I have explained in another blog (please see article Saving On Traveling Accommodations) on how to travel frugally on the timeshares dollar and get out of their sales pressure tactic.  But, I feel now I should explain the details on how timeshares work and if they could work for you.  I have talked to many owners and people that have looked into the idea of owning timeshares and I have found that almost all the people either love or hate timeshares. There is little middle ground.  Most consumer advocates will tell you never to buy a timeshare.  That advice is outdated and incorrect in my opinion. This purchase should not be made lightly.   If you are willing to look at all the little details that go into purchasing a timeshare, you may find you want to buy one.

I have been to a number of presentations and let me tell you (they will tell you otherwise), that a timeshare is NOT an investment.  Typically, half the price of a new timeshare goes to the developer’s marketing costs (makes sense why the “getaway vacations” are so low).  If you have ever purchased a computer, you have experienced depreciation like this before, the minute you take the computer out of the box the value goes down.  It’s the same with a timeshare.  But if you get your use out of your timeshare it can be a great way to save you money on vacations in the long run.  It’s just when you go to sell it, often times you sell it below what you paid for it. 

Different timeshare companies offer different packages.  These are the four most common types being sold today:

1) Deeded; one week.  This is typically where the buyer purchases one particular week, in a particular unit at a particular location.  Along with that week the owner gets a deed showing a 1/52 ownership in a unit.  In addition, the unit maybe traded for vacation stays at other properties.

2) Fractional ownership.  This is similar to the first setup, but the owner buys more than one week – usually four weeks to three months at a time – and gets a deed.  These timeshares are often found at high-end resorts and can be priced at $100,000 and more.

3) Points system.  This is where the consumer buys points that are then traded in for vacation stays at different resorts.  The bigger and nicer the room, peak season, or more popular location usually costs you more points.  Some companies are even allowing you to use points on everyday travel with hotels.

4) Right to use.  The buyer of this timeshare gets the right to use a resort and sometimes a specific unit at the resort for a set period of time.  The usage can stretch from 30 to 99 years but eventually comes to an end.

The trading/buying/selling/swapping of timeshare units is what makes or breaks the deal for most consumers on whether they like timeshares or not.  A buyer who is willing to look for the best deal, who is willing to enjoy shopping around and negotiate for a different place to stay each year are those who like timeshares the most.  Those who like “the hunt” often end up with huge units at great resorts.  Those who don’t like the trading and negotiating end up not using their timeshares or not getting the full value for their money spent.  Keep that in mind if you would like to purchase one.

Although, most new properties must be bought through the developer, you can often buy older properties second-hand.  Visit for example, eBay (there are tons of others too), you will find dozens of units being sold at extremely low prices.  If you have the money to spend, there’s a unit out there with your name on it.  Why so cheap?  Many buyers just aren’t cut out for the extra work that comes with buying a timeshare or the yearly maintenance and membership fees, which vary on which plan you purchase.  Ask about these fees before they get too costly.  Many who buy timeshares didn’t do their homework on costs and were not ready to buy.

Review:

I like the points system.  It creates better value in my opinion.  You can be flexible on what you want to purchase, hotels, resorts, plane tickets, etc. (whatever applies to your agreement).  Try to keep in mind the timeshare demand is like the stock market, places that are in high demand cost you more money (or points), if you want to sell or trade them with somebody, use that to your advantage as well.

If you do decide to sell a timeshare most developers have it in the agreement that if you transfer you property to someone (even a family member) some of the amenities/perks are taken away from your timeshare package.  This is done so the secondary market for timeshares does not compete with the new market (theirs).

\If you do want to buy a timeshare don’t be stressed for time.  You can purchase them ANYTIME; it’s not a take it now or you lose the chance to purchase.  Get the salesman’s number, converse over email (so it’s in writing), and negotiate with them.  Have fun with the process in looking for or getting the best deal, it will make the whole resort experience more enjoyable.