The arda.org website states that the timeshare industry is worth $10.5 billion! This is a huge figure for an industry that has its origins in the mid-70s.
Many of us have heard of timeshares, but you might be wondering how do timeshares work? Well, in this guide we’re going to look at the fundamentals of how timeshares work and the different options they offer for people who are interested in them.
Read on to learn how you can benefit from getting a timeshare.
What Is a Timeshare?
A timeshare is the part ownership or rights to a vacation property that you are entitled to use for a certain number of days per year. In essence, it’s based on a shared ownership model.
By sharing the vacation property, the idea is that the owners don’t have to spend the full amount on a vacation home along with all its associated costs. In most cases, timeshare properties are in resorts where there may be loads of facilities that timeshare owners can use and enjoy.
How Do Timeshares Work?
If you’re considering getting a timeshare, you should be aware that there are two timeshare options to choose from. The two types of timeshares are deeded and non-deeded timeshares.
A deeded timeshare is where you buy and own a portion of the property. The size you buy will often correspond to the timeframe you wish to use the property.
A non-deeded timeshare is one where you buy the right to use the property, but not the physical property itself. You will either buy a license or lease to own this type of timeshare.
Whichever timeshare option you choose, these days you’ll likely enter into a points-based system. This is where you can use a certain number of points that you get every year to use for various options that the timeshare company may offer you.
You also use the points to apply for available times throughout the year for when you wish to go on vacation and use your timeshare. Busy travel periods in the year may require more points from you as the demand can be high.
Pros and Cons of Timeshares
Some of the pros of timeshares include making savings long-term and you get to enjoy luxurious vacation locations. You can also have opportunities to stay in different resorts, depending on which timeshare company you use.
The cons of timeshares can be misinformation from dodgy timeshare companies and large upfront costs. You also have to factor in annual fees and depreciation of the value of your timeshare in some circumstances.
Is a DVC Timeshare Worth It?
Disney Vacation Club timeshares are very popular and the company has an excellent reputation. They have various resorts to choose from and loads of options on the table to make every one of your vacations interesting and memorable.
We recommend you check out Disney Vacation Club resales for some great deals!
How Timeshares Work Answered
Now you should have a much clearer idea when it comes to answering the question: how do timeshares work? The key takeaways are there are two main types and most work on a points-based system nowadays.
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