There are a lot of different timeshares available in the market today.  You can purchase anything from a whole house to a hotel room to facilities in a resort and more.  Before you even consider taking out a timeshare on anything, it would be best for you to know more about the categories they fall into.  Knowing this information before you even look at different properties may spell the difference between acquiring one of the best properties you’ve ever had and being totally scammed.

There are two basic kinds of timeshares.  They are fee simple and right to use.  What is a fee simple timeshare?  It is basically buying a piece of property outright.  Whether this is a house or an apartment, the idea is that you own the property that you buy.  However, since it is a timeshare, you co-own the piece of property alongside of other people.  More so, you can only use the property at certain times of the year, for a specific period of time.  The good thing about fee simple timeshares is that you, along with the other owners, can build equity over time since you actually own the property.

On the other hand, right to use timeshares means that you purchase the right to use the piece of property.  This does not mean that you actually hold the deed to it, though.  In fact, it is the developer of the property who can actually claim ownership.  However, depending on the terms you have agreed to, the property is all yours for a certain period of time each year.  In general, right to use timeshares are less expensive than fee simple timeshares. Of course, this also means that you cannot build up equity over time.  In addition to this, when your contract expires, you have nothing to your name.  You would have to renegotiate the contract for a right to use timeshare with the developer.

There are two further kinds of timeshares falling under the right to use category.  These are fixed timeshares and floating timeshares.  Fixed timeshares refer to arrangements wherein you can only use the property at specific periods of time in the year.  This will work if you go on vacation at the same time each year.  The other kind, floating timeshares, offers more flexibility.  You can make use of the property for the same number of days per year but the dates can be moved around.

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