When people think of a timeshare, they usually think of one type of vacation ownership model for this kind of investment. However, there are various different vacation ownership models that offer different benefits. You have options that range from actual real estate-type ownership to discounted memberships in vacation clubs to points based membership. So if you are not knowledgeable about the different types of timeshare options available, this article will help you gain insight on which vacation ownership option is best for you.
Vacation Ownership Models
Right to use Timeshare
It is typical to find a vacation ownership resort offering a right to use timeshare model. Instead of actually owning a portion of the unit (like in deeded fractional ownership), you own a membership that gives you access to a unit at specified times of the year. This type of vacation ownership model is usually less expensive than most other models. Right to use timeshare basically implies that you establishment an investment allowing you access to a property until your membership expires. Another added benefit is the option of renting out or selling your membership whenever you choose.
Fixed Week Vacation Ownership
Most people who don’t already own a timeshare will think all timeshare models are fixed week. The fixed week model was one of the most cherished timeshare options during the 80s and 90s. This option allows you to have access to a unit from a resort or condominium each year at the same time of year unless you trade in your time for another week slot.
It wasn’t long before the concept of flexible weeks was born that allowed you to purchase weekly allotments during a specific season of the year. At any rate, the fixed week timeshare carries with it the added bonus of always knowing when you are allowed to use your timeshare for vacation. You also can get good deals on buying the bigger vacation seasons like Thanksgiving, Christmas, and New Year’s Eve.
One of the few vacation ownership models where you become the deeded owner of your property, Fractional Ownership works a lot like the fixed week vacation ownership model. The major difference between the two is the concept of having a deed to your share of the property. Fractional ownership allows you to purchase a percentage of a unit much like you would if you were buying your own house. You pay property taxes on your percent of the property, and you can even leave your property percentage in a will (unless you plan on eventually selling). Like any other owned real estate, you can also rent your property. The property is often divided into 4 or 8 parts that will be sold to various vacationers. Time allotments vary and can range from a month to an entire season.
Points Based Residences Clubs
Currently, points-based residence club models are the most flexible timeshare option available on the market. This option allows you to purchase points instead of an actual property. You have the option of vacationing in different units with different accommodations. You also have the option of using points to buy various time slots, which means you can request a few days or a month. Most resorts using the points based timeshare option will let you borrow and save your points to use however you see fit—even to purchase meals or order special resort services like a spa treatment.