Timeshares and timeshare presentations today are great ideas and great assets. However they also seem to get some bad press as well to the point where when the word „timeshare“ is heard some people shy away. This article is to objectively set the record straight on what a timeshare is and what it isn’t.

A timeshare is at its basis a piece of property. It is shared among a number of owners.

Timeshare properties used to be tied to condominium resorts but they have evolved now to also be included as offerings by hotels, campgrounds, and even cruises. The options continue to grow every day.

Timeshare first originated in the middle 1900’s when property was so expensive that it was getting increasingly difficult for people to afford a full time vacation resort property. Similar to owning a condominium in a condo complex, all the owners contribute to the maintenance costs for a property.

How a timeshare property differs from a regular real estate property is that you can only use the property for a specific time duration.

The time that you would be able to use that property used to be more strict but as rules and policies evolve, the options of when you can spend time in your property are becoming much more flexible.

The most widely purchased ownership duration is one week each year.

Prices will vary depending on what time of the year your purchase is and what property you own. Some times and some areas are more desirable than others which is reflected in pricing. Supply and demand determine prices.

Timeshares offer great vacation opportunities but they also offer great investment opportunities as these are real estate purchases. However, selling your timeshare can be difficult so they should not be bought for investment purposes only.

If you do not plan to use your timeshare or rent your timeshare, I would advise against buying one because selling a timeshare can be difficult. If you use your timeshare, then it is a great investment because you are then owning instead of renting so to speak. Just like real estate property, they can be inherited by your children. Just like real estate property, they can be rented out if you do not plan to use your week for that year. Just like real estate property, they can be paid off leaving the rest of your vacation time „free“ for the rest of your years to come (maintenance fees will still apply). Unlike real estate property, units can be put into a pool where you can then trade for other units. So for example we own a unit in Hawaii, but if that year we want to go to Florida we can put our unit into a pool and then see if there is a Florida unit we can use in its place.

Owning a timeshare unit is not for everyone.

This is very similar to purchasing real estate. You normally would not just buy a house on a whim. Owning a house is a very specific commitment financially. Owning a timeshare property is also a financial commitment. Do be sure to make yourself aware of the yearly upkeep fees so then you can decide for yourself if owning a unit is the best thing for you. Make sure you think you will actually use it or be able to rent it. If you purchased a car or a house and did not use it, no matter how great a deal it was, you are not able to realize the value of it.

For me personally, I am part of a family that owns some timeshares. For us it is a great investment because we know we will take vacations often. Similar to „renting“ vs „buying“ a house, since we will consistently use this property it makes sense for us to own it. After it is paid off, we will continue to use it and enjoy it. And the extra value is that owning these units „forces“ us to take vacations every year, and this is priceless.

I hope this article has been helpful! Do your research now and see if a timeshare is for you!

Want to find out more about how to buy or sell a timeshare, then visit Emil Yau’s site to learn more about selling timeshares and other timeshare information.