Great buying opportunities. For existing timeshare owners looking to buy additional vacation weeks, 2011 will be an excellent year to add to your vacationing portfolio. However, now is not the time for impulse buying or speculation by attempting to buy low and sell high. In a bad economy, the cost of ownership increases. This is a great time to buy what you plan to use. Now is the time to take advantage of resale prices at resorts and locations where you have wanted to own and vacation, but the cost of ownership may have been out of your price range. But before you buy, be sure to check the viability of the resort, look into the structure of the HOA, operating budgets and the quality of management. There has never been a better time to check out the name brand timeshares of Marriott, Hyatt, Hilton and Starwood for some really great opportunities to purchase a week (or two) at any one of these truly luxurious timeshare resorts.
Licensed timeshare resale brokers will become a vital resource. Owners looking for honest advice about buying timeshares and/or selling timeshares will utilize the services of legitimate resale brokers. These brokers are knowledgeable about the current timeshare market, will not make any false claims or demand high upfront fees. A licensed resale broker will counsel you on the realistic salability of your time share and/or assist you in purchasing additional weeks at a greatly reduced purchase price. It is possible that developers will pay more attention to well-qualified licensed brokers in 2011 and look to them to handle their resales.
Management companies will come under closer scrutiny. Owners are going to demand transparency when it comes to automatic increases of their maintenance fees. When the percentage of maintenance fee increases go into double digits, owners are not just going to quietly accept these increases without questioning and demanding to know exactly why and what are the determining factors for the increase.
The economy: All indications are that there will not be any quick upturn in employment and consumer spending which translates to slow timeshare sales and owners who will be cautious about making travel plans. It is a strong possibility that time share owners will be looking for destinations that are within driving distance rather than spend large sums of money to fly the entire family to a distant resort location and then have to rent a car. Sales of new units and even resales may remain on the down side.
The cost of ownership: Owners looking to sell may find it hard to do so in the upcoming year due to the high levels of unsold weeks already in the resale market and low demand in the current economy. This will be especially true for timeshares located at less desirable resorts, especially those with weeks during off-peak times. These factors will very likely translate into increased default rates thereby causing increases in maintenance fee payments for those owners who can still afford to pay.
Scammers will thrive: This should come as no surprise. Scammers do well during good economic times and even better during bad economic times. In spite of increased legislative action in some states, timeshare owners are still losing millions of dollars due to these scammers. In recent months, there have been numerous reports of very creative schemes and convincing sales pitches by phone, email and regular mail by scammers who have assumed the identity of legitimate companies. Remember, the best prevention against fraud is consumer awareness. And the old adage still applies today – if it sounds too good to be true….then it probably isn’t true!
Potential for resort bankruptcies will increase: Be on the alert for this! Resorts with high delinquency rates may not be able to afford to continue operating by putting an ever-increasing burden on the owners who continue to pay their dues. Aging owner’s who are now surviving on fixed incomes at the older resorts, simply cannot afford the cost of ownership with the higher travel costs it takes in getting to their resorts. As a result, these resorts may not be able to survive without Chapter XI protection.
Well-run resorts will weather the storm: Even in the current economy, there are many resorts that are located in very desirable and popular destinations. These resorts will be sought out by smart buyers. Any resort that is well-maintained, has managed to keep spending and maintenance fees under control, has a positive relationship with its owners and has avoided special assessments will be well-situated as the current economy eventually improves.
Owners will use their home resorts: Many owners will look to use their home resorts to save money rather than exchanging to a distant resort location that requires the expense of airline flights and rental cars. The home resort is now truly becoming the second home for vacationing. Owner’s who are struggling with the current economy, may still want to take a break to enjoy themselves with their families. The home resort is the ideal way to enjoy their leisure time together and take advantage of their pre-paid vacation!
Lower than ever prices at luxurious, name brand resorts: 2011 will be the year to take advantage of the great resales of Marriott timeshares, Hyatt timeshares, Hilton timeshares and Starwood timeshares.
At Advantage Vacation our goal is to educate the public on the timeshare industry and timeshare resales. If you are interested in purchasing a timeshare resale or selling a time share, the licensed real estate professionals at Advantage Vacation would be happy to assist you, answer your questions and be with you every step of the way – even after the transaction is completed.
We are committed to keeping you informed and updated through our educational platform – wetalktimeshare which will give you the latest timeshare news, timeshare trends and answer your timeshare FAQ’s (frequently asked questions).
We have been in the timeshare industry for over 30 years and are proud that our business has been founded on owner’s referrals. We are Accredited Members of The BBB with an A + Rating and specialize in the most popular and luxurious timeshares including Hilton timeshares, Marriott timeshares, Hyatt timeshares and Starwood timeshares.