The Real Truths About Timeshare

A recent article found floating around the Internet lately, entitled, “The Top Five Reasons Why Timeshares Are A Bad Investment,” has me hopping mad. I am tired of listening to the same old stuff about how timeshares, whether tied to real estate or not, are a poor investment.
If you buy a timeshare, ANY timeshare, as a real estate investment, you do not understand what you are buying. And if you sell a timeshare, ANY timeshare, as a real estate investment, you do not understand what you are selling.

I won’t give the author of the article any more credit; he has done enough disservice as it is. However, I will rebut his points one by one.
1. TIME VALUE OF MONEY

If someone came up to you 10 years ago and offered you a deal whereby for $5,000 you could receive all the gasoline for all the cars you would ever drive, would you consider this a good deal? The answer for most of us would be a resounding “YES.” Back when I started driving, gas was $.74 a gallon. Today, I filled up for $2.65 a gallon.

Timeshare operates on the same premise. You are, in fact, pre-paying for tomorrow’s use at today’s price. If 10 years ago you were offered an opportunity to pay $5,000 for a one-week quality vacation every year forever, wouldn’t you have taken it? If vacations were important to you, then you would have been foolish not to take the offer.
2. MAINTENANCE FEES

Again the author makes these fees out to be specific to timeshare only. Let’s be serious. When you rent a hotel room for $142 a night (the US average according to AAA this year) you are also paying your maintenance fees, unless you are doing landscaping work, cleaning the pool or overhauling the roof. How much of what you are paying is for using the room, and how much is for the maintenance fee? They keep that information from you.

At least with a timeshare, you know upfront what the fees are. Again, shame on anyone who purchases a timeshare without knowing what the fees are, what they were last year, and the year before that and knowing what the cap, if any, is.

If you buy a car today for around $30,000 would you expect to not pay maintenance fees? When you buy a house, don’t you have to pay to keep the place up? Can you rent a hotel room for less than maintenance fees? Of course you can! The average annual timeshare maintenance fee last year was about $550. That comes to about $78 per night. And you’re going to find a hotel room for $78 a night where? Of course, if you are happy with a $78 hotel room, then by all means, stay away from timeshare.

3. A DEPRECIATNG ASSET

Yes, if you purchase from a developer and pay the current average of $15,000, you can turn around in two years and expect to get considerably less than that. But compare that with almost anything else you buy. A car, for instance, that you buy at $30,000 and finance. The second you drive it out of the dealer you take a $5,000 hit at least. Drive it for a year or two and you’re down $10,000. Drive it until you can’t anymore, say 15 years, sell it for $2,000 and then you have to start all over again.

It’s the same thing with furniture, computers, clothing, CDs, electronics and everything else.
Timeshares should NEVER be purchased with an eye for selling them. Timeshares should be purchased with an eye for using them. And unlike the car, the furniture, the computer, the clothing, the CDs, the electronics and everything else, they don’t have a shelf life, they don’t expire, they don’t have to be replaced . . . you just have to pay an annual fee to keep your home resort up to date.

Of course, if you buy a timeshare on the resale market from a reputable organization such as Holiday, you are going to pay considerably LESS than the $15,000 average, so the “depreciating asset” myth is just that, a myth.

4. LOW RENTAL RATES

Yes, you can stay in some timeshares for less than the cost of owning the same timeshare if you don’t purchase from the developer. When you purchase from a legitimate reseller, I can almost guarantee that you will save money over renting.

If you like to rent, then by all means continue to rent. That’s Basic Timeshare 101. But if you like to own your vacation, vacation in nicer places than before, have something to hand down to future generations, have more control over your vacations, timeshare is the way to go.

5. EXCHANGES

No one ever said that using a timeshare was going to be free, did they? While I happen to disagree with the rising exchange rates that both RCI and II charge for a transaction that most owners do themselves, in the long run, those fees don’t add up to that much. And any savvy timeshare owner had better be checking up on the many other timeshare exchange companies that are available. Just because the resort is affiliated with one of the 2 major exchange companies doesn’t mean you have to use them.

The author makes a point of saying that developers are not interested in updating and/or remodeling resorts. That is just not true. Of course, there will always be some unscrupulous developer out there, but it really is up to the consumer to ask questions beyond, “How much does it cost?” And with all the resources out there for consumers, it is a very simple thing to get other owners’ views on a particular resort.

As for the ridiculous statement, “Let’s just hope you don’t buy a timeshare in hurricane country,” again, consumers need to ask good questions about what type of insurance the resort has and the fees associated with it.

In closing, let me reiterate a few points:

• No timeshare, even real estate-based timeshare, should ever be purchased or sold as a real estate investment. As I said in my first book, Surviving A Timeshare Presentation . . . Confessions From The Sales Table: “Timeshare is not Donald Trump-type real estate.”
• It is imperative for consumers to ask a lot of questions before making any purchase. Questions about annual fees, exchange fees, insurance costs, etc. are basic.
• Understand the exchange or trading system, whichever one you are going to be using. An off-season week in Alabama is simply not going to trade for a high-season week in Hilton Head. No matter what the salesperson says, or no matter how much you want to believe it.

For more information, check back with Holiday and Timeshare Insights (www.timeshareinsights.com) frequently. You’re going to be seeing us everywhere in the coming months with our innovative ‘”Timeshare Bootcamps.”

Lisa Ann Schreier, a/k/a “The Timeshare Crusader,” is the founder of Timeshare Insights, a consumer consulting and education service. Ms. Schreier is the author of two best-selling books about timeshare and is a frequent guest and contributor to major media outlets. She was recently featured on Good Morning America and Kiplingers Personal Finance.

Destination Puerto Vallarta: Three Great Restaurants

One of the huge benefits of owning a Puerto Vallarta timeshare is access to a condominium kitchen. You can save a ton of money by going to the local market and stocking up on breakfast foods and picnic fixings for frequent meals “at home.”Of course, what’s vacationing without dining out? For a filling first meal of the day, seafood on the beach, or a romantic evening, consider these options:
Breakfast: Fredy’s Tucan
Consistently named the best spot for breakfast in Puerto Vallarta by readers of the Vallarta Voice, Fredy’s Tucan serves up more than 50 items on the morning menu. A variety of hearty crepes, pancakes and omelets can fuel your day of activity. Or go with traditional Mexican favorites, such as beef tips sautéed with vegetables, chicken strips in ranchera sauce, or marinated beef strips with eggs and refried beans. The atmosphere is casual and upbeat, with seating around an indoor garden. 245 Basillo Badillo.
Lunch: La Palapa Beach Club

Playa Los Muertos is the place to be in downtown Puerto Vallarta, so get settled where the action is at La Palapa Beach Club. Here, you can kick back under a palapa and have your meal served right on the beach. The midday menu is generous, with spinach salad, lobster tacos or coconut shrimp sticks to start, and entrees ranging from pineapple fajitas and sea scallops to club sandwiches and loaded burgers. 103 Pulpito & Los Muertos Beach.

Dinner: Le Kliff

Perched on a cliff high above the Pacific Ocean, you probably can’t find a more dramatic dining location in Puerto Vallarta than Le Kliff Restaurant & Bar. Book your reservation here to coincide with sunset. Mexican favorites and American dishes, enhanced by flavors of the Caribbean and Asia, are found on the nightly menu. Entrees include several seafood options, as well as rack of lamb and roasted duck breast. Highly recommended is the Daily Lobster Special. If you visit on a Saturday evening, it’s likely you’ll witness a wedding ceremony taking place on a scenic rocky outcropping dubbed the “Terrace of Love.” On the coast, about a 20-minute drive south of downtown Puerto Vallarta: Barra de Navidad, Kilometer Marker 17.5.
Puerto Vallarta: Favorite Destination

Kayla Mahaffey is one of Holiday’s friendly salespeople (we call them Vacationeers). Here she shares about her experiences in Puerto Vallarta.

The most memorable vacation I have ever been on was to Puerto Vallarta. I think this place is the gem of all Mexico.

If you want some Old Spanish charm, go to Old Town to see the historic arts, crafts, and cultural merchandise. Burros are still used for delivery and transportation. That and the authentic colonial villages will really take you back in time.

For a faster pace, head to the Malecon (Boardwalk) in downtown PV, where you’ll find plenty of shops, restaurants, and party clubs. The Malecon borders the beach, so it’s great for romantic sunset walks, or relaxing while a Mariachi sings you a song. There are also artists, entertainers, sand sculptors, and lots of other fun things to see and do. Personally, I thought the fire dancers were the best!

In my opinion, the food in Puerto Vallarta is the finest in Mexico. I have visited a lot of cities, but will have to say the best restaurants are here, from fabulous seafood and Italian delicacies, to delicious authentic Mexican. And you can’t beat the scenic feast the Panorama restaurant offers, with its fabulous view of Banderas Bay and the Sierra Madre mountains.

There are many adventures to take part in on your visit to PV. When they say, “There’s something here for everyone,” they’re not kidding! PV has just about everything you’d want, whether it’s lounging by the pool sipping a cold drink served inside a fresh, carved out pineapple, or nestled in the jungle on a canopy tour, there is something to keep everyone happy.
–Kayla Mahaffey
Holiday Vacationeer

Visit Kayla’s Holiday Page

Timeshare Awareness Skyrocketing

10/9/2007
By Glenn Haussman
During the last decade timeshare has become a lynchpin of the hospitality industry. It’s a significant driver of business, injects funds into under development multi-purpose projects and better maximizes income at resorts that have a timeshare component. And while that’s a great for hotel and resort developers, the real story is the heightened awareness of timeshare among the traveling public.
According to a just released survey by Interval International, a timeshare exchange company owned by IAC, timeshare has not just reached critical mass, but almost everyone has heard of timesharing. Findings in Future Timeshare Buyers: Market Profile 2007 shows that 91 percent of travelers know timeshare, which is up from just 68 percent seven years ago. [Read More]

Buying a Timeshare - RCI Points vs RCI Weeks Timeshares

Emma Martin
October 4, 2007
Since RCI Points are the standard for timeshare vacations when it comes to the point system, let’s take a look at points versus timeshare weeks.
First, let’s look at the primary benefit of timeshare points which is the flexibility. With points, you are not limited to a timeshare vacation in the same place every year and at the same time every year.

RCI Weeks owners have their timeshare unit and week and that is where they will be each and every year, unless they decide to do an exchange to another resort. There is a lot to be said for knowing where you will be and not having to waste even an hour of your vacation time getting oriented every year. If your Weeks timeshare is the perfect spot for you and you don’t want any surprises, then RCI Weeks is the place to be. [Read More]
Check out Holiday’s selection of RCI Points timeshares!

Destination Cancun: Five Scenic Day Trips

Cancun is a happening Mexican resort. Loads of beaches, nightclubs, attractions, shopping centers and restaurants can easily keep Cancun timeshare owners busy for a week or more.
But venturing further afield brings many opportunities for more fun sightseeing and outdoor adventures. Here’s a look at five different day trips from Cancun:
Puerto Morelos
Just 15 minutes south of Cancun International Airport, Puerto Morelos is a small fishing village reminiscent of “old Mexico.” Here, local residents make their living on the sea, small cafes and restaurants offer tasty seafood specialties, and the town square serves as a central meeting place. It’s a largely undeveloped community where folks are friendly. Note that many “gringos” have relocated and retired here, so don’t be surprised if you hear English spoken around the plaza. Spend your day shopping in the handicraft stores or snorkeling on the reef just off the main stretch of beach.

Tulum
The ancient Mayan ruins of Tulum are less than a two-hour drive from Cancun. Its location is especially scenic, perched on the top of limestone bluffs above the Caribbean Sea. Here you can see the remains of the walled city and its structures that were built between 1200 A.D. and 1450 A.D. A tour guide can share a bit of the history and lore of these ancient buildings and temples, as well as the people who once made their home here. Pack a swim suit, as you can take a dip in the ocean after touring the ruins.

Xel-Ha
Usually, when visitors make the drive down the coast from Cancun to Tulum, they also stop at the ecological preserve of Xel-Ha, 8 miles north of the ruins. At this “natural aquarium,” you can swim with the dolphins, view a myriad of marine life, jump from cliffs or swing from ropes into the ocean, snorkel in a calm cove, or take a rest and enjoy the ocean breezes in one of many hammocks strung between palm trees. The “eco theme park,” Xcaret, offering similar attractions, is farther north, even closer to Cancun, but it’s more developed and typically more crowded; still, it’s worth a visit if you prefer not to make the longer drive south to Tulum and Xel-Ha.

Isla Mujeres
While you can overnight on the island of Isla Mujeres, which translates to “Island of Women,” many Cancun visitors just make it a day trip. Spending time at this laid-back beach locale just 9 miles offshore is a nice alternative to the bigger, busier city of Cancun. Browse the local shops and sample Mexican food at the al fresco restaurants. The beaches are generally uncrowded, and there are spots for snorkeling. Tour operators and resorts offer chartered, all-inclusive tours to the island, or you can do it on your own, boarding a 30-minute ferry that leaves the port in Cancun every 15 minutes or so throughout the day.

Tres Rios
This ecological park is not as built up as Xel-Ha. The pristine tropical reserve is only 30 minutes from Cancun and offers horseback riding and biking along primitive trails, as well as canoeing and kayaking in mangrove swamps. After a few hours of outdoor activity, you can relax on the beach or in a shaded hammock. All-inclusive packages here include the cost of food and drink.

Destination Orlando: Beyond Disney

What’s the biggest and most popular attraction in Orlando? Without question, it’s Walt Disney World, with its four theme parks, handful of resorts, shopping district, nightclubs and water parks.

But Orlando timeshare owners, who return to the glorious climate of Central Florida year after year, likely seek out things to do in Orlando that don’t involve a giant mouse. Here are just a few options:

Non-Disney Theme Parks
Like the massive Walt Disney World Resort complex, Universal Orlando Resort is made up of two theme parks, Islands of Adventure and Universal Studios, plus Wet n Wild water park, a downtown shopping and dining area (called CityWalk) and live shows, such as the Blue Man Group.

Sea World, home to Shamu, offers live entertainment, lots of marine life on display, as well as new thrill rides. About an hour southwest of Orlando is Busch Gardens Tampa Bay, with live animals, live shows, thrill rides and roller coasters, as well as “safari” excursions.

Museums and Attractions
Museums and interactive attractions in Orlando range from the Orlando Museum of Art and the Orlando Science Center to Ripley’s Believe it or Not Odditorium and the Holy Land Experience.

Kennedy Space Center, about a 45-minute drive east of Orlando, gives visitors a behind-the-scenes look at the country’s space program. Here, you can board a space-flight simulator, touch Mars rock and check out the Space Shuttle Explorer.

Enjoy southern hospitality at Dolly Parton’s Dixie Stampede & Dinner Show, swim with dolphins at Discovery Cove, hold an alligator at Gatorland or watch the graceful Orlando Ballet dancers.

Golf Courses
Traveling golfers literally have hundreds of golf courses to choose from in the greater Orlando area. Public championship holes carved out in the wetlands beckon both novices and experts. Many timeshare resorts either have golfing on site or discounted pricing at nearby courses.

Shopping Centers
The Mall at Millenia boasts a whopping 1.2 million square feet of shopping space, with upscale shops like Chanel, Gucci, Jimmy Choo and Tiffany & Co. Anchor stores are Neiman Marcus, Bloomingdales and Macy’s. Spend the day into the evening here—the upbeat Blue Martini Lounge hosts DJs and or live bands nightly.

Even bigger than Millenia is The Florida Mall, with more than 250 specialty shops and anchor stores like Nordstrom, Saks Fifth Avenue and Dillards.

Just outside the city limits of Orlando is the ritzy suburb, Winter Park. Here, a stroll down Park Avenue brings many one-of-a-kind boutiques for browsing and shopping.

Lakes and Ocean
Fish, boat or swim on the dozens of lakes in Central Florida. Kayaking, canoeing, parasailing, water skiing and tubing are other activities locals and visitors enjoy on the lakes. Water excursions abound: You can go on an exhilarating airboat ride on the Everglades headwaters, take a leisurely paddleboat ride or snap photos of passing scenery on a mellow pontoon ride. 

And of course, the beaches on the Atlantic Ocean and the Gulf of Mexico are also worth a day trip. From inland Orlando, reach the east or west coasts in just an hour’s drive.

No matter what your age or activity level, you’ll find tons to do in Orlando—even if you never set foot in a Disney theme park.