Many potential timeshare owners are dazzled by charts and data during timeshare presentations. The impressive metrics they present often convince the potential buyers to purchase timeshares, persuading them that timeshare costs are less than comparable luxury hotel accommodations over time.  Many timeshare companies show an escalation in hotel costs due to inflation — at least they have in the past — but they usually do not to include a consistent rise in maintenance fees as part of their price comparisons.

Regardless of what information is conveyed in the timeshare presentations, there is evidence to support their claim that timeshare owners may save money over the long run depending on their vacationing habits.  In order to do so, timeshare owners must vacation at their time share annually without fail.  It’s a spend-money-now to save-money- later type of mentality.  It’s truly the best way a new timeshare owner can justify the type of savings that were discussed in the timeshare presentations.

However, there are some factors to consider if you own a timeshare for the first time.  Although presentations show that the cost of a hotel room always goes up, hotels may actually lower prices during a recession to bring in business.  On the other hand, it is rare that maintenance fees go down when you own a timeshare. This type of situation definitely changes cost comparisons between hotels and timeshares.

So, arm yourself with knowledge if you’re thinking about purchasing a timeshare. After the presentation is over, ask them to explain just how the annual increase in maintenance fees figure into their equation. Remember, charts, data, and people can be misleading.

Their reasoning is that since they’ve already paid for it, they should use it every year. However, this is faulty logic. Here are a few little things in life that get in the way of this thinking:

• First, your timeshare unit may not be available the week you want it. It depends on scheduling.  There are rules to scheduling even with fixed-week timeshares.  If you do not schedule in time, the resort can deny your request to go to “your” timeshare.  If you’re forced into a vacation, you have to make sure you can schedule it first.

• Next, why do you even want the hassle of a forced vacation? Life is full enough with work, family, faith, and continued good health. Wouldn’t a reminder on an electronic calendar or on your iPhone be enough to remind yourself to take a vacation?  Why prepaid all your vacations just to be reminded to go on holiday?  You don’t need to financial stress.

• Finally, remember that New Year’s resolution you made to lose weight? Well, ownership of a timeshare is a lot like that. In other words, we want a good result, but it’s rare that many of us follow through to get it. So, your intentions of going to the timeshare every year are good, but be honest, will you follow through?

If you’re the type that does follow through on what you aim to do, then by all means, take that vacation every year. However, there are other options than buying a timeshare. You could join a vacation club or rent a timeshare – options that do NOT force you into a long-term contract that truly “forces” you to pay increasing maintenance fees and special assessment costs.  Reduce your stress, don’t buy a timeshare.

ABC’s Nightline news program produced this video about timeshares and the financial dangers that timeshare owners face especially years after they buy their timeshares.  Although it’s nothing terribly new to Timeshare Relief clients or to owners who have tried to get rid of their timeshares, the video may surprise many.

There are simply too many stories that are similar in the timeshare resales market and very few buyers.  With escalating maintenance fees, potential for high special assessment fees and lifetime contracts, timeshares continue to prove to be a heavy burden on their owners.

If you are one of those who are seeking relief from your timeshare, contact Timeshare Relief now at 1-866-797-0535 and speak with one of our friendly, expert timeshare owner advocates.  If the phone lines are busy, please keep trying.  Stop wasting money on timeshare bills that keep going up.

Most of the time the parents that bought the timeshares really enjoyed the timeshare, and sometimes the children had fond memories of vacations there too when they were younger.  Now grown with children of their own, they find they just don’t get the same gratification out of the timeshare that their parents did.  The real obligation of timeshare ownership isn’t fully recognized until they receive the first annual maintenance fee bill.  They don’t realize until much later that the timeshare they originally thought was an asset is actually a liability.

The timeshare the children inherit is not the same timeshare their parents had.  These timeshares are typically not modernized and upkeep may be lacking.  Someone in the next generation just wouldn’t want to stay there; they’re just too outdated.  Unfortunately, these children inherited the maintenance and fees associated with the timeshare so they are obligated to pay.  They do not get the full enjoyment out of the timeshare that their parents did, so they wind up paying a lot for a little.

One individual who had enough of the situation was Janice Borst-Smith.  She inherited a timeshare from her parents and realized that she didn’t want those high maintenance fees and aggravation resulting from the ownership.  After facing the difficulty of getting rid of her timeshares, she came to Timeshare Relief to get help.  After working with their representatives to find a solution, she was able to get rid of her timeshare.  Janice now works for Timeshare Relief to help others who find themselves in similar situations that she was in.

Although Marriott announced that it was stopping all new timeshare developments back in September 2009, the Oceana Palms was already in development.  After writing down $760 million from its timeshare business then, Marriott suffered a third quarter net loss of $466 million in 2009.  So, this resort  opening sets a new path amid the bubbling optimism of economic recovery.

With the average Marriott timeshare week costing timeshare owners approximately $30,000, Marriott stands to bring in a substantial revenue base for the Oceana Palms.  A second phase is planned to build a second 19-story tower and bring the overall villa count to 169.  With maintenance fees, a healthier economy, and the Marriott brand-name, Marriott is a winner with this opening.

The timeshare development also produced local jobs with the construction, and will bring in more small businesses that increased tourism will demand.  Moreover, the local and county coffers will add significant vacation accommodation related tax revenue.  So, the local economy and governments are winners as well.

Timeshare owners get an opportunity to vacation at a contemporary and luxurious resort with many local amenities.  So, from a travel and vacation standpoint, the owners will come out ahead.  But, when you look at their pocketbooks and the chance that they’ll take advantage of using their timeshare every year, the $30,000 a week average cost along with the annual and special assessment fees will more than not never be worth the value of the timeshare.

So, are the owners “winners”?  They flip the bill for the company and the local economy, but gain some measure of vacation luxury from time to time.  So, financially, timeshare owners are not winners.  But with the proper mindset, like going to the celebratory Grand Opening,  they’ll sure feel like winners…regrettably, they’ll need to brace for the hangover.

For articles about the opening used for this blog, click here and here.

Mrs. Wood had two timeshares that she and her husband had purchased before Coach Wood passed.  She says that she was “relieved” to be rid of them.  Although she enjoyed the use of the timeshares over the years, she evidently did not want pass along the timeshares and their associated fees to her children.

In the video, JC does most of the talking.  But it’s apparent that the demur and proper Mrs. Wood is genuinely happy and satisfied with her decision to work with Timeshare Relief.

However, even though timeshare owners who join an exchange program have the choice to exchange their timeshare for another when they are ready, they have to pay an exchange fee on top of the purchase price and the maintenance fees.  Similar to maintenance fees, the exchange programs in many timeshare contacts require annual membership fees for the administration of the exchanges.  These fees are not excessive, but they should be considered when making the purchase.  They are part of a contractual obligation of the buyer whether the timeshare is exchanged or not.  Plus, there are fees when proceeding with the exchange.  More potential fees may apply when choosing various options and amenities in these exchange programs as well.

Timeshare owners should decide early on whether they want the option to exchange their time-share.  If not, the appeal of this option will wear off quickly.  They will constantly pay fees year after year without any benefit, otherwise.  Much like a maintenance fee, an exchange fee is paid when owners justify the cost because they might make an exchange in the future.

One thing timeshare owners should take away from this information is the recommendation to use the timeshare and any amenities added on in the contract as much as possible.  If they find they can’t, they should drop any options not needed, so that money isn’t wasted.  Fortunately, many exchange programs do not obligate you into signing a long-term contract.  Unfortunately, if the owner has banked time in the past, cancellation of the membership causes them to lose any accrued time.

Did you know that there are more heart attacks on Sunday than any other day of the week?  They say that the reason has to do with the anxiety and depression of having to go back to work on Mondays.  Whether it’s the pressure of the job, or even going back to school,  Mondays are sometimes very rough for people.  They get a sinking feeling that won’t go away.

There are timeshare owners that experience this same sinking feeling whenever they think of their timeshares.  The constant requests for money – maintenance fees, special assessments, loan payments, exchange fees and property taxes – drain their finances and their spirit.  Many try to get rid of their timeshare themselves, only to have their efforts crushed when nothing happens.  More money goes out the window without results.  They simply want relief.

If you get that sinking feeling whenever you think of your timeshare, you really need to talk to a timeshare transfer expert.  Call 866-797-0535 and speak to a Timeshare Relief representative right away and get rid of that nagging “heaviness” of financial burden your timeshare is giving you.

The Sales Pitch

One criticism is that the sales presentations can involve high-pressure pitches, and often require prospective buyers to meet with two or three different people who will try to convince them to sign the papers that day.

Many who take tours at these resorts do so multiple times, often to help supplement vacations with the free theme park tickets, gift cards, meals and other incentives offered for sitting through an hour or 90- minute pitch. The incentives don’t stop there. If you indicate you are interested, you might be offered an upgrade on the type of unit you’re getting, or some other inducement.

Types of Deals

There are several different types of timeshare deals.

ARDA says about 67 percent of timeshare companies sell “intervals” — either specific weeks or “floating” weeks that can be used during certain parts of the year or sometimes every other year. Prime slots during holiday periods or at the height of a season— for instance ski season in Colorado or midwinter in the Caribbean — command higher prices.

The remaining third of developers use a points system or another flexible program that allows people to book vacations at different times, spending their points as they go — with more desirable locations and time slots and larger units costing more points.

All timeshares also require annual maintenance fees, which average $646 according to ARDA, and sometimes yearly membership fees as well.

With both intervals and points, owners can trade the time they have at their resort for locations elsewhere, typically by using an exchange company. There are two major exchange companies, RCI, a subsidiary of Wyndham Worldwide Corp., and Interval International, a segment of Interval Leisure Group. Both require membership fees to use their services — starting at $89 a year.

The Marketplace

“Timeshares are not an investment,” said Angela Gridelli, an interior designer and decorative artist who lives on Long Island, N. Y., and currently owns four timeshares.

“A timeshare is not like purchasing a condo or a home,” she said. “If anything, it’s like a car, where the value on your timeshare is going to depreciate every year.”

Gridelli said if she were to try to sell the two timeshares she purchased at full price — one in Aruba and one in New Jersey — she would take in 60 or 70 percent less than the roughly $25,000 each she paid. But she’s not looking to sell — she uses her timeshares as a way to travel extensively, typically getting nicer accommodations than she could otherwise afford.

The way she calculates it, Gridelli says over time, the total purchase price, plus her annual maintenance fees, compares favorably to how much it would cost for similar vacations staying in hotels.

The key is knowing how to exchange what you own for other travel opportunities. For instance, last year she traded time at one of her timeshares for a week in Spain. All she paid was the $333 maintenance fee for her timeshare, plus an $89 fee for the exchange. Her neighbors at the 2-bedroom condo were paying $500 a night to rent a similar unit.

The extra space in such facilities also means more comfort, and the potential to bring along more family members without having to pay for multiple hotel rooms.

Gridelli said she’s had so much success traveling using timeshares, she hopes to buy more on the resale market, especially since prices have dropped.

Multiple purchases are not uncommon. About 47 percent of sales are made to existing owners, according to the American Resort Development Association, the Washington-based trade and lobby group for timeshare developers.

Yet timeshares have a decidedly mixed reputation among the public at large, and Internet chat rooms can burn up with complaints from owners who are unhappy with various aspects of their purchases.