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Timeshare

Guide to Purchasing Timeshares

by Lisa Ann Schreier
written by Lisa Ann Schreier

Have you ever been to a Timeshare presentation and wondered if you should buy one? Here are 7 things every consumer needs to know about Timeshares and Timeshare Presentations: Purchasing Timeshares

Don’t believe everything you hear

This rule applies to Uncle Mark telling you that timeshare do not work because he was never able to trade to go anywhere else (perhaps because he owned in Kansas?) to the salesperson telling you that you’ll always be able to trade at anytime for any place. Location is key when talking about week-based timeshare if you want trade or exchange into different locations. This is especially true for high demand timeshares such as Hilton Head in the summer or the French Alps in the winter, etc. You need to own in an area that has high, year round, global demand.

Nothing is Free or Perfect, Always

Avoid anyone, especially a salesperson or a sales manager who uses the words FREE, PERFECT, ALWAYS and/or NEVER. Generally speaking, if things seem too good to be true, they are.

Do your homework ahead of time

Have some general ideas about timeshare and be truthful about how much you spend for vacation accommodations such as:

  • In 2015, the average price of a 2-bedroom timeshare purchased on the primary market was about $21,000
  • That same timeshare can be found on the reputable resale market for around $5,000
  • Most, if not all timeshare resorts allow you to exchange or trade off to another member resort.
  • Location is KEY in determining how “good” any particular timeshare is…unless you are purchasing a point-based timeshare, where location no longer factors into trading power at all.
  • Go back 2 or 3 years and determine how much you spend for your hotel/motel/condo rooms and include the hidden room tax

Keep an open mind

If you are going to go to one of these timeshare presentations for the gift (dinner, cash, theme park tickets, etc.) or just because you are required to go in order to receive the discounted hotel room, then do yourself a favor and at least go in with an open mind and let the salesperson do his/her job. On the other hand, if you have already determined that timeshare is not for you, for whatever reason, then why would you want to waste your valuable vacation time by listening to something you don’t want? After 2 or 3 presentations, you should be able to determine if timeshare is a good idea for you. If so, then purchase one. If not, then just stop wasting your time!

Don’t purchase any type of timeshare as a real estate investment

Even if the timeshare is deeded, it should not be considered a financial investment, but an investment in your future vacations. If you buy a timeshare today for $21,000, use it for the next 20 years and sell it for only $5,000, ask yourself how much you’ll be able to get for your hotel/motel receipts over the same 20-year period.

Don’t assume anything

Many timeshares are deeded in perpetuity. Many are not. Many timeshares operate on a “points-based” system. Often, those points are not inflation proof. Always ask questions and don’t be afraid to say “no” if the product doesn’t suit your needs or wants.

Don’t cave in to high-pressure sales techniques

A high-pressure sales person or sales manager is high pressure for one or two of two reasons: Ignorant or they don’t believe in their own product. Don’t confuse high pressure though with the fact that in all cases, you will be asked to purchase on the spot. Focus on these points:

  • Do you understand the product?
  • Do you like the product and/or the particular resort?
  • If you had it, would you use it? Meaning do you plan or intend to spend that amount of money “anyway” on vacations? (Note the word “plan.” You can’t predict the future of course, but you can and should plan.)
  • Focus on the long-term. In the short-term you will not be saving any money.
  • Compare apples to apples, when talking about cost and value. You may not be saving money even in the long term, but are you having a better vacation staying in a spacious 2-bedroom villa in a quality resort as compared to a 400 square foot hotel room?

For more information and to find out if timeshare is right for you, contact Lisa Ann Schreier at Timeshare Insights (www.timeshareinsights.com)

Guide to Purchasing Timeshares

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Timeshare Owner's Bill of Rights
Timeshare

Timeshare Owner's Bill of Rights

by Lisa Ann Schreier
written by Lisa Ann Schreier
It’s no surprise that I don’t think timeshare is sufficiently regulated. I think the laws, written by the industry, favor the industry. Timeshare Owner’s Bill of Rights Timeshare Owners Bill of Rights
So, I’ve developed the following ‘Bill of Rights’ for both the prospective owner as well as the owner. It’s important to remember that these are not the law of the land, but what I believe to be important rights.
How will these rights become law and not just my suggestions? Easy! You, the consumer need to start voting with your wallet. If a developer isn’t abiding by these rights, don’t give them your business. If you’ve already given them your business then speak up. Write to me, write to your local law enforcement and contact the media. Timeshare Owner’s Bill of Rights
As always, I want to hear from you. Anything that shouldn’t be included? Anything that I’ve missed?

The Prospective Timeshare Owners’ Bill Of Rights

  • The right to receive fair, ethical, respectful and equal treatment without discrimination of ethnicity, race or religion in all matters related to the timeshare, including sales presentations
  • The right to review any and all documents prior to signing anything
  • The right to say ‘no’ and have it be accepted during a sales presentation
  • The right to receive a full disclosure of all fees pertaining to the timeshare as well as a five year history of said fees prior to purchasing
  • The right to NOT surrender your Drivers’ License, credit card or any other form of identification as part of a sales presentation
  • The right to fully understand both the rescission period and terms of rescission prior to purchasing
  • The right to pay whatever price you’re quoted during the sales presentation for the entire duration of your stay at the resort—-there’s no such thing as ‘today’s only price’

The Timeshare Owners’ Bill of Rights

  • The right to receive fair, ethical, respectful and equal treatment without discrimination of ethnicity, race or religion in all matters related to the timeshare, including sales presentations
  • The right to have access to what you purchased no more than thirty (30) days from purchase
  • The right to have any and all monies paid refunded to you no more than fifteen (15) days if you choose to rescind your purchase
  • The right to be advised in advance if any meeting you’re asked to, invited to and/or gifted to attend is in fact a sales presentation and the fact that attendance is NOT mandatory
  • The right to receive a sixty (60) day notice of all HOA meetings with proxy and explanation of items to be voted on accordingly
  • The right to receive minutes of any HOA meeting within thirty (30) days of such meeting and/or within thirty (30) days upon request
  • The right to have the developments’ broker name, license and contact information available upon request
  • The right to have all members of the HOA board fully disclosed at any time including any ties to the resort or compensation provided for this position
  • The right to know the current delinquency rate of the Resort/ HOA within thirty (30) day upon request
  • The right to be able to sell a privately owned timeshare interest without unreasonable restrictions placed by the resort, HOA or its management
  • The right to be informed at least six (6) months in advance, if the developer or the HOA makes any changes to the ownership structure of the project. This includes liens that may be placed upon it, any legal judgments that may be enforced, any changes in the ownership of the holding company and/or any transfer of deeds, licenses and/or leases
  • The right to have access to the most recent and updated public offering statement submitted by the developer as well as any amendments to the POS
    Purchasing Timeshares
    Beware Timeshare Tax Deduction Scams
    How to Spot Timeshare Scams

Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights Timeshare Owner’s Bill of Rights

Timeshare Owner’s Bill of Rights
Timeshare Owner’s Bill of Rights Timeshare Owners Bill of Rights Timeshare Owners Bill of Rights Timeshare Owners Bill of Rights Timeshare Owners Bill of Rights Timeshare Owners Bill of Rights Timeshare Owners Bill of RightsTimeshare Owners Bill of Rights Timeshare Owners Bill of Rights Timeshare Owners Bill of Rights

The Timeshare Owners’ Bill of Rights

Timeshare Owners Bill of Rights Timeshare Owners Bill of Rights

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Beware Timeshare Tax Deduction Scams
Timeshare

Beware Timeshare Tax Deduction Scams

by Lisa Ann Schreier
written by Lisa Ann Schreier

The timeshare related fraudsters hell bent on separating you from your hard earned money do not take a break and seem to come up with ever more clever ways of taking advantage of you. Beware Timeshare Tax Deduction Scams
With tax season here, I’ve heard from an increasing number of consumers who have been promised a tax deduction of upwards of $25,000 if they “donate” their unwanted timeshare…for a hefty fee of up to $5,000 of course.
Legitimately donating a timeshare is almost impossible and trying it usually results in an IRS audit and fines.
Here are some tips and things to remember before doing business with anyone claiming to “help” you donate your timeshare:

  • If you donate anything else such as a car, clothing or money, there is no “fee” to do so. Why then, would there be a fee to donate your timeshare?
  • The timeshare owners I’ve heard from were contacted by a third party, NOT the purported charity. The Red Cross, Disabled Veterans of America, Goodwill, the United Way, etc. do not work with third parties.
  • All of the companies initiated contact. No legitimate company will ever initiate contact. This goes for resale, rental, listing, transferring, “getting out of” and donations.
  • A charity will not accept a donation if it comes with an ongoing liability and annual maintenance fees are an ongoing liability

Your timeshare does NOT have a $25,000 value, or a $15,000 value, or in most cases, even a $7,000 value. Timeshare is not an investment and the value of it does not increase over the years. Here is a definition of Fair Market Value that should clear things up: Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
If the legitimate charity receives anything (doubtful in most cases), it will be a nominal amount of no more than a few hundred dollars which comes directly from the fee the company is charging you, NOT from the value of your timeshare, which as stated above, the charity does not want and cannot take
If you own a timeshare that you no longer need or want, here are some tips:

  • Call the resort and inquire if they will buy it back from you.
  • If you decide to sell or rent it, only work with those organizations that you contact first and those that do not require an upfront fee or give you any promises about selling or renting

Bottom line is do not do anything before checking with an unbiased source of information. That source of information is NOT the one trying to convince you of anything.
 

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