Vacation Ownership
"Time sharing" is the right to use specific weeks
of a resort during a specific time period. Simply put, it
is the pre-purchase of future vacation weeks called resales.
Resales are
more accommodating than a mere hotel room. Condominium-style
units usually feature fully-furnished kitchens, generous living
areas, and ample sleeping options for family or friends.
Ownership of vacation
property is very similar to ownership of a condominium except
that your rights are limited to a certain week (or weeks, if you
purchase multiple intervals) during the year. The form of
ownership can be deeded, leased or licensed. The license is somewhat
different, in that it is most commonly a resale membership in a
club. Providing you are a member in good standing, you have the
right to use the club and all its amenities. Be sure to read and
understand all the terms and conditions of your club membership
before you make the decision to buy.
Most vacation ownership's
consist of either a deeded interest or a leased interest for a specific
number of years. Deeded units are owned outright forever.
It is an absolute right that can be sold, leased, or even willed
to your heirs. The less common leased interest is much like an apartment
lease except right to use it is restricted to a specific week during
the year. Upon the expiration of the lease term your right to use
it will generally terminate and return to the resort. With leased
resales you should know the terms and conditions of the lease prior
to making the decision to purchase.
Your use can be either
Fixed or Floating. Fixed time is a specific week during the
year (See Weeks Calendar) usually defined by a number. With time
share resales, generally the week will begin on a Friday, Saturday
or Sunday and is given a number starting with the first week in
January and continuing through the end of December. Example - week
14 might be April 7 through April 13 Floating time means you have
the right to select any available resale week within a certain season
of the year. Therefore, if you own a summer season week you could
pick any week that falls within the defined summer months. However,
competition between existing time share resale owners for prime
weeks in very desirable locations can impact availability. It is
important to find which type of use best fits your specific time
share needs. Each resort is different and offers various benefits
to its time share resale owners. Many resorts give special reduced
rental rates for extra nights or use of other resorts that are owned
by the developer. This can add to your flexibility and provide substantial
savings on vacation costs. Also, consider how and where you normally
vacation. This is very important in making your decision about where
you should purchase and what you will have to trade. We welcome
your comments and appreciate your feedback for this time share resales
information guide.
Time share history
and why a "time sharing" became popular.
The time share resales industry (Time sharing - to share
time) can be traced back to Europe in the 1960s. Superdevoluy™,
a ski resort in the French Alps, was the first in the world to use
the time share resales program. The ownership of individual
weeks guaranteed reservations for those who wanted to ski the area
every year. It was an immediate success. By the 1970s, some faltering
condominium projects on St. Thomas, Fort Lauderdale and Puerto Rico
were converted over to time share resales. Thereafter,
timesharing became an increasingly popular vacation alternative.
Once the information spread and the United States embraced the concept
of vacation ownership, it began to gain wide acceptance worldwide.
Since time sharing
began, the resales market jumped to over 50 million by the mid-
1970s and have climbed to 6 billion annually today. The time
share resales industry has grown substantially over the years with
approximately 5 million time share sales since 1980. Currently,
there are over 5,000 vacation ownership resorts in 90 countries
around the world. Exchanging a vacation ownership week in one resort
for that of another resort was introduced in 1974 and brought new
elements of variety and flexibility to the vacation experience.
Although there are many exchange companies
available that provide excellent service, the two major players
are Resort Condominiums International
(RCI™), which has approximately 3,500 member resorts, and Interval
International (II™) with approximately 1,800 member resorts.
Combined, these two companies provided over 1,600,000
exchanges last year.
During a 30-year span,
the time share resales industry has grown from small (15-20
unit) hotel conversions to the high-quality condominium resorts
of today. The time share resales industry has evolved from
that of a few scattered entrepreneurs, to well managed professional
development companies. This change in the time share resales industry
has brought with it a noticeable change for the better. Definitive
leaders have emerged and created standards and ethics for time share
management, marketing and sales practices. One such organization
is the American Resort
Development Association (ARDA) whose members are required to
comply with an established "Code of Ethics." The recent
entrance into the marketplace by major hospitality chains such as
Disney™,
Hilton™,
Ramada™,
and Marriott™
has greatly enhanced the quality and image of the time share resales
industry. The time share resorts of today are luxurious, have a
wide array of amenities, and are well located. With the advent of
these stronger and more professional development and management
companies, the resales industry is now representing a very positive
public image. One of the industry's leading analysts (Ragtag and
Associates) concluded that the majority of owners are pleased with
their purchase and, in fact, many now own multiple weeks. The future
of ownership is very bright and has tremendous potential.
What type of
resale is right for me?
Looking across the resales spectrum, we find those who enjoy returning
each year to a familiar spot in addition to those who look to visit
a new destination every year. Many fall somewhere in between. No
matter where you are on the spectrum, time sharing is the way to
go. When you buy, you are making a commitment to yourself. While
often you may choose to vacation at the same resort, an exchange
companies allow you to vacation elsewhere when the mood strikes.
Certain features may
be extraneous if your only purpose is to use the resort for your
own enjoyment. However, if you plan to trade your time
share resale, for other locations throughout the world, a resort
unit with more features will fetch a better trade, or a higher price,
should you decide to sell down the road. Keep in mind that you do
get what you pay for. Although there are bargains out there to be
found, this is still an emerging market. As a prospective buyer,
you must also ask yourself, "What are my vacation plans?"
Some primary considerations are family, airfare, recreation, meals,
etc.
Do I want to guarantee
a certain week every year?
"I can only travel when the kids are out of school." If
this is your situation then a unit with a fixed week would
be best. If you're free to vacation anytime of the year then perhaps
a resale membership or floating week might be better. Find a resort
that fits your vacation style. The Dollar Value consideration should
be above all else. Since the 1950s, the travel industry has noticed
an approximate 5% annual increase in dollars spent on vacations.
With the acquisition of a resale, you can start to curtail those
costs. An annual maintenance fee of $250 to $450 ensures a week
of vacation that has a fixed accommodation price per visit.
I'm Ready to purchase a
resale.
After all the initial considerations and deciding to purchase, it
is time to start looking for a resort that fits your criteria. To
start narrowing down your resort choices, take a look at our database
where you can search our online listings before you buy or rent.
Everyone who is a member of an exchange organization gets a catalogue
each year. It holds up to 3,500 developments throughout the world.
Unfortunately these catalogues are not available in your local library.
You must borrow one from someone who is already an owner.
Let's say you have two or three really attractive
resales in mind. They all have the features you're looking
for, all are in your price range, and you can see yourself committing
at least 10 years of vacationing there. If at all possible, visit
the resorts. Start getting some feedback from other owners and other
sources; see what they say about the resort and the price you've
been quoted. If your chosen resort is still under development, there
are sure to be on-site sales people who will enthusiastically give
you a one to two-hour tour of the whole facility. Be aware! They
are there to give you a thorough pitch. If you have low resistance,
it may be better for you to look around on your own and ask questions
on your own terms. Be sure and pick up all
available literature and to get all terms and conditions before
finalizing your purchase.
When comparing to condominiums,
cost is misleading. Many times you'll find that condos cost
thousands less than a vacation unit. Resales sold in off-peak
seasons cost much less than condos. Also, condos often are developed
on land of inferior value, and located in a residential surroundings,
whereas resales may be nestled in a lust forest valley
or along a private beach. Where would you rather be? Make sure the
resorts that interest you have resale programs, instead of purchasing
directly from the developer. This is the best route for the thrift-minded
buyer who can purchase a choice unit with discounts of up to half
of a developer's asking price.
