Understanding what is going on?

[jnrgault]

jnrg

We bought timeshares when we were travelling, buying the idea that TS were a good investment and would appreciate. Also thinking our kids would gladly take them. Not now! You all know the rest.

 

[dosa]

Maintenance fees, for sure! We love most of the trades and locations but hard to budget for increasing fees.

 

[rosieox]

Maintenance fees more than doubled

We bought on the big island of Hawaii in '99. Maintenance fees were $450 with a %4 yearly cap. They sold to Hilton, Hilton doubled our fees. Now our Maintenance fees are $1150.

 

[carl2591]

We bought on the big island of Hawaii in '99. Maintenance fees were $450 with a %4 yearly cap. They sold to Hilton, Hilton doubled our fees. Now our Maintenance fees are $1150.

and going up,,.

that a bummer for sure.. did they make the place doubly nice.. probably NOT.



congrats to me for 900 posts... a newbie i know..but getting there..

 

[rrlongwell]

... congrats to me for 900 posts... a newbie i know..but getting there..

Congratualations for the 900 posts, one more will be over 900 posts.

 

[Marilyn]

How about $900+ fees for a Mexican TS? Where the labor is cheap at $4 a day or so? and so are the guns I guess--too much for us.

Marilyn

 

[kinupiaq]

Maintenance fees should be lower; resorts operated more efficiently. Some of these TS facilities appear to be operated, in part, for the benefit of the local community as a place of employment and easy work.

 

[marinersfan]

Times have changed

Thank you all very much I do appreciate everyone's input. 1 of the mentioned big concerns is the MF going up and up and up. would people mind sharing what they would consider a fair cost MF? that might keep people interested in staying in the timeshare industry? I have an efficiency but have come to like 2 -3 bedroom units better.

Plz give the size of the condo and the fair MF you would like to see.

I agree with MOXJO7282 - the increases of many MF’s has exceeded the amount you can get out of renting which makes it less desirable to own. I have 2 Timeshares that were purchased around the same time about 6-7 yrs ago during a different personal and economic time. Here’s how it has unfolded for me:


Then: 1 income family of 3.5 (1 under the age of 2 and another on the way).

Timeshare #1: USA, 2bdrm/2bath, sleeps 6:

• Purchased off of eBay for uner $2K
• Low MF's, desirable location, very little competition, and only 1.5hrs drive time.
• Affordable to use, direct exchange, and rented for more than the MF's.

Timeshare #2: Cancun, 1bdrm/2bath, sleeps 6:

• Purchased from family aquaintance for under $1K.
• Medium priced MF's, desirable location, overbuilt resort area, and only two then 3 reasonably priced plane tickets away (no bag fees. Remember that!)
• Able to use every couple of years, and rented for at least the cost of MF's
• One of our favorite places to vacation.

Since 2009: 1.5 income family of 4, both kids are 6+ yrs old, in school and involved in just about everything. Parents getting older and needing more attention. Vacation time is not as flexible.:annoyed:

Timeshare #1:

• Increasing MF's, but still reasonable and affordable.
• More competition, but still a desirable area.
• Because of proximity the cost to get there is minimal and it fits our less flexible schedule.
• Just rented for more than the MF's, but took more effort.

Timeshare #2:

• Increasing MF's, desirable location but an over developed resort area.
• Now 4 expensive plane tickets away + bag fees.
• Only used once because of increased travel cost and other family obligations.
• Rented once for less than the MF's and last year for $0.
• My network of renters has dried up, family members have cut back, and that area is flooded with TS sales and rentals. I also have less time to deal with it.
• It would still be one of our favorite places to vacation.

Some of the best advice I got from TUG was to purchase resale, purchase where we would want to go year after year and/or purchase at a location that is in high demand so renting/exchanging will always be an option. Timeshare #1 fit that advice perfectly then and still holds true. We have no desire to sell. Timeshare #2 worked for us then but it is now costing us money.
The reason so many are selling could be for a number of reasons, but the economic downturn + rising cost to travel + changes in personal and family life = a lot of TS's for sale and/or rent. I mean come-on! I knew people who were using equity in their home to finance vacations (yes plural). That's not happening any longer.

Another reason for selling is the ever changing exchange value in resorts. What was once desirable years ago, may no longer be desired today. I don't have near the knowledge or experience with RCI and II, but it seems like they are ever changing, and I'm not sure if it's for the better - maybe depends on what you own.

A resonable price for MF's? What you can afford to live with. But remember, in the last 6 to 7 years MF's have not gone down.

 

[rsrjlw]

Lots of things rising make TS less desirable

Maintenance fees are a big issue, plane fares and associated fees also a problem. Needs in retirement differ from needs while working. We are happy with our four consecutive weeks, but could do without other weeks. Renting and selling are easier said than done.

 

[bruceskis]

One aspect of all this that has not been addressed is why MFs go up so much.
There are two reasons.
1) Developers set them low to help sales. As the units age and the developer controlled management tries to keep costs and MFs down while sales continue, the future needs go up compared with what should happen if appropriate maintenance started day one.
2) Too many HOA board members do not understand the way a reserve fund should be set up, and run. So they allow the above situation to continue until about the time of the first refurbishment. By then sales are drying up. The developer ceases to care. The cost of refurb hits the board between the eyes, and they finally learn how a reserve fund should be run. But, at that point, you are playing catch-up. The usual choice is to bite the bullet and increase the fees.
Owners react by beginning to compare the annual fees vs the cost of decent motel/hotel rooms and begin to stop paying and/or trying to sell. Those who own less desirable weeks/units stop first. That forces the total cost of running and maintaining onto a smaller number of owners. You can see how this becomes a downward spiral. Put a serious recession on top of that and you get a mass exodus.

 

[Elli]

Interesting topic - I've never seen so many "guests" with 1 post on a thread.

 

[NofeeforMe]

Why I sold our timeshare Powhatan Plantation Diamond Resorts

My wife and I purchased in the 80s when at the time, it made a lot of sense. Availability was pretty good, our timeshare was new and clean, well maintained (Powhatan Plantation). Then when the original owners sold, it started to go downhill, then it sold again and we received assessment fees, were forced to buy points and trade in our deeded property or our maintenance fees would go higher. Then it became increasingly difficult to get a unit that we wanted when we wanted. We decided paying $ 3000/yr in maintenance fees made no sense at all when we would be lucky to get the unit we wanted. We decided with the glut of timeshares, we could rent them from others at a fraction of the cost and not have to deal with increasing maintenance fees with absolutely no caps on annual maintenance.

We had to pay a fee to get rid of our timeshare but feel a burden has been lifted. I'm not saying all timeshares are this way but that's what we experienced with Diamond Resorts. Don't believe the recent "Undercover Boss" on the CBS segment where the CEO, Stephen Cloobeck is portrayed as a nice guy...you can tell by where he is living and his current lifestyle,that he has been soaking a lot of timeshare owners.

Sorry but I'm bitter that I had to pay so many fees for something that I was told I could inherit to my kids but found later, my kids would probably be spitting on my grave if they discovered I left them with the high maintenance fees. Goodbye high maintenance fees.

 

[nshugg]

A couple notes

The economy is the first reason. People are desperate to sell and are falling prey to some horrible companies who want money up front. Never pay upfront money.

Secondly people are not using their timeshare.

A rental company is coming on line soon to handle Monarch Grand Vacation owners. No upfront money; no enrollment fee like Red Week; premise very simple. Rent a week at Cabo Azul in Los Cabos, provide confirmation to this new company and have your listing included on their website visited by millions of people. If your timeshare week not rented 30 days out, the company will simply turn the listing back over to the owner.

I wanted to get some feedback on why so many want to sell their timeshare. do people just no longer want to travel? Is it the corruption of many of the resort developers?
If people can share their views maybe we can come up with a better solution.

Another question I had:
If you wanted to sell your timeshare what would make you consider keeping it?: better accommodations? lower maintenance fees?

 

[nshugg]

Rent

Have you considered renting your timeshare weeks to cover your maintenance fees?

We bought timeshares when we were travelling, buying the idea that TS were a good investment and would appreciate. Also thinking our kids would gladly take them. Not now! You all know the rest.

 

[nshugg]

Save Money Other Ways

Increasing fees are what keeps your resort(s) in the condition you expect to find each time you check in. Many people cook in their units several times a week and the savings in not eating out covers the maintenance fees.

Maintenance fees, for sure! We love most of the trades and locations but hard to budget for increasing fees.

 

[nshugg]

Hilton

I don't know what timeshare company you owned previously but by chance did you transfer to the Hilton program with an upgrade? I'd like to know how they did this.

We bought on the big island of Hawaii in '99. Maintenance fees were $450 with a %4 yearly cap. They sold to Hilton, Hilton doubled our fees. Now our Maintenance fees are $1150.

 

[Dirkdaddy]

Highly Recommended company for "resale"

[Duplicate posts are not permitted on TUG, and you have recommended the same company 3 times today, including answering a question that is a full year old, which makes you look like a spammer. Your recommendation really has nothing to do with the topic of this thread. - DeniseM Moderator]

 

[mca4941]

Why we want to sell

We bought mostly to be able to exchange and have enjoyed it. But we are older now and don't travel as much. We have lost a couple of weeks because of this but have given up on trying to sell.

 

[rosieox]

I don't know what timeshare company you owned previously but by chance did you transfer to the Hilton program with an upgrade? I'd like to know how they did this.

We're with RCI. We did NOT transfer to Hilton. We looked into that, but would only be able to trade Hilton properties. If we wanted RCI properties, we would have to go through a Hilton operator and not be able to trade and buy extra vactions online. To us, that is a great plus of RCI.

We thought that Hilton would have to honor the original contract. They said they didn't. We didn't want to spend on a lawyer to find out. (maybe we should have) Our fees had raised to just over $500 before the sale. Immediately after the sale our first Hilton fees were $1050, almost exactly doubled. We then had to pay an additional fee of $250 for renovations.

We've actually never stayed there, it has always traded well. But at $1150 maintenance fees we can get extra vactions cheaper than trading. We're going to stay there next year. If we like is well enough, we'll keep it. If not, we plan on dumping it.

 

[paluamalia]

Timeshares problems

I wanted to get some feedback on why so many want to sell their timeshare. do people just no longer want to travel? Is it the corruption of many of the resort developers?
If people can share their views maybe we can come up with a better solution.

Another question I had:
If you wanted to sell your timeshare what would make you consider keeping it?: better accommodations? lower maintenance fees?

We own 6 weeks (10 if we use lockoffs) and I would like to sell 2 of them. One is in Mexico and the other is where I live. I would keep the other 4, all in Hawaii. We originally bought in Maui because we did not want to be shut out of the luxury hotel/rental market. We wanted a high quality resort and we got it. We usually use one unit and rent the other, most years we get enough to pay for both units MFs. We own Wyndham Hawaii and we have lots of options with their points, including selling points, etc.
The small one on Cape Cod is only good for exchanges, it's a white week, but most exchanges have been pretty good. The Mexico one was an impulse purchase and we have not been back, or paid the MFs, (they are optional), since we bought it.
I would donate the Cape Cod one to a charity if one would take it, and would be willing to sell Mexico at a loss.
We love the timeshare life, but it does take a lot of time and attention to maximize ownership, and that's not for everyone. I meet people all the time who tell me they have a timeshare and haven't used it in years, but they keep paying the fees!! I have a real estate and rental background so it comes pretty easily to me and I enjoy the planning and all the research. We are semi-retired so we can travel when we like....
So, we are happy with most.

 

[Numismatist]

Interesting topic - I've never seen so many "guests" with 1 post on a thread.

:rofl: That's what I thought! Some joined 2 years ago...now 1 post. Good post though.

 

[TUGBrian]

tons of people get the newsletter, im happy that the links in them get people to participate on the forums!

 

[Beefnot]

tons of people get the newsletter, im happy that the links in them get people to participate on the forums!

Ohhh, ok, now that makes sense now.

 

[sinclair]

The recession has caused people to become more frugal and give up full-fledged vacations, particularly one's far away.

However, people who try to sell timeshares have to make a sales pitch on the advantages. You can't assume that all buyers are going to be familiar with timeshares, nor can you assume that someone else has made the sales pitch for you. With timeshares selling for such low prices, they are indeed a real bargain, and you need to explain why in your sales ad.

If I were gong to sell my timeshare, I think reeducating myself on how to use it might make me keep it. There is a lot of innovation in timeshare schemes in which you may find real benefits, but you have to find out about them first.

 

[mmengering]

I give up

What happens if I walk away from my timeshare (deeded property)? I can't afford the yearly fees.