Featured News 2014 Is Getting a Timeshare a Bad Idea?

Is Getting a Timeshare a Bad Idea?

It depends entirely on your specific situation. A good place to start is to go over what owning a timeshare entails, before going forward to weigh the pros and cons of this venture. Before reaching that comparison, this article will look at the definition and structure of timeshare ownership.

First off, a timeshare is an arrangement that allows multiple people to have part-ownership of a property, typically something along the lines of a condo at a resort. Ownership rotates on a schedule, as each owner bought a certain amount of time, typically one to two weeks. Sometimes these will be fixed weeks, where the purchaser selects the week(s) he or she wants to spend at the property. There are floating or flexible weeks as well, however, and in this arrangement, someone could buy the amount of days they want to spend at the place, but only choose a season. This allows that person to schedule a different week every year, according to what is available.

Here is how the legal paperwork fits in: if you're looking to buy a timeshare, you are probably considering shared deeded ownership or shared leased ownership:

  • Shared Deeded Ownership: This timeshare arrangement actually confers ownership of the property to each buyer, with each buyer owning a percentage and getting a deed to their percentage. This means that weekly timeshare could result in 52 deeds being distributed among buyers.
  • Shared Leased Ownership: A developer is the only one with a deed to the property, and buyers get lease agreements on a floating week basis. This type of timeshare ownership often expires and limits a buyer's ability to transfer ownership, but shared leases are often not priced as high as shared deeded ownerships are.

Pros and Cons of Timeshare Ownership

First of all, there are numerous costs, starting with high interest rates, probable lack of financing, and yearly fees for maintenance. The bottom line: A timeshare is not a good investment. The value of timeshares fluctuates, and you will almost never make a profit by reselling. There may be non-financial reasons for deciding against a timeshare too. For one thing, timeshares do not allow you stay for a very long time, and it could further limit the variety of vacations you take.

Of course, that's not the end of the story, as for many people owning a timeshare is a way to annually spend time in a location that they enjoy. And even a year that they can't go, they can enable friends or family to take advantage of the timeshare. Timeshares often come with other conveniences that preclude the need for separate storage or transportation of bulky items, etc.

The decision is ultimately up to you in your situation. But when considering any legal venture, you want to be sure that you get reliable answers and counsel. Whether you have questions about ownership, lease terms, etc., you may be able to find the real estate lawyer you need on our directory today!

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