There's nothing better than a relaxing holiday in a beautiful location.
Most of us spend our days dreaming of owning our own home away from home.
If you're hoping to make that dream a reality, you'll have to choose from the different types of timeshares.
The Three Basic Types of Timeshares
The thought of owning your own vacation property will fill you with excitement.
Yet, the process of picking a timeshare option might fill you with stress.
It's important to make an informed decision on the three basic types of timeshares, which are:
A fee simple timeshare requires you to buy a deeded interest in real estate. The land court and other authorities record the deed, and you'll receive a title in perpetuity.
A leasehold is a little like a fee simple. You'll have basic ownership rights, obligations, interests, and security.
Yet, you will not hold a title in perpetuity, so the deed will expire after a specified date. You may receive first right to renew ownership before the property's expiry date.
Right to Use
The right-to-use (RTU) grants you with a right to use a unit or unit size every year.
Yet, unlike with a leasehold or fee simple, you will have no ownership interest in the property.
The right-to-use will also often expire after 20 to 30 years, depending on the agreement.
Once the agreement expires, the property will be returned to either an owner or developer.
The Timeshare Sub-Types
There are also various subtypes of timeshares to consider before you make a decision.
Do you enjoy a traditional holiday to your favorite vacation destination each year? A fixed week or season ownership might be the perfect option.
You will own the rights to the property for a specific week, which you can visit:
You'll enjoy the same amenities and unit type each year. Many people often invest in a specific villa or condo as their home resort.
What's more, you will also have an option to trade the property via an exchange system. This is great if you want to explore a bit more of the world.
The only downside is it might not be for the same week you own.
A floating timeshare is similar to fixed week, as you'll own the property for a select period.
The biggest benefit is that you are not tied to specific dates you need to visit.
Yet, you won't be able to select the dates that the owner has booked, as he or she will have the first choice.
It is your job to contact the resort to book the week you want to visit. It works on a first-come-first-served basis. The sooner you book, the more likely you will receive your desired dates.
You also will not be investing in a unit. You'll be buying a unit size, such as a 2 bedroom, 2 bath villa.
The Points System
A points membership timeshare is determined by a points system. You will be rewarded with points each year.
You can trade these points for a week at any holiday resort with a timeshare brand or affiliate resort.
The points are not tied to resorts, either. You can use them on airfare, expenses, and rentals, too.
The points work a little like money, as each week or unit has a set number of points. The more popular the location or time of year, the more points you'll need to spend.
It's a flexible timeshare option for families who don't like to be tied to the same location.
You don't even have to spend a week at a resort. You can use the points for separate trips. For instance, you could spend three days in one location and four days at another.
The more points you have, the more options you'll have for a vacation.
Yet, don't rush into buying a points membership. Make an informed choice so you know exactly what you'll receive and can avoid any dirty tricks .
For instance, you may believe you're investing in a deeded interest at a chosen resort. Yet, you may later come to learn it's a deeded interest for another resort in the points system.
Yet, not all points systems are tied to a deed. Many developers are now offering "pure points" that don't tie a buyer to a deed.
Instead, it's a little more like a club membership, as the developer will be the sole owner of the property/unit.
People purchasing a membership will grant them with points to use at a resort when it's available.
The biggest issue with a membership is that a developer may remove or add properties from the system. He or she only needs to provide the total number of units for the total number of points.
If you believe your timeshare was misrepresented, seek legal help to cancel a timeshare contract .
Determine Your Needs
If you want to own the bricks and mortar of a property, a fee simple is the best option. Yet, if you're happy to move on in 20 to 30 years, you'd be smart to opt for a leasehold.
If you want to visit the same property for one week each year, a fixed week or floating timeshare is ideal.
Yet, if you want to explore the world a little bit more, the smart move might be to buy into the points system.
Whatever you choose, it's important you do your homework on the different types of timeshares available.
The last thing you will want is to invest in a timeshare scam that could leave you out of pocket. The Better Business Bureau (BBB) is encouraging consumers to exercise caution.
A little research will be worth it when you're enjoying your own personal luxury resort, whether it's forever or for only a week.
Do you need legal help to cancel a timeshare contract? Contact us today at Primo Management Group on (407) 757-2332.