Timeshares Explained

First they were called timeshares. Then there was fractional ownership. Now its vacation clubs and exchange clubs. But don’t let the semantics fool you into buying a deal before you do your research.

Timeshares and fractional ownership involve deeded ownership in a single property. Timeshares are usually for one week per year.

Fractional ownership is usually for longer periods and is often promoted as being more upscale lodging.

A vacation club generally allows you to choose several different locations, and may be associated with a familiar brand name like Marriott or Wyndham.

Exchange clubs allow existing timeshare owners to trade their shares for comparable ones in other places.

But you need to read the fine print to know exactly what you’re buying.

And if you’re thinking about buying one of these things to sell it later for a profit, you might want to think again. It’s a bad investment.

Once you buy it, you keep it, or trade it, or give it to your kids. Re-selling a timeshare won’t net you near what you paid for it new.

Don’t miss more Timeshares 101: Tips on Buying and Selling Vacation Property.

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