FAQ of timeshare ownership

1) 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.

2) 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.

3) 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.

4) 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.

i) If you intend to return to your resort frequently and exchange occasionally, your best choice is a resort you enjoy often.

ii) 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.

iii) 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. 

iv) 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.

5) 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. 

6) What is a bonus week and how can I get one?

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.