The timeshare industry is one of the fastest growing sectors of the vacation travel industry. In 2021, it generated $8.1 billion in sales.
The average sale price of a timeshare in 2021 was $24,140.
While this is an impressive statistic, it’s important to consider all of the nuances involved in buying or selling timeshares. Besides the initial cost, timeshare owners also pay annual maintenance fees and other associated costs that can add up quickly.
The timeshare industry has come a long way over the last two decades, especially in terms of its flexibility and ease of use. As a result, there are many options now when it comes to timeshare ownership.
Among these options are shared deeded interest, non-owned right to use timeshare, and leased ownership interests.
Shared deeded interest (also called fractional ownership) gives buyers the ability to own a percentage of an entire resort property for a set period of time. In exchange, the buyer can enjoy a number of benefits, including dual protection of title to the property and title insurance, as well as a variety of tax advantages related to home ownership.
Non-owned right to use timeshares, on the other hand, don’t place buyers in an equity position with the underlying property. They do, however, provide their members with the same rights to use the underlying property for a specified period of time.
Some buyers of non-owned timeshares may be tempted to use the underlying property for a variety of reasons, such as vacationing with friends and family, renting it out, or participating in charity events. This is a common practice that should be avoided as it may limit your ownership rights and impede the resale of the underlying property.
While there are many benefits to timeshare ownership, it is important to consider the pros and cons of each option before making a decision on what type of timeshare is best for you. For example, some timeshares offer a fixed week and can be used only at a certain resort. Others, on the other hand, allow owners to swap their weeks for other resorts on an exchange program.
There are also third-party timeshare exchange companies, such as RCI and Interval International, which can help you find a timeshare that’s right for you. These are a great alternative to buying directly from the developer because you can typically purchase timeshares at a much lower price.
Buying a timeshare can be a good financial decision for many people, as it’s a great way to lock in future vacation accommodations at today’s prices. It’s also a smart way to save money on your annual travel expenses, and it can even help you earn extra income by renting out your timeshare.
Another benefit of timeshares is that they are typically located in desirable tourism destinations. They’re usually surrounded by top-tier hotels and resorts that cater to families, so they’re often very popular.
There are a few major downsides to timeshares, however, including associated fees that can quickly add up and the fact that they’re notoriously hard to sell off. These negatives don’t make timeshare ownership an ideal solution for everyone, so it’s important to research the various options and talk with a trusted advisor before making a final decision on what is right for you.