Owning a condo hotel and owning a timeshare is not the same type of ownership. When you own a condo hotel you will own the deeds to the unit just like any real estate, while most timeshares and vacation club memberships provide you will access to your unit over a set period of time; it never becomes your property.
Condo Hotel or Timeshare?
The descriptions of both condo hotel and timeshare are a lot alike that many people will probably think there are no significant differences between the two. So, one may ask, why is owning a condo hotel a more beneficial option for people interested in buying a vacation home? There are benefits to both owning at a condo hotel and being a timeshare member, it really depends on what you are looking for. However, if you are looking to purchase real estate, then condo hotels are a much better option than traditional timeshare.
What is a condo hotel?
The term “timeshare” is very familiar to people, and most people understand the provisions allowed when owning a timeshare. However, when it comes to the term “condo-hotel,” many people will draw a blank as to what it means. A timeshare means that you own the rights to use a vacation property during a particular period of time, while a condo-hotel is a resort condominium where you can own a unit just like any real estate. The benefit of a condo hotel is that you own apartment at a fully functioning resort.
Condo Hotel Versus Timeshare Usage
When you buy a timeshare, you are really buying the time to use the property or network of properties associate with the resort group, which can be a great benefit if what you want to do is travel and see other places without the responsibility of owning a vacation property. Depending on the type of membership you have, you may be able to use points flexibly to book different units for different periods of time or you might have a fixed week in the same unit.
When you purchase real estate at a condo hotel, you are the owner of the apartment you buy. You might be a full owner, in which case you can arrive to your unit whenever you like; or you may be a fractional owner, which means you will be able to arrive during your allotted time without making a reservation. In both cases, you own real estate that can be sold, bequeathed or rented as you wish, just like any real estate.
Which is the best investment?
Timeshare properties are not known for being the best option for those looking for real estate that appreciates over time. Most people claim that you will sell a timeshare for a whole lot less than what you paid for it, which is only natural as the timeshare has a time limit, so will become less valuable as time goes on and you use your membership. So, if you are like most people who want their properties to appreciate, you may not see owning a timeshare as a logical option. However, because condo hotels are actual properties owned by you, they have the potential to appreciate over time if they are sold again.
There are other differences between condos and timeshares, but the ones listed here are the most important ones to consider when choosing your vacation property. Also, make sure you read your contracts carefully and don’t assume anything because not all contract agreements are alike for timeshares and condo hotels.