Property Value

[11185004]

With the economy faltering . . . big time! . . . how are TUG members assuring that their investments are secure? My timeshare is going for * nothing * on EBAY, and I'm concerned that the Association won't be able to meet expenses. Any experience/thoughts? Thanks!

 

[bogey21]

The secret is to have bought cheap. The total cost for my 6 weeks is less than $5,000. I have used all my Weeks for a number of years. That way if it all blows up, I am out very little.

George

 

[timeos2]

Things aren't that different.

With the economy faltering . . . big time! . . . how are TUG members assuring that their investments are secure? My timeshare is going for * nothing * on EBAY, and I'm concerned that the Association won't be able to meet expenses. Any experience/thoughts? Thanks!

Resale values have long been down - and they are down more now. But the basic value offered for use/trade for your annual fee is hopefully good enough to keep you and the majority of other owners paying those on going fees and the resort up ad operating.

Many owners won't even attempt to sell if they see the low prices being offered as they feel "its worth more to me than that". If your resort is well run and in a good area that should continue to be the case. If its run down, high fees or was mostly used as trades to other locations you could be in trouble.

 

[geekette]

If the resort is sold out there is an owner for every unit week (sure, minus one or two weeks per unit for maint) so selling your unit week or not should not make a difference in resort expenses or maintenance: someone is on the hook for the maint fees either way. Sales price has nothing to do with maintaining the place once it is sold out.

 

[11185004]

Value Security - Thanks!

Thanks for the several comments in response to my question about maintaining value. Very much appreciated.

So, here's the thing . . . I assume from the responses to my initial inquiry that those of us who have bought into timeshare properties had better be prepared to ride the wave of bankruptsy.

O.K., not pretty, but realistic. So, to my next point . . . to what extent am I - an owner! - liable should - in fact -
the property declare bankruptsy? Very important point - especially in these economic times.

Thanks - very much!

 

[lvhmbh]

Depends on your timeshare. Since this is on the FL board, I assume you're talking about a timeshare here. We own at Vistana and it is Starwood so quite financially solvent.

 

[timeos2]

Thanks for the several comments in response to my question about maintaining value. Very much appreciated.

So, here's the thing . . . I assume from the responses to my initial inquiry that those of us who have bought into timeshare properties had better be prepared to ride the wave of bankruptsy.

O.K., not pretty, but realistic. So, to my next point . . . to what extent am I - an owner! - liable should - in fact -
the property declare bankruptsy? Very important point - especially in these economic times.

Thanks - very much!

Unless there is a dramatic collaspe in owners paying fees or if the resort was already suffering high delinquency then bankruptcy is unlikely. If it did go bankrupt then each owner is responsible for whatever the Association decides to assess to recover - not for any type of personal liability to cover all costs/debts. Or the resort could be sold off to cover debts and you'd lose your ownership. It would be up to the Board & paid owners to decide how to handle it. Delinquent owners have no vote.

 

[Talent312]

... I assume from the responses to my initial inquiry that those of us who have bought into timeshare properties had better be prepared to ride the wave of Bankruptcy....
So, to my next point . . . to what extent am I - an owner! - liable should - in fact - the property declare Bankruptcy?...

Bankrupt-cy, my good man.
Here's the thing: Your MF's may rise to account for a higher default rate, but the OA's and management can count on a captive audience of thousands to help keep them afloat. Those of us who can afford TS's are not, for the most part, abandon them. The vast majority of us will pay our MF's, rather than walk.

Any resort too poorly run to stay afloat, may close, be foreclosed, or liquidated, but you no privity to any of its debts, so all you can lose is your TS. In such a resort, it wasn't worth anything anyway. Easy come, easy go.