Timeshare Users Group Forums
TUG Links external to TUG BBS:    TUG Home| TUG Resort Databases| Marketplace | TUG Help | Advice | Join TUG  

Timeshare Users Group Bulletin Board
Go Back   Timeshare Users Group Forums > Timesharing > Buying, Selling, Renting
Log into the TUG BBS:

Buying, Selling, Renting Discuss all aspects of buying, selling and renting timeshares here. No advertising allowed!

GLOBAL ANNOUNCEMENTS
TUG Turns 21 Years Old! Read More

Free Timeshare Exchanges on TUG! View current exchanges!

Free TUG Newsletter! Sign up today!

TUG Banner Travels the World! Follow the Banner!

 
Forum Jump


Reply « Previous Thread | Next Thread »
 
Thread Tools Search this Thread Display Modes
Old April 4, 2012, 10:06 AM   #1
Talent312
 
Talent312's Avatar
TUG Member
 
BBS Reg. Date: Jul 4, 07
Location: North Florida
Posts: 7,222

Resorts: HGVC, Gatlinburg
"Smart Money" discusses Timeshares [merged]

Personal finance magazine, "Smart Money" has discovered what is not-news to many here:

"Timeshare Prices Plummet to $1" is the title of this article at...
http://blogs.smartmoney.com/advice/2...-plummet-to-1/

"While real estate and even vacation real estate is starting to show signs of recovery, timeshares remain in freefall. During the first quarter, the number of for-sale-by-owner postings doubled compared to the same period a year ago on RedWeek.com, a popular resale site."

"Up to 48% of timeshare owners are behind on their annual maintenance payments by at least a year up from 37% in 2007, according to TimeshareResortCollections.com, which helps resorts to recoup past due payments."
__________________
.
.
"Carpe per diem seize the cheque."
― Robin Williams (revising his quote from Dead Poet's Society)

Last edited by Karen G; April 4, 2012 at 04:23 PM.
Talent312 is online now   Reply With Quote
Old April 4, 2012, 10:55 AM   #2
ronparise
 
ronparise's Avatar
TUG Member
 
BBS Reg. Date: Feb 10, 11
Location: Fort Myers Fl
Posts: 7,284

Resorts: Wyndham, Worldmark, and weeks in New Orleans, San Antonio, New Mexico and Hawaii
The word "investment" was used several times in the blog...and the conclusion is that in todays market you cant recover your investment. This of course assumes that you paid more than a few dollars for it

I for one would like to see an article written from the perspective of todays buyer:The guy like me, that pays a dollar or less for their timeshare. The question is...even at a dollar are timeshares overpriced??
__________________
Ron Parise

my website

my other website
ronparise is online now   Reply With Quote
Old April 4, 2012, 01:06 PM   #3
Rent_Share
TUG Member
 
BBS Reg. Date: Jun 10, 05
Location: SOCAL (562)
Posts: 4,695

Resorts: WorldMark 15K
Quote:
Originally Posted by Talent312 View Post
"Up to 48% of timeshare owners are behind on their annual maintenance payments by at least a year up from 37% in 2007, according to TimeshareResortCollections.com, which helps resorts to recoup past due payments."
Figures Never lie, liars always figure
Rent_Share is online now   Reply With Quote
Old April 4, 2012, 03:10 PM   #4
jaym
 
jaym's Avatar
TUG Member
 
BBS Reg. Date: Feb 22, 07
Location: MA
Posts: 271

Resorts: MMC
Post Smart Money article - Timeshare Prices Plummet

Not sure that this strikes many here as "news" but some interesting comments...are some of these folks TUG members?

http://blogs.smartmoney.com/advice/2...-plummet-to-1/
jaym is offline   Reply With Quote
Old April 4, 2012, 03:17 PM   #5
Timeshare Von
 
Timeshare Von's Avatar
TUG Member
 
BBS Reg. Date: Mar 13, 06
Location: Milwaukee, WI
Posts: 5,283

Resorts: FF/Wyndham Myrtle Beach/Westwinds (77k), Lifetime in Hawaii (Oahu)
Quote:
Originally Posted by jaym View Post
Not sure that this strikes many here as "news" but some interesting comments...are some of these folks TUG members?

http://blogs.smartmoney.com/advice/2...-plummet-to-1/
Yes I recognize a name or two as TUG members
__________________
Yvonne, aka TimeshareVon
Timeshare Von is offline   Reply With Quote
Old April 5, 2012, 03:08 PM   #6
uop1497
Guest
 
BBS Reg. Date: Apr 4, 09
Location: california
Posts: 85
Timeshare Prices Plummet to $1

This is an interested article on yahoo website today. I don't know if I am allow to post here . If not, Please delete it for me

I also wonder why the MF fee keep increasing, Does any expert here know the answer .

Here is the full article I copy from the link (http://finance.yahoo.com/news/timesh...met-to--1.html)
=========================================

no need to copy the whole article when the link to it is given

Last edited by Karen G; April 5, 2012 at 03:55 PM. Reason: merged
uop1497 is offline   Reply With Quote
Old April 5, 2012, 03:26 PM   #7
ronparise
 
ronparise's Avatar
TUG Member
 
BBS Reg. Date: Feb 10, 11
Location: Fort Myers Fl
Posts: 7,284

Resorts: Wyndham, Worldmark, and weeks in New Orleans, San Antonio, New Mexico and Hawaii
This has been posted here in another thread or two

My thoughts on increasing mf

1) Things cost more than they once did
2) Expenses stay the same (or go up) and the number of owners paying is going down (defaults and foreclosures are going up) so the share per paying owner goes up

One of the resorts where i own has bad debt equal to 17% of the budget
__________________
Ron Parise

my website

my other website
ronparise is online now   Reply With Quote
Old April 5, 2012, 03:37 PM   #8
BMWguynw
 
BMWguynw's Avatar
TUG Member
 
BBS Reg. Date: Jun 1, 06
Location: North of Seattle
Posts: 5,903

Resorts: Kauai Beach Villas
Brian Rogers, the guy mentioned in this article, is the owner of TUG. So none of this article is news.

Others here can express this better than I, but here are a few things in my opinion that may help to answer some of your questions:

Timeshares generally have little to no resale value. They are overpriced on the initial sale, as timeshare sales weasels try to squeeze every dollar possible from the buyer. They lie through their teeth, and artifically inflate the promised resale value, so when time does come to sell, the buyer ends up frustrated that they aren't getting that growth they were promised. For me, as a consumer, why should I spend thousands on a timeshare that I can buy resale for a dollar or two? Even if I purchased from the Developer at top dollar, by the time my turn came to use the week I bought, someone else would have already slept in that bed. So there is no difference in my mind between new and used. So for me, the real cost of a timeshare is not the purchase price -- it's the ongoing expenses like maintenance fees.

I also think what most timeshare owners have is not "real estate" - it's "vacation time." So expecting to sell a timeshare at a profit is unreasonable. Those who have done so in the last few years are the lucky ones.

For an honest value of a lot of timeshares, check the completed listings on Ebay. It'll show that even the very nice resorts are still selling for pennies on the dollar over Developer sales prices. And yet those Developers continue to sell them at the same sort of inflated pricing. So it's an artificial market.

I've bought and sold all my timeshares on the resale market for a dollar or two. When the time comes to sell what I currently own, I'll do the same thing. And I expect to have no trouble passing them along to their next owner. But I'm not selling "real estate." I'll be selling "vacation time."

Dave
__________________
2015: Spring in Las Vegas, Zion and Bryce Canyon National Parks. Summer on the Big Island & Oahu.
2016: More Hawaii, then Yosemite.
Serious fun!

Last edited by BMWguynw; April 5, 2012 at 03:40 PM.
BMWguynw is offline   Reply With Quote
Old April 5, 2012, 03:45 PM   #9
Ridewithme38
 
Ridewithme38's Avatar
TUG Member
 
BBS Reg. Date: Jul 14, 10
Location: Long Island, NY
Posts: 3,323

Resorts: Wyndham Patriots Place, Fixed Week 27, Lockoff, Sheraton Broadway Plantation, Biannual, 2br, Fixed week 34 & Gold PLUS
Quote:
Originally Posted by ronparise View Post
This has been posted here in another thread or two

My thoughts on increasing mf

1) Things cost more than they once did
2) Expenses stay the same (or go up) and the number of owners paying is going down (defaults and foreclosures are going up) so the share per paying owner goes up

One of the resorts where i own has bad debt equal to 17% of the budget
IF only the 'shares' of days to us went up with the 'shares' of how much you pay in MF's, i don't think it would be as big a problem as it currently is...If i was a billionaire i'd build a resort just like that!

Example: 100 rooms, 50,000,000 points split among all the buyers, if 5,000 people own they all get 10,000 points to use as they please, with .02% of the MF's...10% drop out, they now have 11,111 points to use and pay .022% each of the MF's

Last edited by Ridewithme38; April 5, 2012 at 03:47 PM.
Ridewithme38 is offline   Reply With Quote
Old April 5, 2012, 05:09 PM   #10
ampaholic
 
ampaholic's Avatar
TUG Member
 
BBS Reg. Date: Aug 25, 10
Location: Spokane
Posts: 2,188

Resorts: RCI points.
Quote:
Originally Posted by Ridewithme38 View Post
IF only the 'shares' of days to us went up with the 'shares' of how much you pay in MF's, i don't think it would be as big a problem as it currently is...If i was a billionaire i'd build a resort just like that!

Example: 100 rooms, 50,000,000 points split among all the buyers, if 5,000 people own they all get 10,000 points to use as they please, with .02% of the MF's...10% drop out, they now have 11,111 points to use and pay .022% each of the MF's
What a plebeian outlook! What would e.bram, Carolinian and others who were only allowed to own "prime weeks" do?
__________________
Rick

Talking about our problems is our greatest addiction. Break the habit. Talk about your joys.
Rita Schiano
ampaholic is offline   Reply With Quote
Old April 5, 2012, 07:04 PM   #11
slip
 
slip's Avatar
TUG Member
 
BBS Reg. Date: Mar 5, 11
Location: Reedsburg, Wisconsin
Posts: 1,554

Resorts: Pono Kai, 1 Br, 10 Weeks,2 Br, 4.5 weeks; imperial Hawaii, Annual Studio; Maui Schooner, 1 Br, 1 Wk Biennial od
I'm having a hard time believing 47% of timeshare owners are behind on their
Maintenance fees.
__________________
Aloha
Jeff

Up Coming Trips:

Oct '14 Pono Kai, Kauai, 2 weeks
May '15 Pono Kai, Kauai, 2 weeks
2015 Jockey Club, Las Vegas, 1 week
Feb '16 Pono Kai, Kauai, 2 weeks

My Website
slip is offline   Reply With Quote
Old April 5, 2012, 08:44 PM   #12
dioxide45
 
dioxide45's Avatar
TUG Member
 
BBS Reg. Date: May 20, 06
Location: Ohio
Posts: 16,102

Resorts: Marriott's Grande Vista, Marriott's Harbour Lake
Quote:
Originally Posted by slip View Post
I'm having a hard time believing 47% of timeshare owners are behind on their
Maintenance fees.
I agree, this number seems grossly high. I would expect the default rate to be at or around 20% max. If they were, then that means that everyone else's MFs has to be doubled to cover the shortfall. So when everything comes back to "normal" I can expect a 50% reduction in my MFs?
dioxide45 is offline   Reply With Quote
Old April 5, 2012, 09:11 PM   #13
MOXJO7282
TUG Member
 
BBS Reg. Date: Jun 6, 05
Posts: 3,847
This is old news if you ask me. $1 TSs have been around for awhile. Sure the bottom dropped out and prices are still not settledt but everyone on TUG knew that for some time.
MOXJO7282 is offline   Reply With Quote
Old April 5, 2012, 09:24 PM   #14
uop1497
Guest
 
BBS Reg. Date: Apr 4, 09
Location: california
Posts: 85
"Smart Money" discusses Timeshares [merged]

Karen,

Thank you for notify me about my post. I will keep that in mind.

After reading opinions ( from Tuggers) about the maintenance fee keep increasing. I just wonder if the owner have any power ( like voting) as a way to say No or to prevent the MF from going up.
uop1497 is offline   Reply With Quote
Old April 5, 2012, 11:38 PM   #15
Carolinian
Guest
 
BBS Reg. Date: Jun 6, 05
Location: eastern Europe
Posts: 9,418
Quote:
Originally Posted by slip View Post
I'm having a hard time believing 47% of timeshare owners are behind on their
Maintenance fees.
And that nugget coming from an entity that I had never heard of which CLAIMS to represent 80% of the industry! Looks like just an attempt at self promotion of their services.

Indeed it would not surprise me if the PCC's planted this story, and I am sure it is being passed out at their presentations these days. I would hope that timesharers would be smart enough not to fall into their trap and give quotes for stories like this.

While I am sure some owners and some resort areas are hurting in the recession, when I researched actual sales numbers in my resort area, this is way overblown. Resale volume has fallen only a little since before the economic downturn and average prices are about the same. The bargain basement of eBay is a tiny niche and not representative of the market because it is being systematically and deliberately depressed by market flooding by the PCC's.
__________________
Stressed, spelled backwards is Desserts - Have some!
Carolinian is offline   Reply With Quote
Old April 5, 2012, 11:44 PM   #16
Carolinian
Guest
 
BBS Reg. Date: Jun 6, 05
Location: eastern Europe
Posts: 9,418
That depends a lot on the timeshare. Many developers these days try to retain control over the HOA and management. If you are in one of those resorts, then your vote will always be just window dressing until owners unite and take control of their HOA away from the developer. These days, that is likely going to require a fight.

Many resorts, however, do have member-controlled HOA's, and that is the ONLY type of resort I would consider buying at. At those, if your HOA board is not doing the job you can vote to put in new people. As a member, you do have a real say in things. Some even require the annual budget including the amount of m/f to be voted on by the entire membership, not just the board. I have owned at two timeshares which operated that way.

This is an important aspect to check out in your due diligence before buying.


Quote:
Originally Posted by uop1497 View Post
Karen,

Thank you for notify me about my post. I will keep that in mind.

After reading opinions ( from Tuggers) about the maintenance fee keep increasing. I just wonder if the owner have any power ( like voting) as a way to say No or to prevent the MF from going up.
__________________
Stressed, spelled backwards is Desserts - Have some!
Carolinian is offline   Reply With Quote
Old April 5, 2012, 11:49 PM   #17
Timeshare Von
 
Timeshare Von's Avatar
TUG Member
 
BBS Reg. Date: Mar 13, 06
Location: Milwaukee, WI
Posts: 5,283

Resorts: FF/Wyndham Myrtle Beach/Westwinds (77k), Lifetime in Hawaii (Oahu)
Quote:
Originally Posted by uop1497 View Post
Karen,

Thank you for notify me about my post. I will keep that in mind.

After reading opinions ( from Tuggers) about the maintenance fee keep increasing. I just wonder if the owner have any power ( like voting) as a way to say No or to prevent the MF from going up.
And then you get the opportunity to pay a huge special assessment when it's time to update appliances or deal with major renovation projects.

"Pay me now . . . or pay me later".
__________________
Yvonne, aka TimeshareVon
Timeshare Von is offline   Reply With Quote
Old April 6, 2012, 08:44 AM   #18
ronparise
 
ronparise's Avatar
TUG Member
 
BBS Reg. Date: Feb 10, 11
Location: Fort Myers Fl
Posts: 7,284

Resorts: Wyndham, Worldmark, and weeks in New Orleans, San Antonio, New Mexico and Hawaii
Quote:
Originally Posted by Carolinian View Post
eBay is a tiny niche and not representative of the market because it is being systematically and deliberately depressed by market flooding by the PCC's.
How can you put "tiny niche" and "market flooding" in the same sentence. If the market is being flooded by the PCCs and they are using ebay, than ebay isnt a tiny niche......or if ebay is a tiny niche, than the PCCs arnt flooding the market
__________________
Ron Parise

my website

my other website
ronparise is online now   Reply With Quote
Old April 6, 2012, 09:10 AM   #19
timeos2
 
timeos2's Avatar
TUG Lifetime Member
 
BBS Reg. Date: Apr 11, 05
Location: Rochester, NY
Posts: 11,183

Resorts: Now Cypress Pointe w/Diamond Club,Cove@Yarmouth Former: RCI Points Rayburn Country, DVC/Wyndham - Wastegate gone gone!
Quote:
Originally Posted by uop1497 View Post
Karen,

Thank you for notify me about my post. I will keep that in mind.

After reading opinions ( from Tuggers) about the maintenance fee keep increasing. I just wonder if the owner have any power ( like voting) as a way to say No or to prevent the MF from going up.
In most cases, unless your resort/system is under the total control of a Developer that hangs on after they should be gone such as Hilton, Marriott, Wyndham and others that see the management as a prepaid revenue stream rather than the owners hard earned money, the resort HOA is made up of owners just like you that do all they can to hold costs down while hopefully maintaining and upgrading the resort to keep it attractive to owners and guests.

You vote for the Board members who then represent you. If you feel they aren't properly managing the funds/resort/fees then you can vote for different Board members. Realize that like your home or apartment costs are going no where but up. Thinking that fees can remain frozen or decrease is beyond fantasy. HOA's have to properly budget and collect for increasing operational costs, planning for upgrades and ongoing maintenance (reserves) and fund taxes (when was the last time those went down in your experience?).

If you see things like a guaranteed 15% profit or free iPads for Board members (both courtesy of Hilton, Marriott & other developers using owners fees) then you should be actively looking to change the makeup of your Board and demand responsible management - even if that means a change away from a Developer controlled group. If you have an owner based Board then support them if they are doing well - replace them if they aren't. You have control but you have to use it. Far too many timeshare owners don't even bother to return their owner proxies but then complain about fees or management. If you don't take an active role then you get to pay whatever those that do hold control bill you. Use the tools you are entitled to and you can help make a difference.
__________________
John Chase

ADOPT A TIMESHARE!
BUY RESALE!

Proudly Microsoft & Apple free with WebOS, Droid Samsung S4 & Verizon Wireless - DW w/Chromebook

timeos2 is offline   Reply With Quote
Old April 6, 2012, 09:30 AM   #20
bdh
TUG Member
 
BBS Reg. Date: Aug 12, 06
Posts: 358
Quote:
Originally Posted by timeos2 View Post
Realize that like your home or apartment costs are going no where but up. Thinking that fees can remain frozen or decrease is beyond fantasy. HOA's have to properly budget and collect for increasing operational costs, planning for upgrades and ongoing maintenance (reserves) and fund taxes (when was the last time those went down in your experience?).
So ever increasing MF's are not solely the result of developer/management company greed???

Rhetorical question - when it comes to MF's, that is just a fact that is seldom typed on the pages of TUG.
bdh is offline   Reply With Quote
Old April 6, 2012, 09:51 AM   #21
dougp26364
 
dougp26364's Avatar
TUG Member
 
BBS Reg. Date: Jun 6, 05
Location: Wichita, KS
Posts: 11,116

Resorts: DRI Polo Towers, MVCI Grand Chateau & Ocean Pointe, Grand Lodge on Peak 7, Spinnakers French Quarter, HGVC LV Strip
Quote:
Originally Posted by bdh View Post
So ever increasing MF's are not solely the result of developer/management company greed???

Rhetorical question - when it comes to MF's, that is just a fact that is seldom typed on the pages of TUG.

No, MF increases are not solely the result of greed. Prices tend to go up on most items, although it can be argued not every item (flat panel TV's for instance have seen decreases in cost).

As an example, I'm looking at replacing our furnace/ac units this fall. It's considerably more expensive than when they were originally purchased. I will be needing a new roof in the next 5 years. Again, considerably more expensive than the original roof. My washer/dryer will probably need replacing in the next few years as does my stove. I was shopping prices the other day and guess what? Yep, more expensive.

Then you have employee's. I don't know about you but most employee's expect an increase in wages each year.

How about insurance? My homeowners insurance was $700 only two years ago. This year it was $1,100.

Are your utilities less expensive than 10 years ago? I bet they're not.

Prices go up, costs go up, expenses are higher, MF's increase.

I'm not saying there isn't profit in it for management companies. If there wasn't, they wouldn't take the job. MF's are not 100% the result of some evil empire bent on milking you for every penny they can get.
__________________
Timeshare Photo's http://dougp26364.smugmug.com
dougp26364 is offline   Reply With Quote
Old April 6, 2012, 10:44 AM   #22
LannyPC
TUG Member
 
BBS Reg. Date: Jul 5, 10
Location: British Columbia
Posts: 1,103
Quote:
Originally Posted by dougp26364 View Post
No, MF increases are not solely the result of greed. Prices tend to go up on most items, although it can be argued not every item (flat panel TV's for instance have seen decreases in cost).

As an example, I'm looking at replacing our furnace/ac units this fall. It's considerably more expensive than when they were originally purchased. I will be needing a new roof in the next 5 years. Again, considerably more expensive than the original roof. My washer/dryer will probably need replacing in the next few years as does my stove. I was shopping prices the other day and guess what? Yep, more expensive.

Then you have employee's. I don't know about you but most employee's expect an increase in wages each year.

How about insurance? My homeowners insurance was $700 only two years ago. This year it was $1,100.

Are your utilities less expensive than 10 years ago? I bet they're not.

Prices go up, costs go up, expenses are higher, MF's increase.

I'm not saying there isn't profit in it for management companies. If there wasn't, they wouldn't take the job. MF's are not 100% the result of some evil empire bent on milking you for every penny they can get.
True, nearly everything goes up every year. I think the main complaint is that MFs seem to increase at a faster rate than the rate of inflation or the MF payer's wages.

Just using some round, random numbers to make a point, if last year's MFs cost someone 50 hours' wages, that person this year is probably paying somewhere between 51 and 52 hours' wages.

Another inconsistency with regards to the current economy and the MFs is that many workers (not the ones at the resort) have had their employers negotiate wage cuts and freezes in order to (allegedly) keep the company afloat and/or avoid layoffs. So why is it that the workers at these resorts keep getting handsome increases? Why can't their employers (and the employers themselves for that matter) negotiate and say, "Hey. We're having economic problems. Because of the economy and other factors, people are not paying their maintenance fees and our income is less. If we want to stay afloat and keep everyone's jobs, some concessions will have to be made."

Instead, their solution is to raise the maintenance fees.

I know at our company where I work, some concessions had to be negotiated and implemented in order to keep the company afloat. It just would have been nice (probably wishful thinking) for the brass to say, "Let's charge our customers more in order to keep our employees' wages and benefits in line with the regular rate of inflation."
LannyPC is offline   Reply With Quote
Old April 6, 2012, 02:13 PM   #23
bdh
TUG Member
 
BBS Reg. Date: Aug 12, 06
Posts: 358
Quote:
Originally Posted by dougp26364 View Post
No, MF increases are not solely the result of greed. Prices tend to go up on most items, although it can be argued not every item (flat panel TV's for instance have seen decreases in cost).

As an example, I'm looking at replacing our furnace/ac units this fall. It's considerably more expensive than when they were originally purchased. I will be needing a new roof in the next 5 years. Again, considerably more expensive than the original roof. My washer/dryer will probably need replacing in the next few years as does my stove. I was shopping prices the other day and guess what? Yep, more expensive.

Then you have employee's. I don't know about you but most employee's expect an increase in wages each year.

How about insurance? My homeowners insurance was $700 only two years ago. This year it was $1,100.

Are your utilities less expensive than 10 years ago? I bet they're not.

Prices go up, costs go up, expenses are higher, MF's increase.

I'm not saying there isn't profit in it for management companies. If there wasn't, they wouldn't take the job. MF's are not 100% the result of some evil empire bent on milking you for every penny they can get.
Absolutely Correct!

The reality is that things (flat panel TV's being the exception) do cost more each year. But its been typed many a time here on TUG that a lot of owners are disgruntled with their TS as they expect their MF to be the same $500 that it was when they bought 15 years ago.

I expect that the double whammy of the basic economy (stagnant or declining wages and increased travel costs) over the past couple of years and the normal (and sometimes unnormal when there is an developer or HOA out of control) increase in MF has prompted a lot of TS owners to bail. Hence the plethora of $1 TS.

No doubt that its a double edge sword: if a resort keeps MF unrealistically low and does not maintain and/or improve the property, the quality of the accommodations decline and owners no longer want to visit/own - if a resort does increase the MF for maintenance and improvements, its possible that the increases will price some owners out of the market.

Everyone wants a wonderfully maintained and updated TS, but not everyone wants or can pay for that. Obviously where the saying "You can't please 100% of the people 100% of the time" comes from.
bdh is offline   Reply With Quote
Old April 6, 2012, 02:14 PM   #24
mpumilia
TUG Member
 
BBS Reg. Date: Jul 16, 10
Location: Pine Bush, New York
Posts: 1,193

Resorts: Smuggler's Notch
Talking

Quote:
Originally Posted by dougp26364 View Post
No, MF increases are not solely the result of greed. Prices tend to go up on most items, although it can be argued not every item (flat panel TV's for instance have seen decreases in cost).

As an example, I'm looking at replacing our furnace/ac units this fall. It's considerably more expensive than when they were originally purchased. I will be needing a new roof in the next 5 years. Again, considerably more expensive than the original roof. My washer/dryer will probably need replacing in the next few years as does my stove. I was shopping prices the other day and guess what? Yep, more expensive.

Then you have employee's. I don't know about you but most employee's expect an increase in wages each year.

How about insurance? My homeowners insurance was $700 only two years ago. This year it was $1,100.

Are your utilities less expensive than 10 years ago? I bet they're not.

Prices go up, costs go up, expenses are higher, MF's increase.

I'm not saying there isn't profit in it for management companies. If there wasn't, they wouldn't take the job. MF's are not 100% the result of some evil empire bent on milking you for every penny they can get.
FYI - You have to shop all insurances every 5 years. For ex: my homeowners went up to $800.00 last year (from $475), so I said goodbye and went to another company for a bit more coverage and a $500 premium. Same goes for car insurance, etc. Just by the insurance actuarial "laws" your insurances will go up and then you have to switch to get a decrease.
mpumilia is offline   Reply With Quote
Old April 6, 2012, 02:35 PM   #25
timeos2
 
timeos2's Avatar
TUG Lifetime Member
 
BBS Reg. Date: Apr 11, 05
Location: Rochester, NY
Posts: 11,183

Resorts: Now Cypress Pointe w/Diamond Club,Cove@Yarmouth Former: RCI Points Rayburn Country, DVC/Wyndham - Wastegate gone gone!
Quote:
Originally Posted by dougp26364 View Post

I'm not saying there isn't profit in it for management companies. If there wasn't, they wouldn't take the job. MF's are not 100% the result of some evil empire bent on milking you for every penny they can get.
The problem is the tendency for the developer controlled resorts to have poorly written contract that allow for a 15% markup on virtually everything they do, Whee is the incentive to hold down costs if increases will automatically make you more money? And you hold all the control and can bill your owners whatever you feel they will (maybe grudgingly) accept? There is no control in those situations and owners take a beating from it.

No one thinks any management should work for free (they can't & survive) but they shouldn't be guaranteed XX% (wish my savings earned 1/2 that) for every dollar they raise. Something is serously out of whack with that.
__________________
John Chase

ADOPT A TIMESHARE!
BUY RESALE!

Proudly Microsoft & Apple free with WebOS, Droid Samsung S4 & Verizon Wireless - DW w/Chromebook

timeos2 is offline   Reply With Quote
Reply
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 07:38 PM.


Powered by: vBulletin Version 3.8.7
BBS Software Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Editorial Content Copyright ©1993 - 2014, Timeshare Users Group
Customized for TUG by Makai Guy.