How The Timeshare Concept Works

How The Timeshare Concept Works

Timeshare units work basically the same as the condominium concept. However, timeshares takes the concept further than condominiums and further divides individual housing units into weekly time slots. These weekly time slots are then bought and sold. As a result, timeshare units can have up to 52 owners, one for each week of the year. Each of these owners has the right to use a specific week each year in the unit.

The allocation of weekly time slots on the timeshare varies widely and depends on the developer selling the timeshare units. Some timeshares lets you purchase a specific week in a specific unit within the vacation resort. Other timeshares sell floating time slots which merely promise you an available unit in the building during your particular week. However, small these differences may seem, they can have enormous implications when trying to sell and trade your timeshare unit. As a result, it is imperative to understand exactly what you are purchasing if you decide to buy a timeshare unit.

Most of timeshare sales in the United States today are financed by taking a loan and cash purchases of timeshare are increasingly rare. As a result, buyers should consider the cost of the loan in addition to the associated cost of owning timeshare when considering the purchase of a timeshare. The associated costs in owning a timeshare include maintenance fees, special assessment fees and taxes on the property. When these numbers are added to the timeshare's cost, it usually shows that the timeshare is not nearly as attractive in the amount it will save you as the timeshare salesperson makes it out to be.

The primary disadvantage of taking out a loan to finance the purchase of the timeshare is that most timeshare units don't qualify for a standard housing loan. Consequently, interest costs on financing for timeshares are exorbitant, sometimes reaching as high as 20%, or even more. Most banks and financial institutions do not normally finance timeshares so the developer sometimes acts as the financier of the loan. When you add the finance charges into the other costs of the timeshare unit, the inexpensive vacation unit becomes a lot less appealing as a way to save money. At the end of the day, the timeshare will end up costing you a lot of money if you choose to finance the purchase of a timeshare.

There are three important factors to consider when investing in real estate: location, location and location. This saying is applicable with timeshare units as it is to regular real estate properties. Location of the timeshare does not only apply to the location of the vacation property, but also applies to the date of your weekly time slot.

Timeshare resort units in the best locations and dates can easily be traded with other timeshare units around the world. However, timeshares that are located in an off-peak vacation time slot will find it difficult, if not impossible, to trade for other timeshares. However, purchasing a timeshare resort unit in a great location in high season generally costs more than timeshares in off-peak dates. As a result, you should avoid buying timeshare units in off-peak dates even if they are less expensive than peak timeshare units.

TIMESHARE: Timeshare Adventures provides different scopes of timeshares depending upon your taste - from selling, buying or renting timeshares of your dreams. You have varied types of timeshares to choose from at a reasonable price. Spending your vacation will be a whole lot memorable than you think.