Timeshares emerged in the 1960s as a revolutionary way for families to own a vacation home without the burden of full ownership. The concept was simple: multiple individuals or families purchase a share of a property, granting them the right to use it for a specific period each year. This model allowed for more affordable access to luxury vacation spots and quickly gained popularity. However, as the timeshare industry evolved, it became clear that this form of property sharing had significant limitations, particularly in terms of the financial investment and community aspects among (co)owners.
Some have even gone as far as writing about how "Timeshares are NOT a sound investment".
It's not uncommon for people to confuse shared homeownership, joint homeownership, home (co)ownership - which all mean pretty much mean the same thing - with timeshares. And while time shares also involve multiple parties sharing a property, the similarities largely end there. Understanding the differences is crucial, especially when considering the financial and social impacts of these arrangements.
The most significant distinction between timeshares and shared homeownership models like Tomi is the concept of equity. In a timeshare, owners do not hold equity in the property. Time share owners are paying for the right to use the property for a designated period, often competing with other owners for the most desirable times of year. This can lead to scheduling conflicts and a lack of personal care for the property and the other time share members.
In contrast, Tomi’s shared homeownership model focuses on true ownership. (Co)Owners purchase equity in the property, meaning they have a tangible investment that can appreciate over time. This approach not only fosters a stronger sense of ownership but also aligns financial incentives among (co)owners.
Another fundamental difference is the nature of the relationships among (co)owners. Timeshare owners typically do not know the other members and have no say in who they share the property with. Tomi, on the other hand, is designed to navigate shared homeownership with people you want to be socially and economically invested in. Whether it's friends, family, or like-minded individuals, Tomi facilitates a collaborative approach to property ownership. This creates a community of (co)owners who are invested not just in the property but in each other.
A useful way to understand these differences is through the concepts of TACO 🌮 (Time Allocated (Co)Ownership) and SACO 🧦 (Space Allocated (Co)Ownership). Timeshares are classic TACOs, where ownership is divided based on time slots. With Tomi, you have the flexibility to choose how the property is utilized. You can decide whether to share the property based on time, space, or a hybrid of the two, tailoring the ownership experience to whatever suits you and your (co)owners (note: make sure you are all aligned with your (co)owners on the use and access of the property beforehand).
In summary, while timeshares are a well known quantity in the second home/vacation space, offering a way to access amazing vacation properties without the costs of complete ownership, they fall short in providing the financial upside and meaningful connections among your (co)owners that a custom home (co)ownership experience that Tomi offers. Understanding these differences, will allow you to make a more informed buying decision about the best way to achieve your property ownership and vacation goals.
