A timeshare can be looked upon as a property with a slightly different method of ownership. Timeshares typically use resort condo units in which multiple parties hold the rights to avail of the property at a predetermined date.
Each sharer is given a specific period of time – usually one week, in which they can stay at the property and use the facilities.
This provides you with an opportunity to own a luxury condominium while on vacation, at a very affordable price. The timeshare is the property of the owner until the day comes when he/she decides to sell it.
Having a timeshare at your disposal affords the owner many appealing benefits. The main benefit is that the owner has the option to visit the same resort year after year without having to worry about accommodation issues ahead of time. Just book your flights, and off you go.
If they would like to on holiday in another location, then they can trade in their timeshare for a different location which has the same property value as the current one. If the owner wishes to rent to property to someone else and not use it himself, then he can do so and collect the rental income for that property for the week!
There may be other fee’s associated with owning a timeshare and Resort Management Association can help you eliminate a lot of the maintenance fees associated with having a timeshare property in your portfolio.
There are about six types of different timeshares. These range from deeded to life property timeshares. With a deeded timeshare, you own the property for life, and it can even be left for a family member in your will. A life property ownership, on the other hand means that once you die, then you relinquish any ownership on it.
Another type of timeshare that is popular is leased timeshares. These specify that you are in a contract with the property for a number of years. For those that want to visit the same resort at the same time each year, then a fixed week timeshare is the best option for you. If this option doesn’t appeal to you and you would like to have to option of moving to a variety of locations around the world, then owning a multiple location timeshare will be best suited to your needs.
It is always possible for you to sell your timeshare down the line, but it must be noted that if you make a profit on the sale, then this is considered to be capital gain and you will have to pay tax on it.