What are calls and puts in options trading41 comments
Protrader binary trading platform full review with details and features
A timeshare sometimes called vacation ownership is a property with a divided form of ownership or use rights.
These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each owner of the same accommodation is allotted their period of time.
The minimum purchase is a one-week ownership, and the high-season weeks demand the higher prices. Units may be sold as a partial ownership, lease, or "right to use", in which case the latter holds no claim to ownership of the property. The ownership of timeshare programs is varied, and has been changing over the decades. The term "timeshare" was coined in the United Kingdom in the early s expanding on a vacation system that became popular after World War II.
They rotated seasons each year, so each family enjoyed the prime seasons equally. This concept was mostly used by related families because joint ownership requires trust and no property manager was involved.
However, few families vacation for an entire season at a time; so the vacation home sharing properties were often vacant for long periods. It took almost a decade for timeshares in Europe to evolve into a smoothly run, successful, business venture. It offered what it called a year vacation license rather than ownership. The company owned two other resorts the vacation license holder could alternate their vacation weeks with: Croix and one in St. Thomas ; both in the U.
The Virgin Islands properties began their timeshare sales in The contract was simple and straightforward. The company, CIC, promised to maintain and provide the specified accommodation type a studio, one bedroom, or two bedroom unit for use by the "license owner" for a period of 25 years from to , for example in the specified season and number of weeks agreed upon, with only two extra charges: The license owner was allowed to rent, or give their week away as a gift in any particular year.
This "must be paid yearly fee" would become the roots of what is known today as "maintenance fees", once the Florida Department of Real Estate became involved in regulating timeshares.
Shortly thereafter, the Florida Real Estate Commission stepped in, enacting legislation to regulate Florida timeshares, and make them fee simple ownership transactions. This meant that in addition to the price of the owner's vacation week, a maintenance fee and a homeowners association had to be initiated.
This fee simple ownership also spawned timeshare location exchange companies, such as Interval International and RCI , so owners in any given area could exchange their week with owners in other areas.
Cancellations, or rescission , of the timeshare contract, remain the industry's biggest problems to date. The industry is regulated in all countries where resorts are located. In Europe, it is regulated by European and by national legislation. The new regulations are outlined in the Official Mexican Norm NOM , which consists of a series of official standards and regulations applicable to diverse activities in Mexico. The following institutions were involved during the new standardization:.
NOM is officially called: It established the following standards:. To make the new regulations applicable to any person or entity that provides timeshares, the definition of a timeshare service provider was substantially extended and clarified.
Some developers, however, may limit which of these options are available at their respective properties. Owners can elect to stay at their resort during the prescribed period, which varies depending on the nature of their ownership.
In many resorts, they can rent out their week or give it as a gift to friends and family. Used as the basis for attracting mass appeal to purchasing a timeshare, is the idea of owners exchanging their week, either independently or through exchange agencies. They are the two largest: They have resort affiliate programs, and members can only exchange with affiliated resorts.
It is most common for a resort to be affiliated with only one of the larger exchange agencies, although resorts with dual affiliations are not uncommon. The timeshare resort one purchases determines which of the exchange companies can be used to make exchanges. RCI and II charge a yearly membership fee, and additional fees for when they find an exchange for a requesting member, and bar members from renting weeks for which they already have exchanged.
Owners can also exchange their weeks or points through independent exchange companies. Owners can exchange without needing the resort to have a formal affiliation agreement with the companies, if the resort of ownership agrees to such arrangements in the original contract. Due to the promise of exchange, timeshares often sell regardless of the location of their deeded resort. What is not often disclosed is the difference in trading power depending on the location, and season of the ownership.
If a resort is in Hawaii or Southern California , it will exchange extremely well depending on the season and week that is assigned to the particular unit trying to make an exchange. However, timeshares in highly desirable locations and high season time slots are the most expensive in the world, subject to demand typical of any heavily trafficked vacation area.
If you happen to own a timeshare in Palm Springs, California in the middle of July or August for example, your trading power is greatly diminished, because those looking to come to a resort at a time when the temperatures are in excess of degrees Fahrenheit are few. A major difference in types of vacation ownership is between deeded and right-to-use contracts. With deeded contracts the use of the resort is usually divided into week-long increments and are sold as real property via fractional ownership.
As with any other piece of real estate, the owner may do whatever is desired: The owner is also liable for an equal portion of the real estate taxes, which usually are collected with condominium maintenance fees. The owner can potentially deduct some property-related expenses, such as real estate taxes from taxable income. Deeded ownership can be as complex as outright property ownership in that the structure of deeds vary according to local property laws.
Leasehold deeds are common and offer ownership for a fixed period of time after which the ownership reverts to the freeholder. Occasionally, leasehold deeds are offered in perpetuity, however many deeds do not convey ownership of the land, but merely the apartment or unit housing of the accommodation. With right-to-use contracts , a purchaser has the right to use the property in accordance with the contract, but at some point the contract ends and all rights revert to the property owner.
Thus, a right-to-use contract grants the right to use the resort for a specific number of years. In many countries there are severe limits on foreign property ownership; thus, this is a common method for developing resorts in countries such as Mexico. Care should be taken with this form of ownership as the right to use often takes the form of a club membership or the right to use the reservation system, where the reservation system is owned by a company not in the control of the owners.
Right-to-use issues was the main reason in domestic venues, that the Department of Real Estate became involved with timeshare purchases, and converted timeshare sales to fee simple ownership.
With Fee Simple Ownership , security increased, along with the costs, which now had to include HOA fees, and maintenance fees: A variant form of real estate-based timeshare that combines features of deeded timeshare with right-to-use offerings was developed by Disney Vacation Club DVC in Purchasers of DVC timeshare interests, whom DVC calls members receive a deed conveying an undivided real property interest in a timeshare unit.
Each DVC member's property interest is accompanied by an annual allotment of vacation points in proportion to the size of the property interest. DVC's vacation points system is marketed as highly flexible and may be used in different increments for vacation stays at DVC resorts in a variety of accommodations from studios to three-bedroom villas. DVC's vacation points can be exchanged for vacations worldwide in non-Disney resorts, or may be banked into or borrowed from future years.
The most common unit of sale is a fixed week; the resort will have a calendar enumerating the weeks roughly starting with the first calendar week of the year. An owner may own a deed to use a unit for a single specified week. For example, week 26 normally includes the Fourth of July holiday , week 51, Christmas and so on. If an owner owned Week 26 at a resort he or she could only use that particular week every year.
Sometimes units are sold as floating weeks. The ownership will be specific on how many weeks the owner owns and from which weeks the owner may select for the owner's stay. An example of this may be a floating summer week where the owner may request any week during the summer season, generally weeks 22 through In this example there would be competition for prime holidays such as the weeks of Memorial Day , Fourth of July , and Labor Day.
The weeks when schools may still be in session would not be so high in demand. Some floating contracts exclude major holidays so they may be sold as fixed weeks. Some are sold as rotating weeks, commonly referred to as flex weeks. In an attempt to give all owners a chance for the best weeks, the weeks are rotated forward or backward through the calendar, so in year 1 the owner may have use of week 25, then week 26 in year 2, and then week 27 in year 3.
This method gives each owner a fair opportunity for prime weeks, but unlike its name, it is not flexible.
Resort-based points programs are also sold as deeded and as right to use. Points programs annually give the owner a number of points equal to the level of ownership. The owner in a points program can then use these points to make travel arrangements within the resort group. Many points programs are affiliated with large resort groups offering a large selection of options for destination. Many resort point programs provide flexibility from the traditional week stay.
Resort point program members, such as WorldMark by Wyndham and Diamond Resorts International , may request from the entire available inventory of the resort group. A points program member may often request fractional weeks as well as full or multiple week stays. The number of points required to stay at the resort in question will vary based on a points chart. The points chart will allow for factors such as:. Timeshare properties tend to be apartment style accommodations ranging in size from studio units with room for two , to three and four bedroom units.
These larger units can usually accommodate large families comfortably. Units normally include fully equipped kitchens with a dining area, dishwasher , televisions , DVD players , etc.
It is not uncommon to have washers and dryers in the unit or accessible on the resort property. The kitchen area and amenities will reflect the size of the particular unit in question. Units are usually listed by how many the unit will sleep and how many the unit will sleep privately.
Traditionally but not exclusively:. Sleep privately usually refers to the number of guests who will not have to walk through another guest's sleeping area to use a restroom.
Timeshare resorts tend to be strict on the number of guests permitted per unit. Unit size affects the cost and demand at any given resort. The same does not hold true comparing resorts in different locations. A one-bedroom unit in a desirable location may still be more expensive and in higher demand than a two-bedroom accommodation in a resort with less demand.