A timeshare is a property with a divided form of ownership or use rights. These properties are typically found in resorts, in which multiple parties hold rights to use the property and each owner of the same accommodation is allotted their period of time. Timeshare 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.

In the past, timeshare buyers were typically locked into one week at a single property. In recent years, many timeshares have implemented a point system that provides more flexibility regarding the type of vacation property and the buyer’s choice of vacation days.

The one-time initial purchase price varies as it will depend on the type of timeshare you choose to suit your holiday needs –  whether its during school holidays or in an off-peak season, the size of unit and the location, etc.

Depending on the type of sale agreement, your holidays are either pre-paid in perpetuity or for a fixed number of years. The cost benefit is securing your future holidays at today’s prices, which over the long term proves cheaper than other holiday accommodation rates that escalate each year with inflation.

An annual maintenance fee or levy is charged to safeguard your holiday property and resort against the wear and tear of time, which ensures that you arrive to a fully functional, fresh, modern and inviting timeshare accommodation.

Bear in mind that timeshare is a use-product, so the real value comes from taking regular holidays. It should never be viewed as a financial investment or to generate income.

During the 1980s and 1990s timeshare owners in South Africa wanted more flexibility, which led to timeshare exchange systems being introduced. This gave owners the ability to exchange their week with other timeshare weeks that had been “banked” by other owners. To ensure that the exchange was fair and on a like for like basis, each timeshare week “banked” with the exchange system was graded.

While exchange systems improved timeshare owner’s ability to swop weeks, no assurance could be provided as to what other timeshare owners would bank with the exchange system. This then led to the more recent points system form of vacation ownership.

There are several variations, but in general Points Clubs acquire a variety of timeshare weeks from a spread of resorts and assigns each week with a points value based on the apartment size, quality, location, time period and demand. The consumer purchases points from the Club, which then grants membership and the right-of-use to any of the timeshare weeks held by the Club. This model provided a much larger variety of holidays options, including short midweek breaks in a variety of apartment sizes and seasons and included the ability to save points to be used for longer holidays every second or third year.