some, it’s not for everyone. It all comes down to preference! If you enjoy vacation planning and choosing a new spot every time, you probably wouldn’t like having a timeshare.
Alternatively, if you like the idea of having a vacation home to visit every year, taking the hassle out of vacationing, buying a timeshare could be ideal.
Now that you no longer have to ask questions like “how much is a timeshare?”, you’re better equipped to make the right choice for yourself.
If you’re still not sure, take a look at our blog! We have articles on all things vacation!
