skimble
TUG Member
Great location, well maintained with strong amenities and low maintenance fees-- that's the epitome of what we all want. But, that's hard to find and often changes.
The general rules in timesharing is are:
1. As maintenance fees rise, resale value decreases.
2. Maintenance fees only go up. (Even when they tell you they needed to add $60 to pay for a certain unexpected repair.)
3. When a developer inventory runs out, fees will rise dramatically.
4. Large maintenance fee increases can be linked to delinquencies, sales and foreclosures.
5. When maintenance fees surpass prevailing market rental rates, resorts struggle to keep owners.
I remember about 15-20 years ago, the threshold for acceptable fees was about $75/night or about $500/week. Then $100/night became the norm or $700/week. Now, I'm seeing them push $1,000/week (not Hilton, Marriott or Hyatt). One of my resorts has breached this 4 digit threshold. It's a strong 5 star resort, but this fee increase is an audacious step. I see the resales already, and I'm concerned that delinquencies will rise.
I have not reached my threshold (and probably wont since I own prime), but I know many off-season owners will-- and this is bad for all owners at this resort.
I'm speaking for California Coastal-- where I own most of my timeshare units.
But, costs are higher everywhere.
I know it varies by region and by location... but what is an acceptable threshold for your annual maintenance fees?
And, what is the unacceptable threshold where you say, "I quit... I'm not paying this anymore!"?
The general rules in timesharing is are:
1. As maintenance fees rise, resale value decreases.
2. Maintenance fees only go up. (Even when they tell you they needed to add $60 to pay for a certain unexpected repair.)
3. When a developer inventory runs out, fees will rise dramatically.
4. Large maintenance fee increases can be linked to delinquencies, sales and foreclosures.
5. When maintenance fees surpass prevailing market rental rates, resorts struggle to keep owners.
I remember about 15-20 years ago, the threshold for acceptable fees was about $75/night or about $500/week. Then $100/night became the norm or $700/week. Now, I'm seeing them push $1,000/week (not Hilton, Marriott or Hyatt). One of my resorts has breached this 4 digit threshold. It's a strong 5 star resort, but this fee increase is an audacious step. I see the resales already, and I'm concerned that delinquencies will rise.
I have not reached my threshold (and probably wont since I own prime), but I know many off-season owners will-- and this is bad for all owners at this resort.
I'm speaking for California Coastal-- where I own most of my timeshare units.
But, costs are higher everywhere.
I know it varies by region and by location... but what is an acceptable threshold for your annual maintenance fees?
And, what is the unacceptable threshold where you say, "I quit... I'm not paying this anymore!"?