What is a Timeshare and are there any alternatives?
We often get questions about how HPB provides an alternative to timeshare, and how it works. Here we’ll take a look at what a timeshare is, how do timeshares work and, most importantly, why HPB is different.
What is a timeshare?
Also known as ‘vacation ownership’ or ‘holiday ownership’, timeshare is a way of holidaying which is growing in popularity, with many big holiday brands now providing the service. Put simply, timeshare is when a holiday property is split into shared or fractional ownership, usually in weekly increments. This means you share the property with others, but ‘own’ a certain week or number of weeks in a year.
An interesting fact – the first known timeshare in Europe was actually the Albert Hall in London, which allowed subscribers to receive a specific ticket, and seat, every few months. The reinvention of timeshares as a holiday product is then attributed to the French, around 1966.
How do timeshares work?
In a nutshell, timeshare allows you to buy ‘time’ in a holiday home, usually the same dates every year. You can use this time yourself for your annual break, rent it out, give it away or sell it, but it provides a way to enjoy a holiday home without the large costs of owning it outright. It also removes the cost and burden of maintaining a holiday property all year-round, or the need to manage agencies or guests should you decide to rent out your own property.
More recently, different kinds of timeshare have become available, which provide more flexibility. These include ‘floating week timeshares’ and ‘points-based timeshares’.
How much does the average timeshare cost?
Timeshare will always cost more than a one-off holiday payment, because you’re paying for holidays that you will enjoy for many years. In 2019, the American Resort Development Association reported the average timeshare cost was $22,941, or around £17,000.
Timeshares also usually charge an annual fee that goes towards property upkeep and maintenance. This can vary greatly depending on the property.
HPB alternative to timeshare
HPB is a refreshing alternative that lets you enjoy holidays year after year in beautiful properties and locations across Europe and the UK. Unlike a timeshare, which can tie you to one property, you can choose from over 1,500 holiday properties, including villas, cottages and apartments.
How it works is simple. Families invest a few thousand pounds in the Bond, which gives you the right to holiday in any of HPB’s properties, for the whole of your life and your children’s lives.
You’re not limited to holidaying in the same property, location and time of year, but can choose when and where you go away, without any exchange fees. Also, many people find timeshares difficult to sell, but with HPB you have the right to cash in your investment after two years for its then value (subject to deferral in exceptional circumstances). HPB is certainly not an investment for growth, but an investment for wonderful holidays, year after year.
Timeshare FAQs
Is timeshare a good investment?
Timeshare should not be viewed as a property or financial investment, as they can be difficult to sell and can lose value. However, for the right people they can be a good leisure investment in that they guarantee you holidays for years to come.
What can I do with a timeshare?
There are a few options when it comes to using a timeshare. You can use it for your own holidays, lend it to friends and family, rent it out, save or borrow for the future, or ultimately sell it.
What is an exchange company?
Some choose to use exchange companies to get more holiday flexibility from their timeshare. The major exchange companies are RCI and Interval International, and allow timeshare owners to trade their week at their resort with someone else’s.
What if I need to sell my timeshare?
If holiday needs have changed, owners may decide to sell their timeshare. However, the resale market for these products can leave much to be desired, and you’re unlikely to get anywhere near what you originally paid. There are companies available who will help you find a buyer, or if you cannot sell it, you may be able to reach an agreement with the club or resort.
Holiday Propery Bond FAQs
What are the main differences between HPB and a timeshare?
There are several differences between HPB and a traditional timeshare. Firstly, you aren’t limited to a single property or required to pay exchange fees; you can choose from our portfolio of over 1,500 holiday properties. You also have more flexibility – you could have a beach holiday in the summer and cosy up in the Cotswolds in winter. Finally, our guests only pay a maintenance fee when they go on holiday, rather than every year, and should they decide to leave, are free to cash in their investment for its current value.
How much should I invest?
The minimum initial payment is just £5,000, but the more you invest the more holiday entitlement you will have. The only additional payment is a quarterly fee under £38 (that is around £150 a year), linked to RPIX.
Is HPB good value?
The Holiday Property Bond is not designed to deliver monetary returns or growth. Instead, you are investing in the opportunity to enjoy high quality and exclusive self-catering holidays. Your investment gives you Holiday Points, which you can use every year to book the HPB property of your choice. So, if you value holidays and enjoying time with friends and family, you may well want to consider investing in the Holiday Property Bond.
What do I get in return for my HPB investment?
As a Bondholder, you can access holiday benefits through our Holiday Points system. Each £1 you invest entitles you to one Holiday Point every year. Every time you book a holiday, you exchange Holiday Points for the property you want. The number of points you need will depend on the location of the property, the property size and the season.
Can I withdraw my investment?
Yes. You can cash in your Bond after two years for its then value, subject to deferral in exceptional circumstances. You will get back less than you invested because of the initial and annual charges, as well as other overheads and changes in the value of the fund’s properties and securities.
For a fuller explanation of the principal risks and benefits, please read “How HPB Works“
Read more about the Holiday Property Bond
- An investment in the Holiday Property Bond gives you access to over 1,500 holiday properties at over 30 locations across the UK and Europe
- Your investment buys you Holiday Points, which you can use every year to book the HPB property of your choice
- The Bond is a life assurance policy
- The minimum investment amount is £5,000
- You can cash in your investment after two years for its then value, subject to deferral in exceptional circumstances
- Like nearly all investment, there are charges involved
- Your holiday benefits last for your lifetime – and longer if you wish, as you can pass your Bond on to your children and grandchildren
- The Bond may be a good investment for you if you will enjoy its holiday benefits. It should not be viewed as an investment to produce financial return.
Ask for your fully illustrated holiday property brochure
Please read ‘How HPB works’ and then we will be delighted to send you our brochure, including our property portfolio, and your free copy of Insight Magazine.
Browse the beautiful holiday homes and magnificent locations where you can holiday as a Bondholder.
Simply fill in and submit the form or please call our brochure request line on 0800 230 0391.
