Are Hawaii Timeshares Less Marketable?

[WalnutBaron]

I just listened to an interview with Tom Tubbs, founder of Island Consulting Timeshare Realty, who has been selling and brokering timeshares for 27 years. In the interview, he states that Hawaii timeshare properties are less marketable and less in demand than they were a few years ago because of the high costs of airfare to the Islands as well as increased taxes on timeshare owners levied by the Hawaiian state government.

I find this interesting, since there have been many posts on TUG in recent months indicating very strong demand for Hawaiian vacations, in spite of the high costs.

Can anyone shed light on this apparent dichotomy?

 

[vacationtime1]

If Hawaii timeshares are "less marketable and less in demand" than a few years ago, why have the prices increased? I know that prices are up significantly over the past five years, at least for high end Hawaii timeshares such as Marriotts and Westins.

Has he noticed (let alone quantified) a difference on Maui, where the property taxes on TS are extortionate and increasing, compared to Kauai, where the property taxes on TS are merely high?

Perhaps the mid-market timeshares are different? I suspect not, although it is possible.

My initial take is that he is simply wrong.

 

[bastroum]

I own a several Hawaii timeshares. I've just sold my 3 WKORV-N timeshares because I feel $2,500 per year MF's (that will only get higher) are ridiculous. It's not a good use of your money. I'd much rather pay a smaller MF (on a non Hawaii TS) and trade into Maui than continue to pay those MF's to Starwood. So, in that regard I'd say he was right.

 

[bevans]

I own a several Hawaii timeshares. I've just sold my 3 WKORV-N timeshares because I feel $2,500 per year MF's (that will only get higher) are ridiculous. It's not a good use of your money. I'd much rather pay a smaller MF (on a non Hawaii TS) and trade into Maui than continue to pay those MF's to Starwood. So, in that regard I'd say he was right.

I think this is exactly the reason for the hesitation people have in buying Hawaiian timeshares. I only own HGVC timeshares but it is well known that the Las Vegas locations have the lowest maintenance fees and Hawaii the highest in their collection. The overwhelming advice on them is always to buy low fee locations and trade in. A good example is the Bay Club on the Big Island which sells for almost nothing versus the same point unit in Las Vegas. Curt

 

[DebBrown]

We've considered Hawaiian timeshares over the years but always decided against buying due to the maintenance fees. It might make sense if we were to use it every year but I'd feel like an idiot paying such high fees and trading for something cheaper.

Deb

 

[presley]

I agree that they would be less marketable, but I think lots of people are still trying to exchange to Hawaii. Also, I think there are a few highly desired timeshares in Hawaii and lots more undesired. Overall, he would be correct, but people still seem pretty intent on buying at a few like HHV, the Westin on Maui and Aulani, but probably not so much at the lower end properties.

 

[DeniseM]

Overall, he would be correct, but people still seem pretty intent on buying at a few like HHV, the Westin on Maui and Aulani, but probably not so much at the lower end properties.

I agree. Also - remember that this was a broker talking, so he is really saying that it's hard to sell "most" timeshares in Hawaii for enough to cover his commission. "Most" timeshares in Hawaii are in the low to mid-range, older properties, and they can't compete with the newer hotel affiliated resorts.

When buyers are looking at the low to mid-range resorts, their selling price might be low, but the maintenance fees are still considerably higher than the mainland, so why would you want to buy a marginal property, and pay a high maintenance fee? Also - some of these properties are really starting to show their age.

 

[slip]

I think all the points he brought up and even some in some of the responses are
All true but I don't think it's been any different over the last few years. Hawaii is a long trip, really long for me but we make the trip every year because we love
It. The trip isn't so far from the west coast but you still have to fly but it's no
Different than someone owning a Colorado ski week that lives on the east coast.

Most people on TUG suggest owning close enough to drive to so it can be used
Cheaply. That's not really an option for Hawaii but that hasn't changed in the last few years either. Airfares change with supply and demand and Hawaii is a very
Popular destination. The fairs may come down with more flights added or these
May be the new standard pricing, we really don't know but prices on everything
Have risen over time.

 

[california-bighorn]

I agree with the statements made about Hawaii timeshares. However, if you use your week for your own stay it becomes worthwhile to own. We would have to pay much more in a hotel. And although we do sometimes exchange into Hawaii, it is nice to have our timeshare with flexible dates to use as one of our weeks in making reservations for periods longer than a week. Since we have the most flexiblity with our timeshare, we usually make a reservation using our Oahu timeshare for one week then spending another week on another island.

 

[slip]

I definitely agree, there are perks to owning. I always get a great unit 50 yards
From the ocean. I love the view and hearing the waves. I can also grab a few
Extra days to extend my stay with bonus time at rates much cheaper than a
Hotel.

 

[artringwald]

Yes the airfare keeps getting higher.
Yes it is a longggg flight.
Yes the MF keeps getting higher, and watch out for special assessments.
Yes I could give you many reasons why not to go to Hawaii.
So why do we keep going every year? We just haven't found any other place we like as much.

 

[MOXJO7282]

I think its just the fact there is just a glut of timeshares everywhere especially 1BDRM units so much so that even an incredible place like Maui the value just doesn't hold up.

The only units that are truly marketable are 2 BDRM units on the water with a view.

 

[LisaH]

The only units that are truly marketable are 2 BDRM units on the water with a view.

Even that seems questionable. I used to own at Shearwater and Sands of Kahana. It's not easy to rent them out. With the high M/Fs and relatively easy trades into these resorts, I can't be happier to be rid of both.
Name brands on the water still seem to have a market.

 

[Ron98GT]

I think this is exactly the reason for the hesitation people have in buying Hawaiian timeshares. I only own HGVC timeshares but it is well known that the Las Vegas locations have the lowest maintenance fees and Hawaii the highest in their collection. The overwhelming advice on them is always to buy low fee locations and trade in. A good example is the Bay Club on the Big Island which sells for almost nothing versus the same point unit in Las Vegas. Curt

Not a good example. Bay Club, which I own, is an HGVC affiliate. Being an HGVC affiliate, you can buy low ($500-$1000 for 7K points), but pay the high Hawaiian MF's (~ $1400). Where-as if you have the up-front cash and buy in Las Vegas, you buy high ($7000+ for 7K points), but pay the lower MF's (~ $900).

If, you look at the true HGVC TS's in Hawaii, such as Waikoloa Village, Kingsland, and Hilton Hawaiian Village, prices are not down (> $1/point) and MF's are up. I think the same story can be said of the Marriott and Westin TS's in Hawaii (those owners can comment), where there is a demand for the high end properties (4+ Star), which gets boosted significantly by the Asian market (they seem to love HHV).

Your typical 2-1/2 and 3 star quality TS's are a different story. On these, yes, demand is down, prices are down (check eBay), but MF's are up.

 

[Ron98GT]

I definitely agree, there are perks to owning. I always get a great unit 50 yards
From the ocean. I love the view and hearing the waves. I can also grab a few
Extra days to extend my stay with bonus time at rates much cheaper than a
Hotel.

Yes, by owning in Hawaii, you get your guaranteed OF or OV each year as stated, plus you get your guaranteed week, if needed. A lot of people need/want to go to Hawaii during a high demand week/period (January, February, March, Summer, Spring Break, 4th of July, Christmas, New Years, etc), which they probably would never be able to trade into, and if they did it would be a parking lot view and a Studio or 1-Bdrm instead of a 2 or 3 Bdrm.

We've been lucky so far. The best time for us to travel is May and December, the slow months, so we've been getting really good (Marriott, Westin, & HGVC) trades. Otherwise, Id have to own high priced HGVC & Marriott Hawaiian weeks/views for our trips twice each year.

 

[PassionForTravel]

Ron your purchase price for a 7k for HGVC in Vegas might be a little low but that only ads more fuel to your argument. I did the same thing and bought the bay club because I wanted HGVC, and their locations on the big island and Oahu., makes a nice compliment to Maui which I get through worldmark. I figure that with my higher MF the break even point is somewhere between 15-20 years compared to buying Vegas. Plus even with my higher MF I can get a unit in Oahu for less than I can get a hotel room.

Ian

 

[rickandcindy23]

We bought specifically for view and island (Maui). We love Kauai and can trade into Shearwater (we converted our two Shearwater weeks years ago to Wyn points), but Maui was important to purchase for a view, and for whatever reason, the view became very important to us on Maui after staying our first week oceanfront. Now we own four of those weeks.

We are going to the Big Island in August and looking forward to it, but it may be our last time. I would never buy Hilton points because Oahu and the Big Island are not our goal for annual visits.