Please Don't Run...I Said INTERVAL, Not TIMESHARE!

Pawleys Island and the Grand Strand in general are vacation destinations. People come here for the beaches, the golf, and the get-away. I would estimate over half of our real estate to be second home or income property. One effective way to own real estate in paradise is what we call INTERVAL OWNERSHIP.  

In my office, we deal with interval ownership of condos as well as single family homes. When I first joined Litchfield Real Estate, I was not all that familiar with intervals (also known as FRACTIONAL). I thought they were the same thing as TIMESHARES, which, for some, bring to mind images of a creepy, pushy salesman luring unsuspecting tourists into a hotel room with a free watch. If you take a few minutes to do a bit of research, you will find the differences between timeshares and interval ownership are substantial.

Luckily, I did the research for you....:-)

Timeshares versus Interval Ownership

• Timeshares allow a person or persons the right to use a property, there is no claim of ownership on the property.
• Interval Ownership means actually purchasing real estate, the weeks or months are actual DEEDED property.
• Timeshares are generally controlled and owned by a company, who sells the right to use under a contracted period of time. At the end of that agreed time period, usage returns to the company or owner.
• Interval property is divided equally amongst the owners (usually from 4-8 owners), and the interval is secured for their use.
• The value of a timeshare generally depreciates; generally will sell for 25% of original value.
• Property owned in intervals can appreciate in value (depending on the economy!), as property values follow the current market.
• Only those named in the purchase of a timeshare may use the property.
• Interval Owners may rent their property during the interval they own, if the property HOA allows. Family and friends may also use the property during the owner’s interval if the owner allows.
• Timeshares do not allow the transfer of ownership.
• Intervals can be inherited.
• Timeshare useage may be compromised if the company that owns or manages the property defaults or claims bankruptcy.
• Intervals can be claimed as an alternative residence and my be eligible for tax benefits (ask your accountant!).
• Fraud has been noted in the timeshare industry. Cases have been cited in which companies sold properties that did not exist, or misrepresented the actual location (i.e. property marketed as oceanfront ended up being far from the beach).
• Interval Owners are responsible for property taxes, condo fees, and maintenance.
• Intervals are difficult to finance. Most buyers bring cash.

I hope I do not sound like I am slamming on timeshares. I am sure there are folks out there who have had great experiences with purchasing vacation time through a timeshare company.

However, I am in the real estate business. I want buyers to know that interval ownership is a GREAT option for buyers searching for more affordable property in resort areas that may match the individual’s actual time usage.

My local association, the Coastal Carolinas Association of REALTORS, has just voted in the option to enter intervals into the MLS. This is a big deal to us down here, providing more exposure and reliable comparable property history. Yippee!!!

Check out the intervals offered by my office HERE. Call me and ask me about interval ownership!

Happy House Hunting!