Understanding the different types of timeshare
Everyone has heard the words timeshare, but nobody really knows the different types of timeshare. Here you will find the basic information on the most common types of timeshare.
There are so many holiday ownership products associated with, and commonly referred to as timeshare. However, each product is completely different, making it very confusing when you are deciding which ownership is better suited for you and your family.
Fixed timeshare week
You can purchase a fixed week to use every year in a specific apartment only allocated to you and your family. This is ideal if you plan on visiting the same hotel every year and have easy accessibility to the hotel.
When you purchase a fixed week you will own 1 of 52 weeks. The dates may vary each year depending on the hotel check in day.
Before purchasing fixed weeks, check that flights from your local airport arrive to the destination on that day. Fixed timeshare weeks will come with yearly maintenance fees.
Fixed timeshare week (biannual)
Annual and biannual ownership’s are very similar types of timeshare. Owning a timeshare biannually allows you to own 1 fixed week on either odd or even years. This is good for people who know they will like the hotel but does not travel to the same destination every year. The timeshare will also be half the cost and you will only pay maintenance fees on the year you use it.
These types of timeshare offer a bit more flexibility. The year is set into colours. Red is peek time, yellow is busy times outside of school holidays and blue is for quiet season. You will have flexibility to use your week anytime during your colour period and arrival day will still be on a fixed day. You would likely have to book the week you want early as others may want the same week you do. This will not necessarily be in the same apartment every year although you may have an apartment number on your deeds. Maintenance fees are paid yearly
Floating week (biannual)
This is the same as above but your timeshare can only be used every other year. Maintenance fees are also only paid on the years you use ie. even or odd years.
Pure points & seeded points are probably the most common types of timeshare. Seeded points are points converted from your fixed or floating week. These are then used through a holiday exchange company. These points are to the equivalent value of your timeshare week. You will still own a timeshare week in a fixed apartment on paper.
This is a great way to explore the world. However, before you convert your timeshare into points you should check its value with the exchange company you use. A week in one hotel might not have the same value everywhere.
You can usually bank your points if you do not use it one year. You can also purchase more fixed points as your family gets bigger or holiday habits change. If you plan to buy a week just to convert into points, you should find a resort that has the lowest maintenance fees. Even if you have no plan to ever go there, your yearly fees are paid to the resort stated on your paperwork. If you bank your week, you will still need to pay your maintenance fees for that year. There are often membership fees involved to use the exchange programs.
You will have pure points if you have purchased them directly with the exchange company. If you plan to buy a lot of points, it can work out better to buy multiple sets of points totalling the amount you need.
If you own 130,000 points and later did not need that many, you will need to sell all of them or possibly pay fees to break them down. It might be a good ideal to buy 2 lots of 65,000 points, so that if you decide you do not need the full amount you have an option to sell half. You can also start small and buy more over the years. Points can be purchased to use annually or biannually. There are often membership fees involved to use exchange programs and you will have separate maintenance bills for each set of points you own.
Trial packs are a great idea for beginners. Usually a 3 or 5 year pack is what would be offered to you. This allows you to sample the hotel before committing to a full ownership. After your trial pack comes to an end you can choose to buy a full ownership. You would normally own a pack associated with one hotel or one hotel brand. Buying a pack from a hotel chain usually allows you to sample their other hotels. This allows you to holiday in different destinations over the 3 or 5 year period. You will also have yearly maintenance fees with trial packs.
Fractional ownership’s have just started becoming popular over the last 5 years. They are usually sold as an investment. You would buy a large share, usually only with 4 or 5 people. They last around 25 years and are to be sold at the end of that period. Profits are then divided between the share holders.
As fractional ownership’s are rather new they have not lasted the 25 year duration yet, so know body knows exactly how profitable they are. Depending on where you purchase your fractional ownership, you may be able to use some weeks yourself and have the management company rent out the other weeks to cover the maintenance fees.
Try before you buy
It is highly recommended to view the resorts on promotional holidays before buying a timeshare. This allows you to experience the holiday first hand. You will have an experienced representative to explain the ownership in full, different types of timeshares available and what costs are involved. They will also answer any questions you may have. If you decide it is not for you, then you may have avoided making a costly mistake. Buying online before you see the resort can be risky.
7 night promotional holiday are available from various destinations. All you pay is a small administration fee and your flights. This will save you hundreds off the cost of your accommodation and could save you thousands in the long run.
Check our available promotional holidays by clicking the link below.