Shareblock in perpetuity

This is the most common form of timeshare ownership in South Africa and the owner purchases shares in the shareblock company. Each shareblock identifies the unit number, week number and gives the holder the right to occupy the unit in the prescribed week, the right to allow visitors to occupy the unit, the right to rent out the unit and the ability to exchange the unit through the resorts affiliation to a timeshare exchange organisation like RCI.

each shareblock agreement includes a “use agreement” which will detail the rights and responsibilities of the shareblock holder and must be accepted by the purchaser in order to take transfer of the shares.

Each shareholder in a shareblock development must have a copy of the use agreement.

Transfer of shares in a shareblock company are relatively simple and are the costs involved should not exceed R1000.

Limited time shareblock

Certain resorts, and I mention Sun City Vacation Club as an example, have a predetermined number of years that the timeshare owner is entitled to occupy the timeshare unit.

At the end of the period there are certain buy back guarantees in some cases or some form of remuneration or even the ability to renew membership should the timeshare developer decide to continue offering the accommodation on a timeshare basis.

These types of ownership should be more carefully looked at as the new owner may have only a few years of occupation rights remaining.

Transfer of shares in a shareblock company are relatively simple and are the costs involved should not exceed R1000.

Sectional title

This type of timeshare ownership takes on the same form as purchasing an apartment in a building where you have full title to the timeshare unit for a specific date range and can be used through affiliations in the same way as a shareblock unit can be used.

The real difference in purchasing a sectional title timeshare is the cost and time involved in the transfer.

This cost can vary significantly from R4000 – R10000 per section.

Essentially, an investment in a timeshare is intended to save you money on your future vacations and not intented to be a capital investment. You should view it as a long term investment where your return is in the form of future savings and if, after 10 years of savings you make a reasonable return on the sale of the timeshare, it will be the best investment you ever made.

Most timeshare owners hold onto their units, pass them down through the family, allow friends and family members to use them or rent them out when they cannot use them.

We all know the cost of hotel accommodation and in particular foreign hotels and travel costs. Timeshare offers a massive saving when travelling abroad and and just 1 ovberseas vacation could nett you a return on your investment.

Timeshare and in particular purchasing a resale timeshare week allow families to travel Internationally at a fraction fo the cost.

By owning a South African timeshare week at a good resort would cost a family of up to 6 people the following for a 7 day vacation abroad. (purchase price excluded)

Annual maintenance charge R2500 (average 6 sleeper unit), Iternational timeshare exxchange fee R900.

Thats R3400 for 7 days for up to 6 people for a self catering vacation Internationally.

A significant saving I am sure you will agree!