Should I Buy a Vacation Home or a Timeshare Investment?
August 3rd 2021 Posted by: SellMyTimeshareNow SMTN Category: For Buyers

For Buyers: Timeshare vs Vacation Rental

Purchasing some form of a vacation home is a smart way to ensure a quality vacation each year and the opportunity to rent out the property to other travelers. But, what type of property is best? It’s dependent on your particular vacationing needs. Two of the most common vacation property types are individual property ownership and timeshare ownership.

Both have pros and cons and it’s up to you to determine which one matches your vacationing style and budget best! Here’s what you need to consider for both vacation home and timeshare investments:

Vacation Home Pros and Cons for Owners

Pro: Property Can Appreciate in Value

When you purchase a vacation home, whether it be a single-family home, apartment, townhome, etc., you are investing in real estate. Historically, real estate tends to appreciate in value, especially in vacation areas. At any point in time, you can choose to sell your vacation home and potentially make a profit.

Pro: Can Be Utilized Throughout the Year

When you are the single owner of a vacation home, you can determine how often you would like to visit because it’s available to you throughout the year. This provides you with the flexibility many are searching for when deciding if a vacation home is right for them.

Con: Affording the Purchase of the Home

Like with all traditional real estate, a vacation home can be costly. Not only is there the initial down payment and other closing fees to worry about, but buyers who want to finance the new home will have to qualify for the mortgage. This can be an obstacle for anyone with an existing home mortgage because of their debt-to-income ratio and might require additional work to prove they can handle the payments.

Con: Responsible for All Maintenance and Repairs

As the owner of the home, the responsibility of maintenance, repairs, cleaning, utilities, and other concerns fall on your shoulders- even if you live hours away! Some vacation homeowners use third-party management companies to keep their properties in tip-top shape, but many also take on the work themselves. Be sure to factor in the additional costs, labor, and time before signing on the dotted line.

Con: Keeping Up With the Competition

The stability of a vacation home cannot be beat, but that also means you’re in charge of making your home stand out against the many others listed for rent in the area. This applies to both nearby attractions and home features. Owners will often make improvements to their vacation homes, like adding pools, hot tubs, and other amenities to attract more vacationers. Unfortunately, not everyone has the means to do so, which can deter renters from booking their space.

Timeshare Rental Pros and Cons Owners

Pro: More Affordable Ownership In Some of the Most Popular Destinations

There are timeshare resorts in many of the most sought-after vacation destinations around the world and because timeshares are typically the purchase of the time of an accommodation unit, owners pay significantly less than a homeowner to stay in the same destinations.

Pro: Enjoy Access to Top-Notch Amenities and Services

Timeshare resorts are known for their on-site amenities, and owners will not be disappointed by the offerings. Not only are these resorts often in the most popular areas of their cities, but they have amazing features like on-site restaurants, bars, swimming pools, beach or mountain access, hot tubs, full-service spas, playgrounds, sports courts, fitness center, concierge services, and so much more.

Pro: Resort Handles All Maintenance and Upkeep

Because timeshares are shared spaces, owners pay annual maintenance fees to their home resort property. These fees help cover the cost of maintenance to the units, upgrades, and even contribute some to the improvements made to the property’s common areas.

Pro: Ability to Rent Out Timeshare to Others

Most vacation ownership brands allow owners to rent out their timeshare weeks or points to others, which many people will choose to do on years they are unable to travel. This helps cover some or all of the cost of your maintenance fees so you’re never spending on vacations you are not able to take.

Some timeshare brands also allow owners to bank their points on years they cannot travel to be used towards upgrading future vacations, taking additional vacations, and more.

Pro: Potential to Visit Multiple Resorts and Destinations

Depending on the timeshare brand you purchase into, you could have the ability to exchange vacations at your home resort with vacations at an affiliate resort, as well as book on the behalf of a renter. This expands your renter pool and offers you the chance to explore the world without sacrificing the quality of the timeshare brand you love.

Pro: Find Deeply Discounted Timeshares on the Secondary Market

Did you know there’s a timeshare resale market? Owners who no longer want their timeshares will often sell theirs on the secondary market for as much as 70% off retail price. Instead of paying insanely high prices for real estate in the popular vacation areas, you could save thousands with a timeshare and thousands more with a resale.

Con: You Could Be Limited to Specific Vacation Weeks

Because timeshare units are shared spaces, resorts will often allot specific weeks or travel times for owners to travel. Many have adapted their programs to allow for exchanges or have transitioned to points-based programs for more flexibility, but there can still be limitations.

Con: Timeshares Don’t Often Appreciate In Value

Timeshares are not the same as traditional real estate in that they do not often appreciate in value. An investment in a timeshare is an investment in vacations and quality time with your loved ones, and not a financial investment you will likely make back. Fortunately, shopping for discounted timeshares on the secondary market is a great way to save money and enjoy everything a timeshare has to offer without overpaying.

Find An Affordable Timeshare on SMTN.com!

If you’ve decided that a timeshare is the best way for you to make the most of your vacations and save money on the years you choose not to travel, you should shop our extensive timeshare resale inventory! Save thousands of dollars by shopping on the secondary market and find the timeshare resort and brand that works best for your traveling needs!

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