ResalesTimeshare Properties Provide Flexibility, Affordability
Millions of people make investments in timeshare properties every year. For
those of us who dream of owning vacation property but can"t afford such a
luxury, timeshare is the next best thing. In fact, in some cases, it"s even
better because timeshare owners often enjoy the flexibility of "banking"
time in properties throughout the world rather than just one property.
The theory of timeshare is relatively simple; owners share a single
condominium unit with other owners. The average timeshare condominium has
about 50 owners during the course of one year -- that translates into about
one owner per week each year. Any remaining weeks either are consumed by
owners who have banked more than one week; or by maintenance crews who
thoroughly clean the units after each owner departs.
The property in which an owner makes his first investment is referred to as
his "home" property. The real advantage of owning timeshare, however, is in
your ability to trade your usual week in exchange for a stay at more than
4,000 timeshare properties throughout the world. While many smaller
timeshare companies exist, among the largest are Resort Condominiums
International (RCI) and Interval International (II). Most timeshare
companies have a presence on the Web, so you can peruse their respective
properties in various countries and decide to trade your week if you"d
like.
Your expense is derived solely from the time that you use the property. As
a timeshare owner, you"re also required to pay a maintenance fee, an
expense shared by all other owners of your unit. That maintenance fee,
usually ranging from around $200 to $500 per year, guarantees
(theoretically) that when you arrive at your unit, the unit is clean,
carpets have been vacuumed, dishes and silverware are well-stocked and
clean, and your basic necessities -- such as glasses, blankets, toilet
paper, etc. -- have been provided. The fee also pays for landscape and pool
maintenance, taxes, utilities, lease and land payments, the management
company and more.
Aside from the maintenance fee, you are responsible, of course, for
stocking your own groceries. Many timeshare properties offer shopping
services for owners (for a fee); before they arrive, owners fill out a
grocery list and submit to the company, so when they arrive, their pantries
and refrigerators already are full.
If you"ve committed to a particular week each year -- for example, the
third week in March -- you"re entitled as a timeshare owner to exchange
that week either for another resort (assuming that the resort in question
has space available when you want to travel), which is called an external
exchange; or you may do an internal exchange within your own resort,
electing to travel during a different week. In that case, you may either
get the same unit you"ve had in the past (if that week is empty, or if the
previous owner of that week has changed his or her plans); or you may end
up in a different unit -- sometimes a larger or smaller unit depending upon
what"s available. Obviously, the sooner you can notify your resort, the
better your chances of securing what you want.
If for any reason you can"t use your week, you won"t lose it; instead, you
can "bank" it with either your own exchange company or any other exchange
company. Owners usually are allowed to bank weeks for up to two years;
check with the company you use to verify that time limitation. This
allowance gives owners considerable flexibility. The following year, you
can add your "banked" week onto your usually scheduled week for a two-week
vacation; or you can take two separate vacations either at the same
property or at different resorts. Owners may even rent out their units if
they"d like, or give them to family members or friends as gifts.
If you decide to rent out your week, you"ll want to ask for a rental amount
of anywhere from about $350 to $700 per week, depending upon the size and
location of the property. You"ll want to make sure you"re compensated for
your maintenance fee; many owners who rent out their properties ask for a
rental amount that equals roughly twice the amount of their maintenance
fee. So if you"re paying $300 per year in maintenance fees, you"d ask for
$600 per week to rent out your unit.
As an owner, you may want to consider attending a homeowners" association
meeting, much like one you"d attend if you owned a condominium year-round.
During these meetings, you may express your concerns, meet with other
owners, generate ideas and suggestions and more.
You"ll notice many timeshare properties on the market each year; many
owners decide to sell if their lifestyles change -- for example, they own a
ski resort property and no longer ski often enough to justify the ongoing
expense of the property. If you"re in the market to purchase one of these
properties, experts say you"re probably better off buying directly from
other owners rather than contacting a resort and expressing your interest
in buying a property. When you purchase a resale property, you"ll receive a
deed and title policy provided you use a licensed insurance company. If you
decide to sell your own timeshare property, you can seek out various
companies who advertise timeshare; many of them are on the Web and offer
the services you"d get from a typical REALTOR®, such as securing the
necessary financing and negotiating various stages of the transaction, most
notably the closing.
Timeshare properties are an extremely popular choice among travelers
worldwide. They offer tremendous flexibility and provide homelike
surroundings in otherwise unfamiliar environments. They"re particularly
good choices for families with young children, as they provide more space,
a little room for play, and the option of preparing meals at home rather
than subjecting children to restrictive restaurant menus (and parents to
high restaurant bills). With more than 4,000 timeshare properties
throughout every corner of the world today, as a timeshare owner, the world
is quite literally your oyster.