I am often asked about the different types of vacation ownership and timeshare options out there. So, to help you make a more informed decision about which timeshare to invest in, I have am going to give you a brief overview of the available vacation ownership models out there. That way, when you are presented with various types of vacation ownership options, you will know what to expect.
Types of Vacation Ownership Explained in a nutshell
Right to Use Timeshare
Right-to-use vacation ownership is considered the most basic type of timeshare model available. This means once you purchase the timeshare, you will have the right to use it for vacations during your specified agreement. Basically, the right-to-use vacation ownership option allows you to own a membership that gives you access to a property. You don’t own the property outright or own a percent of the property (which is why you are not responsible for any property taxes). You own the right to use a suite at the condo or resort until your membership expires.
In practice, this generally means you may have access to your timeshare between 25- 30 years. After that time, the vacation ownership reverts to the actual owner. Although you are not the deed holder of the property, you have permission to sell your membership or rent your vacation ownership out to other people.
Deeded Vacation Ownership Timeshares
Deeded ownership timeshare is also called fractional ownership, but this is not to confuse it with right to use timeshare (which is also considered a fractional type ownership). What really sets deeded ownership timeshare from right to use timeshare is the nature of the vacation ownership. For a deeded ownership, you are not paying for a membership to gain access to a unit belonging to some resort or condominium real estate. You actually own a percentage of the unit that you will be able to keep for the rest of your life unless you choose to sell it. You pay property taxes that are applicable in the country your timeshare is located. You can also rent this timeshare to others, and you can even will your percentage of ownership.
There are times when a deeded ownership timeshare will involve the land, but most vacation ownership options only relate to the actual unit found at a resort or condominium complex. One chief advantage of deed ownership is the length of time you can vacation at the property. Some deeds allow up to one month, some two months, and some allot for an entire season. Occasionally, deed ownership will allow you to access the property for the Thanksgiving or Christmas holidays.
Points and Vacation Club Membership
The points and vacation club membership is a vacation ownership option that uses a points system. This option is by far the top choice today for vacation ownership. One chief reason for the popularity is the option of buying points to use various units instead of actually buying a specific property. Your choice of duration always depends on how many points you have.
Some clubs and resorts allow you to use points towards all inclusive meal plans and other accommodations. You may even have the option of banking and borrowing points.
No matter which type of vacation ownership option you choose, you will be responsible for annual fees and sometimes maintenance fees.