If you love traveling, vacation ownership might sound like a dream come true. You get the chance to own a timeshare at your favorite destination and enjoy a relaxing vacation every year. But before you dive into this world of luxury, it’s important to understand the costs involved.
What is Vacation Ownership?
Vacation ownership, also known as timeshare ownership, is a system in which multiple individuals own the right to use a property for a specific period each year. The property is usually a resort or condominium located in popular vacation destinations like Hawaii, Florida, or Mexico.
Types of Vacation Ownership
There are several types of vacation ownership, including:
- Fixed Week
- Float Week
- Points-Based System
In fixed week ownership, you have the right to use the property for a specific week each year. In float week ownership, you have more flexibility to choose when you want to use the property within a specific season or time frame. In points-based systems, you accumulate points that can be used for different properties and times of the year.
The Average Cost of Vacation Ownership
The cost of vacation ownership varies depending on several factors such as location, type of ownership, and amenities offered. According to the American Resort Development Association (ARDA), the average price for a one-week timeshare interval was $22,942 in 2019.
However, this price can be misleading as it includes high-end properties with luxurious amenities. The cost of vacation ownership can start as low as $1,000 and go up to $100,000 or more depending on your preferences.
Factors That Affect the Cost
Some factors that affect the cost of vacation ownership include:
- Location: Popular destinations tend to have higher prices.
- Time of Year: High season rentals can be more expensive.
- Type of Ownership: Fixed week ownership tends to be less expensive than points-based systems.
- Amenities: Properties with more luxurious amenities like spas and golf courses tend to be more expensive.
The Additional Costs of Vacation Ownership
The initial cost of purchasing a timeshare is just the beginning. There are additional costs that come with vacation ownership, including:
- Maintenance Fees: These fees cover the cost of upkeep for the property and can range from a few hundred dollars to over $1,000 per year.
- Taxes: Property taxes are an additional cost that you’ll need to consider when owning a timeshare.
- Exchange Fees: If you want to exchange your timeshare for another location or time, there may be additional fees involved.
Should You Invest in Vacation Ownership?
Vacation ownership can be a great investment if you love to travel and want a guaranteed vacation spot each year. However, it’s important to consider all the costs involved before making a decision.
Conclusion
The average cost of vacation ownership varies depending on several factors, including location, type of ownership, and amenities offered. Consider all the costs involved before investing in vacation ownership and choose an option that works best for your budget and travel preferences.