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Condo Hotels Versus Time Shares

If you were to choose between Timeshare and condo hotel, which would you choose? Is it the timeshare where you will be able to occupy your ownership in a set number of days and/or weeks? Or is it the more flexible condo hotels where you will be able to use your property in (atleast) one month’s notice?

This article will unravel the advantages and disadvantages of the two so you will be able to determine which property ownership suits you.

Time Shares

First, what really is time share? Time share is a form of vacation house ownership wherein you and a group of other people share the purchase cost of a vacation accommodation, in increments of one week (or more) per year of use, thus guaranteeing your ability to use that accommodation during the period of time you choose, either for life or for a specified number of years. Accommodations range from hotel rooms to condos, from cabins to luxury houses and castles, from yachts and cruise ships to RVs and houseboats.

Condo Hotel

Condo hotels have condos that are sold to individual investors who may use their unit as a vacation home whenever they like. When they’re not using their unit, owners have the option of placing it into an organized rental program. Rental revenue, which is shared with the operator, helps defray the owner’s expenses.

What you can do to your properties?

Timeshare owners may elect to:

Use their usage time
Rent out their owned usage
Give it as a gift
Exchange internally within the same resort or resort group
Exchange externally into thousands of other timeshare resorts

Recently with most point system, owner may elect to

Assign their usage time to the point system in exchange of airline ticket, hotel, travel package, cruise, amusement park tickets …
Instead rent all their actually usage time, rent part of their points without actually get any usage time and use the rest of the points
Rent more point from either the internal exchange entity or other owner to get a larger unit or more vacation time or at a better location.
Save or move points from one year to another.

In the other hand, condo hotel owners on the other hand may choose to:

Use their condo hotel whenever they wish as long they have given the hotel enough notice
Rent out their property using the rental program the hotel has during the days that they are not using the room.
Make use of the amenities and services that the hotel provides to their regular guests freely whenever tehy are staying in their hotel room

Time share and condo hotels do differ in terms of flexibility, cost and occupancy rate for the owner. However, both presents a vulable piece of property wherein you will be able to spend quality time with your family. In choosing which property you would rather invest on, you have to consider three things.

Your lifestyle: Do you have a fixed schedule that you can follow no matter what happens? If yes, then a time share may be the perfect solution for you because you will have the vacation house to yourselves at the day you promised.; If not, then a condo hotel might be the right thing for you.
The amount of money you are willing to invest: Generally speaking, across the entire spectrum of condo hotels, prices can range from $200,000 - $2,000,000.; However, with time shares, the initial purchase price is not the only cost to consider, however. All timeshare resorts charge share owners annual fees for maintenance, utilities and taxes. Annual fees in the $300 to $400 range are typical, although larger shares or peak-season shares can have higher annual fees, often more than $1,000 every year. These fees are due whether the share owner uses the property or not.
Goals you have for your property: If you desire to have a vacation home for your family without expecting anything in return then timeshare is just quite right. However, if you are planning to make your property an investment, then condo hotel is the right choice. You may enroll your hotel room to the hotels’ rental program so you will be able to earn something whenever you are not around to make use of your room.

So, is it a timeshare or a condo hotel?