Timeshare Owners

Towns across America are weighing their options, and their decision determines whether the new style of resort will be built in their areas. What’s the deciding factor? It pretty much comes down to the taxes.

In an October 16 meeting with town council members at Snowmass Village, Colorado, Hyatt Vacation Ownership vice president Larry Shulman and fractional developer Pat Smith explained Hyatt’s intent behind their recent application for a land use permit.

Hyatt Vacation Ownership is seeking to develop vacation properties to fill a new niche market. According to John Burlingame, a Hyatt Vacation Club vice president who had previously spoken before the Snowmass Planning Commission, more families are traveling together as a group. There is also a trend among extended families to buy shared vacation property. Hyatt referred to the concept as “togethering.”

To meet this specific need, Hyatt wants to offer fractional ownership of 51 residences, seven of which will be five-bedroom units; 25 will be four-bedroom units, with the others offering either one, two, or three bedrooms.

While council members were concerned about maintaining high occupancy of these larger units, Shulman reminded the group that timeshare owners typically either trade their week or rent it directly to another vacationer. Any Hyatt timeshare units that are not rented are listed in the global Hyatt reservation system as part of the Gold program, making them available to roughly one half million potential renters.

Hyatt estimates that if construction stays on schedule the properties will be available for occupancy in late 2009. By that date, Hyatt estimates that the active membership of the Hyatt Vacation Club will number somewhere around 40,000 members.

How does this impact the tax issue? Occupancy rate is the crux of the matter. Can a Colorado timeshare or fractional resort with a higher occupancy rate generate more tax money for the town via individual owners than a hotel with a lower occupancy rate but the added benefit of sales tax on top of property tax? Snowmass Village will be letting Hyatt and the rest of us know what they think.

Tell us about your experiences with “togethering!” How does it work for your family? Do you stay near home, or go somewhere in between Cousin Louie in Louisiana and Aunt Elma in Washington state? What timeshare company or fractional resort has been most accomodating for your large gathering?

At the end of October, a new state law, S-1321, The New Jersey Real Estate Timeshare Act, will come into effect, placing rigorous demands on companies that sell new timeshares. The intent is to “ensure that the sale process is transparent and buyers are better protected,” according to the October 11, 2006 edition of www.northjersey.com.

New Jersey’s new law will place regulatory authority for timeshares appropriately in the hands of the New Jersey Real Estate Commission, rather than splitting it with the Department of Community Affairs. The new law will require timeshare companies to adhere to tougher escrow controls. It also mandates that developers prepare and publish a public offering statement providing detailed information about the responsibilities and rights of timeshare ownership.

The new law, which was signed by Governor Jon Corzine on August 2, will cover all timeshares sold by a company located within the state of New Jersey, whether or not the property itself is a New Jersey timeshare.

This is an excellent step forward for those buying timeshares directly from resorts or developers. But remember, there are more cost-effective, easier ways…

At SellMyTimeshareNOW.com, we have built transparency into our daily business. When it comes to the selling or reselling of timeshares, there is only one acceptable way to run a business: put all your cards on the table and invite consumers to scrutinize your methods. We do it every day at SellMyTimeshareNOW.com. Check out our website, talk with our sales reps, and see for yourself how we do business.

The Perfect Combination:

Edgartown is beyond charming; it’s elegant, like so many other areas along the Massachusetts coast. So it’s little surprise with the soaring property values on the historic island of Martha’s Vineyard that someone (in this case Russell Urban and his company, ULF Edgartown LLC,) found a way to give a few more people the chance to own property at this highly desired summer retreat.

Within the next few weeks, Edgartown Residence Club will be open for business, with six luxury condominium fractional apartments. Ownership amenities will include exclusive use of an automobile while in residence, a personal concierge, a service to pack, unpack and store your private possessions, airport and ferry shuttle transportation, daily housekeeping and pre-arrival grocery shopping. Each of the maximum 72 owners will have up to 21 days of annual usage and entry pricing begins at just over $90 thousand.

Edgartown was the first colonial settlement at Martha’s Vineyard and has been the county seat there since 1642. Many of the existing private homes predate the whaling era. No doubt the early residents would have been amazed that some of these same homes today sell for upwards of $20 million. And no wonder fractional owners are anxious to own their piece of this for less than a hundred grand.

Special terms apply when canceling bonus timeshare

Earlier this week I mentioned the incredible values offered by RCI through bonus time. The same types of great timeshare deals can be had from Interval International, and in many cases, through your resort itself. Timeshare bonus time represents some of the best-priced vacation opportunities available on any terms and with timeshare vacation pricing this good, you can’t complain about the cancellation fees. You do, however, need to realize that cancellation penalties exist and that the rules are different for changing last minute timeshare (bonus time) than they are for changing your regular timeshare weeks or points.

As an example, look at the cancellation policies for Resort Condominium International. RCI’s current policy is: cancel within 24 hours of confirming the reservation and as long as the start date of the reservation is fifteen days or more in the future, you receive a full refund on your payment. You receive 50 percent refund if you cancel between 15 and 60 days of your start date and 70 percent refund if you cancel 61 days or more before the first day of your confirmed start date. However, if you cancel after 24 hours of making your timeshare reservation, and it is within two weeks of your scheduled reservation start date, you receive zero refund.

Know the policy before you buy and then take advantage of incredible vacation pricing as often as you can.