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Please note we are not
licensed to deal in time shares and
this page is for your information
only. We do not provide referral
services for time shares.
John Schmeltzer of the Chicago
Tribune recently wrote an article on
time share and I want to pass on the
core of his research. The time share
market has changed greatly since the
days of tele marketing offers for
free weekend to endure a high
pressure presentation. Major players
such as Marriott Vacation Club
International and Cendant
Corporation don't want to risk their
reputation over a poorly handled
sale. Marriott, that largest seller
of time shares sold $1.22 billion in
2003.
Something that has not changed is that most time
shares drop in value rather than
appreciate. Bill Rogers, founder of
the Timeshare User's Group Web site,
www.tug2.net said that you
can buy a time share from an
existing owner often at 50 cents on
the dollar.
In fact, he said, consumers buying time shares from
another consumer pay an average of
$5,000 compared with the average
$14,800 price if purchased from a
developer. Despite this sales
continue to grow with nearly $6
billion in sales recorded in 2003.
Some key areas to keep in mind before buying are:
1. Location: If you want to trade
your time share for another you need
to be in a prime location.
2. Cost: The average price of a
two-bedroom time share in the United
States is $13,500. Most resorts
offer financing but the rate may be
well above 15%. Consider cash or an
equity line.
3. Availability: Go to Resort
Condominiums International or
Interval International, both
exchange networks, for leads and
information on time-share resorts.
4. Deeds: If the time share is fully
deeded in perpetuity, that means you
own it and can pass it on to your
heirs. Right-to-use won't provide
those options. Consult an attorney
to review your contracts if you are
not sure.
5. Availability: Fixed week means
you have to show up the same week
year after year. Point-based
systems are more flexible but could
cost you more points in the future
for prime locations.
6. Fees: Make sure your annual
maintenance fee, share of property
taxes, and network fees are clearly
presented.
Information about the time-share industry is available
from many sources, from the
consumer-run Timeshare User's Group
at
www.tug2.net to
various consumer sites. Just enter
time share in
Google for the list
American Resort Development Association at
www.arda.org an industry trade
group also has extensive consumer
information.
Marriott Vacation Club International at
www.vacation-club.com is the
largest seller of time shares.
Cendant Corporation, the second
largest, operates two companies,
Fairfield Resorts at
Fairfield Resorts, Inc. and Trendwest
at
http://www.trendwest.com/. The
nations largest time-share exchange
company is RCI Inc at
www.rci.com.
We do not offer consulting services in time shares,
only real estate. This information
is here for your education and
introduction into this area of
resort housing. Please proceed with
caution and deal with licensed
professionals.
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