# Finances of Florida Timeshares



## timeos2 (Feb 2, 2012)

I requested this report from the authors. It is interesting reading for FL owners and you can compare your resort to these averages.


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## ronparise (Feb 2, 2012)

What report?...your link is back to your post not to an external report....

Found it...Thanks john...It came to me as a download,


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## ira g (Feb 2, 2012)

Interesting points in the report. The link worked fine for me. Conclusion was that things appear to be getting better.


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## amycurl (Feb 2, 2012)

The link worked for me...interesting report. It's nice to see someone spending ht time to do the research and crunch the numbers. 

Basically, resorts, while doing better at budgeting for bad debt, still aren't budgeting enough, but the rate of increase seems to be tapering off.

But, then again, I'm not a numbers person. (I was told there would be no. math.)


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## Gophesjo (Feb 2, 2012)

Great report!  Thanks for bringing it to us.  It would be interesting to see if the owner controlled Boards are raiding replacement reserves less frequently than developer controlled Boards, or if it is six of one half dozen of the other.  It would also be interesting to see an apples to apples metric (if one exists for evaluating apple and orange resorts) showing budgeting for funding replacement/reserves, and see if there is a difference between the two types of controlled resort Boards there, too.


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## BocaBum99 (Feb 2, 2012)

The report is very consistent with my experience in the Florida market.  I used to own a bunch of fixed weeks because they had low maintenance fees and rented really well.  Then, the fees started increase by a lot, so I sold them all off just in the nick of time.


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## antjmar (Feb 3, 2012)

timeos2 said:


> I requested this report from the authors. It is interesting reading for FL owners and you can compare your resort to these averages.


Thank you. I  need to vote  at my resort (Palm Aire) to decide if we want to keep the reserves below the state mandated recommendations. 
Based on this report I can see why that is needed.


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## Maple_Leaf (Feb 3, 2012)

*Do I need glasses?*



antjmar said:


> Thank you. I  need to vote  at my resort (Palm Aire) to decide if we want to keep the reserves below the state mandated recommendations.
> Based on this report I can see why that is needed.



Maybe I need glasses, but I don't see the same thing you do in these numbers.  This report seems to indicate that reserves are too low and are being raided by boards to pay operating expenses.  You should be voting to make sure this is not happening at your resort.


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## dioxide45 (Feb 3, 2012)

Maple_Leaf said:


> Maybe I need glasses, but I don't see the same thing you do in these numbers.  This report seems to indicate that reserves are too low and are being raided by boards to pay operating expenses.  You should be voting to make sure this is not happening at your resort.



I think what antjmar is referring to is the proxy item this is always on the ballot every year to vote to waive the fully funding of reserves. I always vote against this every year but the waiving of fully funding always passes because the HOA recommends to vote for it.


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## antjmar (Feb 3, 2012)

dioxide45 said:


> I think what antjmar is referring to is the proxy item this is always on the ballot every year to vote to waive the fully funding of reserves. I always vote against this every year but the waiving of fully funding always passes because the HOA recommends to vote for it.



Yes thats exactly what I was referring to. 

@ Maple Leaf I should have been more clear. I am a new owner in FL I thought this was new. The letter mailed to me didnt explain much. The report helped me understand what is happening to decide how to vote. Yes I agree it appears that at many resorts the reserves are too low.


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## Maple_Leaf (Feb 4, 2012)

*Gotcha*



antjmar said:


> Yes thats exactly what I was referring to.
> 
> @ Maple Leaf I should have been more clear. I am a new owner in FL I thought this was new. The letter mailed to me didnt explain much. The report helped me understand what is happening to decide how to vote. Yes I agree it appears that at many resorts the reserves are too low.



Sorry, I misunderstood your post.  Good luck with your new Florida ownership.


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## AwayWeGo (Feb 4, 2012)

*Pay A Little Now Or Pay Lots More Later.*




antjmar said:


> Yes I agree it appears that at many resorts the reserves are too low.


Lowball reserves increase the risks for whopping Special Assessments in the years ahead. 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## dioxide45 (Feb 4, 2012)

Something that always concerns me about our resort, Grande Vista, is the reserve fund balance and how that compares to the expected life of items and remaining years in that life. Something I need to consider though is at any point in time there are always units undergoing renovations. So the reserve fund goes up and then gets depleted. It isn't like a small resort where it saves up a huge lump of money to spend all at once on renovations.

I need to ask the HOA and GM more information about this as we don't want a SA.


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## bdh (Feb 4, 2012)

dioxide45 said:


> Something that always concerns me about our resort, Grande Vista, is the reserve fund balance and how that compares to the expected life of items and remaining years in that life.



Since Florida is the TS capitol of the universe, I'm thinking the state has mandatory reserve requirements that must be funded and then each individual property adds on their voluntary reserve funds.  

Would be interesting to see what items the state deems "mandatory" - anyone have an idea what they are?


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## dioxide45 (Feb 4, 2012)

bdh said:


> Since Florida is the TS capitol of the universe, I'm thinking the state has mandatory reserve requirements that must be funded and then each individual property adds on their voluntary reserve funds.
> 
> Would be interesting to see what items the state deems "mandatory" - anyone have an idea what they are?



They have a requirement to fully fund their reserves, UNLESS, the owners vote to waive the fully funding requirement. Which they always do  .

From reading other posts on here, the expected life of many items as required by the state of Florida is very restrictive. It also doesn't apply to only timeshares and is for all condo associations. Where the state mandates a roofs life is 20 years, many may last much longer. If they were to fully fund the reserves for that 20 year replacement, it would mean having to reserve more than needed to replace it in 40 years.


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## bdh (Feb 4, 2012)

dioxide45 said:


> They have a requirement to fully fund their reserves, UNLESS, the owners vote to waive the fully funding requirement.



Well that doesn't sound to "mandatory".  Should I get a speeding ticket in FL, I'll have to remember to tell them that I've voted to waive payment. haha


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## Maple_Leaf (Feb 4, 2012)

*Reserve Study?*



dioxide45 said:


> Something that always concerns me about our resort, Grande Vista, is the reserve fund balance and how that compares to the expected life of items and remaining years in that life... I need to ask the HOA and GM more information about this as we don't want a SA.



Ask them when they last had a reserve study done by an independent 3rd party.


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## dioxide45 (Feb 4, 2012)

Maple_Leaf said:


> Ask them when they last had a reserve study done by an independent 3rd party.



They always mention this in the annual meeting notice, so it seems like it was fairly recently.


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## pedro47 (Feb 5, 2012)

timeos2 said:


> I requested this report from the authors. It is interesting reading for FL owners and you can compare your resort to these averages.



times0s2, thanks for sharing.


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## GregGH (Feb 5, 2012)

ira g said:


> Interesting points in the report. The link worked fine for me. Conclusion was that things appear to be getting better.



Hi

Skimmed this report twice -- colour me a 'negative' person then ... I see no GOOD NEWS in this report.

That said, the increase in delinquency rates is slowing and there are positive signs of recovery in this sector of the economy.  Are there many of you that think we have another correction in the economy coming?  If not - then is statement will hold ... but ... ( try this link ... http://www.zerohedge.com/news/trimt...nfp-number-really-down-29-million-past-2-mont )

Additionally, associations are taking a more realistic approach to budgeting and projection of future collections.   Wonder this statement came from - what in this report supports this claim?

This comment from page 5 maybe key ...   the number of associations with deficits in the operating fund increased from 27% in 2003 to 37% in 2009 to 34% in 2010

Much like our national economies --there are short term easy but long term problematic options -- or there is tough medicine ... we need a Ron Paul type  on every HOA board.

Greg


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