Timesharing - Finally Time To Buy

The "hard" sales techniques, unexplained drop in prices and low quality resorts are generally disappear. This means that many holidaymakers now see a timeshare as a realistic and economic option for future vacations. But they need to know much more to make an intelligent purchase.

With the entrance of companies like Disney, Marriott and Hilton in the box, it's timeshare market explodes. In the last two years, nearly 500,000 households have purchased a total of more than 700,000 week-long units at timeshare resorts. This means that there is more than 2 million owners of more than 2,000 resorts worldwide. Contrary to what many think, a recent study from the leisure experts Ragatz Associates survey showed that more than 80% of these owners are satisfied with their purchase.

"It is clear that a timeshare is more popular, not only here in the U.S. but also throughout Europe, Mexico and South America," says Tom Franks, president of the American Resort Development Association, the timeshare industry body based in Washington , DC

The Basics

In a timeshare, typical consumer buys one or more weeks at a particular resort and can return to that resort every year, or "trafficking" in a week at another resort with an exchange company. Prices currently average around $ 9000, with annual maintenance costs of about $ 300.

Vacation Timeshare usually takes one of two forms: "Fee" timeshare buyer gives permanent rights - in the form of a deed - the property. Approximately 85% of timeshare resorts sell the fee-ownership agreements. "Right-to-use" timeshare gives the buyer the right to use the property for a specified period of 30 years. Under this form of timeshare, the buyer does not receive a deed.

Instead of returning to their home resort each year, many owners elect to exchange their week for a week at one of the thousands of other timeshare properties around the world. For a fee (usually less than $ 100), performing companies as Resort Condominium International (317/876-1692) or Interval International (305/666-1861) they provide services for member resorts and owners.

Many owners say this exchange privilege was an important reason to buy and have been very successful exchanges. Keys to successful exchangers are: to buy at a popular resort (this increases the exchange power), "deposit" weeks with an exchange company as early as possible (this gives the exchange company more time to find a use for the week will be exchanged), and be flexible on your destination, resort and travel dates.

Some specific

Orlando, Florida area serves as an ideal example of what is available. It is a large market for holidaymakers from around the world in search of a piece that Orlando "magic". There are plenty of opportunities, and the area is a good place to own one or more weeks, if you know where to go.

Well-established options include: One Island (407/859-8900), Marriott (813/688-7700); Orange Lake (407/239-1082), and Vistana (407/239-3008). In these and other resorts, you will find a complete array of facilities, often including kitchens, decks, pools, restaurants, golf courses, tennis courts and more. These timeshare resorts are more fully equipped apartments and suites, rather than standard hotel rooms.

Walt Disney World recently opened their first timeshare resort, Disney Vacation Club (407/939-3100). As you might expect, they have developed some unique characteristics to their timeshare concept.

Disney to address two of the major issues in the timeshare industry today: flexibility and aggressive salesmanship. Along with many other timeshare properties, Disney has moved to improve these two areas and the early reviews give them high marks.

By purchasing a real estate interest in Disney Vacation Club Resort, guests automatically become members of the Disney Vacation Club and is eligible for a range of exclusive benefits and privileges. Members will also receive an annual allocation of vacation points that can be used on holidays at the resort or on more than 100 worldwide resorts currently offered through a "Member Getaways" program with RCI.

"The flexibility to choose between several different vacation experiences is what sets Disney Vacation Club apart from many similar plans," says General Manager Mark Pacala. "The holiday points system allows members to choose the type of holiday that best suits their needs, especially as these needs change from year to year."

Disney has also attacked the overly aggressive sales techniques used to plague the industry. They provide no incentives or awards for prospects to participate in sales presentations and their sales force usually receive a fixed salary, rather than high commissions for high volume.

For a one-time purchase price, guests can buy a property interest in the resort which will expire after 50 years. Prices currently run from $ 11,730 to around $ 16,000.

The points system was far more popular in the timeshare industry, is much easier to understand than it first appears. Let us say that your Disney Vacation Club ownership interest you have 270 points to spend each year. You can book a two-bedroom home for a week in June or enjoy a five-day family reunion in July in a three-bedroom Grand Villa. Other possibilities would be to reserve a two-bedroom home for a nine-day stay in September, or an incredible stay of several weeks in a studio unit.

Disney's timeshare operation is typical of the exciting future for the industry and smart timeshare buyers. There are timeshare opportunities across the U.S., with large multi-site options such as Hilton Grand Vacations (813/482-7766); Fairfield Communities (800/251-8736), and Lawrence Welk Resort Group (619/485-5556); both as small and intimate one resort operations. You can find apartment-style accommodations in a resort-like atmosphere.

WORLDWIDE OPTIONS

Timeshare is not limited to the U.S. at all. This global industry is very popular in Mexico, South America, Europe, and several other parts of the world.

More than 100,000 weeks were sold in Mexico last year at more than 100 different resorts. Prices tend to be lower than the average $ 9000 price in the U.S.

Potential buyers should consider Cancun and Cozumel, Puerto Vallarta, Acapulco, Ixtapa and Manzanillo, a regional resort area of Mexico City, which is favored by Mexicans and general feature even lower prices (less than $ 5.000). To get started in Mexico, contact reputable multi-resort operator COSTAMEX at 305/267-7855.

South America is a relatively new hot-spot for timeshare, but the industry is growing rapidly. The Argentine coast and mountains (skiing in the U.S. summer) is currently the most popular places for development. Visitors to Argentina should explore ways in Buenas Aires, Mar del Plata, Miramar, and the Cerro Catedral ski area. Uruguay coastal resort area of Punta del Este is also becoming a timeshare hub.

Timeshare actually started in Europe before blossoming in the U.S. There are hundreds of options throughout Western Europe, Mediterranean and Scandinavia. As expected, resorts are most prevalent along the coasts and in the Alps.

Southern Spain is probably the leader in sunny European timeshare. Dozens of timeshare resorts dot the Costa del Sol area. It is easy to compare shop along the coast, but definitely check out more of Club Riviera's options (011-34-52-831252). Other timeshare hotspots include the Canaries, Portugal, the French Riviera, Greece and Turkey.

Alps appeal to many timeshare buyers and with good reason. A timeshare unit can save lots of money on ski trips or summer vacation in the mountains. There are several opportunities in the French Alps, Switzerland and Germany, Bavaria, but Austria seems to have the best overall efforts. Timeshare Vacation Club Jausern in Sallbach-Hinterglemm (011-43-65-41-503) is typical for Austria's club-like resorts.

BUYERS beware

Timeshares are not for everyone. It is not a true real estate "investment" and the resale market is tight. Simply put, planning to buy it, keep it and enjoy it.

The industry body ARDA (see below) has many excellent publications on a timeshare purchase. Their task is a good starting point for interested buyers.