Hidden costs

[Ginny Junior Member Find all posts View Profile Close Ginny]

Today may have been our deciding day for buying a Timeshare. I just needed to call The Reef on Grand Cayman to ask a few more questions. I found out that there is a $10 per day occupancy tax, $70 for the week... Not good. But then there's a utility fee of $198! $198 for one week worth of water and air conditioning??? Yikes!

They really should have told us about it from the beginning. It's almost like another maintenance fee, except that I will only pay it when I go to The Reef, not when I exchange.

I've searched the forum for other mentions of this utility tax and found only one, which was another resort on Grand Cayman. I called this other resort to find out the amount and they charge you according to your use. It could be $10 per day or some have ended up with a $300 charge for the week.

Finding out about these new costs this late in the game makes me afraid there may be other hidden costs that I am not being advised of. I'd like to hear if others have encountered utility fees, and how much they were. Especially, I'd like a heads up on what other taxes, fees, dues, etc... they may be "forgetting" to tell me about.

As of now I know my up front cost, maintenance fee, occupancy tax, and $198 utility fee. Anything else??

[Presley Senior Member Find all posts View Profile Close Presley]

Most timeshares only charge those types of fees to people who are exchanging in and not to owners.

I hope you are aware of the resale market and how you can buy the same resort for thousands of dollars less than buying directly from the resort. Do plenty of research before buying anything. Since things change and nothing is really guaranteed other than exactly what it says on your deed, make sure you buy something that you would enjoy using.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Utility fees are common in Europe, sometimes for all but sometimes just for exchangers.

[Luanne Senior Member Find all posts View Profile Close Luanne]

And occupancy tax (or whatever they call it) are charged in Hawaii, both to owners and exchangers.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Many Caribbean Resorts have a local stay tax - Caymans is $10US per day, Aruba varies by unit size.
Also common for Caribbean TS to charge for utilities - Morritt's Tortuga which is right next to the Reef, has each unit metered. I was in a 1BR and 2BR in March - 1BR was $65 and 2BR was $85.

[philsfan Administrator Find all posts View Profile Close philsfan]

All GPR resorts charge a daily fee. GPR owners do not pay the fee at the resort they own, they pay at all others.

The Diamond resorts in Hawaii charge fees per day. Diamond's fees are up to 25/day on Maui and Kauai. I suspect Diamond owners don't have to pay that fee, only exchangers. That doesn't include the daily tax Luanne mentioned. I don't remember paying a daily fee at a Diamond Resort in Sedona so maybe it is only in Hawaii.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Today may have been our deciding day for buying a Timeshare. I just needed to call The Reef on Grand Cayman to ask a few more questions. I found out that there is a $10 per day occupancy tax, $70 for the week... Not good. But then there's a utility fee of $198! $198 for one week worth of water and air conditioning??? Yikes!

They really should have told us about it from the beginning. It's almost like another maintenance fee, except that I will only pay it when I go to The Reef, not when I exchange.

I've searched the forum for other mentions of this utility tax and found only one, which was another resort on Grand Cayman. I called this other resort to find out the amount and they charge you according to your use. It could be $10 per day or some have ended up with a $300 charge for the week.

Finding out about these new costs this late in the game makes me afraid there may be other hidden costs that I am not being advised of. I'd like to hear if others have encountered utility fees, and how much they were. Especially, I'd like a heads up on what other taxes, fees, dues, etc... they may be "forgetting" to tell me about.

As of now I know my up front cost, maintenance fee, occupancy tax, and $198 utility fee. Anything else??

Also be aware that the Reef is a fixed week/fixed unit resort.
Morritt's Units float week 1-50.
I call at exactly 12 months out and get the reservation I want.....let me know if you are interested in more info about this resort.

[Ginny Junior Member Find all posts View Profile Close Ginny]

Also be aware that the Reef is a fixed week/fixed unit resort.
Morritt's Units float week 1-50.
I call at exactly 12 months out and get the reservation I want.....let me know if you are interested in more info about this resort.

Thanks, everyone for the posts.
Reading the forum has opened me up to the resale option. Now that this fee issue has made us put the brakes on, I see there is more research to do before we decide. I will need to look into the best way to buy resale and deal with reputable people, what to watch out for, etc...

GrayFal, The Reef explained the fixed week to work this way. It is fixed in that there is a specific week and unit on the deed, and we would automatically have that week reserved for us if we want it. But that is is floating in that it can be exchanged internally for no fee for any week in the same season. (Summer week for us) The Summer season for The Reef is weeks 17-50. It seems like a comparable way of doing things, without having to worry about jumping to get the reservation. But I'm learning as I go along here. There seem to be some tricks of the trade that I don't know. What do you think?

Also, we feel misled that we weren't told up front about the $268 in taxes and fees. I wonder if we wouldn't have found out till we got there, thinking we are all paid up and then get slammed with the bill. That would have stunk!

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Thanks, everyone for the posts.
Reading the forum has opened me up to the resale option. Now that this fee issue has made us put the brakes on, I see there is more research to do before we decide. I will need to look into the best way to buy resale and deal with reputable people, what to watch out for, etc...

GrayFal, The Reef explained the fixed week to work this way. It is fixed in that there is a specific week and unit on the deed, and we would automatically have that week reserved for us if we want it. But that is is floating in that it can be exchanged internally for no fee for any week in the same season. (Summer week for us) The Summer season for The Reef is weeks 17-50. It seems like a comparable way of doing things, without having to worry about jumping to get the reservation. But I'm learning as I go along here. There seem to be some tricks of the trade that I don't know. What do you think?

Also, we feel misled that we weren't told up front about the $268 in taxes and fees. I wonder if we wouldn't have found out till we got there, thinking we are all paid up and then get slammed with the bill. That would have stunk!

Honestly, I do not know why they would not have told you - as it is standard on the Caymans. I had a friend stay at the Reef in a two bedroom and it was over $320 for energy fee plus the $10 per day CI tax (also charged at all the hotels)....

[Ginny Junior Member Find all posts View Profile Close Ginny]

Most timeshares only charge those types of fees to people who are exchanging in and not to owners.

I hope you are aware of the resale market and how you can buy the same resort for thousands of dollars less than buying directly from the resort. Do plenty of research before buying anything. Since things change and nothing is really guaranteed other than exactly what it says on your deed, make sure you buy something that you would enjoy using.

Looked online at some resales at The Reef. Not seeing any great deals.

[SallyHoover Senior Member Find all posts View Profile Close SallyHoover]

Looked online at some resales at The Reef. Not seeing any great deals.

Like this Ebay auction for a biennial studio that will probably go for less than $200 including all closing cost vs the $7000 for the same unit advertised on thereef.com

Vacation Ownership Membership options start at under US$7,000 for a biennial (every other year) week in a Deluxe Studio, to over US$50,000 for a two-bedroom master suite at New Years. Many prime weeks are already sold out, but availability remains for a select few to join the ranks of our Membership.

There are a lot less reasonably priced resales at the Reef but they do pop up if you are patient. If you are having questions and can rescind if you already bought you should probably do so and make sure all your questions are answered.

Also even if you can't find an easy available seller to buy from you may have more luck renting from one. On redweek there are weeks during your time frame at $700 for a studio, $1025 for a one bedroom and $1500 for a two bedroom. These rates would not include the additional fees but neither would owning and you could rent without the ongoing commitment. If the weeks float you could ask the owners if they could change the dates to ones that work better for you.

[Ginny Junior Member Find all posts View Profile Close Ginny]

I see, we may just have to wait for a 1 bedroom unit to come up. We did not buy yet, so I'm glad of that. It seems risky to buy from an unknown seller thru ebay. Any thoughts on that.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Looked online at some resales at The Reef. Not seeing any great deals.

With any timeshare listed, I would make a lower offer, not accept the asking price. That is a good rule for any real estate, but especially for timeshare.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

I see, we may just have to wait for a 1 bedroom unit to come up. We did not buy yet, so I'm glad of that. It seems risky to buy from an unknown seller thru ebay. Any thoughts on that.

Most of them are OK, but always look at their feedback. Also, they tend to require closing thru a specific closing service at a price that's too high. Take all the costs into account.

[Ginny Junior Member Find all posts View Profile Close Ginny]

Are the eBay listing by individuals trying to unload their timeshare to get rid of the maintenance fees because they won't use it? Or is there some other angle going on?

Also, Is there any room for negotiating on maintenance fees, or are those pretty solid?

Last, The Reef will be sold in 2050 and 80% of the proceeds will be divided among the timeshare owners, according to their share. (2BR 1BR... Annual biannual). I can't find any info or opinions about that type of setup. Anyone familiar with it? Should this be in another thread? If so, no prob to move it.