Timeshare vs Vacation Home vs Vacation Ownership
If you like to vacation, you might be deciding between a timeshare (also known as “vacation ownership”) or a vacation home. There are several distinct differences between the two that you’ll want to consider before making a purchase. Before reviewing these differences, let’s clear up some confusion between the differences of the term “timeshare” and “vacation ownership.”
Timeshare vs Vacation Ownership
These terms refer to the same product and can be used interchangeably. Think “couch” vs “sofa.” The words mean basically the same thing in the context of owning vacation time. Some developers call their products “vacation ownership” instead of “timeshare” to better explain their product. For example, “vacation ownership” more accurately explains the particular type of timeshare because the term “timeshare” can also refer to programs for cars, bikes, dogs and some positions in football such as running backs in a timeshare for their positions regarding playing time. Hilton, Wyndham and Starwood are a few developers that use the term “vacation ownership” to better explain their product.
Timeshare vs Vacation Home
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Vacation Home |
Timeshare |
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Cleaning Staff |
Would need to be purchased separately. The average cost of a housekeeper is $25-$35 an hour and it will typically take this person between 2-4 hours to clean the home. If you decide to rent out the home throughout the year, you’ll need to pay the housekeeper after each stay. |
This will be included in the cost of the timeshare through the maintenance fees. Avg. yearly maintenance fees according to ARDA are $845 per week of timeshare use. |
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Landscaping |
Would need to be purchased separately. The average cost to professionally landscape a home is about $3,500. |
Included in maintenance fees. |
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Grounds Maintenance |
Would need to be purchased separately. Typical grounds maintenance cost is about $160 - $200 per month. |
Included in maintenance fees. |
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Pool Maintenance |
Would need to be purchased separately. Typical pool maintenance cost is about $80 - $100 per month. |
Included in maintenance fees. |
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Property taxes |
This varies tremendously by location. For example, some areas of New York cost about $9,000 per year while some areas of Alabama are as low as $200 per year. |
Primarily included in maintenance fees, but not always. |
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HOA fees |
Again, this varies tremendously by location. If your vacation home is not located in a planned development area, you might not have any HOA fees. If it is, expect to pay between $2,500 - $8,000 per year in a vacation destination. |
Included in maintenance fees. |
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Water utility |
Would need to be purchased separately. |
Included in maintenance fees. |
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Insurance |
Homeowners insurance would need to be purchased separately if it’s not included in your HOA fees. You might also need to purchase flood insurance depending on the area. The cost of these products vary so significantly by location that we’re unable to provide a range. |
Included in maintenance fees. |
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Security |
Would need to be purchased separately. Typical security cost is about $15 - $75 per month. This doesn’t include the setup fee. |
Included in maintenance fees. |
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Pest Control |
Would need to be purchased separately. Typical pest control maintenance cost is about $40 - $50 per month. Sometimes this is included in your HOA fees. |
Included in maintenance fees. |
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Trash removal |
Would need to be purchased separately. Typical trash maintenance cost is about $10 - $40 per month. Sometimes trash and water are combined in to one city utilities bill. |
Included in maintenance fees. |
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Plumbing & HVAC |
Any plumbing & HVAC costs would need to be considered as part of the vacation home purchase. |
Included in maintenance fees. |
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Furnishing |
You will need to furnish the home yourself. |
Fully furnished by the resort. |
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Inflation |
Property taxes on your home may increase each year. |
Maintenance fees may increase over time. |
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Entry Cost |
Much more expensive based on whole ownership of property. |
Much less expensive if purchased on the resale market. A resale timeshare is an excellent bargain. |
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Investment Potential |
Can increase in value over time. |
Decreases in value. |
It’s important to note that all timeshare and vacation home arrangements are different. The above graph is only a general guideline. The primary benefit of the graph is to show you just how much money and time it can take to keep a vacation home in good condition.
Which Should You Choose?
Comparing a vacation home to a timeshare is a little like comparing apples to oranges. Purchasing and maintaining a vacation home can be a hassle and significantly more expensive than a timeshare, but you’ll be able to use it throughout the year and possibly sell it for a profit after a period of time. On the other hand, owning a resale timeshare is hassle-free and comes with a low entry cost, but you most likely won’t be able to sell it for a profit. If you’ve already purchased a timeshare and are looking for a place to sell, SellATimeshare.com has the solution. We advertise your timeshare on our platform of websites receiving millions of viewers per year. Get started with your free subscription today!
