Timeshare Research Organization, ARDA, states that America has “1,582 timeshare resorts”, and that the industry is worth a cool $10.5 Billion. Furthermore, almost 10 million US households own some type of timeshare-related product!
With so many households in on the action, you might be thinking what’s the appeal with timeshares? You might also be wondering how do timeshares work?
Here we have a quick informative guide to answer these questions and more. Read on if you want to learn why so many Americans opt for timeshares rather than holiday homes.
How Do Timeshares Work?
In very simple terms, a timeshare is when you pay to share the rights to a vacation property. It might be one specific property, or you might have the right to use several properties in different locations depending on what timeshare model you sign up for.
Whatever the case, when you’ve paid for your timeshare you then can choose certain times during the year when you want to go on vacation. The idea is that you spend way less than you would if you were to buy a vacation home. And, in many cases, you get access to premium accommodation and services.
Types of Timeshares
There are various timeshare models available these days. We’ll touch on a few of them below.
The original and most popular timeshare model for many years was the deeded version. In this case, you would buy a deed, typically for a week where you can use the property for vacations and renting even.
Nowadays, a popular timeshare model is a leasehold option with a points-based system. One prominent example of this is a Disney Vacation Club or DVC timeshare. Just like deeded timeshares, you can sell your Disney Vacation Club timeshare, if you wish.
Another third timeshare type is a right-to-use variation. With this timeshare variation, you sign a contract that states how long you can use the vacation property.
Timeshare prices can vary a lot. It all depends on the level of service, facilities, and the amount of time you want to be able to use the timeshare.
As a ballpark figure, an average timeshare price might be upward of $20,000 for one week per year. Keep in mind, that many of these timeshares will last a lifetime, so you can get some real bang for your buck!
The pros and cons of timeshares depend on what you want from a vacation. For people who enjoy traveling to a new destination every time they go on vacation, a timeshare might not be a great idea. For people who want the benefits of traveling to the same comfortable and accommodating locations, like the ones offered by DVC, then timeshares might work very well.
Now you should have a better understanding of the question “how do timeshares work?” You buy time in the year for the rights to a vacation home and location, often with extra perks too.
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