Learn about Buying and Selling a Timeshare Property - A timeshare is a form of ownership or right to the use of a property, or the term used to describe such properties. Timeshare properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time in which they may use the property. Timeshares may be on a part-ownership or lease/"right to use" basis, in which the sharer holds no claim to ownership of the property.
Due to the promise of exchange, these units, called "vacation ownership" by the industry, often sell regardless of their deeded resort (most are deeded into a certain resort site, though other forms of use do exist). What is not often disclosed is that all differ in trading power. If one is in Hawaii or Southern California it will exchange extremely well, however, those areas are some of the most expensive in the world, subject to demand typical of a highly trafficked vacation area. The vast majority of inventory flows briskly through two international exchange companies:
This concept has attracted many resort developers and prominent hoteliers, such as Starwood, Wyndham, Hyatt, Hilton, Marriott, and Disney. Vacation ownership has proven to be lucrative for stakeholders in these major resort families, due to its popularity with vacation-goers. This form of lodging has spawned a variety of products sold on similar occupancy schemes; cars, planes, condo-hotel units and luxury fractional properties (guests may stay for as long three months of a year, and which often command a six-figure price tag)
The scope of today's time share industry in the USA is well-documented. The ARDA International Foundation ("AIF") which is the research arm of the American Resort Development Association ("ARDA"), reports there are 1,604 timeshare resorts, with 154,439 units, in the USA as of January 1, 2006 (AIF 2006).
Though reportedly fewer than 6% of U.S. households own one, the prevalence of vacation ownership continues to expand. Approximately 4.4 million households own one or more U.S. weekly intervals or points-equivalent as of January 1, 2007, an increase of sixteen percent from the prior year. About half of the resorts in the USA are currently selling, generating sales of $8.6 billion in 2005 (AIF 2006).
The global scope of the industry is not as readily quantified. Interval International, one of the two major exchange companies, reports there are 1,800 resorts in nearly 81 countries, with 2004 worldwide sales estimated at nearly $11.8 billion (Interval International 2006). RCI has 4000+ resort in nearly 100 countries.
Worldwide exists 5,425 timeshare resorts, of which around 31% are situated in North America, 25% in Europe, 16% in Latin America (where Mexico leads with 40% in the region). Emerging resorts in Asia offers 14%, led by Japan, but with Thailand and India increasingly prominent. |
