Travel and Leisure Articles

Many people ask “what is fractional ownership?” and the closely related question “Is it timeshare? In this article I will attempt to answer these questions. This article is concerned exclusively with the fractional ownership of leisure/luxury assets. However most of the principles would apply equally to the fractional ownership of a practical item (e.g. for business).

Definition of Fractional Ownership

In its broadest definition, fractional ownership is any arrangement where a group of people (numbering from 2 to 10 or more) share the ownership of an asset and also share certain rights to use the asset. The use of the word “ownership” in the definition therefore excludes timeshare arrangements, where there is no ownership of the underlying asset. Unfortunately however, some so-called fractional ownership schemes are closer to timeshare than they are to true fractional ownership. When investigating whether to purchase a fraction it is essential to know what your relationship to the asset purchased is. The best arrangement is to be identified as the legal joint owner of the asset (or in the case of multiple assets, the owning organization).

Types of Fractional Ownership

The most cost-effective form is where a group of individuals decide to purchase an asset jointly. They then decide on the exact asset to be purchased, draw up ownership documents (perhaps with the help of a legal firm) and purchase and manage the asset themselves. This avoids the sometimes substantial profit-margin that developers charge when selling fractional properties. This approach does have disadvantages, e.g. the amount of paperwork involved and the possibility of falling out with your fellow fraction owners (over cleaning, maintenance etc.)

Second in terms of cost-effectiveness would be a developer or owner-led scheme, where the individual fractions were being sold direct from the developer/owner (but where there were no expensive additional services bundled with the purchase). There will have to be a profit-margin associated with this type of arrangement, since the developer/owner is incurring additional legal and administrative costs. If fractions can be sold individually (without all the fractions of an asset being sold) then they are also taking the risk of having unsold fractions tying up their capital.

The above schemes blur into the next category, which I will call clubs. These are sometimes called Ownership Clubs, Private Residence Clubs, Destination Clubs etc. etc. Where they differ from simple developer/owner-led schemes is in the level of luxury/services provided and (sometimes) in the level of ownership. None of these terms have a particular legal meaning so it is up to the purchaser to investigate issues of ownership, booking arrangements, exit arrangements etc. A the extreme end of this group there are some similarities with Timeshare -so be warned!

How Much is it Costing Me?

Here I don’t mean in absolute terms, I mean how much is it costing in excess of the amount that I would have paid for the asset as a whole. Always try and do a comparison with a similar asset purchased outright to gain an idea of what the developer/owner’s additional costs and profits are. At the very least it might help you to negotiate a better price if you do decide to buy! You can and should do a similar comparison on the management fees (and pay special attention to any rights to vary them in the future).

Conclusion

True fractional ownership isn’t timeshare, but some of the schemes marketed as fractional ownership are. Be warned and do your homework if thinking about purchasing.

Are you looking for the perfect vacation for you and your family? Do you want to vacation without having to get a hotel or deal with all the amenities that you cannot get with a hotel like a kitchen, separate bedrooms, and more? If so, then time share rental is the best way to go. There are plenty of owners ready to rent to you and you need to understand how to get the best deal for you.

First, if you are looking for a time share to rent you will want to be a bit flexible with your destination. This will help you get the best price on your vacation. Pick three to five different vacation destinations and start your search for a time share in one of those areas to rent.

Second, if you can be a bit flexible with when you go, then you can also save money by booking a few weeks out. The closer the week gets the more willing the owner will be to negotiate on the price. They are not using it for a reason and sometimes they will be more willing to deal to get something out of it instead of nothing and let the week go unused.

Third, make sure you do negotiate. Offer half of what they are looking for and then work from there. Expect to be able to get a price that is closer to about 80% of what they are asking and if you can get that, then you are getting a great deal and you should take it. This is a great way to get your vacation and time share rental is a great way to keep your entire family entertained when you vacation.

Timeshares

Surprisingly, timeshare has been in existence as a concept since the 1960s. A ski resort owner in France decided that owning a set amount of time in a resort each year was a much more practical way to have a holiday than renting. Over time his idea became popular, and the timeshare concept has steadily grown in popularity ever since, particularly in the USA.

Why do people buy and use timeshare? When you buy a timeshare, you become owner a tiny part of the property, and for many people they like the feeling of security and ownership that gives them. Maintenance and other ownership costs are split amongst all the property owners, and generally the owners will combine to hire a professional manager to take care of the resort.

Once you own timeshare, you’re guaranteed to have that amount of time in the resort each year, which can be a big plus if it’s a very popular resort. When the resort’s a little quiet, they may offer extra weeks to owners at a much cheaper rate than normal rental weeks. The biggest benefits for most people, however, is that you can exchange your own week at your resort for a week at an entirely different resort. This is great if you don’t really want to vacation in the same place every year. You can exchange into resorts all over the world, which an enormous range of places and climates to choose from. So it will take a long time to run out of places you’d like to visit.

Timeshares also offer a quality vacation. Many timeshare resorts are of the highest quality, incorporating luxury features within the accommodation itself, and many extra resort facilities such as tennis courts and swimming pools. The variety is astonishing, and I’ve always been impressed with the resorts I’ve visited, both in terms of quality and facilities. Even in the short time I’ve owned a week of timeshare, I’ve stayed in a luxury Hawaiian beachside apartment, a chalet in the Canadian Rockies, by a peaceful lake in New Zealand and beautiful Australian bush setting.

Sometimes, a timeshare resort will set up an agreement with other timeshares, which means you get access to cheap weeks at the other resorts as well. If you find you don’t want to use your week one year, you can let family or friends use it. All you need to do is pay the annual maintenance fee. There are timeshare resorts available all over the USA, so you should be able to find one relatively close by. You can usually arrange a free tour, or even stay for the weekend at a reduced rate if you’re thinking of buying a week at the resort. During your stay it’s a good idea to talk to other owners and get their feedback. Timeshares can be a wonderful vacation option, so do you research and make sure you buy wisely, if you decide a timeshare is right for you.

You will read many articles that will tell you that time shares are a horrible investment and you cannot get much out of them when you sell them, but these are just people that have heard horror stories. You have to consider the entire picture and know how to treat your timeshare.

First, when you go to buy your time share you need to have a plan. You should start by taking advantage of the free vacation they will give you. They will give you a free 3 night 4 day vacation to get you on their property. Take advantage of this since all you will have to cover is airfare and extras.

Next, know when to accept their offer and buy the timeshare. I have sat through dozens of time share presentations and they are all very similar. The sales representative will show you everything and go over all the benefits and features with you. Then, they will give you a price and cut it in half or so.

They make it look like a great deal and it is a good deal, but they can do better. At this point if you act like you are not going to buy they will do one of two things: either get a manager to drop the price or drop the price themselves. You need to keep pushing until they get a manager to come over to your table.

The manager will be able to give you the final and lowest offer possible. This will give you a huge savings compared to the first number that was presented to you and you will have your time share for a rock bottom price.

Last, you need to take advantage of the network that the timeshare comes with This allows you to get discounts at other resorts around the world. You can transfer your time or you can just buy time in another one. You also need to rent your timeshare out when you decide not to use it.

OVer a 20 year period of ownership if you use your time share 10 times and rent it out the other 10 times you can make every cent you have in it back from renting it out plus get 10 vacations out of it. This is how you get your money out of a time share and, then you can sell it for a little more when you are done with it.

A timeshare is a real estate offering giving you a share of the ownership of a vacation property. It allows you access to all the amenities of the timeshare property and a place to call your own during vacations. Tourist destinations all over the world and in the United States have these offers to buy into a house condo, or apartment block.

If owning a vacation home is not financially realistic a timeshare may be a more budget friendly choice. Look at it this way, if you did buy a vacation home how often would you use it. Does it make financial sense to own a home that is only used maybe two times a year?

A timeshare allows you to divide the cost of owning a vacation home with other people who enjoy vacationing at the same location. You get to enjoy all the amenities during your time there at the fraction of the cost. The only drawback to this way of vacationing is scheduling your time at your destination. In some cases you will have to be flexible as to when you go, but you should know far enough in advance the dates when you can use your timeshare and plan accordingly. This of course keeps you from showing up at the same time as one of your co-owners.

There are many different ways to buy into a timeshare and which one you choose will depend on your vacation budget and how much you are comfortable spending. You can set up your plan depending how much you wish to use your vacation timeshare as well.

If you want to stay there one week a year you could do a 1/52 plan. If cost is an issue you might consider once every other year which would be a 1/104 plan. Of course if you really like going on vacation and go 4 weeks out of every year you would go with a 1/13 plan.

For the most flexibility you want to seek out a timeshare that is purchased through a sales service. This way you do not have to seek out co-owners on your own. By paying for a limited ownership you will only be making payments for a year or two. You can also sale you stake in the timeshare at anytime.

Buying a vacation timeshare can be a great option if you like to vacation in the same area every year or so. It\’s a good way to save on lodging costs and offers the convenience of a home which makes a vacation all that more enjoyable.

On paper, timeshares seem to be the ultimate vacation investment one can avail of. Imagine, going to some tourist destination and staying in some luxury suite a couple times a year. It surely sounds like the vacation of a lifetime, that is, until you see the other side. This is not to say that timeshares are no good. But it begs to ask you a question, “Are timeshares good for you?”

On one side, there are people who have actually benefited from timeshares. They go on a vacation and have the time of their lives. Obviously, it worked for them. Now in your case, there are a couple of questions you have to ask yourself first before you take the eternal plunge that is timesharing.

• Do you really have the time to go on those vacations? Everyone wants to go on a vacation but would you have the time to go on specific dates? Specifically, because you can’t have just any date in the calendar having you at the mercy of what’s available. As a matter of fact, some even book two years in advance.
• Is it alright if I don’t use my timeshares? Yes and no. Yes, it’s perfectly alright not to use your timeshares and no, because you will end up paying for annual fees on something you didn’t even use. Is this a good investment? It’s not even supposed to be called an investment. When you say investment, there are returns. I wouldn’t call a room for a week a return of investment. Unless you plan on renting it out.
• Is this transferable? Very much, making your kids or your grandchildren pay for what you’re leaving behind for them. That’s basically what I meant when I said eternal plunge.
• Is this really cheaper than renting a hotel room? It really depends. If you’re always busy and don’t seem to be able to use your timeshares, then it becomes expensive. Imagine paying for something you don’t use. If you have more freedom for vacations, you might be able to take advantage of timeshares provided you have enough money to cough up. Remember, the more days or weeks you plan on getting for your timeshare, the more you are going to be paying.

Again, this is not to say that timeshares don’t have their advantages but it seems that the disadvantages have far outweighed the advantages. Ultimately, the decision is up to you. But before deciding, do take time to go around the net and see what other people are saying. Look at both sides and try to determine if timeshares are really for you.

Marriott Vacation Club International began in 1984 and the following year, Marriott Rewards was introduced and this allowed the company to partner with timeshare resorts. In 1986, Marriott’s Sabal Palms in Orlando, Florida was the first Marriott timeshare resort. In 1987, they opened the Royal Palms at the same location. Both these timeshare resorts were adjacent to the Orlando World Center Marriott and of course, very near Disney World.

Marriott’s main draw is the high reputation that the Marriott chain has in terms of luxury and service. Their advertising promises timeshare owners spacious villa accommodations in popular and exotic locales. Marriott is careful to underscore the value of the their name when it comes to travel and you’ll definitely pay for that premium whether buying direct from Marriott or from a reseller, but naturally buying a Marriott timeshare on resale represents a significant discount from the developer’s price.

You can buy a timeshare at the resort of your choice and enjoy that location year in and year out. Owners can also exchange their weeks through membership with Interval International. Through Interval International’s Internal Exchange program you can exchange your time at your home resort for equal time at another Marriott Vacation Club or Grand Residence Club, also owned by Marriott, globally.

You can also use Interval International’s External Exchange and exchange your timeshare for another resort from any of the other vacation companies that are affiliated with Interval International. Currently there are about 2,100 affiliated resorts spread out over 75 countries.

You can also exchange your week or weeks for Marriott Rewards points that allow you to book cruises, buy airline tickets, and rent cars, among other things. You can even exchange your Marriott Rewards for hotel accommodations. But like the Disney Vacation Club membership, using Marriott points for anything other than the timeshares themselves is usually considered poor use of the points since frequently the points values for airline tickets, car rentals and such are inflated above the actual cash cost. I would only use Reward points if I had to use up the points.

What does a Marriott Vacation Club villa have to offer? Here’s a typical scenario - accommodations for 6 to 8 people - about 1,100 square feet - with separate living and dining area and multiple bathrooms. The kitchens are fully equipped for eight people. There are televisions, DVD players, washer and dryer. In other words, all the benefits of home without many of the hassles.

If you are familiar with timeshares, you know the benefits of such a vacation plan in general. What Marriott offers that makes it unique from other timeshares is its reputation and luxury. While I think that Marriott is comparable to what is available at some of the Disney Vacation Club resorts, there’s no real doubt that it is a step up significantly from Fairfield or WorldMark and other timeshares. Of course, you will definitely pay more for the upgrade, but good deals aren’t impossible to find if you are patient and ready to grab the bargain when you see it.

Do you want to take advantage of different destinations across the globe? Are you ready to travel the world and stay in luxury everywhere you go. About a quarter of a million people take advantage of all the benefits of Marriott timeshares each year and you could be one of them. Enjoy the flexible travel times and locations, plus you will be able to travel with the expense already taken care of. Timeshares are a great way to still be able to vacation without getting trampled by the rising costs of flights and hotels.

Owning a timeshare, especially one that Marriott provides can allow you to vacation more often, too. You get 2 weeks a year usually, but you can always buy more time for very cheap at other resorts across the globe. They have a network of resorts that will help you stay for very cheap. This is how the rich are traveling and saving money doing so.

You will be able to enjoy a great vacation on a low budget with a time share. You can save money that you can spend on other things like tours, gifts, and other events that make up a great vacation. You should also know that timeshares are not just apartments, condos, and homes. They can be found in house boats, campgrounds, on cruises, yachts, and even with motor homes. This can make it affordable for anybody and can allow you to vacation the way you like to vacation. You could take a cruise twice a year or even stay on a yacht.

By investing in Marriott timeshares you will be able to enjoy your entire vacation with all the activities that are available for the entire family. Family vacations no longer have to be a hassle with kids complaining and parents being upset with each other over money. You will be able to get what you really want which is the time to relax and enjoy what the vacation you really need. Why throw your hard earned money away on renting a hotel when you can own a piece of a resort that will allow you to take annual trips that you can look forward to.

Everyday people are attending timeshare presentations in which a percentage end up purchasing what they believe is a great deal. The people end up spending money on a down payment or paying in full for their dream. Once they are home they forget all about having to pay the maintance fees which are due at most places at the beginning of the next year. January is a bad time to have to make these payments as christmas just ended and property taxes for your home are due at that time as well. All of a sudden their dream vacation they bought for each year becomes a debt with they have to pay at the worst time of the year. This causes many owners to want to sell their investment and get out of the property that now is a debt to them.

Upon making the choice to sell most owners figure that they will be able to sell and get back some of the money they have already spent. Then reality sets in and they find themselves in a resale market that has thousands of different properties that are also for sale. They end up having to spend more money to list their property and find out that the value of their investment has dropped at least 50 percent. After they have their property listed for a while they find out that they are having a hard time selling their investment and now have wasted months with their plan. At this point the owners have to make a choice of either selling at a price that makes them lose everything they have already invested into their property or keeping it and turning their investment into an asset.

The owners who decide to hang on to their timeshare and finds ways to offset the cost will come out on top everytime. There are several ways a owner can make money with their investment to pay for the cost of the maintenance fees each year. I know of hundreds of owners which make a profit from their timeshares each year. In the next several years the value of these properties are going to become higher allowing owner to have a chance to recoup the money they paid for their properties.

In summary the timeshare resale market is being flooded with people who are trying to sell, resulting in a buyers market. The value of your investment will decrease over fifty percent if not more in todays market. Before you lose everything you invested why not research organizations that help owners earn money on their investment. If your investment can earn you money each year or pay for itself each year why not keep your vacation dream a while longer.

Resort Condominiums International (RCI) is the world’s largest timeshare vacation exchange company. In addition to regular fixed week timeshares, they now offer the RCI Points program which allows you to be much more flexible in how you use your vacation time. The growing popularity of points-based timesharing programs, such as RCI, Worldmark and Fairfield, means that you are no longer limited to a single Sunday to Saturday week for your vacation. If you really want to spread your vacation around, you don’t have to use your vacation in week-long segments. You can take a day, or several days, or even several weeks. You also get to select what day of the week you’d like to begin your vacation rather than always having to arrive on a Sunday.

Since RCI has timeshares in more than 100 countries around the world, it is frequently one of the best options for a points-based program. What this means is that if you have RCI points, you can really pick and choose where you want to vacation this year. RCI Points let you choose the time, destination and duration of your vacation as well as allow you to trade Points for other services such as airfare, tours, cruises, and car rentals. You can save your Points for next year. You can transfer your Points to someone else. You can even rent points for about 2 cents a point.

If you own a vacation week at an RCI Weeks Resort, you can convert your vacation week into RCI Points. Or if you already have points, you can also deposit additional vacation weeks in exchange for points if you need more during a particular year. This gives you the ultimate flexibility because you can use your RCI Points in a much more flexible manner than a standard RCI Weeks membership. This does not mean that you are giving up ownership of your timeshare if you convert your RCI Weeks to RCI Points. All you are doing is adding a new option to your current RCI vacation plan.

If you are not an owner at a Points affiliated resort, you can buy a timeshare at a resort that has already been converted to RCI Points through RCI or through any timeshare reseller. Ebay is a great place to find deals on RCI Points as well. RCI Points works somewhat differently than a points-based timeshare like WorldMark. With RCI Points, you will still own at a specific resort and hold a priority booking window at that resort between 11 and 13 months out for your original week. With WorldMark you don’t own at a specific property, but can just book anywhere within their system and it works on a first-come, first-served basis.

There is an assigned RCI Points value for all RCI units and time frames. You can use your RCI Points for an RCI Weeks vacation spot, as well as using it at resorts that are already within the Points-based system. The number of point needed for a RCI Week vary according to location but a ball park figure is about 50,000 RCI Points for a gold 2-bedroom unit.

RCI Points membership has an annual fee attached which covers the exchange privileges. For a membership of 1 or 2 years duration, the fee is $99 (USD) per year. For a longer membership, up to 5 years, the fee is $93 (USD) per year. This fee is in addition to your maintenance fee at your resort and naturally maintenance fees vary based on where your timeshare is located and what amenities it offers. So if you are looking to purchase your first RCI Points membership, then it makes sense to shop around for a deal featuring the most number of points for the lowest maintenance fee you can find, especially if you don’t intend to vacation at the same resort every year.