Deeded Ownership vs. Right to Use: Types of Timeshare Ownership

When considering a timeshare resort, one of the first things you should determine is what kind of ownership scheme you are being offered.

If you buy a deeded timeshare unit, you will be given an actual deed of ownership, and become a part owner of equity in the property. When buying on a right-to-use basis, however, you are paying for the right to use your suite for a set period of time (sometimes just a few years, sometimes longer).

Those who buy into right-to-use timeshares are essentially just buying a prepaid hotel room, and gaining the contractual right to stay there for a set length of time. For casual vacationers looking to save a bit money on accommodation, this can sometimes be a good deal, but it lacks the flexibility and investment value of a deeded ownership.

Buying a deeded unit will give you a lot more rights as far as renting or selling your timeshare. Just like any piece of real estate, these timeshares can be sold at a profit as property prices rise, or rented privately to generate income.

Owning real equity in your timeshare is generally more expensive than buying simple rights of use, but if you are looking for a solid investment that will appreciate over time, deeded ownership is the only way to go.