What Is Time Share?

Let’s start from square one, in the late 70’s and early 80’s, a lot of folks just like you bought vacation homes to insure they would have somewhere to vacation when they retired. Back then, a vacation home cost between $75,000- 125,000 ; however, what they discovered was they were paying 100% of the cost, 100% of the maintenance and if they vacationed 2 weeks out of a year, they only had 4% use of it. Now, if you bought that same vacation home today, it would cost  $189,000 to possibly over $400,000 and that takes this type of vacation out of reach of most American’s, doesn’t it?

Now, what timeshare has done is to bring deluxe vacations back into the reach of the working folks, like you and me. Simply put, the developer has taken the same luxurious vacation home and divided it into 52 weeks. Fifty-one weeks are made available for vacation time. The one remaining week is set aside for maintenance and repairs so that this task does not interrupt anyone’s vacation time. Thus, you pay 4% of the cost, 4% of the maintenance and if you vacation two weeks a year- get 100% of the use. The concept for having this luxurious accommodation for your vacation remains the same. However, the financial stress of carrying the entire burden is gone. Makes a lot more sense, doesn’t it?

Okay, let’s discuss one week of timeshare in simple terms. Timeshare today cost between $8000-15,000 on average, depending on the point package or fixed week, size of unit, when and where you purchase. When you purchase timeshare, you receive the exact same rights and privileges as when you purchased your home.

You receive a  DEED

However, you can use your vacation time any of the 52 weeks you desire. Today most major resort developers offer points that allow you to travel the entire week, or merely a few days if you so choose. Regardless of the time of year you travel, or how many times a year you travel – the main point is you vacation on your own terms and schedule. The popularity of timeshare according to a survey implemented by Ernst & Young for the American Resort Development Association, timeshare sales has steadily increased in the past 5 years by 81%. Today more than 5 million families enjoy the benefits of timeshare. With timeshare now providing condos, cottages, villas, cruises worldwide, not to mention encompassing airline & rental car reservations, cruises and access to theme parks, it is clearly easy to digest why timeshare has become the fastest growing segment of the vacation industry. Established industry legends are adding new resorts in high demand locations one right after the other, and hotel icons such as Marriott, Hyatt and Hilton just to name a few, have expanded their lodging business to include the timeshare market.

Presently there are hundreds of reputable companies spanning the globe that provide unique vacations with unparalleled commitment to customer service working hand in hand within the guidelines of the American Resort Development Association (ARDA).

To continue, you own it thus you can obviously, USE IT  - you decide when, where & how long

Should you decide not to use it, you can … ,  RENT  IT to anyone you want.

If you rent it yourself, then you solely benefit from the money derived. However  if you enlist the assistance of a broker or rental company, than you can expect to pay a small fee. Even then, it would be like being paid not to vacation! Though this is a profitable way to look at timeshare when you do not have the opportunity to use it, do not get the impression it is a quick money making idea or financial investment. Timeshare is about improving the quality of your vacation and enhancing your family’s experiences. It should never be purchased solely for the idea of making extra income. The real benefit of timeshare is in its use.

If you do not choose to use it or rent it, you can  …  LOAN  IT.

For example, what could be a better honeymoon, anniversary, birthday or graduation present than a week at the beach or in Hawaii? What an unforgettable gift! There are parents who have established the tradition of giving their children a honeymoon for their wedding present. Should you be a business owner, timeshare can also be incorporated into your business. Wouldn’t it be a great incentive to give the Employee of the Year a vacation?

Since the timeshare will be a part of your personal estate, you will also have the option to – WILL  IT.

In most states, if something happens to one spouse, the timeshare transfers automatically to the other spouse. If something happens to both owners, the timeshare transfers to a child or grandchild. Because timeshare is an asset, you can choose whomever you wish to be the beneficiary. During vacation one year at a resort, I met a man at one of the organized activities for owners who shared a unique idea. He asked if I knew the name of my great great grandfather, and unfortunately I did not. Then, he asked, had he left you a weeks vacation for the rest of your life, do you think you would know his name. of course I would have! He had five children, and had a purchased a week for each child; he felt this was the legacy he could leave his children and grandchildren that would establish his memory as a reminder how important it was to spend quality time with their families. Of all the things one can leave their family, a lifetime of vacations is a never ending asset. Ironically, that is probably just one of many extraordinary benefits of timeshare that is overlooked. I have another good friend that is a single mother. Her parents gave her timeshare years ago, and she has shared with me countless times how for basically the same money she spends in an average week, she can take her children on unforgettable vacations each year. Something that right now, at a financially stressful time in her life, she would not be able to do. Timeshare is a gift that adapts, changes and grows with a person’s needs. Its cost effectiveness and flexibility are an inheritance well suited for any heir. As parents, we spend our lives trying to teach our kids what we feel is important and will enhance the quality of their life – good manners, financial smarts, ethics & morals …etc. If your family grows up looking forward to a quality vacation, and knowing you made their vacation a priority, it is safe to bet their family will benefit from the example.

Though I do not personally agree with the next option, it is a privilege of timeshare ownership. If circumstances beyond your control arise,

 Yes, you can SELL IT to anyone you choose, for any amount you want. 

Again, like renting, selling your timeshare can be done on your own, or by enlisting other resources which will require a service fee. Timeshare is not an investment in monetary terms. Once again, it is an investment in the opportunity to provide your family a better quality of life at least one or two times a year. By “a better quality of life” I mean the ability to sit back, relax and watch your children or grandchildren enjoy an extraordinary vacation with the comforts of home knowing your are responsible for their pleasure. Vacations are for everyone. Timeshare provides the benefit of being able to send your children to the vending machine without having to stand in the hall and monitor every move. In addition to the comfort of knowing the resort is filled with families just like yours, many sites have on site security. There is a lot of peace of mind in feeling you are surrounded by neighbors, not just strangers. Last but not least,

the main reason most consumers purchase timeshare is … THE  EXCHANGE

Today, timeshare owners have the opportunity to vacation at over 5,000 resorts worldwide via major exchange companies such as II and RCI. Thus another privilege of timeshare ownership is that you can – EXCHANGE  IT.  Think of your dream vacation destination – Hawaii? Australia? Alaska? Mediterranean cruise? All of those are available through exchange. To demonstrate the financial sense of timeshare in this situation, let’s examine a scenario. Suppose you wanted to go to Hawaii and stay in a 2 bedroom villa for a week? Using a conservative but reasonable figure such as $325 a night, which means the entire week’s lodging, would run you $2275.00. It is not unreasonable to say that most people would have a hard time affording this much money and may have to resort to reserving a hotel room. The average hotel room in Hawaii will run approximately $149 a night, and $1043.00 a week – includes one room, two beds, one bathroom, no kitchen, and no washer & dryer. Without the convenience of a kitchen, your expenses increase to at least $150 more a day, and $1050.00 a week. Easy to understand why many people consider Hawaii a “dream vacation” isn’t it? However, with your timeshare, you can vacation in Hawaii starting at approximately $169 for the exchange fee. This covers all your lodging for the week in a 2 bedroom, 2 bath condo complete with kitchen, laundry facilities and all the conveniences of home! With a kitchen, automatically expenses continue to drop because you will have the benefits stocking the condo with groceries and being able to control dining expenses. Depending on if you own traditional timeshare or points, you may even be able to cover airfare with your timeshare!