Is it time to dump our timeshares?

[mamiecarter]

Well it all depends on how bad the economy gets doesn't it. I have more good summer weeks than I can use in the North east but I can cover my maintenance with rentals and my friends love to just pay the years maintenance and use them.

But if we hit double digit unemployment the whole timeshare industry could crumble not to mention the whole vacation industry. How bad will it get? What do you think?

I think the developers are in deep doo-doo. How to get anyone to part with thousands in this economy and credit so hard to get?

 

[AwayWeGo]

What do you think?

Unless affording the maintenance fees is an issue right now, I don't think right now is a great time to be selling.

It's a buyer's market.

For sure you want to avoid buying high & selling low -- or if you got your timeshares resale, avoid buying low & selling lower.

I think the developers are in deep doo-doo.

Maybe some of'm.

Boo Hoo.

Could it be that the time is ripe more than ever before for some daring entrepreneur to step in with a new biz. model for timeshares -- modeled on Wal*Mart for developer sales & modeled on CarMax for resales ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[DeniseM]

I would hang on as long as I was still healthy, still wished to travel, and the MF's weren't a financial burden. A couple of years ago my mom was diagnosed with cancer and died within 3 mos. I know that she would have done a lot more traveling, if she'd had any idea that she had so little time left. So I think that if you still enjoy traveling, you should do as much of it as you can, while you can, because you never know what the future holds.

 

[Timeshare Von]

I look for more "deals" of giving weeks or points for use (like Wyndham's Discovery Program) to let them keep inventory until sales can rebound . . . while collecting the MF's for the "use" being given away.

 

[tombo]

Well it all depends on how bad the economy gets doesn't it. I have more good summer weeks than I can use in the North east but I can cover my maintenance with rentals and my friends love to just pay the years maintenance and use them.

But if we hit double digit unemployment the whole timeshare industry could crumble not to mention the whole vacation industry. How bad will it get? What do you think?

I think the developers are in deep doo-doo. How to get anyone to part with thousands in this economy and credit so hard to get?

I hope your rentals hold up better for 2009 than mine have. I had a 50% deposit on my St Maarten week, and the renter e-mailed me and said "keep my deposit, we can't afford to go any more". I had 2 renters who rented summer beach weeks from me 2 years in a row, and both have told me that they won't be going next year. I have 2 other people who rented every year, one of whom said he hasn't ruled it out yet, but he said that I should go ahead and try to rent it rather than holding it for him. The other renter (who has paid 50% down) said she can't go, but she did say that she will pay the balance in full if I can't rent it to someone else because she had agreed to do so.

I am not sure how response will be to my rental ads for 2009, but from what I have experienced so far I am very worried.

 

[Talent312]

I'm keeping mine.
Selling a TS under current market conditions, would seem to be a particularly bad idea; however, if worrying about 'em keeps you up at night, they're not serving their purpose and it may behoove you to dispose of them, or at least to lighten up.

 

[london]

Selling Timeshares

We are planning to sell 3 timeshares that we no longer want. Our losses will be under 1K on each week.

I have picked up some real good buys on Ebay, so I am not too concerned about my losses. What I gained on Ebay washes out my losses.

However, we are keeping our best weeks, at those resorts we enjoy staying at, i e Resort on Cocoa Beach in winter and late spring.

Club Regency in Myrtle Beach in early September. Will be doing less trading.

More people are buying weeks at places they wish to visit on a regular basis.

It is not a good time to sell, but some timeshares are little or no value in any market, therefore selling for a dollar, may be the answer.

 

[reddiablosv]

Avoid quick decisions.

I own about 20 weeks per year. I have recently sold two weeks, one at a profit and one at a loss. All of my weeks were purchased resale. The weeks I don't use, I rent, usually at a profit. This year has been challenging..... but, I think there is hope. Airfares are falling. Just today I had two renters email me for the same New years week in Hawaii! Life will continue I suggest you just wait. If the week you hold has value, continue to hold it. The market will come around, the sky is not falling!

 

[california-bighorn]

Just bought on eBay

Appropriate topic for us. Just won an auction on ebay for another week. Since we plan on using the week for ourselves, we can drive to the resort, it has relatively low MF's ($500) and our total cost out of pocket is $17.50 (no closing nor tranfer costs) I would have to say we are not dumping, but taking advantage of the slow market.
If I owned a lot of units for rentals, I would be getting a little concerned at this point.

 

[bobcat]

Appropriate topic for us. Just won an auction on ebay for another week. Since we plan on using the week for ourselves, we can drive to the resort, it has relatively low MF's ($500) and our total cost out of pocket is $17.50 (no closing nor tranfer costs) I would have to say we are not dumping, but taking advantage of the slow market.
If I owned a lot of units for rentals, I would be getting a little concerned at this point.

The problem I see is the Mf going up. Also, people who can not pay at their resort, the other owners will have to make up the difference. HOA's will take over more deeds. In one town near where I live, there is over 4000 condos for sale. I will not give the name. Prices are dropping and still no sales. The problems we are having today will take a long time to go away. Things will never be the same. Many people will not be able to recoup what they lost.

 

[dwsupt]

I believe it is like playing the stock market. You have to ride out the lows and celebrate the highs. If you bought right in the first place you will do fine. ASk yourself "will I still vacation next year"? If the answer is yes, hang on them. If on the otherhand you don't use them, the market is not good, so hang on to them. Ride it out.

 

[Bill4728]

I believe it is like playing the stock market. You have to ride out the lows and celebrate the highs. If you bought right in the first place you will do fine. ASk yourself "will I still vacation next year"? If the answer is yes, hang on them. If on the otherhand you don't use them, the market is not good, so hang on to them. Ride it out.

I could not say it better.

 

[ace2000]

The problem I see is the Mf going up. Also, people who can not pay at their resort, the other owners will have to make up the difference. HOA's will take over more deeds. In one town near where I live, there is over 4000 condos for sale. I will not give the name. Prices are dropping and still no sales. The problems we are having today will take a long time to go away. Things will never be the same. Many people will not be able to recoup what they lost.

Bobcat,

You've stated my concerns also. I see the biggest risk of currently owning a timeshare in today's market is the default on the maintenance fees. If a higher percentage of owners default, the boards/managers will have to recoup that from the 'paying' members and/or drastically reduce costs.

I'm fearful that this scenario will cause an upturn in maintenance fees and could also reduce the perks of owning a timeshare unit (staff, ammenities, activities, etc)... I don't think they can raise them too drastically, just because that will cause another round of defaults. But, who knows how the decision makers are going to decide to balance it all out?

After thinking it through, I've decided to hold on to my units. But I understand the risks involved, and I surely cannot afford to see my maintenance fees double in a short period of time!!!

 

[luckybunny]

I think it is not only time to dump timeshare, it is also not the right time to buy timeshare.

With the downturn in economy, there are some amazing deals in other vacation alternatives. I just booked an upscale 7 days Christmas holiday cruise for $600 a person in a balcony cabin. The itinerary includes St Maarten, Dominica, Bonaire, Aruba, and Grenada.

Same deal can be found for all inclusive 5 star resorts. Hotel chains are also offering amazing promotions all over the world including lower redemption points for reward stay or fast track to elite status for upgrades.

Why would I pay thousands of dollars to buy timeshare, commit to annual MF, plan my trip a year in advance, and put myself at exchange company's mercy?

With the exception of a few select locations and weeks, I never had a problem getting high quality resort/hotel at a price that is the same or lower than owning the timeshare. But even those, with a little bit of work, I always find satisfactory solution. I tried owning timeshare for the past 3 years and I find if you putting as much work as I do in owning a timeshare, I can find just as good if not better holidays.

Believing that you OWN a piece of property just because you own a week in a resort is just not the right way to approach timeshare!

 

[ace2000]

Lucky, you've provided very sound advice. I guess you can look at the current situation two ways... One viewpoint is this is THE time to buy because everything is so cheap compared to previous years... The other viewpoint is just rent a unit year-to-year because who know what's going to happen.

I've taken the approach to go ahead and purchase resale on eBay, but I definitely respect your logic. The main advice I can give is IF you decide to buy, remember... only purchase what you will be able to afford. And keep in mind that maintenance fees will never stay the same, they will only increase over time!

 

[luckybunny]

I guess a lot depend on traveling pattern. I just find Timeshare too restricting and too much advance planning. I tried it for 3 years and last year I decided to sell them with the exception of one which I use for business purpose in Arizona when hotel price is outrageous during gem show time. Somehow the places I want to go I never seem to be able to get it from exchange!

I just can't do a year advance planning for my holidays. In this fast changing economy, who knows what I will be doing next holiday? Right now I would love to do a week in Europe next Summer, but I had plan that 2 years in a row with my RHC and always had to cancel last minute due to either business reason or personal reason. Now I rather do a Med cruise and book last minute instead of going through planning that through timeshare again!

However, if you had success with timeshare in the past and have no problem financially then by all means now is a great time to buy, especially the high quality resort.

 

[timeos2]

So far so good

Bobcat,

You've stated my concerns also. I see the biggest risk of currently owning a timeshare in today's market is the default on the maintenance fees. If a higher percentage of owners default, the boards/managers will have to recoup that from the 'paying' members and/or drastically reduce costs.

I'm fearful that this scenario will cause an upturn in maintenance fees and could also reduce the perks of owning a timeshare unit (staff, ammenities, activities, etc)... I don't think they can raise them too drastically, just because that will cause another round of defaults. But, who knows how the decision makers are going to decide to balance it all out?

After thinking it through, I've decided to hold on to my units. But I understand the risks involved, and I surely cannot afford to see my maintenance fees double in a short period of time!!!

Thankfully, at the two resorts that I have the privilege of serving on the Board of Directors thus have monthly reports on the financial status, the opposite is happening. We are actually getting a higher rate of payment vs a year ago. The theory is people feel they have a way to take an inexpensive vacation at their resort saving the exchange fee and having allowed for the annual fees from past years. Hopefully that pattern will hold up and resorts won't be too hard hit with new delinquent weeks. Time will tell but early results look promising.

 

[Transit]

I'll keep mine as long as I can get a quality vacation out of it and Maintanence fees don't get out of control.I may even grab another at the right place and price.

 

[pammex]

Well I am keeping mine and using them....life is short and I am vacationing as much as I can...

 

[london]

Keeping Weeks

Well I am keeping mine and using them....life is short and I am vacationing as much as I can...

Well said....I agree totally.