A timeshare is a popular way to guarantee a place to stay if you love to vacation in the same spot year after year. According to the American Resort Development Association (ARDA), there are almost 10 million households that own timeshares.
Some see it as an investment, though many others see it as a poor use of money. If you’re thinking about buying a timeshare, make sure you know the risks and benefits.
What is a timeshare and how does it work?
A timeshare is a shared vacation home where multiple buyers pay for the ability to stay at a property or a series of properties over a period of years. These buyers are guaranteed their own time at the property, usually a week or two per year.
There are two types of timeshares: deeded and non-deeded:
- A deeded timeshare is where you purchase a portion of ownership on a property and you’re granted a percentage of the property, usually in the form of when you plan to use the property. Legally, this type of property can be passed down or inherited.
- A non-deeded timeshare is like leasing a property. You’re guaranteed to use the property for a set amount of time (like a few years), but you don’t have ownership rights to it. Sometimes they’re referred to as “right to use” or point-based timeshares. You can use your points at different timeshares across properties and companies, as long as they’re within the agreement you signed and match up with the time you want to use them.
Points-based timeshares have become more popular…