FREQUENTLY
ASKED QUESTIONS
Email
corrections or
additions to Mark
Perry@yahoo.com
Who
or What is TUG?
| The Timeshare Users Group (TUG)
is a web site operated by Bill Rogers and a group of volunteers who
have
a common interest in vacation timeshare ownership. For the full story
of
TUG's beginnings (read
Bill's story) |
I've
read that this is a "not for profit"
web site. Why is
there a membership fee?
| The
membership
fees pay for this site and all the
associated costs of running the Timeshare Users Group ( phone bills,
online
fees, web site fees, domain registrations, postage, etc.....but no
labor
costs....we are an all volunteer organization. |
What
are maintenance fees? And how much
are they?
| The cost of
resort operation is spread among owners
via an annual maintenance fee. The fee must also build up reserves to
pay
for non-recurring costs like furniture, appliances etc. that need
periodic
replacement and other capital costs as normal physical deterioration
occurs.
Cost is established by the developer or homeowners association.
Caution:
When a developer is in control, maintenance fees may be temporarily
subsidized
by the developer as a marketing tool while there is sales activity.
After
the homeowner association takes over, fees may quickly rise to
unsubsidized
levels.
Special
assessments are sometimes added to maintenance
fees to cover unexpected (non-reserved) expenses. These assessments are
passed by the association board of directors. Severe storm damage would
be an example where an extra assessment would apply.
Maintenance
fees
vary with the location and resort,
but usually are in the $200 to $1000 per year range.
|
Is
buying a timeshare a good investment?
| Timeshare
ownership is an investment in quality vacations.
Purchasers who buy a timeshare strictly for speculative reasons are
usually
disappointed as the resale market for timeshares does not appreciate as
well or as fast as other real estate investments. As an investment in
YOURSELF
and your leisure time, a carefully researched timeshare purchase can be
a good investment when compared to the cost of renting alternative
comparable
accommodations. |
If
I decide to buy a timeshare, should I
buy "new" from the
developer or "used" as a resale?
| All factors
being
equal, a resale from a previous
owner or a resale company, will probably cost considerably less than
buying
direct from the developer. Deep discounts of 50% and more are not
uncommon.
There are instances where buying from a developer may be your only
choice.
Lack of a unit with the amenities, location or "extra" added programs
like
the Marriott point program might be a consideration to buy from a
developer.
Again, research your decision BEFORE you buy to secure the best deal
for
you. Where should you begin this research? I think you know the answer.
Think "TUG"! |
Where
is the best place to own a timeshare?
| The answer
can be
as individual as each owner but
the consensus answer falls into two categories based upon intended
use.
If you
intend to
return to your resort frequently and
exchange occasionally, your best choice is a resort you enjoy
often.
If your
primary
intent is to maximize trade value and
you do not intend to stay at your own resort very often, then you
should
buy at a resort which is in high demand.
While there
is no
single "best" choice, the current
consensus of opinion says that Hawaii and coastal California are two
easy
choices that will produce top results.
There are
many
variables that would apply to any particular
choice and a potential buyer is strongly advised to research factors
that
affect timeshare trade values before making a final choice. A
membership
in TUG that provides access to the resort ratings and reviews is an
excellent
place to start.
|
Fixed
week .vs. floating week ownership,
what are they and
which is better?
| Fixed week
ownership means that you have the right
to occupy (or have available for trade or rent) a specific week and
unit
number at the resort you own every year.
Floating
(sometimes referred to as flex) ownership
means that even though you may be deeded a specific week and unit
number,
you have no use claim on that week or unit. Instead you have the
opportunity
to request a week within a specified range of weeks during the year.
The
range of weeks available for flex use is set by the resort and is the
same
range of weeks from year to year.
Advantages
of
owning a fixed week: You are guaranteed
the week and unit you want every year (especially applicable to colder
climate owners who want to vacation where it is warm in
winter).
Advantages
of
owning a floating week: For those who
are concerned about unforeseen work or schedule conflicts associated
with
a fixed week, floating time allows for additional planning
options.
There are
more
implications with either type ownership
especially as it applies to trading and vacation planning. A
prospective
timeshare owner is urged to examine the differences and make a choice
to
match the situation before purchasing.
|
What
is a bonus week and how can I get one?
| The simple
answer
is that a bonus week is an "extra"
week in addition to the one you own. It's given or sold as an incentive
to timeshare owners for a specific reason.
A Developer
Bonus
Week (DBW) is available to members
who own at participating resort. These bonus weeks are issued directly
from the resort. They are sometimes issued as a signing bonus upon the
purchase of a timeshare interval . Owners can sometimes purchase them
from
the resort as unsold developer owned weeks.
A second
type of
bonus week is one issued by an exchange
company. Owners of high demand resort weeks receive them as incentives
to deposit their timeshare week.
Bonus weeks
are
sometimes referred to as "Vacation
Escape" weeks, "Getaway" weeks (or weekends). They are available to
members
of exchange companies like RCI, II and SFX. The exchange company makes
bonus weeks available for purchase by members for a nominal fee.
Purchased
bonus weeks are considered "excess inventory" likely to go unused.
Excess
inventory is determined by the historical number of deposits versus the
number of requests for each particular resort.
Bonus weeks
usually come with expiration dates and
may have other use restrictions relating to location, season and
holidays.
|
Which
exchange company is best?
| This is a
"Coke
vs Pepsi" question but it may be a
moot point. The resort you own is probably affiliated with only one
exchange
company. There are, however, a few resorts affiliated with both. Do not
let the resort's affiliation affect your decision to own or buy at the
resort. Although there are preferences among people who have experience
with both major exchange companies, there is no unanimous opinion that
one is better than the other.
It should be
noted
that there are more than the two
BIG exchange companies. TUG maintains a comprehensive
list of timeshare exchange companies.
|
If
I deposit my week with an exchange
company, does someone
need to "take" it before I can request my desired week?
| No. As soon
as
your week is deposited, you can request
and get the week you want if it is available. |
I
was contacted by company "X" offering to
buy/sell/rent
my timeshare for a fee. Can I expect them to do a good job?
| Past
experience
by members and visitors to TUG have
been unanimous in this regard. Never pay an upfront fee as a condition
to buy, sell or rent your timeshare. This situation is probably the
most
common situation where an owner will probably be dissatisfied. ANY fee
required before performance will probably be lost. These "fees" come
disguised
as "agent commissions", "appraisal fee", "advertising fee", etc.
etc.
They all have one thing in common. The money is always requested before
performance is complete. Some of the more notorious companies preying
on
timeshare owners desperate to sell their timeshare will have the words
"bank", "trust", "investment" in their company title. This is in an
attempt
to instill a feeling of confidence in their target. Do not be a victim.
Verify the credentials and performance of any company making this type
of offer.
If necessary
we
strongly suggest dealing only with
an agent who works on commission from proceeds of sale. Failing that,
there
are experienced TUG members willing to offer advice on the "how to's"
of
selling your timeshare. Visit the TUG BBS and start asking questions.
|
I
am an RCI member. Can I transfer weeks
to other RCI members?
Reply from
RCI:
The form in the back
of the
RCI Directory, Membership
Transfer Application, is mainly used for the sale of timeshare, but
also
for transfer of weeks. The most important parts of the document are the
areas which indicate your account information, the week you want
trasferred,
and to what account it's going to. As long as we have that information
along
with your signature, it should be taken care of. That information
can also be listed in a signed letter if you prefer. Once the
information
is completed, you can fax it to us at 317/805-9335 if you wish. Hope
this
helps. Thanks for visiting our website. Darrin Goodwin, RCI Internet
Team. |
Since a timeshare
accommodation usually has more facilities
than a hotel room, are there any additional items I should consider
bringing
on my timeshare vacation?
| Most
timeshare
accommodations have cooking and laundry
facilities. While it certainly isn't necessary to pack anything more
than
you normally would for the typical vacation, some TUGGERS seem to be a
different breed. Take a look at the A.R.
Timeshare Checklist and then decide for yourself. (I'll let
you decide
for what the "A.R." stands for) |
Are there any tax
advantages or disadvantages to owning
a timeshare?
| Good
question.
Since I don't even do my own taxes,
I'll refer you to TUG's expert
Timeshare
and Taxes advice page to answer your question. |
What is the downside to
owning a timeshare?
- You must
continue to pay the yearly maintenance fee, which
can increase over the lifetime of the resort, whether you use it or not.
- You could
be
required to pay additional "special assessments"
arising from unexpected costs of maintaining or repairing the
resort.
- Some
people
feel that owning a timeshare requires excessive
advanced planning in attempts to reserve a popular floating week or to
obtain a good exchange week. Planning a timeshare vacation a year in
advance
is not unusual.
- The
majority of
concerns with timeshare ownership seems
to center around dealing with cost and interaction with exchange
companies.
It's often not the straightforward process the timeshare sales staff
would
have you believe.
|
|
