Many people think all timeshare ownership options are all the same, but this is not the case. There are a variety of timeshare options available on the market, and each vacation ownership option has its own unique set of provisions and restrictions.
For those who desire to gain insight about the different types of timeshare ownership before investing, here is a short but informative explanation of how these timeshare options got their name. This may not be an all-inclusive list, but it will give you a general idea of what is currently offered on the market.
Points and Vacation Club Membership
The hottest timeshare ownership option available is the points system and vacation club membership. Instead of actually purchasing a property, you get to purchase points that will allow you to use various timeshare units offered by the resort or timeshare club you are affiliated with. This means you are allowed to stay in a variety of units instead of being restricted to use of one particular unit. You may be able to purchase meals and other provisions with your points depending on your membership guidelines. Also, your duration of stay depends on how many points you have. So you can stay for a few days or several weeks providing you have the points to cover the time.
Right to use Timeshare Ownership
This type of timeshare ownership variation is by far considered one of the typical types of timeshare options around. This is because this option allows you to have a membership that gives you the right to use the property at predetermined times of the year for as long as your membership is active. Your membership status can last from 25 to 30 years, depending on which options are available for that particular property.
You also have the option of selling your membership to someone else or renting out your vacancy allotments to others. Keep in mind that you don’t actually own a property per se. You own a membership in a resort that allows you access to the property. That’s why you don’t have to worry about paying property taxes. Once your membership has expired the ownership of the property returns to the original seller.
Deeded Ownership Timeshares
Deeded ownership timeshares are also known as fractional ownership. One main difference between a right to use timeshare and deeded fractional ownership is that your ownership of a percentage of the property is an actual real estate purchase. You pay property taxes on your percentage of the timeshare just like you would pay property taxes on any other piece of real estate you have purchased.
One special bonus is knowing that you have your percentage of ownership for life and have the option of renting, selling, or willing your portion. Another added bonus is being able to use the property for long time periods like a month, two months, or a particular season. Sometimes, allotments are made for seasonal holidays like Thanksgiving or Christmas week.
Regardless of which vacation ownership option you choose, you will have to pay applicable membership and/or maintenance fees.
