Vacationers are loving their timeshares!
The industry association’s research group, along with Ernst & Young, just released its State of the Vacation Timeshare Industry: United States Study for 2015.
It shows that the timeshare industry enjoyed steady growth in 2014.
Here are a few of the highlights:
When comparing 2014 to 2013:
- Sales volume increased more than four percent, to $7.9 billion.
- There are 1,555 timeshare resorts in the United States, representing about 198,490 units.
- The average resort size was 128 units.
- The average sales price was $20,020.
- Occupancy increased two percent, up to 78 percent, compared to a 641 percent hotel occupancy rate.
There were some other interesting facts to note as well:
- 70% all timeshare units are two-plus bedrooms. An average one-bedroom unit is 700 square feet; an average two-bedroom unit is 1,160 square feet and an average three-bedroom unit is 1,590 square feet—compared to the average hotel room size of 350 square feet.
- Beach resorts are the most common type of resort.
- Theme park resorts have the highest occupancy.
- Florida has the most resorts—23% of the national total.
- Nevada has the largest average resort size—182 units on average.
- Hawaii has the highest occupancy rate for a region, at 85.3%.
So WHY DO people invest in one?
Well, I can’t read other people’s minds but speaking for my husband and myself, it comes down to several key factors.
- It’s less of an initial expense than a full purchase and yet, gives us the luxury of spending a set amount of time in a familiar place that we enjoy each year. We know the beds are comfy and exactly what to expect!
- No surprises…we know the location, the amenities, the look of the rooms, the resort employees even become familiar.
- It’s a home away from home and as soon as our familyphotos are unpacked and displayed one would never dispute we certainly feel comfy!
- It gives us no excuses for not getting away each year and finding that quality time together.
- Neither one of us are much for traipsing around packing and unpacking suitcases and we both like the idea of feeling home where-ever we are. We now own several timeshare weeks – in Cabo and in PV, and they’ve become an integral part of our lives.
- You can donate your timeshare weeks up for charity, should you be so inclined on any given year.
- Many properties allow for trading with other properties so you can vary your destination year to year. We have tended not to do this as we adore our destinations and literally can’t wait to get there each year.
- Another thing that makes sense, is to rent your week out on VRBO to another family, if say, your plans take you elsewhere that year
- Timeshare units are double to quadruple the square footage as a hotel room! That’s another reason that this is such a favorable option, especially for families.
As far as PROS & CONS of owning a timeshare there are many and this article from Forbes illustrates the many things to consider. There are literally 4 kinds of timeshares from fixed week (which we have) to floating, right-to-use and points club.
Many people agree, it’s not something you do “for investment” purposes unless you think of it as investing in a life style with purpose!
It’s important, as in all transactions, you listen to your gut and do your research, to the extent of actually staying on property first, before signing on the dotted line. Don’t get caught up in a scam – be SMART read this.
Seven things to think about:
- Don’t do this for the kids – do it because it makes sense for you – now and in your future, for the right reasons. Your children may not prefer what you opt to do on vacation, nor have the time or money to get to the destination, each year.
- Selling them is usually not a profitable proposition. You cannot claim a loss on a timeshare as a capital loss on your income taxes. All our timeshares, are in Mexico and we’ve had tremendous luck and no regrets with both our properties.
- Good rule of thumb is; if you have to borrow the money for a timeshare – don’t do it!
- There is more protection if you have an owners club or association tied to your purchase, the old adage is so true – there is more strength in numbers.
- Obviously, if you feel uncomfortable with the answers the salesman is offering – walk away fast!
- Never pay upfront without visiting the property and determining which unit you will be in and the lay of the land inside the specific property. We own in several timeshares in both of these properties in Mexico. They were built by a famous architect (Ed Giddings) with an instinct for the culture and love for the traditions of this lovely land. His property in CABO was one of the first vacation timeshare properties built there and is a mere three stories high. He wanted it to remain an integral part of the landscape and not be a skyscraper. The members in both of these properties end up buying plural weeks in various units and stay members for thirty plus years. For more info on the Top TIMESHARE RESORTS in CABO according to TripAdvisor.com look here.
One of ours is called Ocho Cascadas in PUERTA VALLARTA – “Ocho” stands for the 8 waterfalls and this unique destination is a total of only 9 villas – This was Ed Giddings first architectural project and is stunning! Everything except where you sleep, is truly an outdoor living experience (think about it!) and “is tucked into the gorgeous Banderas Bay, featuring amazing views and stunning architecture that creates a unique way to experience the beauty of Puerto Vallarta.” With so few units in the entire property (9), you have the ability to meet and get to know others, there for the same week that you bought into, year after year. If you’d like to go see this spectacularly unique property, you can stay at Ocho one time only for a full week on inspection at well below rental rate and if you decide to become one of our Charter Owners, we apply a portion of your inspection towards your purchase. We did this with one other couple and both couples purchased a week simultaneously situated so we could enjoy swapping and overlapping our stays.
They will, for a nominal fee put groceries in your unit and fresh flowers as well. We also hired a private chef one night and the groceries for the six of us was $64. + $40 service fee for chef plus tip! It was an outstanding evening with Rib-Eye steaks, baked potatoes, grilled veges, homemade salad dressings and you guessed it – FLAN! We were concerned about the diet of one of our friends, so stayed away from cheesy entrees, as, so much of the local cuisine is filled with. Sitting there, in our outdoor villa and watching this lovely lady, Elaine, make us a scrumptious homemade meal – was extraordinary.
For information, call Dave Stoenner in the California office at 949 640 8740 or firstname.lastname@example.org
The other timeshare we own is in Cabo, called Club Cascadas, “it’s perfectly situated on the white sandy Medano beach facing the Sea of Cortez. Club Cascadas de Baja features old-world architecture with the atmosphere of new-world adventure and relaxation through its many beachfront villas.” We barely ever leave our property there while on site, as it is all-inclusive. There’s several restaurants visible right there and the property has one of the best restaurants we’ve experience in Cabo. This is a much larger property with two pools, tennis courts, kids club, spa and many other features. My husband has owned there for over thirty years. Should you want more info Rory King, the Sales Manager, is the one to speak to at 1-888-846-5571 or email@example.com
This probably sounds like a plug for both of these lovely properties, but honestly, they are so terrific it seems unfair to keep them all to ourselves…haha! In fact if you’d like to explore Timeshare ownership in general here’s a terrific resource: Resort Exit Team