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New to Timeshares - Any help in understanding the ins and outs?

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  • #1

    New to Timeshares - Any help in understanding the ins and outs?

    Hello,

    I was hoping I could get some help understanding the value of timeshares and point systems, based on my current situation. At the bottom I have a number of questions. I know I can get some answers from the customer relations person, but I thought if I got answers here first I could ask better questions of this person. (and maybe get better answers )

    Background:
    My mother bought an Orange Lake week-long (Sunday-Saturday) timeshare (week 44 I believe) back in the late 80's - early 90's (I don't know the exact year, but it was before her unit was built). It is the resort next to DisneyWorld. Due to health issues with her husband, she had missed out on going there a number of years, though in three of the past four years they have gone. This year was the first I went to the timeshare with her, and my girlfriend and I had a wonderful time. My mother is now asking if I will become a joint owner (at no cost to me).

    As for me, I have not been a traveller nor gone on vacations often. This was the first vacation I went on in probably a decade. As much as we enjoyed Disneyworld, and next year we plan on going down to see other parks for the same week, long term I cannot see wanting to do this every year. A simple trip to a local amusement park and a few days relaxing at home would do for us.

    During our stay a Holiday Inn specialist (not an Orange Lake employee) came to our timeshare unit for the explanation on how we could upgrade to a points system, but it was really information overload for all of us. In the past week I received a letter that "explains" the costs of this upgrade. During the presentation he mentioned the great deal this is, considering their initial investment. That should be a sunk cost, and not considered in the upgrade decision (or am I missing something here?).

    The current points given their investment would be: 127,000 with maintenance fees of ~$760.00
    To purchase an extra 100,000 points (every other year usability) would be $7,500 ($0.15/point) - Additional(?) maintenance of $345/yr. (or is it every other year?)
    To purchase an extra 15,000 points (every year) would cost $4,995 ($0.33/point) - Additional(?) maintenance of $103/yr.

    Although I could afford this, I am really trying to not tie myself into a situation I may not want long term.

    Next year I plan on giving my mother the yearly maintenance fee and heading down again. However, with the poor health of her husband, it is possible that she may not be in a position to go with us next year, so I need to know if I can use the timeshare without her being there?

    With that background, here are my questions...

    NON-POINTS RELATED QUESTIONS
    • This year my mother was told I could not get in unless she sent in lots of paperwork ahead of time, or she arrived before I did and let them know to expect me. Is this correct? What is the procedure for this? I am concerned about this because what if my mother can't make it next year, how do I access the timeshare?
    • If I am put on the deed as a co-owner, what does that do for me? Benefits or Liabilities?
    • If I become a co-owner, then I should have access to other locations owned by Orange Lake. How easy is it to use the week at another of these locations for a given year?
    • If the maintenance fees aren't paid, then what? Does this become something to end up on my credit report if I am a co-owner? Is there even legal repercussions (could they take me to court for the fees)?
    • Can the timeshare be handed back to Orange Lake with no repercussions, or are owners forever on the hook for maintenance fees?
    • Is there the possibility for future special assessments (like with condos?).

    POINTS RELATED QUESTIONS
    • How can I value "points"? That's one of the biggest mysteries to me. They may as well say I will be getting Danish Kroners. Without knowing how much the "points" are worth to buy things, I can't determine what the value is in doing this conversion.
    • Is there a site or way I can determine how much these future points will buy?
    • This system is called Holiday Inn Vacation Club. He made it sound like these "points" could be used tons of places (car rentals, airline tickets, resorts). How can I determine where the points can be used? And what "value" will I get for these points with these other participants?
    • The paperwork for the conversion shows installment payments with interest at 15.65% over 10 years, which is an insanely high interest rate - it would double the overall cost to do the conversion. For those that have converted, can you pay in one lump sum, or do you have to do this installment program?
    • I've read people talking about buying points. How does one do that? I mean, ok two people have agreed upon a price, now how do the points get transferred?

    Thanks for your help with this. I am looking for all the information I can get on this. If there are websites which have already answered my questions, please forward them on as well.
    Tags: None
  • #2
    Originally posted by BennKar
    With that background, here are my questions...

    NON-POINTS RELATED QUESTIONS
    • This year my mother was told I could not get in unless she sent in lots of paperwork ahead of time, or she arrived before I did and let them know to expect me. Is this correct? What is the procedure for this? I am concerned about this because what if my mother can't make it next year, how do I access the timeshare?
    • Your mother can send any guest she desires. Usually all it requires is a letter stating you have the right to occupy her unit for the use week. She should notify them at least two months ahead & give you a signed copy of that notice.

    • If I am put on the deed as a co-owner, what does that do for me? Benefits or Liabilities?
    You become an owner which is good for easy use - bad for the obligation you may not desire to have for future fees / assessments.

  • If I become a co-owner, then I should have access to other locations owned by Orange Lake. How easy is it to use the week at another of these locations for a given year?
Now that Holiday Inn has a point system they may discourage/deny direct internal trades to other "sister" locations unless you pay way too much to join that "club". You can always trade through RCI but that carries an annual membership fee as well as a rather steep exchange fee. There is also NO guarantee you'd get any resort/time/unit you wanted. It is a risky thing to own to trade as well as expensive.

  • If the maintenance fees aren't paid, then what? Does this become something to end up on my credit report if I am a co-owner? Is there even legal repercussions (could they take me to court for the fees)?
    • Yes, for whoever is the owner(s) of record. Think VERY carefully if you really want to tie yourself to this obligation by joining your mom or taking sole ownership of this timeshare week.

  • Can the timeshare be handed back to Orange Lake with no repercussions, or are owners forever on the hook for maintenance fees?
    *]Is there the possibility for future special assessments (like with condos?).
    • Simple answers - NO you cannot automatically "hand it back". They must agree to accept it. (many times they won't - you can't force them to).

    YES - like any condo there can be special assessments (recently a $5,800 one at a Hawaiian resort!)

    POINTS RELATED QUESTIONS
    • How can I value "points"? That's one of the biggest mysteries to me. They may as well say I will be getting Danish Kroners. Without knowing how much the "points" are worth to buy things, I can't determine what the value is in doing this conversion.
    • In most cases there are NONE. It is far cheaper to buy points resale than to pay retail to convert an existing week.

    • Is there a site or way I can determine how much these future points will buy?
    There are lists of the points requirements for the various resorts involved.

  • This system is called Holiday Inn Vacation Club. He made it sound like these "points" could be used tons of places (car rentals, airline tickets, resorts). How can I determine where the points can be used? And what "value" will I get for these points with these other participants?
    • Usually the only value in any points system is as use for vacations at the member resorts. Trying to get "deals" on third party products turns out to be far more expensive than simply finding the best price through the multiple sources that exist today.
    The overhead of these programs make them very poor values.

  • The paperwork for the conversion shows installment payments with interest at 15.65% over 10 years, which is an insanely high interest rate - it would double the overall cost to do the conversion. For those that have converted, can you pay in one lump sum, or do you have to do this installment program?
    • You are paying FAR TOO MUCH for the points at any retail offer & then compounding the mistake with a terribly high interest rate! NEVER finance any timeshare purchase. Far too many - including Orange Lake - are available for little or nothing as in free. No timeshare - and certainly not OL - is worth more than $5000 resale today. Very few exceptions to that.

  • I've read people talking about buying points. How does one do that? I mean, ok two people have agreed upon a price, now how do the points get transferred?
    • There is an agreement & a membership that can be transferred in most case. But some, Diamond Resorts come to mind - do not allow or make it very hard to transfer points in their systems. RCI Points are easily purchased & transferred
    .
    Thanks for your help with this. I am looking for all the information I can get on this. If there are websites which have already answered my questions, please forward them on as well.
    Hope that helps. Other will join in I'm sure.

    Comment

  • #3
    Thanks for the info.

    I guess I should clarify, my mother only has a standard weeklong timeshare and is not currently part of any point system. They had been offered RCI in the past and declined. So I guess newer sales are automatically set up within the new point system, and I could buy those on the resale market if I wanted to have access to the points program?

    Sounds very much like I should stay away from timeshares for now and see if I can convince my mother to hold on to it while I pay her for the use at least for a year or two.

    Thanks again.

    Comment

    • #4
      a thought

      Timeos did an excellent job answering your specific questions, not much to add from this regard. However:
      Although I could afford this, I am really trying to not tie myself into a situation I may not want long term.
      Owning [or even joint owning] a timeshare is a long-term commitment to paying your annual maintenance fees and any special assessment fees that might occur. It is an endeavor that requires you to learn to use the timeshare to your best advantage; which will require some effort on your part (given your situation/circumstances), and some study.

      Many timeshare owners have met on hard times given the state of the current economy, and owning has become a burden that they can't afford. So many timeshare owners are frantically trying to get-out from under their obligation right now. The situation has resulted in the value of almost all timeshares to fall -- to the point that they don't even sell on eBay and other sites.

      If you want to occassionally travel you can still use timeshares to do it without owning. You might want to consider renting from other owners or even the public sites hosted by the exchange companies. It might be a bit more expensive than owning, but there are no long-term obligations and it does have other less-obvious advantages. ...just a thought about the bigger picture.

      Comment

      • #5
        HIVC points

        Do not transfer to a resale owner from the Orange Lake Resort.
        Many people have paid some serious money to get the Club Points Program that allows you to book at any of their resorts using your points, BUT, these points do not transfer to a resale purchaser. They end up with the underlying fixed week.

        Helping your Mom out with the fees is the best way to proceed on this timeshare.

        Greg

        Originally posted by BennKar View Post
        Thanks for the info.

        I guess I should clarify, my mother only has a standard weeklong timeshare and is not currently part of any point system. They had been offered RCI in the past and declined. So I guess newer sales are automatically set up within the new point system, and I could buy those on the resale market if I wanted to have access to the points program?

        Sounds very much like I should stay away from timeshares for now and see if I can convince my mother to hold on to it while I pay her for the use at least for a year or two.

        Thanks again.
        Yes it is Safe in Mexico



        http://www.timeshareparadise.net

        Comment

        • #6
          As for me, I have not been a traveller nor gone on vacations often. This was the first vacation I went on in probably a decade. As much as we enjoyed Disneyworld, and next year we plan on going down to see other parks for the same week, long term I cannot see wanting to do this every year. A simple trip to a local amusement park and a few days relaxing at home would do for us....??




          __________________
          watson

          Comment

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