A New Model of vacation ownership ?

[GTStone]

With all the economic issues, problems facing timeshares regarding the unpaid maintenance fees, etc., how about exploring some new ideas companies could use to provide vacation ownerships ?

I'd love to see some of the ideas you can come up with that works for the developer ( they have to cover the cost of construction ), the HOA must have sufficient funds to properly run/maintain the facility, and the "owner".

Would you share some of your ideas ?

 

[am1]

I think fractional in some areas.

The deed would hold more value.
Along with that there is less transfer costs per week owned.

Fees could be less per week as "less" different people would be staying in the units.
Owners get high demand and low demand weeks.
A larger purchase so less people buy at a 2 hour sales presentation.
People with higher incomes are more likely to purchase.
Reputable Real Estate agents are able to get involved in the resale market
People are more to an interest in the management.
People are more likely to buy close to home or in select other areas. Florida, NYC and Hawaii.

A condo in Panama City Beach. Canadian snowbirds November to March. Possible March and April rent by the week to people in spring break. Someone buys may. June - August is purchased by someone in Alabama or Georgia who wants a weekend place. September and October is for someone else.

I think even better would be a timeshare points system but with underlying weeks owned. Say 5 consecutive weeks in the same unit or same amount of points. That way people have a deed of value but also flexibility to go elsewhere.

I am sure there is a list just as long as reasons why either of these do not work.

 

[the_truth]

the truth is the problem with timeshare's is the deed

 

[rrlongwell]

the truth is the problem with timeshare's is the deed

If that is the case for some buyers, then look at Wyndham Club Access or other Vacation Club models.

 

[ronparise]

Using the co-op form of real estate ownership (common in New York)

Form a co-op company to own real estate. Sell shares in that company. Share price is determined by the value of the underlying real estate.
A share owner has the right to occupy a unit or units for a period of time, I see this like a points system, where more points (shares) gets you better time, or more time.
The expenses of running the coop are shared according to the number of shares (or points) you own
The company will buy back your shares after 5 years at 75% of the current value

There is no need to reinvent the wheel. Hapimag has been doing this for a long time

 

[the_truth]

the truth is......Wyndham seems to design new memberships only to have problems down the road that require a purchase of more points or an upgrade to fix. That's definately not the answer. A vacation club model seems to be the future for the industry or something along the lines of WorldMark without Wyndham being the parent and a buy back program.

If that is the case for some buyers, then look at Wyndham Club Access or other Vacation Club models.

 

[GTStone]

Deed

the truth is the problem with timeshare's is the deed

Sorry, but this response left me hanging. Could you share what you mean ? Thanks.

 

[the_truth]

Just my .02 cents that it appears that the Deed is what locks people into these things and makes it difficult to sell. Seems like most of the frustration with timeshare owners stems from the resale market, maintainence fees and availiablility.

If there was no deed, then when it came time to no longer own it anymore, it would be easier to sell or transfer. No worrying about a closing or recording at the county level.

Maybe something along the lines of the Mexico timeshares is the answer - 20 year contract sold at a lower buy in price and if you wanted your kid's to inherit it, it could be willable or tranferrable? How about no maintainence fees, just pay as you go. And lastly, put the owners who have paid good money to be in the new model vacation club at the front of the line to get good reservations and top priority. Plus a family plan.

Sorry, but this response left me hanging. Could you share what you mean ? Thanks.

 

[JohnPaul]

Maybe something along the lines of the Mexico timeshares is the answer - 20 year contract sold at a lower buy in price and if you wanted your kid's to inherit it, it could be willable or tranferrable? QUOTE]

Vacation Internationale (VI) was started on this basis. People bought 25 - 40 years in the system. That was forever away when they started but now units are starting to fall out of the program. They have been working hard to move to a perpetual model. Without perpetual, as membership in the program dwindles the overhead doesn't decrease at an equal rate and it becomes untenable.