Have you ever visited a place and wondered how great it would be to own a property here so you can come and vacation any time you want? As lovely as it sounds, it is expensive to own and manage multiple properties at your favorite holiday spots. But timeshares make that possible by helping you split ownership costs. Read on to learn how timeshare ownership works, the types, and other essential factors.

The concept of ownership
When you buy or rent a timeshare, you are not the sole owner or renter of the vacation property. Multiple individuals come together to become joint-owners. As a result, the cost of ownership goes down. It is the primary advantage that attracts more people to buy timeshares. You pay a fraction of the cost and practically have the place all to yourself whenever available! It is more affordable than buying the property alone and then using it for vacationing just once a year.

Sharing the property
There are two popular sharing arrangements: fixed week and floating week. Fixed week agreements allow owners to pre-book certain days, weeks, or months in a calendar year. Once these slots are booked, other owners cannot crash your vacation unexpectedly. The only con is that you get access to the same week or month every year, and changing the dates is a hassle.

Floating week timeshares are more convenient according to many buyers. If the property is vacant, you can spontaneously book and plan vacations without sticking to a yearly schedule. However, the place may not be available during the busiest tourist and vacation dates.

Fractional and point-based ownership
Some listings are also available for fractional ownership, meaning you pay only for a planned fixed duration. For example, you can own a property for a minimum of four weeks to three months in a location of your choice and enjoy a planned stay well in advance. The contract is terminated at the end of the duration. You can renew the same or consider investing in another vacation home altogether.

Timeshares are also available on a point basis. With this feature, you can invest and buy multiple vacation properties for shorter durations on the same network across the globe. The ownership is valid for the duration and validity of the points provided by the timeshare company.

Differences between timeshare and Airbnb
Pre-booking a place to visit during the holidays sounds like the same deal as getting an Airbnb, right? Not exactly! Both appeal to a different demographic of travelers. A key difference is that Airbnb mainly offers rentals for a long duration. But the ownership of the property remains with whoever is listing the place. Further, Airbnb lists both homes and hotels, whereas timeshare listings are mainly vacation properties and resorts that offer a wide range of amenities.

The most important differentiating factor is the quality of the listing. Even if the pictures look nice on the Airbnb platform, there is no telling how the place will turn out once you land there. However, you can buy timeshare properties after checking out the quality of amenities.

Types of timeshare contracts
There are two ways you can own a rental property with this unique concept:

Deeded ownership
A deed implies a binding agreement to purchase ownership of the property. Since the property is shared with other interested buyers, every owner will have an exclusive contract with the resort. Your percentage of ownership will change depending on how long you intend to use the property and other factors. You can get the deed from another party or by looking on broker websites.

Non-deeded ownership
A non-deeded or leased ownership does not grant you ownership rights. It merely allows you to use the property for the agreed duration. Since the resort or developer retains the ownership, it becomes difficult for buyers to resell the share. A non-deeded property is also not highly valued in the real estate market since it does not transfer the title directly to the new buyer.

A deeded ownership is more costly but easier to offload when you are done using the place. On the other hand, non-deeded ownership is more affordable to buy for many vacationers but is a big hassle to sell further due to no title ownership. So, both purchases have their pros and cons. It all comes down to why you plan to buy a particular property, how long you intend to use it, and whether selling the property later is a priority. Your lifestyle choices will also dictate the terms of ownership.