Owning a vacation home where you can relax every year is a dream for many people. But there are a lot of factors to consider when purchasing and managing a vacation property. One of the cost-effective options is timesharing, which provides the benefits of a vacation property but also has some tradeoffs. Keep reading to learn in detail what a Vacation Properties is, how it works, and the different types of Vacation Properties.

A Vacation Property is a type of holiday home with a joint ownership structure. With a traditional Vacation Property, you split the cost of the property with other owners in return for a certain amount of time at the property annually. These properties can provide you with a sense of ownership while allowing you to share the exclusive use of a place with others during their allocated time. While apartments or condos on resort properties are the most common Vacation Properties, the shared ownership concept may also apply to lodges, single-family houses, yurts, and luxury campsites.

A Vacation Properties arrangement lets you share the costs of homeownership with others. In some contracts, each buyer owns a percentage of the property (fractional ownership) based on the amount of time they intend to use it. In others, each buyer just rents the property for a set amount of time, generally several years, without truly owning it. Previously, Vacation Properties buyers were frequently restricted to a single week at a specific property. Vacation Properties generally employ one of the three systems listed below:

• Fixed Week: Allows the buyer to utilize the property exclusively for a certain week (or weeks) each year.
• Floating: Allows the buyer to have exclusive use of the property for a week or weeks during a set period of time, or possibly the entire year.
• Points: Allows the buyer to purchase a certain amount of points to spend in various Vacation Properties locations and at different periods of the year.

Vacation Properties ownership is basically divided into two categories:

• Deeded: A deeded Vacation Properties is one in which you acquire a portion of the property. Each owner is given a percentage of the property, generally depending on the amount of time they expect to utilize it.
• Non-Deeded: A non-deeded Vacation Properties, often known as a "right to use" Vacation Properties, is one in which you acquire a license or lease to use the property for a specified number of years but do not earn an ownership stake in it.

Although Vacation Properties are not suitable for everyone, they do have certain benefits for those searching for a reliable and convenient holiday location. But still, there are some significant limitations that investors should be aware of before getting into a Vacation Properties deal.

Pros

• Same location every year without any unexpected hiccups
• Resort-like services and amenities
• Saves you the trouble of picking a new holiday spot every year

Cons

• Ongoing expenses can be hefty
• Limited flexibility when modifying the contract or weeks
• Vacation Properties are notoriously tricky to resell

If you’re seriously considering a Vacation Properties, we can help. Get in touch with us today to learn more about our Vacation Properties marketing services!