Buying a beach front property or a vacation villa may be easy for rich and wealthy but not for common middle class people. The introduction of timeshare concept gave hope to those people who could not afford to buy a brand new vacation home. That is one of the reasons why the timeshare industry has grown by leaps and bounds ever since its inception in the United States. One of the aspects of a timeshare property that attracts most people is that they can have a wonderful vacation home without having to worry about its upkeep and maintenance. But at the same time people have many misconceptions about timeshares.
Probably one of the biggest myths when it comes to timeshares is that people believe they have the same benefits as everyday real estate investments. However, this isn't true and the appreciation values are much different. Unfortunately when you own timeshares you don't get the same profitable returns as you would owning a house for a certain period of time. In fact, when it's all said and done you could end up losing money.
So the question that always comes to pass is whether or not it's worth buying a timeshare. It's not an easy thing to answer because there are several factors that come into play. Whether it's comparable rent for alternative accommodation, appreciation of timeshare properties or the finance rate, they are all things to consider. So we want to show you a simple calculation.
Your profitability investment should be the first thing to consider. Here you measure the comparable rental rate, the rate of appreciation, and the finance rate. When you total them all out you will end up with a negative number. So before you get started you should understand that you will most likely lose money in timeshares.
Take your rent for instance, and let's say it costs $1000. The cost of the timeshare itself is $10,000. So your overall rental rate is 10%. When you consider the maintenance fees, membership costs and other expenses, they could run you about $500. So in the beginning you save $500 your rental rate is 5%.
These can also turn into negative percentages as well. If the appreciation rate is 10% and the finance rate is 16%, once you add in the rental rate and appreciation and then subtract the finance rate you end up with a negative percent. So, you're losing 1% every year you compare it to your rent. Keep in mind this is only a rough calculation, because the depreciation rate and finance rates are going to vary.
The maintenance fee costs will be something to look into as well. The majority of them charge reasonable rates, but there are times when you come across others that are extremely expensive. Listen, you want this to be a profitable setup and in order to keep it that way you may think about renting out your week from time to time.
What it comes down to is you should add up your timeshare costs for the entire year. Considering everything above you could be looking at 520,000. Would you really pay that much if this was regular real estate? The profits end up lining the pockets of the developers and investors that sell the timeshares. If you just take the time to weigh all the factors you will be able to get the timeshares you desire.
If you are thinking about timeshare ownership and desire to discover more Timeshare Information, you should visit We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can set up your own profile in minutes. Share experiences and reviews of different timeshare locations and start asking questions in the forum. Visit today.
Tuesday, October 26, 2010
Desperate timeshare owners falling for scams
Selling a timeshare vacation property has always been a challenge. These days, it can be nearly impossible. The market is flooded with units for sale. People who are struggling to make ends meet are desperate to liquidate.
Con artists are cashing in on that desperation. Fraudulent telemarketers across the country are taking in millions of dollars by making promises they cannot keep.
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They say they have a buyer lined up whos ready to buy your property, explains Jeanette Kopko with the Dallas
Better Business Bureau. And they make it sound like you need to pay their fee right away or this buyer is going to slip out of your grasp.
But the bottom line is always the same: There is no buyer. All the company does for the money if it does anything at all is list your property for sale.
They just lie to you, says Catherine Aviolo of Chicago.
Catherine and her husband, Joe, are both unemployed construction workers. They need to sell their timeshare in Florida to pay off their mounting credit card debt.
One day they got a call out of the blue from a company in Texas that guaranteed to sell their unit within six months. Catherine and Joe thought their prayers had been answered.
The caller said theyd have to pay a small fee for the service: $399 in advance. Thinking this was a sure thing, the Aviolos came up with the money. But the company never came up with a buyer.
Every time we contacted them they said they had no one interested in it because we were asking too much money, Catherine says.
The timeshare is still on the market and the company wont refund the money. The Aviolos are now on what telemarketers refer to as a suckers list because this summer they were contacted by at least 14 different timeshare resellers. All wanted money up front.
John Davis, who lives in New Mexico, got taken by a timeshare resale con artist for $2,200. Davis was thinking about selling a unit he hadnt used much recently. Thats when he got an unexpected call from a telemarketer who said his company had a buyer. The deal would close in 30-60 days, but Davis would have to pay the closing costs in advance.
They sounded legitimate, he recalls. And he wanted to cash out of the unit, so he gave them his credit card number to cover that enormous fee.
Davis waited the 60 days and nothing happened. When he called the company he was given excuses. This went on for months. Finally, the company stopped answering the phone and Davis knew hed been burned.
They told me exactly what I wanted to hear and I fell for it hook, line and sinker.
Law enforcement agencies across the country are reporting a spike in complaints about timeshare resale scams.
It is very large and growing problem, says Terence McElroy, communications director for the Florida
Department of Agriculture and Consumer Services, which licenses telemarketers in the state. A lot of people really need to unload their timeshares, and unscrupulous telemarketers are able to exploit this situation.
Timeshare resale complaints are now the most commonly reported consumer problem to the Florida
Attorney Generals office. Since the beginning of the year, more than 8,500 people have filed complaints.
The increasing level of fraud in the timeshare resale industry is alarming, says Florida Attorney General Bill McCollum.
His office has active lawsuits against nine timeshare resale companies and is investigating 49 others.
Illinois Attorney General Lisa Madigan says her office has
seen victims taken for as much as $5,000. Madigan tells me the fake resellers often send timeshare owners bogus documents that look legitimate to make the potential sale seem real.
While some of the scammers still take a credit card numbers over the phone, Madigan says most now want the money wired to an out-of-state bank account.
Wire the money and you might as well throw it in the garbage, because youre not going to see it again, she says.
By the time people realize they've been taken and complain to the authorities, the con artists have closed their bank account, disconnected their phone and moved to a new location.
Its not easy to resell a timeshare. The market is weak, and the number of available units is staggering.
If youre lucky you may be able to get 10 cents on the dollar trying to sell it in the resale market, says Ed Perkins, contributing editor at
SmarterTravel.com.
Thats why most real estate agents wont bother with a timeshare resale, which means youre on your own. Your best bet is to sign up with a legitimate listing organization. Perkins says theyll charge you around $25 to post your message on their bulletin board.
Con artists are cashing in on that desperation. Fraudulent telemarketers across the country are taking in millions of dollars by making promises they cannot keep.
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They say they have a buyer lined up whos ready to buy your property, explains Jeanette Kopko with the Dallas
Better Business Bureau. And they make it sound like you need to pay their fee right away or this buyer is going to slip out of your grasp.
But the bottom line is always the same: There is no buyer. All the company does for the money if it does anything at all is list your property for sale.
They just lie to you, says Catherine Aviolo of Chicago.
Catherine and her husband, Joe, are both unemployed construction workers. They need to sell their timeshare in Florida to pay off their mounting credit card debt.
One day they got a call out of the blue from a company in Texas that guaranteed to sell their unit within six months. Catherine and Joe thought their prayers had been answered.
The caller said theyd have to pay a small fee for the service: $399 in advance. Thinking this was a sure thing, the Aviolos came up with the money. But the company never came up with a buyer.
Every time we contacted them they said they had no one interested in it because we were asking too much money, Catherine says.
The timeshare is still on the market and the company wont refund the money. The Aviolos are now on what telemarketers refer to as a suckers list because this summer they were contacted by at least 14 different timeshare resellers. All wanted money up front.
John Davis, who lives in New Mexico, got taken by a timeshare resale con artist for $2,200. Davis was thinking about selling a unit he hadnt used much recently. Thats when he got an unexpected call from a telemarketer who said his company had a buyer. The deal would close in 30-60 days, but Davis would have to pay the closing costs in advance.
They sounded legitimate, he recalls. And he wanted to cash out of the unit, so he gave them his credit card number to cover that enormous fee.
Davis waited the 60 days and nothing happened. When he called the company he was given excuses. This went on for months. Finally, the company stopped answering the phone and Davis knew hed been burned.
They told me exactly what I wanted to hear and I fell for it hook, line and sinker.
- More on selling your timeshare
- Tips for selling your timeshare
- Seling a timeshare is no picnic
Law enforcement agencies across the country are reporting a spike in complaints about timeshare resale scams.
It is very large and growing problem, says Terence McElroy, communications director for the Florida
Department of Agriculture and Consumer Services, which licenses telemarketers in the state. A lot of people really need to unload their timeshares, and unscrupulous telemarketers are able to exploit this situation.
Timeshare resale complaints are now the most commonly reported consumer problem to the Florida
Attorney Generals office. Since the beginning of the year, more than 8,500 people have filed complaints.
The increasing level of fraud in the timeshare resale industry is alarming, says Florida Attorney General Bill McCollum.
His office has active lawsuits against nine timeshare resale companies and is investigating 49 others.
Illinois Attorney General Lisa Madigan says her office has
seen victims taken for as much as $5,000. Madigan tells me the fake resellers often send timeshare owners bogus documents that look legitimate to make the potential sale seem real.
While some of the scammers still take a credit card numbers over the phone, Madigan says most now want the money wired to an out-of-state bank account.
Wire the money and you might as well throw it in the garbage, because youre not going to see it again, she says.
By the time people realize they've been taken and complain to the authorities, the con artists have closed their bank account, disconnected their phone and moved to a new location.
Its not easy to resell a timeshare. The market is weak, and the number of available units is staggering.
If youre lucky you may be able to get 10 cents on the dollar trying to sell it in the resale market, says Ed Perkins, contributing editor at
SmarterTravel.com.
Thats why most real estate agents wont bother with a timeshare resale, which means youre on your own. Your best bet is to sign up with a legitimate listing organization. Perkins says theyll charge you around $25 to post your message on their bulletin board.
Wednesday, October 6, 2010
Timeshare Deals – Where Are the Best Timeshare Vacation Deals?
If you are familiar with timesharing, you already know that developer’s prices for timeshares tend to be through the roof. But there are definitely deals available. So if you’ve been wondering where the best timeshare deals are, we’ll take a look at some of your options here for buying timeshare resales. Timeshare resales are definitely the best way to get a timeshare vacation deal.
While occasionally you will find owners advertising their timeshares in the real estate section of your local paper, if you really want to get the best price, online is the best place to start your search. Of course, if you do want to keep an eye on your newspaper, that might be a good way to find a timeshare another owner needs to get rid of because they can’t afford it anymore. Even if it isn’t a property that you want, you might be able to sell it yourself online and take that cash and put it towards the resort you really like!
But assuming that’s too much hassle, let’s take a look at where to find the timeshare deals online. Here’s a few of my favorite places to scout for bargains.
Ebay
I’ve picked up one timeshare on Ebay already and I’m always on the lookout for another deal. I bought a Royal Holiday Club timeshare for 0 plus closing costs and transfer fees. After adding up everything, I paid a total of 0 for a timeshare membership that includes resorts located in lots of urban locales such as New York City, San Diego, London and Paris. The original owner probably paid twenty or even thirty thousand dollars for this timeshare, but I picked it up for a song.
So it definitely pays to shop Ebay if you know what you are looking for. Just make sure you add up the winning bid amount plus the other costs involved to make sure that you are truly getting a good deal. I’ve seen some auctions that didn’t look so hot after you added in closing costs, transfer fees and the maintenance fee. Beware of any supplemental charges. This occasionally happens at resorts that suffer some weather damage – such as hurricanes, etc.
CraigsList
While I think the sellers on Ebay have a better understanding of the timeshare resale market than Craigslist sellers do, that’s primarily because Ebay sellers tend to actually be real estate companies. If you see a timeshare listing on Craigslist though, it is likely the owner selling their timeshare directly. Now often, the initial asking price is overinflated, but if you keep track of the listings that interest you, it can be worthwhile getting in touch with the seller a month or so down the line and see if they are ready to accept reality yet. If they are, then you might be able to avoid any heavy closing costs for the sale by either doing the due diligence yourself or searching for a closing company that won’t charge you an arm and a leg.
Timeshare Owners forums
Have a particular brand of timeshare you are interested in buying? Use your Google search skills to find an owners forum, message board or mailing list for your favorite brand of timeshare. There are forums for Worldmark owners and forums for Hyatt owners and message boards for DIsney Vacation Club owners. So search around. Also there are general timeshare message boards too, such as the TUG forum (Timeshare Users Group). Most timeshare forums will have a Buy/Sell section on the boards so owners can trade or sell to each other. It’s a good place to find a really nice timeshare that may never wind up on Ebay.
You can also find great timeshare deals on Emma’s website: Time Share Resales. For more helpful articles on timeshares and how to get the best deals, be sure to check out Emma’s tips on Orlando Timeshare Promotions and Are Timeshares a Good Buy?
Timeshares and Money - Are Timeshares Worth the Cost?
Many people have one primary question when thinking about buying a timeshare. Does it make financial sense or does it make sense at all to buy a timeshare? Well the answer can be both yes or no depending on who is buying and for what purpose it is being bought. In this article we will discuss why it makes sense to buy a timeshare. One of the most traditional answers could be that you own it, whereas when you rent a hotel room or something similar you don't own it. Timeshare industry has grown by leaps and bounds since its inception in this country and many notions that people had earlier have been clarified. Timeshare sales are no longer a small business. Big hotels and resorts are into timeshare business now. It is estimated to be a Five billion dollar a year industry worldwide and approximately two million Americans have timeshares. You might be wondering what lured so many people in America alone to timeshares. Here are some reasons.
When you stay at a hotel, you're basically paying rent to the hotel for the use of a room. assuming you vacation for one week a year and that your average hotel cost is $900 for the week, if you were to do this for 30 years. The total cost for staying in a hotel will be $27,000. However, if you were to purchase a timeshare for $10,000 and pay the $450 annual maintenance fee, the total thirty-year costs for using the timeshare will be $23,500. So in reality, you are saving $3500 to stay in a property that you own, instead of paying a hotel to rent the room.
But here is the interesting fact. You still get to own your timeshare property which will earn some money if not the original price. So your actual expenditure on your vacation will be way less than renting a hotel suite. Then who can ignore the comfort of a home in a timeshare property. A typical timeshare unit has two or three bedrooms, more than one bathroom, a kitchen, a laundry room and a pool plus not to forget all the resort facilities.
Do you see the advantage in that? Another advantage could be the ease of planning your annual vacation. With a timeshare, you generally know exactly when and where you are going to go each year.
How many hotel rooms can accommodate large families and friends? With a timeshare vacation you can invite who ever you want and can host reasonable size gatherings.
A timeshare is like money lying safely in your bank. You can sell it whenever you want. Not only that if you buy a deeded plan, the timeshare gets inherited to your heirs also.
Compare the timeshare with buying a vacation home. You don't have to worry about upkeep and maintenance also. The management company will take care of everything. You just have to pay the maintenance fee for that. But what a pleasure you can live like you are living in a hotel and still get a feel of your home and have to do nothing.
Apart from these benefits, timeshare companies offer you so many discounts like bonus weeks, discounts on airfare, car rentals, attraction tickets, restaurants and much more. there are many reasons owning a timeshare does make sense, it all depends on your vacation needs, but the benefits of ownership can be great and can save you a lot of money in the future.
If you are thinking about timeshare ownership and want to learn more Timeshare Information, you should check out We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can create your own profile in minutes. Share information and reviews of different timeshare locations and begin asking questions in the forum. Visit today.
When you stay at a hotel, you're basically paying rent to the hotel for the use of a room. assuming you vacation for one week a year and that your average hotel cost is $900 for the week, if you were to do this for 30 years. The total cost for staying in a hotel will be $27,000. However, if you were to purchase a timeshare for $10,000 and pay the $450 annual maintenance fee, the total thirty-year costs for using the timeshare will be $23,500. So in reality, you are saving $3500 to stay in a property that you own, instead of paying a hotel to rent the room.
But here is the interesting fact. You still get to own your timeshare property which will earn some money if not the original price. So your actual expenditure on your vacation will be way less than renting a hotel suite. Then who can ignore the comfort of a home in a timeshare property. A typical timeshare unit has two or three bedrooms, more than one bathroom, a kitchen, a laundry room and a pool plus not to forget all the resort facilities.
Do you see the advantage in that? Another advantage could be the ease of planning your annual vacation. With a timeshare, you generally know exactly when and where you are going to go each year.
How many hotel rooms can accommodate large families and friends? With a timeshare vacation you can invite who ever you want and can host reasonable size gatherings.
A timeshare is like money lying safely in your bank. You can sell it whenever you want. Not only that if you buy a deeded plan, the timeshare gets inherited to your heirs also.
Compare the timeshare with buying a vacation home. You don't have to worry about upkeep and maintenance also. The management company will take care of everything. You just have to pay the maintenance fee for that. But what a pleasure you can live like you are living in a hotel and still get a feel of your home and have to do nothing.
Apart from these benefits, timeshare companies offer you so many discounts like bonus weeks, discounts on airfare, car rentals, attraction tickets, restaurants and much more. there are many reasons owning a timeshare does make sense, it all depends on your vacation needs, but the benefits of ownership can be great and can save you a lot of money in the future.
If you are thinking about timeshare ownership and want to learn more Timeshare Information, you should check out We Own Timeshares. Meet and connect with timeshare owners on this Timeshare Ownership social network. It is free to join and you can create your own profile in minutes. Share information and reviews of different timeshare locations and begin asking questions in the forum. Visit today.
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