Side Hustles & Investments

4 Essential Things to Know Before Investing in a Timeshare Resale

4 Essential Things to Know Before Investing in a Timeshare Resale

Projections show that the global timeshare market will reach a value of $28.9 billion by 2028.

There are many different options when it comes to investing in a timeshare, and one of those is to buy a timeshare resale. Depending on what you’re after, this can often be the best option – but many people don’t actually know what a timeshare resale is.

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Is buying a timeshare resale worth it? Keep reading to find out.

What Is a Timeshare Resale?

A timeshare is typically a lifelong investment, but sometimes people decide they want to sell theirs. You can purchase someone’s timeshare on the secondary market, but this doesn’t affect the quality of what you’re buying.

Timeshares typically don’t appreciate in value, which means they tend to be a better investment for people who are interested in the product itself. There are also options for timeshare owners to buy more points on the secondary market. This is an effective way for people to increase their ownership.

Timeshares are often on a point-based system and work as a flexible vacation club. Buying a timeshare resale isn’t like buying a used timeshare as they’re kept in great condition using timeshare maintenance fees.

Types of Resale Opportunities

There are 5 main types of timeshares. It’s best to understand the differences between these so you can decide what the best way to buy a timeshare resale is for you.

Fixed Week

This is the more traditional option where you get use of the timeshare on the same week each year. The industry has begun to move away from this model in recent years.

Floating Week

Floating week timeshares give a bit more flexibility. You have a reservation window, so you can choose when you want to visit the resort during a specified season, as long as it’s available.

Fractional Ownership

This type of ownership is used for timeshares as well as other luxury items such as private planes and yachts. You can own a fraction of a timeshare, which may allow longer use than a typical timeshare.

Biennial Ownership

With this type of ownership, you can use your timeshare every other year (even years or odd years). This limited use also means it costs less than fixed or floating week options (typically half).

Perpetual Ownership

This works like a membership that automatically renews. These are often the best timeshare to buy resale for people who want to pass ownership down through their families.

How Seasons and Weeks Work?

There are specific season delegations for timeshares, which are often as follows:

  • Platinum
  • Gold
  • Silver
  • Red
  • Blue
  • Yellow

These typically determine the cost of the timeshare and how many points it’s worth. These designations vary by resort, so make sure you look into what each color means when looking at timeshare resale listings.

How to Buy a Timeshare Resale?

If you want to buy a timeshare resale, you should consider the various options and think about which would best suit your needs. You also need to consider your budget and weigh it up against the options available.

For more investment ideas, head towards Investment and Side Hustles section

Featured Image: Home loan photo created by jcomp – www.freepik.com

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