How Time Shares Work

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Thinking about a timeshare for the very first time can seem like a daunting task. It also seems true, however, that things that look daunting are only that way when seen from a distance. Up close and personal, it’s not nearly as complex as it once seemed to be. This is especially true for things that have a high value in terms of desire, and timeshares certainly enter into the realm of the good life. For that reason, then, it might be intimidating just because people often sell themselves short when it comes to getting things that they really do deserve.

Not everyone wants a timeshare, of course, and it’s usually fairly quick to decide that it isn’t something that would be useful for you. If it is, then there are lots of options. Using your own resources at hand, finding a reputable lender, making efforts to win a contest or two, all of these can help to turn the dream into a reality. One of the greatest things about a timeshare is that it is a long-term investment. That means that it’s not just a matter of having a nice vacation for yourself, but it’s also something that can be passed on in the family. It is like having a vacation home, only better, because the home can be in almost any part of the world, and someone else has to bear the burden of maintaining it.

Getting more specific, then, it’s reasonable to wonder exactly how the financial part of it is set up. If one decides to buy into the timeshare, what is the basic set up? Like anything that has to do with financial matters, there are all sorts of resources on the web, links, videos, blogs, and articles, that can explain any kind of timeshare in great detail. In the majority of cases, the seller will have some resources that explain how their particular organization sets it up. Generally, however, one is buying a share, which is typically 1/51 of the value for the year. This means that 50 other people are buying in, essentially buying a week, to add up to 51 weeks. The 52nd week of the year goes to maintenance and upkeep.

It used to be the case that one would buy a specific timeshare for a specific vacation home, but times have changed in the past 30 years, and it’s gotten more complex. Fortunately, it’s a delightful complexity, where one can buy a share in a variety of locations, and visit a different place every year. If you can imagine what you would like, then, in a timeshare, chances are very high that someone out there is selling it. It’s just a matter of persistence and practice in the ability to say no until the match is perfect.

Lillian Hunter is blogger and financial coach who teaches and writes about money management topics like budgeting, stocks, money mutual funds and investment planning.

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