If you are like many people, you may spend a good amount of time contemplating what you will do for your annual vacation. You may also have reached a juncture at which you are thinking about purchasing some sort of vacation property. In this regard, you may be considering the purchase of a timeshare. There are some pros and cons associated with time shares that you need to weigh and balance.
Overview of the Four Basic Types of Timeshares
In advance of weighing the advantages and disadvantages of timeshares, you need to understand the four basic types of timeshares. One or another may be better suited to your needs, goals, and objectives.
The fixed week timeshare provides you with ownership of a designated unit for a specific week, every year for as long as the contract remains in force. This type of arrangement provides you with a great deal of predictability. However, this arrangement limits flexibility.
The floating timeshare derivation does provide you with more flexibility. You are able to select a week to utilize the property during a specific time period each year. Depending on the time of year, prime times can quickly be snagged by other owners, however.
The right to use version of timesharing allows you the ability to lease, rather than own, a set number of days at a property each year, for the term of the contract. This does provide you with some greater flexibility, although the developer maintains ownership interest in the premises.
Finally, the points club timeshare scheme provides you with what might best be called credits each year. You can use these credits for any property that is part of the club system. The drawback to this type of scheme is beating out other participants in making reservations for desired time periods.
Advantages of Timeshares
There are a number of significant benefits associated with buying a timeshare, according to Forbes magazine, which spend a good deal of time investigating the ins and outs of these types of vacation properties. One of the key benefits associated with timeshares is predictability. With timeshare ownership, you always know when and where you will have access to a vacation property. You do not have to spend an inordinate amount of time trying to figure out a vacation destination that fits within your budget.
Generally speaking, a timeshare is more affordable overall than is a more traditional vacation home. With a timeshare, you are not responsible for paying the year-around costs associated with the property. In reality, not having this financial responsibility can represent the elimination of what proves to be a significant economic burden for traditional vacation homeowners.
Even with a fixed timeshare, you may be able to enjoy some flexibility. In other words, you may not necessarily be locked into spending your vacation the same way each and every year. You may be able to trade your week or weeks with someone else. This can include not only the trading of scheduled times, but of vacation destinations are well.
Some timeshare contracts even permit you a greater degree of flexibility. You may be able to rent your timeshare period to a third party. You can make this decision if you need to make some extra money. In the alternative, you can pursue this course if you would like to vacation somewhere different during a given year and would like to generate some revenue to assist in paying for that trip.
Finally, a timeshare gives you the opportunity to be generous with friends and family. You can let them use your timeshare. In the alternative, you can also donate days at your timeshare to a charity, which in turn will use that donation to raise funds for the organization.
Disadvantages of Timeshares
The reality is that no type of vacation is absolutely perfect. There are some potential disadvantages associated with timeshares that you need to at least ponder when you consider making this type of investment. There will be some various fees associated with your ownership of a timeshare. For example, although you will not be directly responsible for tending to maintenance associated with your timeshare, you will be obliged to pay an annual maintenance fee.
Timeshares are notoriously difficult to sell. Therefore, if you ever reach a point at which you want to sell your timeshare, you very well may have to take a loss in doing so. This primarily is because there are so many timeshares for sale at any given point in time. As an aside, if you do have to sell your time share at a loss, you cannot claim a capital loss for tax purposes, according to the Internal Revenue Service.
Considering the pros and cons associated with buying a timeshare, you should not think of the purchase as sort of investment. Rather, you should think of buying and owning a timeshare as a lifestyle decision.
Emily Kil is a professional blogger that writes about travel, family, and digital marketing. She lives in Los Angeles with her husband, son, and two dogs. In her free time she enjoys vacationing at the Westgate Las Vegas Hotel with her family staying.