# Hawaii Timeshare Prices



## Kauai Kid (Jun 8, 2010)

The Hawaii timeshare market has crashed.  There is a timeshare for sale for twenty five cents on ebay.

Many Hawaii timeshares for one buck.

Do you think the market will ever recover?

As I understand it if you sell for a loss, it is your loss, not Uncle Sam's.  Can't deduct anything from your taxes.

Sterling


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## pianodinosaur (Jun 8, 2010)

I understand that Maui has increased taxes on timeshares.  That is a sure fire way to increase MFs and reduce property value.  Please correct me if I am wrong.


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## aliikai2 (Jun 8, 2010)

*It isn't just Hawaii*

Anything less than a tier 1 prime Hotel Brand unit can be picked up for almost nothing. I just picked up 2 red week 1 bedrooms that came with this years use, free closing and transfer for *$10.50 TOTAL* 


 Even those premium resorts are selling for less than 10% of retail in some cases.  

It has started to come back some, there is still some bounce in the market, and I ran out of glass cleaner for my Chrystal ball to be able to predict when or by how much things will improve, but rentals and sales are better this year.

jmho,

Greg



Kauai Kid said:


> The Hawaii timeshare market has crashed.  There is a timeshare for sale for twenty five cents on ebay.
> 
> Many Hawaii timeshares for one buck.
> 
> ...


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## KauaiMark (Jun 8, 2010)

*And yet...*



Kauai Kid said:


> The Hawaii timeshare market has crashed.  ...Sterling



Marriott is attempting to sell the new Kauai Lagoons single week shares for $50k-$80k a pop!!!


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## dougp26364 (Jun 8, 2010)

It's not what they list the starting price at but the end result with the final bid. I would also factor in quality and desirablity of the timeshares in the adds. 

Still, as mentioned above, I've read enough about Hawaii trying to tax those that can't vote (timeshare owners) in order to balance their budget that I have no interest in owning there. It would not surprise me to see people wanting to bail due to high taxes and MF's and others aware of the situation not wanting to take the timeshares, even if they're offered for free. At this point in time it might just be the wiser thing to do by owning off the islands and trading in.


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## Kauai Kid (Jun 8, 2010)

pianodinosaur said:


> I understand that Maui has increased taxes on timeshares.  That is a sure fire way to increase MFs and reduce property value.  Please correct me if I am wrong.



Maui county increased taxes on time shares a couple years ago.  My little resort, the Maui Schooner, fought the county and won a reduction in the valuation--but it is still more than it use to be.

Sterling


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## LisaRex (Jun 8, 2010)

I paid $560 in taxes for my Maui TS this past year.  I don't believe this includes the occupancy tax.  

Yippee. 

Real Estate tax $480.89
Excise Tax $0.47 $68.85
West Maui Benefit Fund $10.30
Total Taxes $560.04


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## Tiger (Jun 9, 2010)

FWIW 2br2ba in Alii and Banyon buildings at Lawai Beach Resort are holding up.  In the last year there have been only a handful of these on Ebay.  They have sold for $2000-$4000 and with the usual add on expenses of the sellers on ebay comming to $600 or more.  They also  sold at auction in Lihue for $4500 to $5500.

In contrast, the 1br1ba in the Coral building have sold for as little as $1 plus expenses.


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## Poobah (Jun 9, 2010)

*Timeshare Prices*

In a lot of ways Hawai'i is killing the golden goose with all the added taxes, but on the other hand when we are there we do use the roads, add to congestion, put demands on the infrastructure, etc. etc. 

I do remember that after 9/11 it was the TS owners that kept Hawai'i afloat, because they had booked weeks and "had to use them." Short memories!

I am more concerned about the Management Fees that are part of the MFs and the performance of the resort owner/management than I am the additional Hawai'i taxes. I want value for my MFs.

Cheers,
Paul


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## ttt (Jun 9, 2010)

Kauai Kid said:


> The Hawaii timeshare market has crashed.  There is a timeshare for sale for twenty five cents on ebay.
> 
> Many Hawaii timeshares for one buck.
> 
> ...


Yes it has crashed. If you shop around, you can find sellers giving them away.


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## MichaelColey (Jun 9, 2010)

From what I've seen, the maintence fees in Hawaii are far higher than most other places.  Why would people buy in Hawaii when they could buy a good trader with a lower maintenance fee elsewhere and just exchange into Hawaii?


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## DeniseM (Jun 9, 2010)

MichaelColey said:


> From what I've seen, the maintence fees in Hawaii are far higher than most other places.  Why would people buy in Hawaii when they could buy a good trader with a lower maintenance fee elsewhere and just exchange into Hawaii?



You're right about the maintenance fees!

One reason for owning there is to guarantee the view.  If you exchange in you are not likely to get a good ocean view, but if you own there you either have the owner's priority for view, or you are guaranteed the view you bought, on your deed.  (A good ocean view is very important to me.  It is part of the essential Hawaii experience.  The one time we did not have an ocean view, a major part of my vacation was missing.)

Another reason to own is if you need to always book a high season week - like Christmas or New Years, which are difficult exchanges.  (My DH likes to go for 4th of July week and as a teacher, I have to go during school holidays.)

Another reason to own is if you always want to visit a top quality resort like Starwood or Marriott.  It's hard to trade into Marriott or Starwood, unless you are using a Starwood or Marriott to trade, because II gives those owners first choice of all Starwood and Marriott deposits.

Our favorite Hawaii resort is not actually our Starwood resort - we found out that the busy mega-resorts are not our cup of tea.  Then we bought 2 ocean front units with outstanding views at a more modest resort on Kauai, and that's our favorite timeshare, now.


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## DaveNV (Jun 9, 2010)

MichaelColey said:


> From what I've seen, the maintence fees in Hawaii are far higher than most other places.  Why would people buy in Hawaii when they could buy a good trader with a lower maintenance fee elsewhere and just exchange into Hawaii?




To add to what Denise said, there is also the option to trade OUT of Hawaii.  A lot of Hawaii units have higher trading power than many Mainland resorts.  So in addition to the benefits of owning in Hawaii, there is the extra bang for the buck when trading for someplace else.  A lesser Hawaii unit may get you into some places a "better" Mainland place won't even see.

Dave


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## Timeshare Von (Jun 9, 2010)

I sure love my floating 1-52 ST/1BR unit at Lifetime in Hawaii in Waikiki.  MF's are still under $400/year.


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## Kona Lovers (Jun 9, 2010)

Poobah said:


> I am more concerned about the Management Fees that are part of the MFs and the performance of the resort owner/management than I am the additional Hawai'i taxes. I want value for my MFs.
> 
> Cheers,
> Paul



Absolutely!!


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## MOXJO7282 (Jun 10, 2010)

So far even with the tax increase and the MF rise over the years, my (2) Maui Marriott Ocean Club OV 2 BDRM units are still producing excellent value for us. When we don't use we're able to rent for an very acceptable amount, even through the downturn. 

Obviously my resale value is sinking, I could probably still get $20k+ or so for each (I paid $40K for each direct in 2002) I would think, but as long as I can use or rent I don't plan on selling,  so for now my Maui Marriott ownership still brings tremendous value for us.


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## SoCal NSX (Jun 14, 2010)

I don't think people realize that those TS that are selling for pennies on the dollar come with a HUGE fee 99% of the time , cuz the previous owner hasn't paid his MF for years....once the seller realizes he got screwed they opt out..Like the old saying goes "if it looks too good to be true...it is!!~"


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## DeniseM (Jun 14, 2010)

SoCal NSX said:


> I don't think people realize that those TS that are selling for pennies on the dollar come with a HUGE fee 99% of the time , cuz the previous owner hasn't paid his MF for years....once the seller realizes he got screwed they opt out..Like the old saying goes "if it looks too good to be true...it is!!~"



With all due respect, that just isn't true.  Part of doing your due diligence before you buy is getting an estoppel letter from the resort to make sure all fees are up to date.  This is standard procedure and either the buyer or the closing company should always get an estoppel letter.  

It's not unusual for the new buyer to pay the current year's MF, but if the MF hadn't been paid for years, the property would have been foreclosed on by the resort, and the original owner would no longer hold title, and would not be able to sell it.  When the resort resells the week - they don't charge the new owner for the previous owner's maintenance fees.


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## SoCal NSX (Jun 14, 2010)

DeniseM said:


> With all due respect, that just isn't true.  Part of doing your due diligence before you buy is getting an estoppel letter from the resort to make sure all fees are up to date.  This is standard procedure and either the buyer or the closing company should always get an estoppel letter.
> 
> It's not unusual for the new buyer to pay the current year's MF, but if the MF hadn't been paid for years, the property would have been foreclosed on by the resort, and the original owner would no longer hold title, and would not be able to sell it.  When the resort resells the week - they don't charge the new owner for the previous owner's maintenance fees.



this is what I was told by someone in the business, when I was puzzled by how someone would sell a $30K TS for $1200


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## DeniseM (Jun 14, 2010)

SoCal NSX said:


> this is what I was told by someone in the business



I am guessing you were told this by a TS salesmen, who has a vested interested in discouraging people from buying resale.  



> when I was puzzled by how someone would sell a $30K TS for $1200



Right now people are dumping expensive Hawaii timeshares because they can't afford the ridiculous maintenance fees - or they just are just sick of the exorbitant yearly increases.  My Maui Resort has increased $1,200 since 2002.  

Recently, a unit at Starwood's new Kauai resort sold on ebay for $760.  This resort isn't even sold out yet!  The developer is STILL selling this unit for $37K!


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## DaveNV (Jun 14, 2010)

SoCal NSX said:


> I don't think people realize that those TS that are selling for pennies on the dollar come with a HUGE fee 99% of the time , cuz the previous owner hasn't paid his MF for years....once the seller realizes he got screwed they opt out..Like the old saying goes "if it looks too good to be true...it is!!~"



I also have to completely disagree with this statement.  I've purchased six timeshares on eBay, all for very small money, (ranging in price from a high of $615 down to an unbelievable low of $1.25.)  None of them came with any sort of "huge fee" attached.  None had outstanding previous year's maintenance fees due.  And if I was asked to pay the current year maintenance fee, I received the current year's week for my use.  I found no surprises, and I've had some fantastic vacations with those weeks.

Buyer beware? Sure.  But if you're careful of what you're getting, and do the research, you can get some fantastic deals that way.  I sure did.

Dave


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## tombo (Jun 14, 2010)

DeniseM said:


> .
> 
> Recently, a unit at Starwood's new Kauai resort sold on ebay for $760.  This resort isn't even sold out yet!  The developer is STILL selling this unit for $37K!



Did you buy it?


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## DeniseM (Jun 14, 2010)

tombo said:


> Did you buy it?



Oh H*** no!  The MF is $2,479 a year!  And this is for a resort that can't be traded in the Starwood network and isn't even on the beach!  Which is exactly why the owner had to virtually give it away to get rid of it!  Starwood is biting the hand that that feeds them with their ridiculous MF increases!


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## tombo (Jun 14, 2010)

$2479 annual MF's and not on the beach! That seller was lucky to find a buyer for a dollar. 

I sold my one of my favorite timeshares and my last Hawaii resort (KBV bldg G 2 bed ocean front) a couple of years ago because I thought those MF's were getting out of hand. Wow, they sound like a bargain now. I was waiting for the new pool to be finished before I sold, but I finally decided I might die before they actually build it.


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## DeniseM (Jun 14, 2010)

tombo said:


> I sold my one of my favorite timeshares and my last Hawaii resort (KBV bldg G 2 bed ocean front) a couple of years ago because I though those MF's were getting out of hand. Wow, they sound like a bargain now. I was waiting for the new pool to be finished before I sold, but I finally decided I might die before they actually build it.



Good thing you sold it - there is not going to be a new pool!


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## tombo (Jun 14, 2010)

DeniseM said:


> Good thing you sold it - there is not going to be a new pool!



I am sorry to hear that they are not building the sand bottom pool with waterfall they promised us for several years. The small pool is the only downside of this resort IMO, but if you have an ocean front unit who needs a pool? I have watched many a whale breach from the balcony while I ate breakfast. I do miss that resort, but not the MF's, the high air fares to Kauai, and I especially don't miss the travel time from the eastern US.


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## DeniseM (Jun 14, 2010)

But there is going to be a new pool bathroom - now that's exciting, isn't it? :annoyed:

The only good news is that we can use the hotel pool for free while they are upgrading the pool area - I hope they take a really long time!


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## SoCal NSX (Jun 15, 2010)

DeniseM said:


> I am guessing you were told this by a TS salesmen, who has a vested interested in discouraging people from buying resale.
> 
> 
> 
> ...



that is what is puzzling...with most of the developers having first right of refusal, why would they(developer) let something go for $760 that they can sell for $37K???


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## DeniseM (Jun 15, 2010)

SoCal NSX said:


> that is what is puzzling...with most of the developers having first right of refusal, why would they(developer) let something go for $760 that they can sell for $37K???



Because they are struggling right now - they have more inventory than they can sell, and if they buy a resale, they have to pay the MF until they sell it.  Starwood hardly ever uses ROFR.


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## cgeidl (Jun 15, 2010)

*At Least We Can Give Back Our Units*

We own 4 Waikiki Banyan weeks. Paid what used to be a reasonable price of $1250 per week about 12 years ago. We bought from the HOA and they did not foreclose but gave us the right to use . If the previous owner wants to pay the past twelve years of maintenance fees and interest the unit reverts and we get our purchase price back. We pay $450 per week maintenance and can give back the units to the HOA if we no longer want the units. They have traded for about 15 Marriott's with high maintenance fees and Trading Places and III give us an extra week when deposited. They are below average TS units as they are small but they are well maintained,clean and close to the beach. We go every year for three to five weeks and feel even with the current bad economy we have already gotten our value many times.
We love the air as soon as we are off the plane and will keep going as long as we can.


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## RedDogSD (Jun 15, 2010)

Nice job.  As far as small TS's go, Waikiki seems to do well.  I think that people are used to small units in Waikiki and don't spend much time in the units themselves.  In Maui, by contrast, the TS itself is more important as people spend more time in them.  Small TS's in Maui do not do well.  Most people want to stay in larger units.


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## pianodinosaur (Jun 16, 2010)

There is a 2 bedroom unit going for $1.00 within the next three hours on ebay at The Point at Poipu.  There has only been one bid.  I hope a Tugger gets this one.


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