Co-ownership versus Time sharing

Buying a Share of a Holiday Home: What Sets Timesharing Apart from Co-Ownership?

When exploring the purchase of a rustic finca in Menorca or a dream holiday home on the Baltic Sea, you may come across timesharing. An alternative to this is co-ownership model. Both promise shared ownership of a holiday property, but they differ significantly in many ways. In this article, we’ll outline the differences and benefits of each model to help you decide which option is right for you when buying a partial share of a holiday home.

Co-Ownership vs. Timeshare: What’s the Difference?

Let’s dive into the specifics of each model. How do timeshares and co-ownership differ, and which model provides the best conditions to own your dream finca in Menorca or a holiday home on the Baltic Sea?

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Usage Rights vs. Ownership

In a timeshare arrangement, customers receive regular usage rights to stay at a holiday property, often a larger complex with multiple units. By purchasing shares in a management company, they gain the right to return annually, typically for one or two weeks. However, ownership remains with the timeshare operator. Usage periods are typically assigned through strict rules or complex point systems, and additional fees for shared facilities are common.

With co-ownership, also known internationally as fractional or managed co-ownership, buyers actually acquire partial ownership of the property itself. OWN18 focuses on standalone, legally independent holiday homes, where all owners become shareholders in a company that holds the property’s title in the land registry. This form of ownership is legally equivalent to private co-ownership and allows unrestricted personal use. Simply put, buyers are true co-owners of the home, sharing the costs that would otherwise apply to sole ownership.

Becoming Co-Owners

Another key difference lies in the number of people involved. In timeshare arrangements, hundreds or even thousands of people may share usage rights to a single property. In contrast, OWN18 co-ownership involves only a few owners—usually between two and eight—collectively purchasing a single holiday home.

Obligations and Freedoms

As co-owners of a holiday property, shareholders have full control and responsibility over their home. This gives them freedom in decision-making but also brings certain obligations. Recurring tasks, such as maintenance and management, are often handled by external service providers, whom the owners can choose and, if necessary, replace.

In timeshare arrangements, users have no direct control over the property’s upkeep. Instead, the timeshare operator handles all management tasks. While this may seem convenient, relieving users from responsibilities, many timeshare properties face neglect after all shares have been sold, as the operator no longer has a direct financial incentive to maintain the property to high standards.

Quality & Service

Timesharing caters to the masses, offering an affordable alternative to yearly hotel vacations with the promise of a lifetime guarantee to stay in a holiday property. These properties are usually small, simple apartments shared by many co-owners, and the only service provided is housekeeping. As timeshare users stay only briefly each year, they often lack an emotional connection to the property and invest little in its upkeep, leading to wear and tear over time.

In contrast, OWN18 co-ownership provides a higher standard of living, offering spacious, luxurious properties with exceptional service. Co-owners benefit from personalized services, such as stocked fridges or personalized care, and develop a strong emotional attachment to their homes. They invest in maintenance, ensuring the property's long-term value, which can enhance its resale potential.

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Usage of the Holiday Home 

While timeshare users are typically limited to one or two

weeks per year, co-owners enjoy a minimum of six weeks, often more. OWN18's intuitive app allows co-owners to coordinate their stays fairly and flexibly, avoiding rigid timeframes.

Cost Overview: Co-Ownership vs. Timesharing 

Due to differences in quality and service, co-ownership costs more than timesharing. However, co-ownership is a long-term investment, while timeshare maintenance costs can increase over time due to property wear and tear.

Resale Potential 

Timeshare shares often lose value, as users don’t benefit from property appreciation and shares can be difficult to sell. OWN18 co-ownership, however, is registered in the land registry, allowing co-owners to profit from property appreciation. Shares can be resold easily, often tax-free, and OWN18 even facilitates the sales process.

OWN18: Worry-Free Enjoyment 

So, the choice is yours: will you become an anonymous guest in the timeshare model or proudly own a share of a premium holiday villa? OWN18 co-ownership offers peace of mind, financial security, and the chance to realize your dream of owning a luxurious holiday property.