Saving tons of college tuition by owning timeshare in Hawaii?

[jhm40cu]

A friend of mine went to Oahu couple weeks ago for their honeymoon and stumbled upon timeshare presentation. They went to the presentation and came back with an amazing story.

The salesperson told her and her husband that they can save tons of money on their kids’ college tuition by owning a timeshare unit in Hawaii. My friend is non-US citizen so if she decide to send her kids to state college in the US (University of Hawaii in this case), she would have to pay out-of-state tuition. According to T/S salesperson, since T/S owners own a property in Hawaii and pays property taxes, State of Hawaii recognizes timeshare owners as state residents. Therefore, TS owners in Hawaii can send their kids to Univ of Hawaii as state residents and doesn't have to pay out-of-state tuition if owned T/S unit for more than 2 years. The salesperson even took out a Hawaii state ID from his wallet and showed it to her as a proof (He said he was actually from East Coast)! I think this is a quite a story, and I admire the salesperson's insight to read customer's true desire.

Is this a total T/S salesperson BS or any truth in that?

 

[wuv pooh]

Alas, no. Google is your friend:

University of Hawaii
Residency Determination

Leeward Community College, like all public institutions of higher learning, has residency requirements for payment of resident tuition. These requirements are very complex, and students often have questions about their residency status as it applies to tuition. Hawaii state law has determined residency to be established by an independent adult, an emancipated minor, or a minor’s parents/guardian, who:


Has been physically present in the State of Hawaii for at least twelve months prior to the first day of the semester.
Has demonstrated an intent to make Hawaii a permanent residence/domicile.
To apply for a change in residency status:
Complete the Change of UH Residency Application and provide as much of the following information as possible. Any of the following documents can assist in determining your residency status:
Either a Tax Clearance Certificate from the Hawaii State Tax Office certifying the year(s) in which you filed Hawaii resident income tax returns or a copy of your last professionally prepared Hawaii State income tax return.
Affidavit of Hawaii Voter Registration.
An employer contract or letter verifying the dates of employment.
Copy of your parent’s/guardian’s latest Hawaii personal income tax forms.
Long-term lease, rental, or home purchase agreement.
Statement from public and/or private agencies attesting to your residency for a specific period of time.

 

[Lawlar]

Sales Rep Gone Wild

Wuv Pooh is correct. The statements by the sales rep is not true.

Residency requirements are shown by factors that indicate an intent to make the state a person’s home. For example, the place where a person votes, receives mail, obtains a driver’s license, etc. are all indicators that a person intends to reside in the state.

The fact that a person is going to attend college in the state is not, in and of itself, evidence that the person is residing in the state.

Spending a week at a vacation timeshare does not establish residency. This is just another instance where a salesperson will say anything to make a sale (it is also known as fraud).

 

[KathyPet]

I can sum this up in one word: Baloney!

 

[rickandcindy23]

Wow, that is a new one. :rofl:

 

[thinze3]

...Any of the following documents can assist in determining your residency status:
......
Long-term lease, rental, or home purchase agreement. ....

Maybe I am being naive but there is a hint of the truth in what the salesperson stated according to the written statement above.

Terry

I can't believe I just said that. :ignore:

 

[KathyPet]

Thinze3, The statement is that the documents you reference CAN ASSIST in determining legal residencey but you must still meet the requirements as stated above and none of the requirements are being met by own a 1 week timeshare. I would have to report this salesperson to Marriott. As far as I know salespeople are not qualified to be handing out legal advice and that is what this salesperson is doing.

 

[rickandcindy23]

Thinze3, The statement is that the documents you reference CAN ASSIST in determining legal residencey but you must still meet the requirements as stated above and none of the requirements are being met by own a 1 week timeshare. I would have to report this salesperson to Marriott. As far as I know salespeople are not qualified to be handing out legal advice and that is what this salesperson is doing.

I agree. How misleading, and how bad is business, for a salesperson to resort to such nonsense. How do we know it's a Marriott?

 

[KathyPet]

I agree. I just assumed that since this is the Marriott board that it was a Marriott timeshare presentation that they went to but the OP does not specifically state that it was. I hope it was not as I would hope that Marriott has not yet stooped to that level of nonsense.

 

[Stefa]

Maybe I am being naive but there is a hint of the truth in what the salesperson stated according to the written statement above.

Terry

I can't believe I just said that. :ignore:

A timeshare ownership is not a long term lease or rental agreement, because you are not residing in the state "long-term."

 

[rickandcindy23]

We should all guess as to which developer this is. I think it's probably Wyndham/Fairfield. I can picture their salespeople saying that.

I don't picture Marriott saying it, but we did have a very dishonest Marriott salesperson at Orlando Horizons early this year.

What other developers on Oahu right now? Hilton is another. But there aren't many.

 

[ownsmany]

whoever it was - they need to reported to high management. This kind of information is very untrue and misleading.

Maybe a threat of a "20/20 report on TV" or treat of lawsuits will get these companies to get their sales people in line. Companies such as Marriott will not want their sales people resorting to out and out lies to get a sale. They have too high a reputation.

 

[FlyKaesan]

Alas, no. Google is your friend:

Has been physically present in the State of Hawaii for at least twelve months prior to the first day of the semester.
Has demonstrated an intent to make Hawaii a permanent residence/domicile.
To apply for a change in residency status:

Long-term lease, rental, or home purchase agreement.

Can someone come for a vacation and sign a lease and one week later before they leave, they cancel the lease.
Next year during TS week, you can do the same thing again and be considered for in-state tuition.
I study law.... I don't think law can never be perfect.:ignore:

 

[KathyPet]

I really do not know how the residence requirements can be any clearer. You have to have physically lived in Hawaii for 12 months prior to the first day of the semester and be prepared to submit documentation to prove that.

 

[LAX Mom]

There is no way a 1 week ownership in a timeshare is going to meet the residency status! The long-term lease, rental or home purchase agreement is only used to prove the following:

Has been physically present in the State of Hawaii for at least twelve months prior to the first day of the semester.
Has demonstrated an intent to make Hawaii a permanent residence/domicile.

 

[vacationtime1]

Can someone come for a vacation and sign a lease and one week later before they leave, they cancel the lease.
Next year during TS week, you can do the same thing again and be considered for in-state tuition.
I study law.... I don't think law can never be perfect.:ignore:

I agree that law can never be perfect, but signing a lease every year with the intent to cancel it in order to get a benefit (in-state tuition) would be fraud by any definition.

Of course, telling a prospective TS buyer that buying a TS in a state qualifies the buyer for in-state tuition (knowing that owing a TS does not establish actual residence under the law of that state) is also fraud.

 

[MikeM132]

HA HA HA HA!!! T/S salesman about 20 years behind the times. All 50 states have caught on to emancipation and redidency scams and cracked down. We have the same issue in Pennsylvania (we have a ton of State schools) and all kinds of kids from NY and NJ tried to pull a stunt like that. Where do they hire these idiots to sell timeshares? I've had mostly good ones, by the way. On the other hand, I have a very skeptical attitude and ask pointed questions. Maybe this prevents me from hearing the best of their BS.

 

[jlwquilter]

I think it's pretty clear that a TS ownership will not qualify someone's child for in-state tuition.

However, your friend (and all other parents of college age students) should look into the rewards and hassles of buying a condo, duplex, house, etc. while their kid(s) are in college... whether in state or out. If you can do it, it can save big bucks and even make you some perhaps. Child lives in owned place (hence maybe really qualifying for in state tuition), rents out other bedrooms to friends/students to cover mortgage, utilities, etc. At end of college, parents either keeps property as child's home/rental/etc. or sells it.

That's what DH and I plan on seriously checking out when DD hits college age.

 

[Steve A]

Owning a condo will not qualify for in-state tuition, generally, unless the student lived in the condo for one to two years prior to enrolling at the state university. Every state has their own rules. Further, and again generally, they cannot be taking up residence for educational purposes.

Take a look at what UCLA says:

http://www.registrar.ucla.edu/residence/change.htm

 

[m61376]

I think it's pretty clear that a TS ownership will not qualify someone's child for in-state tuition.

However, your friend (and all other parents of college age students) should look into the rewards and hassles of buying a condo, duplex, house, etc. while their kid(s) are in college... whether in state or out. If you can do it, it can save big bucks and even make you some perhaps. Child lives in owned place (hence maybe really qualifying for in state tuition), rents out other bedrooms to friends/students to cover mortgage, utilities, etc. At end of college, parents either keeps property as child's home/rental/etc. or sells it.

That's what DH and I plan on seriously checking out when DD hits college age.

It can be a great investment BUT it depends upon where the child is going. Certain markets are very difficult (although not impossible to do this in) and others may not be a good investment (keep in mind that you are subject to the whims of the local real estate market). We actually did this a little over 5 years ago in NYC (no easy feat in that market- most full service buildings will not allow parents to buy for students to live) and it has turned out to be the best investment we ever made (if only I had known...would have bought a much larger apartment or a second one).

That said, it can be a great idea when the child is ready to move off campus, and certainly a hedge against inflation, especially if they stay inthe area for grad school and/or work.

 

[JimIg23]

The salesperson should have said "buy this timeshare and you don't have to worry about college savings, because you won't have any money left anyway...."