If you are interested in different ways to enjoy vacation ownership, then read below. Many people just want to invest in their vacations rather than purchasing real estate in a foreign country and being a full owner of a property. You can select from the options of purchasing weeks or months during the year or even points that can be used towards a variety of different properties in different places. Some types of vacation ownership provide the deeds for your percentage of the property while others provide a right-to-use contract that is valid for between twenty five to thirty years.
Take a look in more detail below at the different ways that vacation ownership can become part of your life.
Timeshare – Vacation Ownership
If you purchase a timeshare, you are most likely to be entering a right-to-use vacation ownership agreement; this could be for a fixed or floating week or a flexible points system. Points based vacation ownership works on the premise that you purchase a set number of points which translate into one, two or more weeks in a particular level of unit, that you can use as you wish to stay longer periods of time in smaller units or shorter periods of time in more luxurious units and so forth. Fixed or floating weeks are when you purchase a whole week in a particular type of unit, whether that be exactly the same week each year or a week that “floats” within a particular season etc. The benefits of timeshare vacation ownership is that you can purchase time at top resorts where many amenities are provided.
When you become a timeshare vacation owner, you will pay an upfront fee or sometimes the developer of the timeshare provides financing. The timeshare vacation owner will also pay a maintenance fee annually, which is determined on the size of the suite that you choose, where the resort is located, and the amenities that is provided at the resort.
Fractional Ownership – Private Residence Clubs
The fractional ownership or private residence clubs is more akin to real estate purchases than timeshare. While in many aspects timeshare is a type of “fractional” vacation ownership, fractional ownership refers to when you are actually buying real estate. You get a deed for your fraction of the property. The beauty of fractional ownership is that you are the owner forever of your fraction of the property. An individual that is purchasing a vacation home will generally only use the vacation home a few weeks a year, so fractional is a good option in those cases. A fractional property is almost always located at an upscale hotel or boutique, which means the owner will get to use the amenities of the property. The purchase price for a fractional property have to also pay annual maintenance fees, so you should think about this before buying one.
If you are going to become a member of a destination club, then you are not actually purchasing the property, but you are granted rights to several different homes that the company owns. There are some exceptions, which means you have more selections in the best vacation homes available. Many destination clubs provide concierge services with their membership. The destination club stays are one week through nine weeks each year, and the cost is once, but some of the destination clubs also charge a fee for each night you stay.
Vacation ownership involving condo hotels is when a developer sells some of their hotel rooms. The owner of the hotel sells the hotel rooms for vacation buyers or business needing to have a place for their clients. If you purchase a condo hotel room, then you will get to use the hotels amenities and services, but you have to pay annual dues along with the prices may change as the condo hotel prices raise when the real estate market rises.