All About Timeshare

What Is a Timeshare? A timeshare is a way for a number of people to share ownership of a property, usually a vacation property such as a condominium unit within a resort area. Each buyer usually purchases a certain period of time in a particular unit. Timeshares typically divide the property into one- to two-week periods. If a buyer desires a longer time period, purchasing several consecutive timeshares may be an option (if available). Fixed vs. Floating Weeks Traditional timeshare properties typically sell a set week (or weeks) in a property. A buyer selects the dates he or she wants to spend there, and buys the right to use the property during those dates each year. Some timeshares offer “flexible” or “floating” weeks. This arrangement is less rigid, and allows a buyer to choose a week or weeks without a set date, but within a certain time period (or season). The owner is then entitled to reserve his or her week each year at any time during that time period (subject to availability)

Timeshare vacation plans have been around in the U.S. since 1969 — the first opened in Kauai, Hawaii — and they generated $8.6 billion in annual sales in 2015, up 9% from a year ago, according to the American Resort Development Association, or ARDA, which represents many timeshare developments. For some people, timeshares are a good option, and about one out of every 12 Americans (7.9%) owned one in 2014, up from 7.2% in 2012, ARDA says. Timeshares can guarantee you vacation time since they often come with fixed annual dates for right-of-use. On top of that, timeshare resorts typically offer larger accommodations (often two bedrooms or more) and more in-room amenities, such as kitchens and washing machines, than a hotel room. Timeshare owners can also “exchange” their shares for accommodations at other resorts around the world. ARDA says that the image of timeshare owners as elderly seniors playing shuffleboard has changed too, with timeshare owners becoming younger and more ethnicall

Timeshares are vacation plans that have been around in the U.S. since 1969. Today, it’s a $9.2 billion industry, according to the American Resort Development Association (ARDA). That’s actually quite sizable when compared to the nearly $8 billion music industry or Major League Baseball’s $9 billion in annual revenue. In 2016, there were 1,558 timeshare resorts just in the U.S., with an average of 132 units per resort. A timeshare gives you partial ownership in a vacation property. You can even think of it as owning shares of stock in the vacation rental. You pay an upfront price to purchase your unit and then an annual maintenance fee. This gives you access to the property for a certain period of time, which is usually the same time slot each year. When you are not using the timeshare, others with similar interest are. The average sales price for a one-week timeshare today is approximately $20,940, with an average annual maintenance fee of $880, according to the ARDA. Most timeshare a

Be wary the next time you check into a resort and are offered a free gourmet dinner or a massage or Disney World tickets if you’ll just attend a 90-minute vacation seminar. It’s a sales pitch for a timeshare. Millions of people would tell you to rush to it and to bring your checkbook. Millions more would advise you to run for the nearest exit while you still have your wallet. So, are timeshares a good deal or a bad deal? The answer is B-A-D if you buy one as an investment. But if you hate to plan vacations and just want somewhere to relax, the answer is M-A-Y-B-E. It can definitely cut back on the planning hassles. But you might find it hard to relax when the total costs start sinking in. Basically, you are pre-paying for a vacation condo rental. But it’s like the old Roach Motel commercials – Bugs check in but they can never check out. And you, my friend, are the bug. Consumers started being captured in the U.S. about 50 years ago. Instead of building a resort and selling condos to s

The purchase of a timeshare — a way to own a piece of a vacation property that you can use, generally, once a year — is often an emotional and impulsive decision. At our wealth management and planning firm (The H Group), we occasionally get questions from clients about timeshares, most calling after the fact — fresh and tan from a vacation — wondering if they did the right thing. We’ve also had to deal with clients in financial distress wanting to get out of their timeshare units. If you’re considering buying a timeshare, so you’ll have a place to vacation regularly, you’ll want to understand the different types and the pros and cons. 4 Types of Timeshares First, a little background about the four types of timeshares: 1. Fixed Week The buyer usually owns the rights to a specific unit in the same week, year in and year out, for as long as the contract stipulates. There is predictability, but also little flexibility and the potential for long-range boredom. With a fixed-rate timeshare,

Timeshare vacation plans have been around in the U.S. since 1969 — the first opened in Kauai, Hawaii — and they generated $8.6 billion in annual sales in 2015, up 9% from a year ago, according to the American Resort Development Association, or ARDA, which represents many timeshare developments. For some people, timeshares are a good option, and about one out of every 12 Americans (7.9%) owned one in 2014, up from 7.2% in 2012, ARDA says. Timeshares can guarantee you vacation time since they often come with fixed annual dates for right-of-use. On top of that, timeshare resorts typically offer larger accommodations (often two bedrooms or more) and more in-room amenities, such as kitchens and washing machines, than a hotel room. Timeshare owners can also “exchange” their shares for accommodations at other resorts around the world. ARDA says that the image of timeshare owners as elderly seniors playing shuffleboard has changed too, with timeshare owners becoming younger and more ethnicall

You may be wondering what’s so bad about timeshares. After all, they cost much less than owning a vacation home. And much less than paying for a full vacation every year. While that may be true, there are several downsides to timeshares. Consider these negatives before you buy one. You’re Stuck With One Company Some timeshares make you keep your week at your resort. You go the same place year after year. That can get boring. Other timeshare companies have several resorts. They allow you to trade your week for one somewhere else. Or, you can stay somewhere else if you pay an extra fee. While this sounds good, you’re still locked into the one company. You can’t vacation with no boundaries. If you’re okay with that, great. But there’s a reason so many timeshares sit on sales sites with no takers. What Is Accelerated Use Of Timeshare? You May Not Use It I know several people who bought timeshares but don’t use them. They mean to, but things get in the way.

So, you did it. You fell for the sales pitch and now you own a timeshare. And you’re out several grand. What to do? Consider these options. 1. Check Your Contract Many timeshare contracts contain a recission or retraction period. This can be called a “cooling off” period. It’s a period of time after you signed the contract in which you can cancel. No questions asked. The “cooling off” time period is typically just a few days long. In some states, certain requirements must be met before the time period begins. Check with your state’s attorney general if your contract is unclear. But check the recission terms on the contract first. If your timeshare purchase is recent, you may be covered. You may be able to annul the contract. Note that official contract cancellations usually require written notice. So, plan on writing the timeshare company a letter. Sign it and keep a copy for yourself. Note the date of mailing as well. Send it registered mail for extra protection.