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Taranova
This article was from Sept 3-2023 .
For some reason the columnist quotes "an expert" who recommends avoiding resale due to potential scams.
How to buy a timeshare without getting scammed
Expert : [ Barry Choi personal finance and travel expert] - he seems to be affiliated with a website : www.moneywehave.com and has written personal finance article for the {Toronto}Globe &Mail. The website says he was previously affiliated with [Canadian] brands PC Optimum- RBC-Aeroplan & BMO .
I was able to add the following comment that mentions TUG (and Redweek) as good sources for finding resales
Tom13 DAYS AGO
Resale Timeshares can get you the benefits without most of the upfront cost.
The article does not explain resale options. TUG - Timeshare Owners Group and Redweek are 2 reputable sources where existing owners list Timeshares for Sale .Both also have rent from owner listings. [I bought retail before I learned these resale options]
Cost effective use of timeshares involves planning and booking weeks and exchanges up to a year (or more) before travel. I have 6 weeks booked in Puerto Vallarta in Feb / March 2024 -booked at an average per night cost of $ 130 CAD.including resort / cleaning fees ; and all but 1 week is in a 1100 sq.ft / 2 bedroom unit with a partial kitchen. [ We change locations 4 times] There is definitely a significant learning curve to using Timeshares cost effectively - but it can be done.
4 4
***********
@TUGBrian - I was trying to copy paste the full article -because the Toronto Star is paywalled . Please feel free to edit.
Also - ( sorry I called TUG -Timeshare Owners Group - I could not change it once posted)
By Srivindhya Kolluru Contributing Columnist
Sunday, September 3, 2023
2 min to read
Article was updated Sep 3, 2023
READ THE CONVERSATION(15)
Owning a timeshare can be good in certain situations, says travel expert Barry Choi, “but shouldn’t be treated as an investment.”
Jillian Cain / Dreamstime
Partially owning a vacation pad you can escape to every year sounds enticing, but timeshares come with significant risks.
Timeshares are properties, such as a hotel, campsite or a condo in a resort, where a person can buy the right to stay in the property for a set period of time. The timeshare is divided among a number of owners, allowing owners to split costs.
There are two main types of timeshares: A deeded one, where you own a specific type of timeshare that you can use, rent or sell, and a non-deed one, where instead of owning part of the timeshare, you agree to lease the property for a set period of time. This, according to personal finance and travel expert Barry Choi, gives you more flexibility.
ARTICLE CONTINUES BELOW
But there are downsides, he warns.
First, know that you’ll have to pay yearly fees for the timeshare, whether you stay in it or not. On average, these fees are $1,120 (U.S.) per weekly interval, according to a 2022 industry report by the American Resort Development Association which looked at data from more than 1,500 resorts across the U.S. In Canada, these fees can also go up yearly.
There are also high-pressure sales tactics involved, explains Choi.
For instance, you may be invited to attend a two-hour presentation where you’ll be introduced to the timeshare package. During the presentation, developers might take you on a tour of the property, showcase amenities and showcase how flexible it is in exchange for a cheaper deal.
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The catch is, a sales rep will try to push you into signing an offer — on the spot.
“There’s not a lack of transparency because they give you all the paperwork, but there’s just not a lot of time for you to really formally review everything and think about that purchase.”
He also warns consumers about potential scams, especially if you’re looking for a timeshare on the resale market.
Instead, Choi recommends going straight to the companies and developers of the timeshare. For example, popular hotel operators like Marriott and Hilton have their own timeshare divisions. Above all, Choi emphasizes the importance of doing your research, especially since you can’t cancel a timeshare. “You technically can try to sell it, but it’s a lot more difficult.”
According to Innovation, Science and Economic Development Canada, consumers should ask for things like an estoppel certificate, which verifies the state of the property, including any outstanding fees or loans associated with it. You should also confirm with the Better Business Bureau if there are any complaints against the company, seller, developer or management company, according to the Government of Canada website.
“It’s not like standard real estate. If you go online, you’ll see people wanting to get rid of their timeshares — practically giving them away for free,” says Choi. “I think timeshares are good in certain situations, but shouldn’t be treated as an investment.”
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For some reason the columnist quotes "an expert" who recommends avoiding resale due to potential scams.
How to buy a timeshare without getting scammed
Expert : [ Barry Choi personal finance and travel expert] - he seems to be affiliated with a website : www.moneywehave.com and has written personal finance article for the {Toronto}Globe &Mail. The website says he was previously affiliated with [Canadian] brands PC Optimum- RBC-Aeroplan & BMO .
I was able to add the following comment that mentions TUG (and Redweek) as good sources for finding resales
Tom13 DAYS AGO
Resale Timeshares can get you the benefits without most of the upfront cost.
The article does not explain resale options. TUG - Timeshare Owners Group and Redweek are 2 reputable sources where existing owners list Timeshares for Sale .Both also have rent from owner listings. [I bought retail before I learned these resale options]
Cost effective use of timeshares involves planning and booking weeks and exchanges up to a year (or more) before travel. I have 6 weeks booked in Puerto Vallarta in Feb / March 2024 -booked at an average per night cost of $ 130 CAD.including resort / cleaning fees ; and all but 1 week is in a 1100 sq.ft / 2 bedroom unit with a partial kitchen. [ We change locations 4 times] There is definitely a significant learning curve to using Timeshares cost effectively - but it can be done.
4 4
***********
@TUGBrian - I was trying to copy paste the full article -because the Toronto Star is paywalled . Please feel free to edit.
Also - ( sorry I called TUG -Timeshare Owners Group - I could not change it once posted)
Thinking of a timeshare? Here’s how to buy one without getting scammed
Buying a timeshare comes with significant risks, says travel expert Barry Choi, including high-pressure sales tactics, rising annual fees and the difficulty in unloading if you want out.By Srivindhya Kolluru Contributing Columnist
Sunday, September 3, 2023
2 min to read
Article was updated Sep 3, 2023
READ THE CONVERSATION(15)
Owning a timeshare can be good in certain situations, says travel expert Barry Choi, “but shouldn’t be treated as an investment.”
Jillian Cain / Dreamstime
Partially owning a vacation pad you can escape to every year sounds enticing, but timeshares come with significant risks.
Timeshares are properties, such as a hotel, campsite or a condo in a resort, where a person can buy the right to stay in the property for a set period of time. The timeshare is divided among a number of owners, allowing owners to split costs.
There are two main types of timeshares: A deeded one, where you own a specific type of timeshare that you can use, rent or sell, and a non-deed one, where instead of owning part of the timeshare, you agree to lease the property for a set period of time. This, according to personal finance and travel expert Barry Choi, gives you more flexibility.
ARTICLE CONTINUES BELOW
But there are downsides, he warns.
First, know that you’ll have to pay yearly fees for the timeshare, whether you stay in it or not. On average, these fees are $1,120 (U.S.) per weekly interval, according to a 2022 industry report by the American Resort Development Association which looked at data from more than 1,500 resorts across the U.S. In Canada, these fees can also go up yearly.
There are also high-pressure sales tactics involved, explains Choi.
For instance, you may be invited to attend a two-hour presentation where you’ll be introduced to the timeshare package. During the presentation, developers might take you on a tour of the property, showcase amenities and showcase how flexible it is in exchange for a cheaper deal.
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The catch is, a sales rep will try to push you into signing an offer — on the spot.
“There’s not a lack of transparency because they give you all the paperwork, but there’s just not a lot of time for you to really formally review everything and think about that purchase.”
He also warns consumers about potential scams, especially if you’re looking for a timeshare on the resale market.
Instead, Choi recommends going straight to the companies and developers of the timeshare. For example, popular hotel operators like Marriott and Hilton have their own timeshare divisions. Above all, Choi emphasizes the importance of doing your research, especially since you can’t cancel a timeshare. “You technically can try to sell it, but it’s a lot more difficult.”
According to Innovation, Science and Economic Development Canada, consumers should ask for things like an estoppel certificate, which verifies the state of the property, including any outstanding fees or loans associated with it. You should also confirm with the Better Business Bureau if there are any complaints against the company, seller, developer or management company, according to the Government of Canada website.
“It’s not like standard real estate. If you go online, you’ll see people wanting to get rid of their timeshares — practically giving them away for free,” says Choi. “I think timeshares are good in certain situations, but shouldn’t be treated as an investment.”
Play
Unmute
Current Time 1:43
/
Duration 3:53
Loaded: 72.78%
Fullscreen
Building your own pension plan
2 days ago3:53
Next video
4:28
These Are the Best Business Schools in the World
3 days ago
4:45
To Fix Retirement Crisis, Give Every Baby $10,000
1 week ago
5:28
Tips for paying off your student loan debt
1 week ago
4:28
Fall finance outlook
1 week ago
1:37
Credit card defaults at highest level since Great Recession
1 week ago
1:44
Visa, Mastercard users might see increased fees for using their cards
2 weeks ago
2:30
Paula Pant reveals unconventional 'anti-budget' approach
2 weeks ago
0:50
MoviePass CEO shares his favorite celebrity advice
3 weeks ago
1:30
One in ten retail investors use AI to help pick investments
3 weeks ago
Powered by
SK
Srivindhya Kolluru is a Toronto-based freelance journalist who writes about business and finance.
ADVERTISEMENT
REPORT AN ERROR
JOURNALISTIC STANDARDS
ABOUT THE STAR
JOIN THE CONVERSATION
Conversations are opinions of our readers and are subject to the Community Guidelines. Toronto Star does not endorse these opinions.
FOLLOW THIS CONVERSATION TO BE NOTIFIED WHEN NEW COMMENTS ARE POSTEDFOLLOW
ALL COMMENTS 15
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All Comments
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Comment by Trish.
TR
Trish13 DAYS AGO
don't buy one...they're all scams!!
4 1
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Comment by Jim.
JI
Jim13 DAYS AGO
When on the radio you hear ads for companies who's main function is to extricate you from timeshare deals you know they must be problematic.
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Comment by Praveen.
PR
Praveen13 DAYS AGO
Often, 50% of the cost you pay to buy a timeshare goes into marketing costs, so that's money you will rarely get back when you go to sell it.
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Comment by Michael.
MI
Michael13 DAYS AGO
It can be difficult to dispose of a timeshare. Often they are not sellable and you have to pay someone to take it off your hands.
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Comment by Tom.
TO
Tom13 DAYS AGO
Resale Timeshares can get you the benefits without most of the upfront cost.
The article does not explain resale options. TUG - Timeshare Owners Group and Redweek are 2 reputable sources where existing owners list Timeshares for Sale .Both also have rent from owner listings. [I bought retail before I learned these resale options]
Cost effective use of timeshares involves planning and booking weeks and exchanges up to a year (or more) before travel. I have 6 weeks booked in Puerto Vallarta in Feb / March 2024 -booked at an average per night cost of $ 130 CAD.including resort / cleaning fees ; and all but 1 week is in a 1100 sq.ft / 2 bedroom unit with a partial kitchen. [ We change locations 4 times] There is definitely a significant learning curve to using Timeshares cost effectively - but it can be done.
4 4
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REPORT
Comment by Sandra.
SA
Sandra14 DAYS AGO
Timeshares were a cool (but risky) concept years ago for people who wanted to go on vacay in something bigger than a hotel room, but now with AirBnB and the like, you don't need one.
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Comment by Camille.
CA
Camille14 DAYS AGO
Back in the 70’s …I took my family on a free vacation to the wonderful and new development of Lake Havasu City in Arizona. The trip was courtesy of McCullah Industries, the developer of Lake Havasu City .
Of course the trip was not intended as a gift to anyone, it was intended as a sales opportunity for the company and the selling part started on the plane trip down from Toronto.
We did the minimum we could get away with as far as sales pitches and seeing various lots in the desert that surrounded the man made lake…and otherwise spent a lovely 3 days at the resort like centre…soaking up the hot sun and swimming in the pool. The food was great as well.
Of course the sales team caught on when there was no success at rousing us at 6:00 am or keeping us ‘accompanied’ until bedtime. The sales team were especially told to keep us away from any and all news media , including no tv in our hotel room. No newspapers at the front desk. No talking to the locals. We simply refused to play along . So, if you can handle the pressure, enjoy the perks that come with the sales pitch
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Comment by Edoaurd.
ED
Edoaurd14 DAYS AGO
I personally know of at least 3 people who indulged in time-sharing, a number of years ago --- and all 3 expressed regret in their decision to do so.
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Reply by Matt.
MA
Matt14 DAYS AGO
Reply to Edoaurd
We owned 5 weeks on Fort Myers Beach for over 20 years. Got too busy for us and we sold the place 2 years before Ian. The unexpected? We actually made money, not much, but we were ahead of the game! But you're right, too often people lose money.
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