Timeshares are a great opportunity for you to take a dream vacation without the pain of searching for affordable accommodations. It’s likely that you’ve been approached by someone attempting to sell you a timeshare rental but turned it down because it seemed a little strange. You may be excited to hear that timeshares are legitimate and a fun way to go on a trip to your favorite location.
How do timeshares work?
Usually, when you buy real estate, you purchase a property that you will own. However, timeshares work very differently when compared to traditional property. When timeshares go up for sale, you have the opportunity to buy part of a property rather than the entire house. You pay a share of the price for the timeshare rental that allows you to use the home for a certain period of time during the year. How much you pay is based on how much time you want to spend there.
For example, if a timeshare rental is up for purchase, you have the option to pay a 1/52 share that would give you the chance to spend one week per year at the location. You could choose to pay more, which would allow you to claim more time at the timeshare.
How much do timeshares cost?
Timeshares aren’t always cheap. They can vary quite a bit based on location, size, time of year, and the real estate value of the house or condo. The average cost of a timeshare is around $19,000 for one week. Along with this amount, there are also fees that you may be required to pay (such as maintenance fees which cost around $660 per year on average). While you could save on travel expenses by purchasing a timeshare, the actual cost of a timeshare could be more than you think.
Are you stuck with the timeshare rental?
After purchasing a timeshare, you always have the option to sell. How quickly you can sell the location depends on many factors, so it’s impossible to say whether it would be difficult or easy to get rid of your timeshare.
Rather than simply selling your timeshare, you also have the option to swap your timeshare with someone else. Some people can grow bored with going to the same place every year, but a timeshare exchange allows you to trade your piece of the property for another person’s (temporarily). All you have to do is find someone who wants to visit your timeshare in exchange for you visiting theirs. However, finding a willing partner can sometimes be tough. Some timeshares operate in resorts where you can choose flex weeks to visit rather than one set week during the year. Since the same timeshare company often owns several resorts, you may be able to find an internal swap that makes trading timeshares easier.
