What Are the Advantages of Timeshare Ownership?

Timeshare is to divide a room or a tourist apartment in a hotel or resort, divide its usage right into several weeks, and sell it to customers at a one-time basis on a membership basis for a period of 10 to 40 years or more. Members receive a seven-day stay at a hotel or resort for a relaxing holiday. And through the exchange service system members exchange their room use rights with other members' room use rights in other places, so as to achieve the purpose of low-cost travel to various places.

Timeshare

(Originated from European vacation models)

Timeshare is to divide a room or a tourist apartment in a hotel or resort, divide its usage right into several weeks, and sell it to customers at a one-time basis on a membership basis for a period of 10 to 40 years or more. Members receive a seven-day stay at a hotel or resort for a relaxing holiday. And through the exchange service system members exchange their room use rights with other members' room use rights in other places, so as to achieve the purpose of low-cost travel to various places.

Chinese name

Timeshare

Origin

1960s

some

In the 1960s Europe, the holiday atmosphere flourished, and a large number of beach villas were developed along the French Mediterranean coast. European and American political figures, nobles, and wealthy businessmen flocked to become Europe and the world's leisure resort center. Due to the high property prices, most families are unable to purchase holiday villas alone, and some users who are able to purchase villas have very limited use time each year, at most only a few weeks, and the vacancy rate is very high.

Timeshare architecture diagram

Developer benefits for timeshare sellers

First, it can make such houses sell for a higher price, which is generally equivalent to four times the original sale price in the United States. For example, a set of townhouses that could only sell for 250,000 US dollars.

1960s, France

Hotel property purchase

Some of the time-sharing vacation products on the market today,

Facing the timeshare in the market

"Timeshare" is literally translated as "time division". Its basic connotation is to divide the house by time instead of area, and become a right of use that can be owned by multiple households. Generally, it is divided by the week. It is sold to different buyers. Although the "property hotel" sells to the buyer the property rights of the hotel room, but the buyer usually only owns the right to use part of the time. The buyer entrusts the hotel management company to operate and manage the time outside the personal use time. People offer different forms of reward. In the past, "property hotel" was regarded as a kind of "timeshare" in the professional field. Of course, there is a big difference between the two.

"Timeshare Vacation" is a brand new sales concept and service system.

Split sales: Divide a residential area or several properties into 52 weeks a year, and sell up to 51 weeks of use rights instead of property rights to buyers. The buyer can purchase the right to use the house for 5 years, 10 years, or even longer. After purchase, they have the right to live and use every year and exercise their right to use. It's similar to a golf member, so you don't have to pay rent when you stay.

Exchange use: Due to the needs of the resident, his house use right can be exchanged to other connected resorts through the exchange service agency; this flexible living exchange function is very popular, so the scope of exchange is continuously expanded, forming a cross Use exchanges in residential areas, across cities, and even across countries. This has driven a large number of real estate development companies to join timeshare exchange network companies, so that their houses have better selling points, and also promote the development of timeshare exchange service agencies. There are more than 60 time-share vacation exchange agencies in the world, forming a huge exchange network. 5,400 resort-based resorts are located in 81 countries, and more than 10 million families from 124 countries have purchased vacation rights. Timeshare has developed into a global industry with an annual turnover of US $ 15 billion.

Professional services: Due to the special needs of "timeshare vacations", it requires hotel-style property management, as well as tourism services and transportation services suitable for the needs of residents. A complete set of property management and services has been developed to meet this demand. If the purchaser does not live, the management company can arrange rental uniformly.

"Timeshare" is an intermediate product between real estate products and hotel products. In the sale of houses, one extreme is real estate products, where the seller sells the ownership and use rights of the real estate to the purchaser at one time; the other extreme is a hotel product, which cuts the right to use the house to the daily count and lives. The buyer purchases the right of use on a daily basis. "Timeshare" is somewhere in between. It is less complete than real estate products and less fragmented than hotel products. Generally, the right to use the house is cut into weekly sales to buyers.

The property hotel is an innovation of the hotel sales method, which has been extended to the sales and management of other commercial houses. We can distinguish the above figure a little bit more. The way that appears from "full property sales" to "timeshare" sales is "property hotels", and from "timeshare" to zero-rent hotels. "Point Club" appeared. The "property hotel" is regarded as a type of "timeshare" because it does not sell property ownership and use rights to the buyer, but sells it separately; although the buyer owns the property rights of the guest room, The purchaser only uses the right to use for a certain period of time, usually one to six weeks per year. The buyer entrusts the hotel management company with other usage time, and the latter leases it. Most of these property owners' returns are achieved by the hotel management company paying the mortgage balance. In this way, the buyer generally only needs to pay the down payment for the purchase of the house, and the hotel management company is responsible for the mortgage payment and property fees. Some management companies also promise to give property owners certain operating income, and even promise to give a fixed return every year.

It can be seen that the two types of sales methods of "timeshare vacation" and "property hotel" have the same point in order to meet the requirements that buyers do not need to live long-term, but only need short-term residential use every year. The difference is that the buyers of "property hotel" own the property right of the house. Their purchase purpose is mainly for long-term investment, to reduce the financial burden, to maintain and increase the value of the property, and to be able to own and use it for a long time in the future. Short-term residence and use, and the flexibility of exchange and use, is more convenient and cheaper than each rental, and there is the possibility of preserving and increasing the value of property.

Due to the complementarity of these two methods, companies at home and abroad have sold houses for two times: "property hotels" and "timeshare vacations", that is, first sell houses or hotel rooms as "property hotels" and then sell The property owner entrusts the leased use time to sell "timeshare vacations". In this way, instead of relying solely on renting rooms to collect rent, it can increase the number of fixed customers and the use of houses. Of course, the income from selling "timeshare" at this time is mainly to repay the mortgage for the "property hotel" buyers, and the well-run companies will also have their own profits.

Property-type time-share vacation means that the hotel divides each room into 52 shares of common property rights and sells them to the purchaser. The purchaser owns one-half of the property rights of the house and can use it for one week each year. The hotel accommodation right can also exchange accommodation with other hotel owners in the network through the exchange network. Owning the property rights of the guest rooms naturally also enjoys a series of rights such as value-added, transfer, gift, inheritance and so on.

On July 26, 2011, Mr. and Mrs. Zhang participated in a product promotion conference organized by China National Tourism Corporation and Wuzhou Corporation. Purchasing their "timeshare products", that is, to enjoy 7 nights and 8 days of accommodation rights every other year, with a term of 20 years, and the couple also delivered a full contract of 48800 yuan on the same day.

After the contract was signed, Mrs. and Mrs. Wu did not enjoy any services provided by China National Tourism Corporation and Wuzhou. After repeatedly requesting Wuzhou to perform the contract and the promises were unsuccessful, in March 2016, Mr. and Mrs. Wu found the company and demanded to terminate the contract. But was rejected by Wuzhou Company.

Until May 2016, Wuzhou Company revoked its office location and left the building empty. Erla had no choice but to sue the two companies to the court, requesting the termination of the contract and the return of the contract sum.

In August 2016, the Beijing First Intermediate Court concluded the service contract dispute and upheld the judgment of the court of first instance to terminate the service contract and refund the contract sum. ^[1]