Timeshare Ownership: The Pros and Cons of Timeshares

The pros and cons of purchasing a timeshare should always be considered in a rational way before making a decision. It is important to consider your choice of lifestyle, as well as your financial condition and giving weight to the advantages and disadvantages. For instance, if you are quite wealthy. The purchase price will be easier to pay that if it represents a substantial amount of your savings. The cost will also affect how you evaluate the pros and cons of other aspects of the investment. In either case, it is always wise to thoroughly research your decision.

First, we'll look at some of the advantages to timeshare ownership. To start with, timeshare properties can be quite economical when contrasted with buying standard real estate that you would only occasionally use. For instance, you could buy a piece of real estate for $200,000, or you could purchase a timeshare property were only $10,000 and pay an annual maintenance fee of $500 per year. Assuming you own a the timeshare for a period of 30 years, the total cost will be as follows:

(30years x $500)+$10,000 = $25,000 total.

Compare it with buying the real estate property; you will save $175,000. Isn't that a lot of money? Is it wise to invest that much extra money for once a year use?

Consider instead, that you spend $1200 a year to stay in a hotel during your vacation. To be fair, we need to consider that cost for the same 30 year period.

30 years times $1200 equals $36,000. This is still $12,000 more than the $25,000 you would pay to own the timeshare property for your lifetime.

Apart from saving money you get the comfort of your home. In a hotel you might get only a suite. But a typical timeshare condo has two or three bedrooms, one or two bathrooms, a kitchen, a dining room and even a laundry room. Also timeshare units are usually fully furnished. Most of the timeshare properties have an indoor or outdoor pool also these days. In addition to that you also get resort facilities. What more somebody might want when they get all these facilities and comfort of home?

If you have a timeshare you don't have to worry about the upkeep and maintenance of the condo. It is taken care of by the developer. Now compare this with buying a real estate property for the life, you have to do all the maintenance.

A somewhat overlooked advantage of owning a timeshare is that it almost forces you to take a vacation each year. If you have a timeshare, you definitely make it a point to go for a vacation at least once a year so that you can take full advantage of the property. Also, you are also saved from the hassles of planning a vacation every year since you know where you're going and when well in advance.

Most of the timeshare companies are associated with other timeshare companies. This allows the exchange of timeshare. This is one of the many reasons why people prefer timeshare.

Let's quickly examine some of the cons of timeshare ownership. One of the common complaints people have with timeshares is the use of high-pressure sales techniques during a sales presentation that an unknowing customer is lured into after receiving a free gift from the timeshare company. It is wise to thoroughly research the company before going into the presentation and ensure that they have a good reputation for being honest and easy to deal with.

You'll lose some of your free capital when you have to pay a large fee upfront. Also, when you finance the cost through a loan you will be paying extra money in interest costs. Lastly, don't forget about the annual maintenance fees and any association fees.

Timeshares are one of the most difficult types of real estate to resell. Furthermore, they typically depreciate on the resale market vice appreciate. These facts are cons to timeshare ownership.

A final consideration is the flexibility of your timeshare property. You might have a floating week and an exchange program to take advantage of, but you'll have to plan your timeshare vacation months in advance. Remember that you are on a first come, first served basis with the other timeshare owners. If you have a fixed week, the lack of flexibility is an even greater con.

If you are interested in timeshares a good place to learn more is in aTimeshare Forum. We Own Timeshares.com is a new social network full of Timeshare Information and it has a great forum too. It is free and easy to join this timeshare social network. Create your own profile in minutes, share experiences and reviews of different timeshare locations and start asking questions in the forum today.

What Do You Know About Timeshares?

A piece of property that is shared among a number of owners is called a timeshare. Even though many timeshare properties are condominium resorts, it is becoming more common to find timeshares that involve cruise ships, motor homes, hotels, or even campgrounds. The concept of timeshare properties gained strength during the 1960s in Europe as real estate rates were dramatically increasing and vacation homes are becoming unaffordable. However, when the ownership of a property is shared between many people the burden of maintenance and other costs become greatly reduced for the individual. This allowed for more people to own a vacation property and for real estate developers to market the properties to a larger number of people. The key to a timeshare property is that it is owned by a number of people with no connection to each other.

With a more traditional timeshare, the owner controls the use of a single property during a single block of time. However, just as timeshare ownership has grown in popularity, the flexibility of ownership has also increased. Under a more flexible ownership option, you may have a choice of choosing from more than one timeshare destination, as well as choosing the time period in which you will use the property. This means you won't be limited to a specific time of year.

Since timeshare properties are commonly used for vacation, they are often found in warm destinations such as Florida, but they may also be found near ski resorts, lakes or golf courses. A typical timeshare property will have between one and three bedrooms, several bathrooms, a kitchen and a living room. Most locations will also feature pools, day spas and fitness centers. A variety of amenities are common features at most timeshare locations today.

Most timeshare properties are owned in one-week increments. The price of purchase a week of use varies depending on the location and the time of year that you own the property. Essentially, rates vary depending on demand during different seasons at that location. For instance, the ownership of a timeshare property during the month of June in Southern California will carry a higher cost than it will during the month of October. It is common for resorts to use color codes that indicate increasing demand during various high use seasons. Therefore the color red may indicate a high demand for the timeshare property and you can expect that to translate into a higher cost of purchase.

Since timeshares are deeded real estate properties, they can typically be inherited by your children. this makes them a great long term vacation investment that your family will benefit from for years to come. It is also possible to rent out your timeshare to others when you are not using it. Since it is your property, you will receive the full value of rental income that your timeshare can generate. another advantage to timeshares is the fact that they can be exchanged or traded with other timeshare properties. Just remember that when trading the use of your timeshare during a low demand season, it may be difficult to find another person that wants to use the property during that time.

Just as in purchasing any other piece of real estate, a timeshare property may be purchased in cash or through some type of financing. The cost of the management of the property, as well as the maintenance of the facilities is spread out among the owners through the payment of annual fees. Fees may vary widely depending on location and should be considered prior to purchase.

There are many different types of timeshare ownership options to consider before making a purchase. however as indicated by its growing popularity, timeshare ownership can be a great long-term investment option for your families future vacations.

If you are interested in timeshares and want to learn more about owning a Timeshare Property, or if you want to network and associate with other timeshare owners, visit We Own Timeshares.com. We Own Timeshares.com is a new social network full of Timeshare Information. It is free and easy to join this timeshare social network.