Wednesday, October 29, 2008
Time-Share Ownership Variations
Advice to Help You Buy the Right Time-Share:
Technically, owning a time-share means that at a specific 'time' you have access to the 'share' you own in a property. Time-shares have been sold for cruises, recreational vehicles, campgrounds and many other types of properties, but their most popular use is for shares in condominiums at large time-share resorts. There are many flexible ownership variations that prevent you from being committed to one time-share destination and one specific time of year.
Time-shares became popular in Europe in the 1960's when escalating property prices made it nearly impossible for most people to afford a full-time vacation home. By creating a shared ownership, developers were able to reduce the costs for each owner, allowing them to successfully market and sell properties to a greater number of clients.
Time-share owners pay for their unit. Financing is available for new time-shares sold by developers, but most resales–units purchased from individuals–are paid for in cash.
Time-share owners share maintenance fees, management fees and costs to upkeep common areas such as pools and tennis courts. Fees vary and should be disclosed to you when you buy a unit.
Types of Time-Shares:
There are many time-share ownership variations and a few are described below. Your ownership might differ or it might be made up of a combination of plans.
Fixed Unit, Fixed Week, Deeded Time-Share:
You receive a deed that states you own a specific time-share at a specific time each year.
Floating Time Agreement:
The dates you can use your time-share are flexible. Reservations are on a first-come basis, since all owners likely have the same option.
This variation is a lease. At its end you no longer have any rights to the property.
Vacation Clubs or Points-Based Programs:
Time-share owners choose from a variety of vacation destinations. Each stay uses points, which vary for the time-share unit and season purchased.
Buying a Time-Share Resale:
Pre-owned time-shares, or resales, can typically be purchased for a small fraction of the cost of a new unit. Do your homework. Understanding the variables and all of your rights as a time-share buyer will give you more confidence when negotiating for the property.
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We have three of our personally-owned time-shares for sale--one in Florida and two in California. See the details on these great resale values at: http://pennysantiquesandwedgwoodpantry.chshops.com/index.php?main_page=index&cPath=22_46; or just click on the title link above.