Irrespective of whether you own your own home or a week of timeshare there are a number of costs associated with ownership and use of the asset. In the case of timeshare these items include:
- • Electricity and water.
- • Rates and taxes.
- • Daily servicing.
- • Upkeep of gardens and common amenities.
- • Laundry (linen, bath towels, blankets etc).
- • Resort maintenance (repairs to aircons, geysers and appliances etc).
- • Replacement of soft furnishings and the future refurbishment of the lodges.
- • Management and administration.
- • Security
In a timeshare resort, all timeshare owners contribute to these costs by means of a levy determined by the Directors of the share block company in consultation with the management company. The management company invoices owners for the levy in advance of the time module being occupied/falling due. It is important to understand that by law no-one may profit from the levy – it is there to cover operating costs. The share block company will therefore reflect a surplus or a shortfall in the annual financial statements. Each year an AGM is held for shareholders at which shareholders are presented with the Chairman’s report, audited financial statements, decisions regarding levy increases etc.