As the name suggests timeshare is a technical term used for a property shared among more than one owner. Multiple parties hold the rights to use that property in the allotted period of time every year. This period is usually one week. Timeshare also entails shared cost of property maintenance which means the total cost of maintaining the property is divided among each sharer.
Most of the Timeshare resort condominium units but because of its popularity and effectiveness, this concept is being applied in other forms of properties as well. Such as a motor home timeshare, a hotel timeshare, a campground timeshare or a cruise timeshare. And of course there will be many more timeshares in the future.
In the years 1960s there came a time in Europe when resort industry got badly depressed and the property rates were skyrocketing. A ski resorted developer (Hapimag) in the French Alps marketed his resort by encouraging guests to "stop renting a room" and instead "buy the hotel." This new and innovative idea clicked and developers worldwide started selling their condominium units resulting in the boost of real estate. And, hence this is how the term ‘timeshare’ got popular and this new form of business took the shape of a “timeshare industry”.
Timeshare is great for those people who simply cannot afford a full-time vacation home. Nevertheless when the property cost is divided among multiple owners (say 10 for example), not only each single person has to pay less for owning the same but other financial burdens like management and cost to maintain common areas like tennis courts and swimming pools are also shared among themselves.
On the other hand real estate developers worldwide also benefit for encouraging the people to buy and sell timeshares since this form of unique business involves a greater number of people who means “greater the no of parties the bigger the profit”. Here an important point to be noted is that the multiple timeshare owners don’t have to be each others’ relatives, they can be complete strangers to one another. They don’t even have to make any kinds of connections to one another since the timeshare companies take care of everything like what is the total maintenance cost and how it has to be burdened equally.
In its infancy, each stakeholder would get his or her allotted period of time to spend on the shared-property. Nevertheless now, as this industry has evolved over the years and proved undoubtedly lucrative, people especially vacation-goers now have many options like a flexible timeshare also called a floating agreement in which the multiple owners can have more than one specific time of a year and more than one timeshare destination. There are other timeshare classifications like a fixed week, a fixed unit, deeded timeshare that allows you to own a specific timeshare at a specific time each year. A leased timeshare; in which your license to use the property ceases when the lease expires.
More and more vacation destinations are being converted into Timeshare and this business is more lucrative in warm spots like Florida since it gets crowded in summer. Cold destinations like ski resorts also offer timeshare. Timeshare units are equipped with all the modern facilities like power generators, TVs, high speed internet etc. A great care is taken to make the unit fully furnished since a lot of people are supposed to use it during the whole year. There is no hard and fast rule as far as their sizes are concerned. Anybody having a beautiful unit with 1 or 4 rooms etc. can convert it into a timeshare. However nowadays most modern timeshare units even have indoor/outdoor pools, spa, gymnasium, tennis courts etc. etc.
Timeshare rates exclusively depend on the time of the year you choose to own your shared property. For example a timeshare unit in the May in Florida will be costlier than in September because most people like to go there in warm season. So the demand increases as compared to the fixed no of supply (i.e. the no of timeshare units). Thus their rates are frequently adjusted seeing their varying demand. Some companies even flag hot seasons as “red season” which means the prices in this red season will be highest.
Timeshare is a one-time investment. You invest once in a lifetime and then keep on getting safe returns. No one uses their vacation properties throughout the whole year so if you let others use your property through the process of timeshare not only you get reasonable income but also it can help you in maintaining the excellent condition of your valuable property in terms of cost of depreciation. Besides, timeshare allows your property to be inherited to your children like any other real estate property. In most of the cases Timeshare properties can be exchanged and traded with other properties depending on their sizes, real estate value and of course the corresponding season since timeshare prices are determined different throughout the whole year.
There are financial institutions out there who furnish loans to buy timeshares and help individuals sell out their timeshares. So if you don’t own a timeshare then think of investing in this profitable business. Study the market thoroughly, make your homework, compare prices, locations, season, amenities it offers, each intricate detail, every ins and outs and then good luck! See ya soon bye-bye.
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