Owning a Timeshare Home

by Keith Evans 05/10/2020

Image by Steve Heap from Shutterstock

If you love vacationing at the same place every year you may consider investing in a timeshare property. This can often help control vacation costs and planning time. However, owning a timeshare home may not be not the right choice for everyone. It is important to understand that a timeshare is not like other real estate because you do not own the property yourself. Carefully consider what that means before signing a timeshare contract.

Should You Invest in a Timeshare?

Timeshare properties are homes that are co-owned. Similar to condominiums, the units usually have several rooms that allow more than one family to share the space at the same time. Each owner has the right to use the home for scheduled periods each year. If you are considering a timeshare investment, here are the advantages and disadvantages associated with owning such property. 

Advantages

  • You have a vacation home every year: If you own a timeshare property, you save some vacation planning time each year. You won’t have to deal with booking hotel arrangements or spend time determining a destination.

  • Scheduled time: If you vacation during the same timeframe every year, this is a great option because you won’t have to worry about having good accommodations available to you when you want to use them.

  • Cost-efficient: When you calculate how much you spend on hotel bookings whenever you go on vacation, you may realize it is more cost-efficient to buy a timeshare property. 

Disadvantages

  • Your vacation is restricted: Owning a timeshare property makes it difficult for you to vacation whenever and wherever you’d like. If you like to visit new destinations or vary your vacation weeks each year, a timeshare may not be the best fit. 

  • Additional expense: If you opt to exchange the timing or destination of your timeshare stay, you may meet with considerable fees during the process. You may also be billed for routine maintenance, utilities, taxes, and other fees related to the timeshare complex itself. 

  • Difficult to sell: It is often difficult to sell a timeshare if you decide you do not want it anymore. You might end up selling at a loss as timeshare value tends to depreciate over time.

Before investing in a timeshare home, weigh your cons against your pros to determine if it is the right decision for you. You might find it just as cost-effective to purchase a vacation home in your favorite location that you own outright. In some cases, you could even rent it out to other vacationers when you’re not using it to help pay for the mortgage. Contact your real estate agent for professional advice on buying the right vacation home for your situation.

About the Author
Author

Keith Evans

 I am a Sales Vice President with William Raveis Real Estate in their Regional Office and lead a $25M+ mega agent sales team. I have successfully been involved in investing, buying, wholesaling, developing & selling thousands of Connecticut & New York properties for hundreds of millions of dollars. Known as a creditable "field lieutenant", I have a strong history as a leader who "rolls up his sleeves" and knows what it takes to get the job done. I am additionally the founder and Executive Producer of the media company Selling Connecticut, a podcast series that acts as an independent ambassador; promoting the reasons why people choose to live, work, build careers & businesses in this State.

Prior to joining William Raveis, I started a chain of Keller Williams Realty franchises throughout Connecticut and New York, developing and building four market centers with over 700 total sales agents. During my tenure I created many training programs and hosted daily training sessions in each market center.

Before to opening the doors at KW, I was Managing Director and an Equity Partner at Spencer Trask, a venture capital company in NYC. During this period I lead the spun-off 5 businesses from Fortune 10 companies, held 2 board seats of publicly traded companies and was the Corporate Secretary for Flight Safety.

At Realtor.com (Move), I was a founding member and Vice President of Sales. I was responsible for building their direct sales force of 175 sales reps and 14 district mangers. Unique during this period was the development a training seminar sales method that led to hundreds of thousands of real estate agents purchasing individual web pages; which helped the company attain a highly successful $2B IPO.

I have also held executive positions at IBM and Dun & Bradstreet. I hold a BA in Economics and currently reside with my family on Candlewood Lake in Connecticut.

Current real estate broker licensees in Connecticut and New York.