Did you know you could buy a vacation property for a fraction of the cost? If you didn’t, know you can. But before you roll your eyes, here’s another question?
Have you ever heard of a time-share? It is the key to owning a cheap vacation property. Let’s find out what it is.
What is a Time-share?
Simply put, a time-share is a time slot you buy at a property, cruise ship, or campground among others. For a given day, week, or season, you own exclusive rights to the property. The benefits of doing so are many.
Benefits of Buying Time-Shares
Vacation properties remain vacant for most of the year, leaving you to incur maintenance fees and property taxes.
In contrast, time-shares let you pay for only what you use. What’s more, with one, you’ll never go through the hassles of planning for a vacation.
After all, the vacation property is there when you need it. The same applies to properties in exotic locations. That is, if you buy points club time-shares or trade places with other time-share owners.
The Cost of a Time-Share
Remember, when you pay for a time-share, you pay not for the unit but for access to it. This explains why time-shares are so affordable. And to make the deal more enticing, some developers even offer financing.
However, the most enticing shares of all are the highly-discounted resale ones you buy from individual owners.
But they come with a catch – you must pay for them in cash. That said, no matter how cheap a time-share gets, you and the other owners cannot avoid the cost of maintenance, management, and upkeep of common areas.
Types of Time-Shares
Four main types of time-shares exist, and from them, developers come up with various combinations to suit your needs. The first time-share is the fixed-week share, which gives you access to a unit during the same week every year until your contract expires.
The second, the floating share, is more flexible, letting you reserve any given week or season. However, other owners often book the best periods of the year before you do.
The right-to-use share is the third where you lease a given period of the year for 20 to 30 years. There’s no getting out of this lease unless you sell your share to someone else.
Finally, there’s the points share, a variation of the right-to-use share. However, you get access to different locations after you earn points buying property or visiting hotels.
How to Buy from Developers
As mentioned earlier, you buy shares from either a developer or an individual. Developers first build units and, then, sell new time-shares.
How they do so varies depending on the state, so do your homework before buying. Be especially careful before buying shares outside the United States.
How to Buy from Individuals
On the other hand, buyers first buy time-shares, which they, then, sell at the fraction of the price of a new share. This makes them good indicators of how desirable a property is, letting you know how far you can haggle.
As demonstrated, buying a vacation property for so little is not only possible but also within your grasp. You need only buy a time-share, especially now you know what a time-share is. You also know of its benefits, its cost, and its variations. Finally, you know how to buy one.