At what point would you stop payment?

[terrygee]

I guess for each person it would depend on where the 'rising MF line' intersects the 'declining usage/value' line.
Mine was a couple of years ago as the MF approached 1k, exchange costs added a couple of hundred more, and my travel needs due to retirement near the beach declined by 80%.
I just stopped paying. Got a few collector calls, never answered them, then blocked those #'s completely. After a couple of letters everything stopped. No impact whatsoever on FICO score, not that I would care.

 

[Fredflintstone]

I guess for each person it would depend on where the 'rising MF line' intersects the 'declining usage/value' line.
Mine was a couple of years ago as the MF approached 1k, exchange costs added a couple of hundred more, and my travel needs due to retirement near the beach declined by 80%.
I just stopped paying. Got a few collector calls, never answered them, then blocked those #'s completely. After a couple of letters everything stopped. No impact whatsoever on FICO score, not that I would care.

Sadly, even though there are wonderful sites like TUG, the venture remains limited on resale especially for legacy resorts.

It’s too bad people have to feel that their only way out after trying various options is to stop paying or reverting to shady options.

You are so right on usage versus costs argument. I personally can’t predict travelling every year. Last year, I did 5 weeks. This year, I had to cancel all my plans due to my dads cancer. Next year....who knows. That also factors in...after all life happens.



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[Fredflintstone]

You know what would be helpful? TUG has a rating system for resorts. Why not have a rating system for Management and HOAs? They could be rated on reasonability of maintenance fees, value of fees to condition of resort, customer service, etc. This would be helpful because many people mention their experiences are directly tied to management/HOA.


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[DeniseM]

I would never stop making payments, because I know how to give away a timeshare to someone who wants it, and have done it many times.

 

[bluehende]

I would never stop making payments, because I know how to give away a timeshare to someone who wants it, and have done it many times.

I would bet that your options are much better than most due to smart purchases. Unfortunately there are too many time shares out there that cannot be given away. Look through ebay and you see many time shares with no bids that include a year or more MF.

 

[DeniseM]

True, but I once gave a timeshare away at an old resort in Branson, so it is possible. It just takes time and good advertising.

 

[Fredflintstone]

I would bet that your options are much better than most due to smart purchases. Unfortunately there are too many time shares out there that cannot be given away. Look through ebay and you see many time shares with no bids that include a year or more MF.

I totally agree that brand of timeshare means everything for resale. Even though you pay more upfront, getting rid of it is easier. The problem is the initial costs to buy resale CAN be high(but not always) especially at prime locations and the MFs can be fairly high too.

I had 4 legacy timeshares and they were hard to unload. It took over 2 years. I finally paid people to take them and paid transfer fees too plus one extra year of maintenance. It cost me 6 k but I thought it was better than saddling the other owners if the defaulted.


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[Panina]

Yes, I am concerned and yes I do sway towards non ownership. That said, I love renting from TUGGERS and find them a wonderful, engaging group. So, without timeshares, I probably wouldn’t have great conversations with nice people like you


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Keep your mindset in the positive whichever way you go. It is all about lifestyle, some are willing to pay more to guarantee they have what they want, other will not. It is a personal choice and to each person the answer is what is best for them.

 

[rickandcindy23]

True, but I once gave a timeshare away at an old resort in Branson, so it is possible. It just takes time and good advertising.

I remember when you gave that week away. The owners at that resort, Roark, I believe, absolutely love the place. Find an owner, and you have a buyer on that one. We stayed there years ago, before I was as knowledgeable as I am today, and we liked it okay. We had a 2 bedroom, and it was very clean, and the beds were comfortable. The place needed updates, but so does our Val Chatelle, so I looked beyond that fact. The activities were SO fun, including bingo, which Rick and I starred because we were younger and faster than most of the rest of them. We won discounts on several worthy activities. We were so pleased.

We talked to a lot of owners at the activities, and they were so tickled pink with their ownerships. We didn't talk to a single person who was unhappy. The people were so very nice. I loved the ability to use a pontoon boat on the lake for a few hours. The pool was very nice. I actually swam in it, which I rarely do.

 

[Panina]

I would never stop making payments, because I know how to give away a timeshare to someone who wants it, and have done it many times.

I would bet that your options are much better than most due to smart purchases. Unfortunately there are too many time shares out there that cannot be given away. Look through ebay and you see many time shares with no bids that include a year or more MF.

With time, sometimes more then you want, and patience most can be given away. I watch eBay closely and even the ones without bids, relist and eventually get a taker.

I got one on eBay at a resort I already owned at that relisted 3 times on eBay, they paid me to take it. I missed it initially because I was on vacation. I was looking for years, for the week I wanted but resale prices were too high. The realtor selling at my resort actually gets descent money for weeks. I also gifted a week at this resort, a week earlier then I needed, that got taken in one day. I used the money I got free from the other timeshare to pay the closing cost.

I personally would only stop paying if I financially didn’t have the money. I know my obligation going in. If I ever have a week that would be hard to give away I would pay the closing cost, a year of maintenance and offer a gift card. Still cheaper then having to keep paying on something I couldn’t use and still doing the right thing.

 

[Fredflintstone]

I think in my case, I am swayed more to buying a condo hotel in Hawaii. Yes, I will need to fork out 200 k plus but they do rent it out for a fee when I don’t want to use it. My long term plan if health holds out is to spend 3 months a year in Hawaii in the winter months. I have a lot of friends there I have garnered by visiting probably 40 times now.

I was thinking the timeshare route but it would be costly over 3 months. Exchanging I find is hard in Hawaii due to demand. I think it would be nice to have a place there that appreciates in value over time, has the ability to be rented out by a property management firm just to cover costs.

Frankly, I have been to many places and in my opinion no place beats the awesome weather in Hawaii.

That said, there are incredible timeshares in Hawaii that ensure someone is going to have a great time.

Now, just have to narrow down which island to look. I love them all. Been thinking Kona because the real estate prices aren’t that bad but the beaches there aren’t good due to lava rocks everywhere.

Hmmmm. Big decisions require big time to process where.


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[DrQ]

Buying in Hawaii is not my desire. It's beautiful, but to me a timeshare needs to be used to be value. For us, Hawaii would be a once in a lifetime trip, not a yearly or EOY trip. Even if you bought it to rent it out or trade it out, to me, that seems like WORK. If we want to go to Hawaii, I think we will do it as a one time cost.

As I've said previously, we a simple people.

 

[DeniseM]

The islands with the best rental demand are Maui and Oahu - the others don't come close.

 

[Fredflintstone]

The islands with the best rental demand are Maui and Oahu - the others don't come close.

True. I think Kauai gets a good share of visitors but certainly not as high as Maui. And Kauai is quite pricey.




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[Panina]

I think in my case, I am swayed more to buying a condo hotel in Hawaii. Yes, I will need to fork out 200 k plus but they do rent it out for a fee when I don’t want to use it. My long term plan if health holds out is to spend 3 months a year in Hawaii in the winter months. I have a lot of friends there I have garnered by visiting probably 40 times now.

I was thinking the timeshare route but it would be costly over 3 months. Exchanging I find is hard in Hawaii due to demand. I think it would be nice to have a place there that appreciates in value over time, has the ability to be rented out by a property management firm just to cover costs.

Frankly, I have been to many places and in my opinion no place beats the awesome weather in Hawaii.

That said, there are incredible timeshares in Hawaii that ensure someone is going to have a great time.

Now, just have to narrow down which island to look. I love them all. Been thinking Kona because the real estate prices aren’t that bad but the beaches there aren’t good due to lava rocks everywhere.

Hmmmm. Big decisions require big time to process where.


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Make sure you research the company that will be managing your property and understand your costs fully. You will be far away most of the time and need to be in a place with A+ ethics.

I once rented a vacation house I owned and let the realtor know when I would be up. Last minute we went being I wasn’t told I had a renter and one was there. Made me wonder how many times she rented and I didn’t know. I learned good from that. These days a door camera would let me know.

I have thought of getting a condo in Florida but decided not yet, will continue doing the timeshare shuffle but it definitely can happen in the future.

 

[Fredflintstone]

Make sure you research the company that will be managing your property and understand your costs fully. You will be far away most of the time and need to be in a place with A+ ethics.

I once rented a vacation house I owned and let the realtor know when I would be up. Last minute we went being I wasn’t told I had a renter and one was there. Made me wonder how many times she rented and I didn’t know. I learned good from that. These days a door camera would let me know.

I have thought of getting a condo in Florida but decided not yet, will continue doing the timeshare shuffle but it definitely can happen in the future.

Great advice. Say, how is Marcos Island? Sadly, I was going to Miami and area this week but had to cancel and lose my money because my dads cancer got worse.

Prices in Florida are certainly better than Hawaii. Perhaps, I should visit there as part of my research.

I almost bought a place in Puerto Vallarta 2 years back but backed out when the seller wanted to change terms. Maybe wrong, I just feel safer investing in the US over Mexico. I think real estate protections are better in the US.


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[Fredflintstone]

I should add the reason why I discounted Florida in the past was hurricane risks. That’s why I looked at California, Hawaii and other Pacific Ocean areas. Maybe over reacting there. This included any timeshare purchase as well


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[Panina]

Great advice. Say, how is Marcos Island? Sadly, I was going to Miami and area this week but had to cancel and lose my money because my dads cancer got worse.

Prices in Florida are certainly better than Hawaii. Perhaps, I should visit there as part of my research.

I almost bought a place in Puerto Vallarta 2 years back but backed out when the seller wanted to change terms. Maybe wrong, I just feel safer investing in the US over Mexico. I think real estate protections are better in the US.


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Sorry about your dad. I know it takes a toll on you. I lost my dad last year. Not easy.

Love Marco Island. Last time I looked it was the sweet spot for owning in sw Florida. I have a coop near mom as a second home, as I go often, so I don’t want to maintain a 3rd place thus the timeshares.

Worth a look, looking is free. I agree with feeling safer investing in the USA.

 

[DrQ]

I should add the reason why I discounted Florida in the past was hurricane risks. That’s why I looked at California, Hawaii and other Pacific Ocean areas. Maybe over reacting there. This included any timeshare purchase as well


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California has wild files, Hawaii has hurricanes and tropical storms too. You can mitigate the risk with travel insurance if you want. We own on the Gulf Coast, Galveston, and we were only shut out one year due to Ike.

 

[PigsDad]

According to ARDA, MFs increase an average of 6 percent per year. I am not sure on hotel rates BUT I have found some awesome beach front condos in Hawaii on Airbnb for 100 to 150 a night. To be fair, they didn’t have the resort pools and amenities. But it is only 100 to 150 versus 300 a night plus.

I would question that ARDA statistic. I've owned for 13 years and have never had a single year where the MFs went up more that 5%. Most years it is in the 3-4% range. The lowest was less than 1%.

Kurt

 

[PigsDad]

I should add the reason why I discounted Florida in the past was hurricane risks. That’s why I looked at California, Hawaii and other Pacific Ocean areas. Maybe over reacting there. This included any timeshare purchase as well.

IMO, the bigger risk is what management company your timeshare is with, not where it is located. A good management company will have enough reserves and insurance to cover weather-related risks.

As an example, we own two HGVC weeks on Marco Island -- you know, the island that hurricane Irma directly hit last September. Both of my resorts were closed for several weeks, but because of HGVC's excellent management, there were no special assessments. The owners who could not use their weeks while they were closed for repairs were credited that year's maintenance fees so they were out nothing. Plus, the repairs were completed in record time and the resorts were open again sooner than many of the other resorts on the island. And to top it off, this year's MFs increased only 2.5% (less than inflation).

Kurt

 

[Ironwood]

After 31 years of TSing and three interval ownerships at various times, we are now out Ever increasing mf's and outrageous exchange fees esp for Canadians after currency exchange said we had to get out. As empty nesters, with all the travel options we have now, including Air BnB we can generally find better value. Having said that, we have had many memorable trips over the years, although our last exchange a month ago was one we would not return to. And with that I'm signing off from the forum. Keep well everyone and keep traveling!

 

[PigsDad]

I disagree. If you compare hotel rates from 2008 (just before the Great Recession) to hotel rates today, it there is no question that hotel rates have risen MUCH more slowly that timeshare maintenance fees, at least for Marriott timeshares. When hotel rates were actually going down 8-10 years ago, maintenance fee increases did not slow down and even accelerated in many cases.

I am not familiar w/ Marriott's price history, but for Hilton (where I own), hotel rates have definitely gone up much faster than my maintenance fees. I guess it depends on the system you are looking at.

Kurt

 

[Fredflintstone]

I am not familiar w/ Marriott's price history, but for Hilton (where I own), hotel rates have definitely gone up much faster than my maintenance fees. I guess it depends on the system you are looking at.

Kurt

Yes, MF rates do vary. I think it boils down to the Management company. Some are great at keeping costs competitive and some are terrible. That’s why I think a close look at the Management company is more important than the actual resort. Many locales have plenty of choices so if one Management company is better than another, you are best going with them.


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[PigsDad]

I think in my case, I am swayed more to buying a condo hotel in Hawaii. Yes, I will need to fork out 200 k plus but they do rent it out for a fee when I don’t want to use it.

I'm glad that you have a plan that might work out better for you. But let's be honest here -- a $200K condo in Hawaii would be a pretty low end and definitely not near the beach. Comparing that to your typical Hawaii timeshare is an apples to oranges comparison. With the prices of real estate in Hawaii, can you even get a $200K condo? I would guess that a condo that is equivalent to an ocean-front timeshare would be in the $1 million range.

Kurt