Last week Disney opened the Grand Californian Hotel in Anaheim, complete with 203 rooms and 50 Disney timeshare villas, including two grand villas that are over 2400 square feet each and sleep twelve.

Hotel consultant Alan Reay says he expects the new Disney timeshares to perform well, even though timeshares are struggling elsewhere.

“This is sort of a unique situation. … The park is a highly desirable location for families,” said Reay, president of Atlas Hospitality Group in Irvine. “I think they will do well in the U.S. market.”

Disney Timeshare President Calls Business “Resilient”

Disney Vacation Club has around 440,000 members, which is roughly twice as many as it had four years ago. In an interview with the OC Register, Jim Lewis, president of Disney Vacation Club timeshare, explains that guests continue to enjoy timeshare vacations even during bad economic times because they are paying (or have already paid) for their vacation ownership.

Perhaps adding to the incentive to take a timeshare vacation is the fact that restaurants and other attractions are offering discounts to draw more business during these tight economic times. Many timeshare vacationers appear to be taking advantage of the deals.

“Even in a difficult economy, the business has proven itself to be resilient,” Lewis says.

Yes, there are marked declines in timeshare sales, but for targeted products such as Disney timeshares and other popular travel destinations, timeshare sales and timeshare resales remain strong.

Previous The Timeshare Authority Blogs about Disney timeshare:

What is so Great about September at a Disney Vacation Club Timeshare?

On September 19, The Timeshare Owners Blog told you about the three upcoming timeshare owners educational events – very important opportunities for anyone who owns timeshare or is thinking of buying timeshare or selling timeshare. And as information-packed and valuable as these regional conferences are for every timeshare owner, we gave them credit for being able to something they just can’t do … even the knowledgeable speakers and organizers for the National Timeshare Owners Association (NTOA) can’t be in two places at the same time.

So here’s the correct schedule:

• Sunday, October 4, 2009 Cherry Hill, New Jersey
• Sunday October 18, 2009, Orange County, California
• Sunday, November 1, 2009 Venice, Florida

You must be a member of the National Timeshare Owners Association to attend, but membership is benefit-laden and members agree that it easily pays for itself.

Are You an RCI Timeshare Exchange Member with Questions or Complaints?

The NTOA will have representation at the critical RCI timeshare exchange hearing scheduled for November 30. If you are a timeshare owner and RCI member, you just can’t afford to miss an NTOA educational conference. This is your chance to get the facts! New Jersey – California – or Florida – pick one and schedule to attend.

To learn more about these educational events, as well as all the bene fits of becoming an NTOA member, go to: www.nationaltimeshareownersassoc.com

When the US Senate passed the ‘Travel Promotion Act‘ earlier this month, US tourism and travel benefited directly but timeshare owners looking to sell timeshare may have benefited as well.

S.1023, the “Travel Promotion Act,” creates a public-private partnership for the purpose of promoting the US as a premier travel destination and to better explain US security policies to the potential travel market. This may not sound like a big deal until you learn that once it is put in place, the program is estimated to create 40,000 US jobs, drive $4 billion in new consumer spending, and reduce the federal budget deficit by $425 million.

The Travel Promotion Act is expected to drive millions of new visitors to the US with research showing that foreign visitors spend an average of $4500 per person, per visit. More visitors, more tourists, and longer vacations in the US all potentially add up to more timeshare buyers and timeshare renters.

Roger Dow, president and CEO of the U.S. Travel Association, says, “Nearly every company, city, state, and developed nation understands the power of promotion. By getting in the global game, America will create tens of thousands of new jobs and strengthen its image in the world as visitors leave with an improved perception of our country and her people.”

Bill Marriott, chairman and CEO of Marriott International, which includes Marriott hotels and Marriott timeshares, is a strong supporter of the new legislation. He points out, “In 2008 the US welcomed fewer overseas visitors than we did in 2000, despite the fact that 48 million more people were taking overseas trips to countries around the world. So, the pie grew big, but the U.S. got a smaller piece. It’s high time we start marketing ‘Brand America’ and let people know we’re open for business.”

I couldn’t agree more, and best of all, none of the money to fund the program will come from taxpayers, which makes it a doubly beneficial to the American economy.

It would be ignoring the elephant in the room not to talk about the announcement made by Marriott Timeshare earlier this week. The company stated that it plans to take a third-quarter pretax charge of $760 million in its timeshare business.

Bloomberg.com says that Marriott timeshare will stop development at some luxury fractional resorts and will sell undeveloped land. Additionally, Marriott timeshare will sell its inventory of rooms in a new program with Ritz-Carlton Destination Club.

So, what does this really mean?

Hard to say exactly how all the ramifications will work out, but this news indicates that as a percentage of Marriott’s overall business, timeshares will occupy a smaller percentage than it has in the past. If one is to read between the lines, it appears that Marriott timeshare will still be part of the inventory of products offered by Marriott International, but that the company is cutting back primarily in its development of luxury timeshares and ultra high-end fractionals. According to The Wall Street Journal, “Marriott said it doesn’t expect ‘to pursue new Marriott-funded‘ residential timeshares, but does expect to continuing licensing and managing projects developed by others.” What makes this statement even more interesting is the fact that many Marriott branded and Marriott managed hotels are not owned by the Marriott company at all, leaving one to believe that Marriott is just as committed to their timeshare business as always, but plans to focus more on property management and branding and less on development.

Jake Fuller, an analyst with Soleil Securities Group Inc says, “Marriott has shifted from development mode to cash-harvest mode in its timeshare business.” Fuller rates Marriott shares as a ‘buy’ stock, and explains, “This timeshare business will now produce cash instead of use cash.”

Marriott will take a charge of approximately $300 million at nine fractional- ownership projects in North America; $295 million at five luxury residential projects; $95 million at one North American timeshare resort project; $55 million at four European timeshare resort projects; and $15 million associated with two Asia-Pacific timeshare resorts. At this time, Marriott Timeshare has not disclosed the names of the timeshare resorts on this list.

Here’s What Marriott Timeshare Owners Can Expect

If you are looking to buy Marriott timeshare resales, now could be a good time to do so because it is possible that a slowdown in the construction of Marriott timeshare resorts will increase demand in the future for Marriott timeshares on the resale market. And if you already own Marriott timeshare and are considering selling, interest in Marriott timeshare resales may increase as prospective buyers try to second guess what the market will do. But here’s one thing I don’t need a crystal ball to predict: if you own Marriott timeshare, you should continue to expect the same standards and service you have come to associate with the Marriott brand.

In our last two blog posts, The Timeshare Authority has looked at options for refinancing timeshare or selling timeshare on which you still owe debt. Here in Part 3 of the series, we’ll look at borrowing money against a timeshare you own.

Once upon a time (which is how so many fairy tales begin) timeshare owners with good credit could sometimes borrow money against their timeshare. Opportunities to do so were never abundant but there were a few specialized companies that offered loans under specific circumstances. Two such lenders, Tammac Financial and First Again, were mentioned in Part 1 of the series, but due to the current economic climate neither company is making this type of loan.

Although you will probably not be able to find any lender today who wants to loan money against your timeshare, that doesn’t mean that you are without opportunities to make your timeshare pay off. One option is to use your vacation ownership property as a timeshare rental.

The Value of Renting Timeshare

It always surprises me how many people miss this opportunity, but if you are not using your timeshare for your own vacations and travel, why not take advantage of it as a timeshare rental? Every year timeshare owners let their timeshare weeks or intervals go unused because of illness, schedule conflicts, or any number of other reasons. Yet, if you rent timeshare for an amount of money equal to your annual fees, then you have covered your expense for the year. And if you rent timeshare for more than your annual fees, you have actually recouped money which you can use in any way you choose, including applying to your timeshare loan payment. To learn more about the possibility of turning your unused timeshare week into timeshare rental cash, visit the Sell My Timeshare NOW website or talk to the timeshare rental specialists by calling: (877) 815-4227.

While there presently may not be as many alternatives available in timeshare financing or timeshare refinancing as there have been in the past, you do still have options. And whether you have made good choices in the past about buying or selling timeshare, the important thing is that you make good choices now and in the future. There is no such thing as a one-size-fits all answer to your timeshare concerns, so take the time to ask questions, get information and find the solution that is right for you.

Parts 1 and 2 in this series:

• Can You Refinance Your Timeshare or Timeshare Resale? Part 1 of 3
• Can You Refinance Your Timeshare or Timeshare Resale? Part 2 of 3

This is Part 2 in a three-part series on refinancing timeshare and related timeshare opportunities. Part 1 dealt with how timeshare owners can refinance timeshare on which they are still making payments. Today’s post looks at how timeshare owners can sell timeshare on which they still owe money.

While yesterday’s timeshare blog on refinancing timeshare could only offer a few suggestions, today’s topic offers brighter news … yes, you can resell timeshare, even if you have not fully paid for it. In the same way that you can resell a house or car on which you still owe money, you can also sell timeshare on which you owe debt. But – and this is critical – you must be able to pay off your original debt in the process.

The holder of your existing lien on your timeshare will not release the deed to the new owner until you have satisfied any outstanding debt on the loan. If you owe $5000 on your timeshare, for example, you will need to sell it for at least $5000 in order to break even on the transaction, and to walk away free of the debt and free of the timeshare. If you sell timeshare on which you owe $5000 for an amount greater than the outstanding debt, then the balance above $5000 is yours to keep. Typically, this money is held in escrow during the timeshare sales transaction and is released to you when the timeshare sale is finalized.

It could even make sense for you to pay off part of the debt yourself in order to get your timeshare sold. Perhaps you owe $5000, and the best offer you receive for your timeshare is $4000. You might decide it is worth it to pitch in the additional $1000 needed to retire the debt in order to sell your timeshare. After all, you probably have timeshare maintenance fees coming up each year that mean if you turn down the sale, you will still be paying on your existing timeshare loan plus you will be paying those annual fees and taxes. If your timeshare annual fees are near the average (around $600) then it soon becomes worthwhile to contribute to the sale by paying down any difference in your debt and your selling price, get your timeshare sold, and eliminate timeshare annual fees from your future.

How Much is Your Timeshare Resale Worth?

Knowing how much your timeshare resale is worth and how much you can expect to sell it for are important first steps in preparing to sell timeshare you no longer want to own. You can get a general idea about the value of your timeshare by looking at the median price people are asking for their timeshare resales. Don’t try to average the asking prices to come up with your target price because some timeshare owners ask a price that is much too high while others ask too little. Instead of looking at the average, look at the median price (the number that falls directly in the middle of the range of prices asked) or the mode, which is the price that occurs most frequently.

An even easier and more reliable way to find out what your timeshare is worth on the timeshare resale market today is to contact Sell My Timeshare NOW at http://www.sellmytimesharenow.com/owners/index/content/marketsell/. Complete the short questionnaire about your timeshare and we will send you a free Timeshare Value Report. Now you can compare your timeshare against other properties of similar size and amenities and that are during a comparable season.

Part 3 of this series (tomorrow’s The Timeshare Authority blog) will address the possibilities of borrowing money against a timeshare you own in full.

Link to previous posts in this series:

With everyone looking to cut back on monthly bills, Sell My Timeshare NOW is often asked how timeshare owners can refinance timeshare on which they are still making payments. Timeshare owners also want to know whether they can sell timeshare they still owe money on, and whether they can borrow money against a timeshare they own in full.

These are all very important and timely questions and over the next three days, The Timeshare Authority will look at each of these issues, starting with if and how you as a timeshare owner can refinance a timeshare on which you are still making payments.

First let’s be candid and say that money is tight everywhere and credit is even tighter. But if you can lower your interest rate, you will lower the monthly payment you are making on your timeshare.

Suppose you owe $5,000 on a timeshare that is financed at 17 percent interest. If you take 5 years to pay off the debt, your monthly payment will be $124.26, for a total payout of $7455.60. If you can get the interest rate down to 11 percent, you only save $15.55 per month, which doesn’t seem like much, but over a five year period adds up to $933 saved. And who turns down $933?

Now let’s do the same comparison using a larger debt. $25,000 owed on a timeshare, financed at 17 percent means a monthly payment of $621.30 over a five-year period. At 11 percent, the monthly payment drops to $543.56. The final tally on the higher interest rate comes to $37,278, while at the 11 percent rate comes in at $32,613.60—a savings of just over $4,664 during the five-year payoff period.

For further comparison, let’s look at the $25,000 debt at both interest rates, only this time spreading them out over 10 years. At 17 percent, but a 10-year payoff, the monthly payment drops to $434.49, while at the 11 percent interest rate over this same period, the payment drops to $344.38.

Clearly, if you can refinance timeshare debt taking your monthly payment from $621.30 (the higher interest rate, shorter term) to $344.38 (the lower interest rate and the longer term), that’s enough reduction to provide relief in many household budgets. However, remember that as good as it sounds to save almost $277 monthly in your payment, in the option that calls for lower interest but also longer term; you are paying more money in the end—substantially more. That innocent sounding $344.38 turns into a whopping $41,325.60 when paid out over a ten-year period.

If you need the relief now, then it makes more sense to get into a payment plan you can afford than go with one that will result in late fees, negative items on your credit report, and ultimately higher interest rates on everything you buy. When current cash flow dictates that you must opt for paying off a debt more slowly in order to keep your monthly payments as low as possible, you can try to offset the long-term cost of the interest by paying extra payments whenever possible to ultimately shorten the period of your debt and lower the overall amount.

We used 17 percent as our higher interest rate because many timeshare companies that offer on-the-spot financing have historically done so at roughly this rate. For comparison, we used 11 percent, because consumers can often obtain credit cards with 11 percent interest rates, and transferring your timeshare debt from developer financing to a credit card may be an option for some timeshare owners. If you happen to have a credit card with a lower than 11 percent interest rate, then your savings will be even greater.

The Changing Financial Picture Limits Timeshare Refinance Options

Yet many consumers with excellent credit histories have been surprised to see their credit limits slashed at the same time their credit card company has increased their interest rates. With less open credit and a higher interest rate, refinancing timeshare to your credit card may not be your best option.

In 1996, Tammac Financial became one of the first lenders to offer timeshare refinancing, among its loan products. At this time however, Tammac Financial is not accepting timeshare financing applications, and explains it with this message that appears on its website, “Unfortunately, due to economic conditions beyond our control we are no longer accepting new loan applications.”

Another lender with a history in timeshare financing and timeshare refinance is First Again, however, currently, their website bears a similar message, “Unfortunately, due to economic forces beyond our control, First Again is presently unable to accept new loan applications; however, we are continuing to service our existing customers and recent loan applicants.”

If you belong to a credit union or have a good standing with your bank, you may be able to obtain a signature loan to refinance timeshare debt. These loans do not use the timeshare to collateralize the debt, which means there is no reason for add-on costs to the loans such as a timeshare appraisal. In fact, there are very few instances in buying or selling timeshare or financing timeshare (either new or as timeshare resales) in which you need a timeshare appraisal.

Before you make any decisions about refinancing a timeshare or transferring existing debt on your timeshare loan, look at the following:

1. Does your current loan have a prepayment penalty?
2. Does the new financing you are planning to obtain have such a penalty?
3. Are you currently able to claim your timeshare mortgage interest as a tax deduction?
4. Will you be able to claim your timeshare mortgage interest if you transfer the debt to a new loan or a credit card?
5. Are there origination fees or transfer costs for setting up the new debt?

Somewhere in your desk drawer, you have a calculator. Get it out and use it to fully analyze and compare your options. Run multiple scenarios, just as we have done in the comparisons above.

If you are uncertain about changing the way you finance your timeshare, talk with your financial advisor, bank representative, or someone you trust and who is well versed in personal finance. These days, we all need to think twice and act prudently when it comes to our dollars.

And check in with The Timeshare Authority for tomorrow’s timeshare blog; we’ll be looking at your options for selling timeshare on which you still owe money.

In a world where good customer service in any type of business just doesn’t happen as frequently as it should, this account of great service in timeshare exchange is welcomed news.

Timeshare owner, Rodney Van Housen wrote a Letter to the Editor that ran in the September/October edition of Timesharing Today. He chronicled the excellent customer service he received while trying to reserve a Branson timeshare, followed by a consecutive week in a Texas timeshare through the timeshare exchange company Interval International.

Mr. Van Housen had several specifications to address in arranging his timeshare exchange. His range for travel dates was narrow and he wasn’t sure if his timeshare points would cover both timeshare exchange weeks. But the representative at Interval International was undaunted by the challenge. So over the course of a three-hour international phone call, during which the representative and Van Housen were disconnected twice, plans were made, adjusted, and remade until finally the timeshare owner had just exactly the timeshare exchange he wanted.

Yes, You Can Exchange Timeshare

I’ve heard it before and so have you: the allegation that you can’t exchange timeshare. And timeshare owners who try to exchange timeshare but cannot be flexible about dates and resorts may have a harder time getting the timeshare exchange they want. But testimonies like this one from Timesharing Today are proof that the option to exchange timeshare really does increase its vacation value for the owner. And whether you want a Branson timeshare, a Texas timeshare, or a Manhattan timeshare condo, the combination of persistence and a dedicated timeshare exchange company are the ingredients that make the important difference.

Golf’s elite players and most ardent and well-heeled fans thought they were all set to become timeshare owners at St. Andrews. Four years ago, Wasserman Real Estate Capital secured the consent of planners to convert Hamilton Hall at St. Andrews into luxury timeshares.

The 114-year-old historic building, which sits adjacent to the Royal & Ancient (R&A) Golf Club of St Andrews, was once the famed Grand Hotel of Scotland where Edward VIII, George VI, and even Rudyard Kipling vacationed by the sea. In 1949, the building was converted into student housing for the University of St. Andrews and was used as such until it was sold in 2005 to Wasserman for approximately £20 million.

However, we all know what has happened to the real estate market since the celebratory day when Wasserman announced it had secured £84.3 million in project finance from Bank of Scotland. Instead of building 23 luxury golf timeshare apartments to be sold to 115 timeshare owners as “resident memberships” for between £750,000 and £1.9 million, (plus annual fee), Bank of Scotland found itself repossessing the property that Wasserman could no longer afford.

Now the Good News about Golf Timeshare at St. Andrews

Yet news last week says the golf timeshare project may be back on track. American businessman Herb Kohler, (a name you may recognize from the fixtures in your bathroom) already owns the luxury Old Course Hotel that sits at the other end of St. Andrews’ eighteen hole. And reports say Kohler is in the market to purchase the Hamilton Hall property for an estimated £14 million to £15 million.

Pending any unexpected problems or protests by Wasserman that believes it was unfairly evicted, Kohler may soon be the new owner of Hamilton Hall and golf timeshares on the eighteenth at St. Andrews may become a reality after all.

The National Timeshare Owners Association (NTOA) announces three noteworthy Timeshare Owners Meetings.

• Sunday, October 4, 2009 Cherry Hill, New Jersey
• Sunday October 18, 2009, Orange County, California
• Sunday, October 18, 2009 Venice, Florida

The NTOA meetings will include an important update on the RCI lawsuit coming up November 30. This lawsuit affects every RCI member. Get the facts and make your opinions heard. The NTOA will have representation at all the RCI hearings.

Featured speakers will include the following timeshare industry experts, however not all speakers may be present at each location:

• Shep Aslshuler: Publisher of TimeSharing Today magazine and TimeSharing Express, will speak on topics of great concern to NTOAmembers and timeshare owners, including the importance of reading your timeshare documents and assessments.
• Woody Cary: President of Tri Com Management Co. who will speak on what you should expect from your management companies.
• Lisa Ann Schreier: author of “Surviving a Timeshare Presentation” and “Timeshare Vacation for Dummies’ which every timeshare owner should read. Available thru NTOA.
• Sandra Herrejon: of Platinum Interchange who will speak on how to make an exchange without paying a membership fee and more.
• Ed Hastry: founder and president of the National Timeshare Owners Association

I will also be among the featured speakers, and I really looking forward to this opportunity to share and exchange information with timeshare owners. These educational conferences are always extremely beneficial for everyone who attends.

Bring your questions, problems, struggles, and dilemmas, because this team of experts is committed to sending you home with the empowering information you need, to get the most out of your timeshare experience.

To find out more about the meetings and the benefits of becoming an NTOA member, go to: www.nationaltimeshareownersassoc.com