You can be forgiven for wondering just what the difference between a Condo Hotel and a Timeshare is… the short answer is that when you buy a timeshare you own rights to use a property, but with a Condo Hotel you own the property outright.
Condo-Hotels are gaining popularity steadily, and the market is expanding to meet demand. This mean that you have a great deal of choice, and yet there is often little information to help consumers make their choice if they’re in the market for a vacation home. Here are some things you should consider:
Condo Hotel or Timeshare?
Timeshare is a word that most people know, and sometimes have negative associations with (though the image of this industry has certainly improved over the last decade), but few people know what it means to purchase property from a “Condo-Hotel”. The descriptions are actually quite similar; both involve the purchase of a vacation property in some form, but there are some pretty big differences which need to be considered seriously. For example, when you buy a timeshare you’re essentially buying a the right to use a property for set period of time, whereas with a Condo-Hotel you are purchasing the property outright.
Condo Hotel Verse Timeshare Usage
If you buy a timeshare you are buying just that – time. You get specific dates during which you can use a particular resort or network of resorts… this system is not only quite restrictive, but it can pose some challenges when it comes to scheduling if you’re unable to get the same two weeks of each year. Of course you can always trade your time through certain networks, but this does take time to achieve.
Owning a Condo-Hotel property is much more flexible; you can stay in your property whenever you wish. You’re not tied into the same times each year; this is so much better if your schedule is unpredictable. Plus, when you’re not in your property the hotel’s management can rent it out to hotel guests and split the income with you, so a Condo-Hotel purchase can work for you financially, too!
It’s true, however, that most timeshares offer what is known as “floating time” timeshares which stop you from being locked into specific weeks… the downside of this is that you’re competing with others to get the choice times. Floating time trades security for flexibility, but ownership of a Condo-Hotel means you don’t need to compete or compromise; it’s your condo, after all.
It is often stated that any timeshare you buy will deteriorate in value quite quickly, and that when you try to sell it on you’ll get a price much lower than the one you paid. Of course, neither timeshare nor Condo-Hotel properties are intended to be investment real estate, but it is nonetheless understandable that you wish to buy a property which will at least hold value. Condo-Hotels are, of course, still a new concept, but the indications are that re-sale values will do just that, and that they have a good chance of appreciating in value over time.
The main benefit of buying a Condo-Hotel unit rather than a timeshare membership is that you’re not buying something ambiguous and fluid like time; you’re buying a property. This fact alone will make Condo-Hotels preferable to many people.
There are many differences between a timeshare membership, and the purchase of a Condo-Hotel property, but these are the most important in our minds. Keep in mind, however, that terms for Condo-Hotel purchase will differ to the usual Timeshare contract, and so we encourage you to read your contract carefully and consider whether or not the terms suit you and your needs.