You and your family go on getaways a lot. Enough where you’ve thought about buying a vacation home at your usual beach. The problem is the price.
You can’t afford to take out a second mortgage to have somewhere to stay while you’re relaxing with mojitos. You might be able to benefit from taking out a timeshare.
It gives you all of the benefits of buying a vacation home with a few setbacks that you’ll have to compromise on. The question is, how do timeshares work?
We’ve got all the answers you seek right here. Check out this guide to learn everything you need to know.
What Is a Timeshare?
A timeshare is a vacation property with some extra steps. You’ll be sharing the cost of the house with other people who use it as well.
In return, you’ll have guaranteed access to the vacation home throughout the year. While this method is cheaper than paying for a mortgage on a home, there are still fees that you’ll have to worry about.
Types of Timeshares
There are different timeshare options available to you. You could weigh the benefits of DVC resale vs. direct. There are shared deeded ones.
You and a bunch of other people will have a deed to a single vacation property. Shared leased properties work sort of the same way except you’ll be on the same lease with other vacationers.
You can go with a fixed week timeshare. That will grant you access to the property during a specific week of the year. If you want a little more freedom, you can opt for a floating week setup.
You’ll be handed a range of dates and have to pick a week to use the property. Once you choose your dates, you’ll make a quick phone call to lock it in.
There are also point-based systems. Many people know of them as timeshare exchange programs. You’ll gather points with a company that you can use to book time at one of their resorts.
How Much Does a Timeshare Cost?
Now on to the real question. How much does buying a timeshare cost? Upfront, you’ll pay about 20,000 dollars. If you don’t have that kind of cash saved up, you’ll have to get a loan.
Most banks won’t give it to you because of the risks involved. If you can’t make payments, it’s not like they can get what’s owed to them by taking away your vacation time.
On top of the upfront costs, you’ll also have to pay HOA and maintenance fees. We’re not saying this to scare you away from getting a timeshare, we’re just telling you to get your wallet prepared.
So, How Do Timeshares Work?
How do timeshares work? Having one will allow you to split a vacation property with a bunch of other people. You may have to take out a loan of some kind to secure your property, but you won’t have a mortgage to worry about. Look into financing options today.
For vacation tips that will help you get away from it all, visit the Travel section of our blog.