When it comes to vacations, many people opt to invest in a property in one of their favorite destinations. Both timeshares and vacation homes are great options, but have some differences and which you choose can depend on your budget, vacation habits, friend and family connections, and more.
Timeshares, which are often condos or houses, give you the opportunity to partly own a property without having to pay a mortgage. You’ll share the property with other owners and you’ll have access to it once or twice a year. Vacation homes, on the other hand, require a monthly mortgage payment, but give you unlimited access to its location.
Before you decide, here are some other things to consider from our Philly Airport parking company:
Many timeshares require an annual maintenance fee (that can range from $400-$800, depending on how many years you’ve owned the place) as well as mandatory fees for using the resort amenities. When you own a vacation home, however, the property expenses can be more easily managed and may not be as high.
If you prefer to customize your home by painting it, decorating it, furnishing it, and more, you may want to consider a vacation home. Usually with a timeshare, you can’t alter the home’s appearance unless the other co-owners agree.
Vacation homes often come with stricter mortgage requirements from lenders (when compared to a primary home) and many require higher credit requirements because of the large sum of additional debt. With timeshares, there’s no industry regulation by a government entity, but that means you’ll need to do your research and ask for credentials from the representative company.
One interesting factor of owning a timeshare is the ability to exchange your unit for another one in a different part of the country or world. While sometimes you can make this swap for a one-time fee, other timeshares require an annual fee for this opportunity. If you want to exchange the location of your vacation home, however, there’s a much more intricate process involved.
If you have a timeshare in a popular location, chances are reservations will book up fast – especially during the high season. This means you’ll have to plan out your vacations in advance and work off of the schedules of other owners. With a vacation home, however, you’re free to come and go whenever you’d like without having to worry about booking the place.
Whether you choose a vacation home or a timeshare, paying the expenses is much easier when you share the responsibility. If you own a timeshare with several other co-owners, you can try to rent out unused weeks to other vacationers. With a vacation home, you also have the opportunity to rent it out to others when you’re not using it. No matter which type of home you have, renting it out can be difficult and may require help from a third-party company.
Which are you leaning more toward – a vacation home or a timeshare? Our Philly Airport parking company would love to know!