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Time-sharing is a form of fractional ownership, where buyers purchase the right to occupy a unit of real estate over specified periods. For example, purchasing one week of a timeshare means the buyer owns 1/52 of the unit. Buying one month equates to one-twelfth ownership.
How does timeshare ownership work?
Legally speaking, a timeshare is a way for a number of people to share ownership of a property, usually a vacation property such as a condominium unit within a resort area. Each buyer usually purchases a certain period of time in a particular unit. Timeshares typically divide the property into one- to two-week periods.
According to the American Resort Development Association or ARDA, timeshare properties cost around $19,000. Annual maintenance fee of timeshares are around $660, for a total of $19,660. And that is the average price you need to pay for a week of staying in a timeshare. That’s a large amount for a week of vacation.
How many times a year can you use a timeshare?
Understand the cost. While it may seem like a poor value to spend $22,180 for a one-week vacation, keep in mind that with a timeshare, you can visit the property every year for the rest of your life, unless you decide to sell your timeshare.
What Are Timeshare Maintenance Fees? For the timeshare owner, these annual fees are collected by the timeshare management company yearly (or possibly monthly) for the stated purpose of covering the normal costs of maintaining their timeshare property.
What is the average timeshare maintenance fee?
Remember, there are timeshare costs to consider, and likely maintenance fees. The average annual maintenance fee is $980, according to ARDA.
You’ll lease for a set amount of years—between 20 and 99 years. The developer maintains ownership.
How can I start my own timeshare business?
There are two primary ways that you can start a timeshare business. You can create one from scratch by securing your own real estate and then selling the timeshares to it or you can directly sell timeshares as an agent and earn a commission on every sale that you make.
Aside from the legal training required, the costs associated with owning a timeshare exit business are minimal. Business owners need a printer, copier, computer, website, phone, and fax machine. Any legal fees can be paid using funds that are collected up front, and there’s no need for an office since most work is done remotely.
How is the ownership of a timeshare divided?
Shared deeded contracts divide the ownership of the property between everyone involved in the timeshare. You know, like a deed that you share. Each “owner” is usually tied to a specific week or set of weeks they can use it. So, since there are 52 weeks in a year, the timeshare company could technically sell that one unit to 52 different owners.
Seek out legal advice and check local laws to assure timeshare conversions are permitted. Check local newspapers and online listings to gauge the real estate market in your area. Determine how many timeshares you plan to offer, the duration of each, and the most suitable time of year for others to occupy your home.