Timeshare ownership has received a lot of negative coverage in the media during the recent financial struggles by the residential property market. In reality though, timeshare ownership gives individuals the opportunity to enjoy vacations to locations they may never get to visit without being part of a timeshare exchange network. The key to successful timeshare ownership and reaping the benefits of it is to enter ownership of a timeshare with realistic expectations. If you do not overvalue your own property and are realistic about what to expect in trades, you can have a lot of fun vacations as a timeshare owner.
Timeshares give individuals an opportunity to own a vacation condominium at an affordable price. In reality the owner doesn't own the condominium itself but just a specified number of weeks at that condominium unit during each calendar year. The owner can then stay in their condominium that week or make other business decisions using that property. The timeshare is owned by the owner year after year under he decides to sell it.
Owning a timeshare gives the owner many different benefits. The first is the owner has the opportunity to vacation in the same resort location year after year. If he would like to visit a different location, then the owner has the opportunity to trade in his timeshare week or weeks in exchange for a different location of similar value. If the owner of a timeshare does not wish to use it himself, and doesn't wish to trade it, he could also rent the property to someone else and collect the rental income because it is his property for that week.
Resort Condominiums International is the largest timeshare vacation trading network according to Sellmytimesharenow.com. Registering your timeshare with RCI allows you to trade it in to RCI and receive points based on the week that you are trading and the attractiveness of the condominium and its location. Owners of timeshares can redeem their points from RCI each year or trade in and wait for several years to redeem their points for more desirable locations throughout the entire world based on the point value of the week and location they wish to trade for.
According to ezinearticles.com, there are six different types of timeshares. Three of these affect the type of ownership and how long you own the timeshare; the other three are based on how your week and location each year is determined for your timeshare. Deeded timeshare properties if you own one is yours for life and can even be left for a family member or other loved one in your will. Unlike the deeded timeshare properties, a life property is a timeshare in which when you die you no longer have any claim to the timeshare ownership. There are also timeshares that are long-term leases called leased timeshares in which you contract to have the Timeshare for a specified number of years.
Owning a fixed-week timeshare means that you restricted to the same exact week every year you own the timeshare. Floating time and points timeshares give you more flexibility as you own points instead of a week or location; you pay for those points each year and can use as many as you wish from your balance to reserve a timeshare vacation location. Finally there are timeshares with multiple locations, which allow you to choose among a set number of locations each year for your timeshare vacation.
Selling a timeshare can be difficult when the residential real estate market is struggling. As an investor it is wise to have an exit strategy whenever you make an investment purchase. It is recommended that you speak with a real estate broker that specializes in timeshares to help you analyze the market and determine a successful exit strategy from your investment. Keep in mind if you sell your timeshare and make a profit on the sale compared to the price you paid for it, this is considered a capital gain and is taxed as such.