If you’ve ever been on vacation or looked up a campsite, you’ve probably seen advertisements for timeshares or vacation clubs. Thanks to aggressive sales techniques, false marketing, high costs and limited resale options, timeshares have earned a negative reputation over the years. That doesn’t mean you can’t make a timeshare work as a valid vacation option.
While we’ve seen the benefits of vacation rental properties for years on shows like Scott’s Vacation House Rules, not everyone is in a position to own a vacation property. For those considering a timeshare vacation property instead, here’s what you need to know.
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What Is a Timeshare?
In its most basic form, a timeshare is a type of shared property ownership in which owners buy a vacation property for a set time period. Typically, owners purchase one or two weeks of use per year, and the properties can range from a resort condominium to a campground site. Owners divvy up the maintenance and property costs.
What Are The Different Types of Timeshares?
If the idea of a guaranteed vacation every year at a swoon-worthy location sounds appealing, know that there are many types of timeshares available.
Points System
A common timeshare type is a points club system, in which owners can accumulate or purchase points. Those points act like cash, which you can use to reserve a property on a first-come, first-served basis. A points system offers more flexibility because it’s typically used across various resorts, plus you have a wider range of dates to choose from.
Leased Right-to-Use
If ownership isn’t for you but you like the idea of an ongoing rental vacation, right-to-use timeshares may be for you. They’re agreements in which you don’t have actual ownership, but you have the right to use the property for a certain period of time. These systems also expire after a certain number of years, which results in limited control but a smaller overall time commitment.
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Floating Deeded
If you dislike taking vacation during the same week every year or have a schedule that requires a bit more flexibility in terms of taking time off, a floating timeshare is a viable ownership option. These agreements allow owners to use the timeshare for a certain number of weeks each year, provided those weeks fall within their designated season or timeframe. Depending on others, you’ll still need to book in advance to guarantee your week, and there’s no guarantee you’ll get the timeframe you want.
Fixed Week Deeded
If you’re okay with planning ahead and taking a vacation at the same time every year, a fixed-week timeshare is for you. These agreements guarantee time off at the same location annually, giving you a consistent vacation schedule and partial ownership. These types of timeshares also tend to be easier to sell later on, as they offer more value to vacation planners.
Rotational Timeshare
These agreements combine the benefits of floating and fixed timeshares by offering owners a rotating schedule that provides everyone with an equal opportunity to stay at the property throughout the year. If you don’t care whether you vacation in December or July, look into one of these timeshares.
Timeshares in Canada
There are numerous timeshares available in Canada, ranging from mountain-based resorts to lake-based trailer parks. Some of the most popular timeshares are located in areas like Banff, Whistler, and the Laurentians. In Ontario, you can find them at destinations like Collingwood or Muskoka.
If you want to know whether a timeshare is legit, do your research. Look into the resort and developer, go through the contract several times and ensure you understand it, consult with a financial planner and a lawyer, and don’t make rash decisions—even if you feel pressured or on the spot.
In Canada, most provinces and territories have a short cooling-off period to protect consumers from such a big investment, but that varies depending on where the timeshare is, so be sure to explore your options first.
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Pros of a Timeshare
Despite the negative reputation many timeshares often receive, there are benefits to group-based ownership. Here are a few reasons to consider a timeshare for your next vacation property.
Guaranteed Vacations
If you’re the type of person who likes to know exactly what to expect and you don’t want to do a ton of research every year to take a vacation, a timeshare can offer you familiarity and consistency. You’re guaranteed to take the same holiday at the same time every year, removing a lot of the fuss from your annual vacay.
Resort Amenities
Depending on the timeshare, you can enjoy resort-like amenities without having to pay an exorbitant resort fee. Think cleaning services, pools, restaurants, beach or lake access, parks, and other amenities that make the holidays just a little more relaxing than if you had to do it all yourself.
Lower Costs
While there can be high upfront costs associated with a timeshare, once you’re in you get to enjoy the benefits of splitting property and maintenance costs with others. This way, you’re only paying for what you use, and you don’t need to worry about year-round maintenance like you would a vacation home that you own solo.
Timeshare Trading and Renting
Depending on the company and contract, you may be able to swap timeshares to explore new destinations. Additionally, if your timeshare allows it, you could potentially rent out your timeshare on those weeks you don’t plan on using it. Or, if you’re super generous, you could lend it out to friends and family and become the hero of your crew.
Cons of a Timeshare
Unforeseen Costs
While timeshares allow you to benefit from shared property and maintenance costs, you can’t control what those costs are. Rising costs, annual fees, special assessments, and unexpected increases could make a timeshare unaffordable in the long run.
Limited Flexibility
Investing in a timeshare can mean the same vacation during the same week every year. While that sounds like a dream to some, others may view it as the same old, same old.
International Laws
Depending on where you purchase a timeshare, you may need to be aware of international rules and regulations. For example, some countries only permit foreigners to hold property titles in certain areas. Consumer laws and cool-off periods also differ, so you may be on the hook for unexpected costs.
Hard to Sell
You may have a hard time offloading or selling your timeshare if you decide it isn’t for you. Used timeshares are historically hard to sell on the market, especially since there are so many scams out there targeting buyers.
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The Bottom Line
Whether you buy into a timeshare is a personal decision, but it’s not considered a wise investment. However, if you don’t care about investing and are simply looking for a vacation alternative that fits your lifestyle, a timeshare can be a legit option that guarantees you a place to relax and unwind in the years to come.
