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Home - Home Improvement - How Does a Timeshare Work? 3 Things You Need to Know
Home Improvement

How Does a Timeshare Work? 3 Things You Need to Know

Kaitlister11By Kaitlister11September 26, 2021Updated:August 11, 2022No Comments3 Mins Read
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Regular vacations from the “real world” are essential to a happy, healthy lifestyle. And while planning a different trip every time can be exciting, wouldn’t it be great if you had a vacation home waiting for you every year?

If owning your own property feels a bit out of reach, investing in a timeshare is an option. To learn the answers to all of your timeshare questions, including “what is a timeshare?” and “how does a timeshare work?”, just keep reading!

1. What is a Timeshare?

Let’s first talk about what a timeshare is, because it’s important to know exactly what you’re investing in before you go through with it. Now, there are several different types of timeshares. But the answer to the question “what are timeshares?” remains the same across the board.

A timeshare is a vacation property with shared ownership. You share a percentage of the cost of the property with several other buyers, and each of you gets a certain amount of time at the property guaranteed to them every year.

2. How Does a Timeshare Work?

Each type of timeshare works in a different way. For example, if you invest in a fixed week timeshare, you own a specific week in the calendar and can visit your vacation home during that same week every year.

Others work within a fractional ownership model, where the amount each owner pays varies depending on the amount of time they plan to spend there.

Essentially, however, you’re leasing the property for a period of time without owning it outright.

3. Is a Timeshare a Good Investment?

The average American spends just under $2,000 on a typical summer vacation, while the average timeshare costs around $20,000 per interval.

Now, if your jaw just dropped, keep in mind that this covers the cost of owning the timeshare for the rest of your life. There are maintenance fees to contend with, but once the large fee is paid, the timeshare is yours until you sell it.

You can also find timeshares for slightly lower prices if you purchase one from timeshare resale listings.

Let’s say you pay $20,000 upfront but own your timeshare for 20 years. That works out to $1,000 per year or half the price of a typical vacation. So, depending on the type and length of vacation you enjoy, a timeshare can be a good investment. Take note, that getting out of a timeshare can be a very tedious process, which is why you should ensure that the timeshare you’re investing in is the right one for you.

Is a Timeshare Right for Your Family?

Now that you know a little about what timeshares are and have an answer to the question “how does a timeshare work?” you can determine if it’s right for you and your family.

There’s no right or wrong answer here. Some families purchase timeshares and love it! Others invest in them and find that they would’ve preferred to plan their vacations each year. Knowing your family and your preferences will help you decide.

Looking for more vacation planning tips and tricks? Be sure to check out our blog!

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