Florida Fractional Ownership

Timeshares offer the buyer the opportunity to purchase time at fully furnished vacation accommodations in weekly increments. The owner is then entitled to vacation at the timeshare location for the specified amount of time each year. Timeshare properties are typically located in a condominium or hotel setting.

Some timeshare plans offer owners the opportunity to exchange their time in one location for a similar amount of time in other locations managed by the timeshare company.

Timeshares are typically sold in 1-2 week increments so they have the appeal of affordability. Average price of a timeshare in 2005 was $16,000 per week.

Timeshare owners have no equity interest in the property; they have purchased the right to enjoy a specified amount of time annually at the timeshare.

Timeshare units may be sold or exchanged, though there is a small market for this. Owners selling timeshare units typically recognize only 20% - 35% of their original purchase price.

Major players in the timeshare market are RCI, Starwood, Marriott, Hilton and Hyatt. Timeshares have had a poor reputation in the past, for being low-quality properties. With consolidation in the sector and the participation of these large hospitality companies, the quality and reputation of timeshare properties have improved.

Timeshares are the low-cost entry point to shared ownership of a vacation property. Timeshare owners possess no equity, but do have the right of access to the property for the contracted-for time segment, generally 1-2 weeks per year. Liquidity and resale values are low.