Timeshares are a lot of things. A home away from home, an entryway into vacation exchange, but there’s one thing a lot of potential owners ask: “Are timeshares a good investment?” It’s an important question, and the answer is: kind of. While there’s a clear value to timeshares, it doesn’t come in the form you might be thinking of. Feeling confused? Don’t worry! We’ll break down everything you need to know to help you decide if a timeshare is worth it for you!
- What Is a Timeshare and How Does It Work?
- Why Aren't Timeshare Considered an Investment?
- Types of Timeshare Ownership
- Different Types of Timeshare Sub-Types
- Why Timeshares Are a Good Investment for Enhancing Your Vacation Experience
- Safety in the Timeshare Market
- Timeshare Companies to Invest Your Happiness In
- So, Are Timeshares a Good Investment?
- Buy a Timeshare Resale with Fidelity Real Estate
What Is a Timeshare and How Does It Work?
Before we dive into the positives of timeshare ownership and whether timeshares are a “good investment,” let’s discuss what a timeshare is and how it works!
Timeshares are properties with divided ownership and use rights. Each owner is entitled to a specific period each year at the timeshare property, hence the word “time-share.” Owning a timeshare helps to promote annual guaranteed vacations. There are different timeshare subtypes that affect how, when, and where you can use your ownership, but we’ll cover how that works further below. Keep in mind that on top of paying for the timeshare itself, you’ll also need to pay maintenance fees, often annually.
When you sign a timeshare agreement, you are now considered a vacation property owner and have unlimited vacation opportunities. It is imperative to note that how a timeshare works depends on the type of ownership contract you signed. Up next, let’s discuss timeshares in the realm of investments.
Why Aren’t Timeshare Considered an Investment?
We mentioned earlier that the answer to the question, “Is a timeshare a good investment?” is kind of. That’s because timeshares aren’t really financial investments in the way that a house can be. Unlike houses, timeshares don’t increase in value over time, so they are considered liquid assets. In other words, timeshares are closer to cars. They’re valuable for sure, but their financial value depreciates over time.
So, timeshares aren’t financial investments, but that doesn’t make them bad investments. When you buy a timeshare, you’re investing in the future of your vacations. Timeshares give you a vacation home you can return to year after year, allowing you to visit stunning destinations. So if you’re an avid traveler, a timeshare is definitely worth it. There are numerous timeshare types to choose from, offering flexibility and affordability. Let’s discuss some of the timeshare ownership types available for your vacation needs.
Types of Timeshare Ownership
When deciding if a timeshare is a good investment, it’s vital to acknowledge the different types of timeshare ownership. Owners can choose between numerous timeshare types depending on the timeshare company. Regardless of your vacation style, timeshare owners can select the contract type that works best for their wants and needs, making timeshare ownership a good investment in terms of flexibility.
Deeded Timeshare
A deeded timeshare allows travelers to purchase a fraction of a vacation property through a deed. Owners get a deed for their week and own it. This slice of real estate has the same ownership rights as actual real estate and is shared with several other timeshare owners. Deeded timeshare owners can sell, rent, and gift their timeshare.
Right-To-Use Timeshare
This type of ownership does not come with a deed; however, it does come with a contract that states the timeshare agreements and how long the owner has the right to use them. These right-to-use leases are typically 30-99 years, and owners can sell their ownership on the resale market.
Leasehold Timeshare
A leasehold timeshare does not last in perpetuity, and it has a specific expiration date. As with other timeshares, they have the same benefits and rights. One of the most prominent leasehold timeshare companies is Disney Vacation Club.
Different Types of Timeshare Sub-Types
Along with the different types of timeshare ownership, there are also numerous subtypes to consider when determining if timeshares are a good investment in terms of flexibility. As a result, the above categories are what you own, while the below subtypes are what you own within those timeshares, as well as other terms related to their use frequency. DVC, for example, is both a leasehold and a points-based timeshare.
Points-Based Timeshare
The most popular timeshare type is points-based timeshare. Timeshare owners purchase a timeshare in the form of points at their home resort. Timeshare points can be used at the owner’s home resort or exchanged at a different resort within the brand’s network. Every year, owners are allotted a certain number of points, which can be utilized however they like.
Let’s look at Disney Vacation Club. If you own lots of points, you can utilize them all for a weekend in a large unit. Or you could stay in a smaller unit for one week or even two weeks, depending on how many points you have. Some points-based timeshare companies even allow owners to bank points for a year so they can take a bigger vacation later.
Floating Week Timeshare
Enjoy flexibility with a floating week timeshare. A timeshare owner can choose the week they want to stay at the resort within a certain period or season. When an owner purchases a floating week timeshare during the summer season, they can visit their unit during any available week. To put this into perspective, floating timeshares give more flexibility than fixed weeks but not as much as point-based timeshares.
Fixed-Week Timeshare
Traditionally owned timeshares, or fixed-week timeshares, grant owners access to the property during the same week every year. You will have usage rights, usually for one week, at the resort. The rest of the year, other owners use it. Timeshare weeks are great if you plan to travel for a specific week each year. In addition, this one-week timeshare ownership helps you create a yearly vacation tradition.
Now that we’ve discussed some of the types of timeshares, let’s dive into the benefits of owning a timeshare. This will help you determine why timeshares can be a “worthwhile investment.”
Why Timeshares Are a Good Investment for Enhancing Your Vacation Experience
The benefits of purchasing a timeshare will help guarantee that your annual vacations will be memorable and enjoyable. Luxury, comfort, and stunning vacation spots in some of the most sought-after destinations are just a few of the major timeshare benefits.
Are Timeshares a Good Investment in Happiness? Yes: Superior Vacation Spots
With a timeshare, owners are guaranteed a vacation spot every year! Whether it’s located near the beautiful white sands of Myrtle Beach, the tropical oasis of Maui, Hawaii, or within the elegant sugar-capped mountain slopes of Breckenridge, Colorado, there’s a spectacular vacation spot for everyone! And, with a timeshare, you can make these trips an annual tradition or switch them out for a different location.
Regardless of the timeshare location, you are guaranteed ultimate comfort and relaxation in spacious accommodations.
Are Timeshares A Good Investment in Happiness? Yes: Spacious Accommodations
Unlike hotel rooms, timeshare properties like villas and suites are luxurious and spacious. Most accommodations feature at-home amenities like full kitchens, as well as living and dining spaces. Although timeshare units vary from resort to resort, some properties include private porches or balconies with glorious views.
Along with luxurious and spacious accommodations, timeshare resorts tend to feature top-notch amenities for everyone in the family to enjoy!
Are Timeshares a Good Investment in Happiness? Yes: State-of-the-Art Amenities
Timeshares tend to have a plethora of state-of-the-art amenities like swimming pools, fully-equipped fitness centers, full-service spas, and more. Guests can take their vacation experiences to the next level and enjoy fun services within the resort without having to leave the property.
Some resorts may include sports courts, soothing hot tubs, miniature golf courses, on-site restaurants, children’s activities, and even water parks! There’s so much excitement awaiting at timeshare resorts!
Safety in the Timeshare Market
Now that you’ve learned some of the benefits of timeshares and how they can enhance your vacation experiences, please know that purchasing timeshares from credible and trustworthy sites is vital. Unfortunately, some groups try to take advantage of timeshare owners, so it’s important to recognize the signs of timeshare scams on the market.
How to Avoid Timeshare Scams
Here are some tips to help detect scam timeshare companies.
- Be skeptical of anyone who promises to sell your timeshare fast and for a great price.
- Ignore high-pressure sales.
- Don’t use a timeshare company that expects outrageous upfront costs or luxury taxes.
- Don’t accept unsolicited phone calls from non-legitimate buyers.
- You can’t just cancel a timeshare contract, so be wary of anyone who claims they can.
Who to Trust When Buying a Timeshare?
Now that we’ve covered companies to avoid, let’s talk about groups that are worth looking at when buying a timeshare. When it comes to vacation ownership, you’ll want to work with a company that has a lot of experience in the industry. Ideally, they’d have a good reputation as well. When in doubt, a good resource for determining whether a timeshare company is trustworthy is ARDA. ARDA is a governing body for the vacation ownership industry, and its members follow a strict code of ethics that helps protect everyone involved in the industry. So, if you work with an ARDA affiliate, you can rest assured that you’ll be in good hands.
Timeshare Companies to Invest Your Happiness In
Once you’re ready to enjoy vacation ownership, there are plenty of noteworthy timeshare companies to purchase timeshares from. Each timeshare company offers a variety of accommodation sizes with spectacular amenities that are suitable for almost anyone. Fidelity Real Estate has timeshares for sale on their marketplace from the following developers and more:
Do any of these world-famous brands catch your eye? If so, you may want to consider a timeshare purchase with the secondary market! Overall, all of these vacation clubs are worth it!
So, Are Timeshares a Good Investment?
The timeshare industry is an ever-growing industry with numerous opportunities to make memories with friends and family. Many timeshare owners find timeshares worth it due to their stunning array of amenities and spacious accommodations. So, why vacation in a cramped hotel room when you can vacation like royalty in comforting villas featuring everyday at-home necessities?
As previously mentioned, purchasing a timeshare is not a financial investment but rather a way to own a portion of a vacation property that you can visit during certain times of the year, every year, creating long-lasting memories. Although a timeshare is not a typical investment property, it can be of value in terms of your happiness and well-being.
Buy a Timeshare Resale with Fidelity Real Estate
If you’ve decided timeshares are a good investment for you, Fidelity Real Estate can help you take the next step: buying one! At Fidelity Real Estate, we help owners list their timeshares for sale and market them to prospective buyers at no upfront cost. We have over 20 years of experience in the industry, and we’re a proud member of ARDA. So, we have expertise and a reputation that you can trust.
Plus, our online marketplace makes the purchase process simple. Just browse until you find a timeshare you like and make an offer. From there, one of our licensed agents will handle the rest! With hundreds of listings from nearly every brand, there is sure to be a resale listing that suits your vacation needs. If you have questions, we’re happy to assist! Please give us a call at 1-800-410-8326 or email us at [email protected].
On the other hand, if you’re looking to sell your timeshare, we can help you too! Fill out the form below to get started!
