RENT: Don't Buy

That's right.

There's an article about 3 Clever Ways to Save Money on Family Vacations. Amidst several other pieces of excellent advice there's the following suggestion:

"Rent a Timeshare

This option, I estimate, saves us anywhere from 30% to 50% off traditional resort accommodations.

We not only save money, but our lodging is more comfortable and roomy than typical hotel rooms. We typically enjoy a large, two-bedroom unit with a spacious kitchen. Ordering take-out food and making easy meals stretches our dollars.

You can find thousands of rentals posted by timeshare owners..."

It's true. Many timeshare owners are unable to vacation when they want, but they're still forced to pay for unused timeshare weeks. In order to minimize the financial loss they rent out the week for one-time-only bargain basement prices.

It might seem exploitative, but it's the way of the industry. Those who buy timeshares often regret it, leaving others -- such as prospective renters -- to benefit from unfortunate circumstances.

The people have spoken -- Don't Buy, RENT.

It's a Commitment

Another great timeshare-related news article comes our way this week from Europe. Originally posted on moneysmarts, user "Bianca" deconstructs the payoff that timeshares offer the ordinary consumer in simple terms:

"But believe you me, a timeshare costs an arm and a leg. It ranges from P250,000 to gazillions... It gives birth to other expenses – yearly maintenance fees (which went up from P2,500 to P4,000 in the blink of an eye), RCI fees, booking fees that could range from P2,500 (Asia) to almost P10,000 (outside of Asia). It does not include airfare, or the cost of food....

But it is not all bad, as we have found out in our two years of owning one.

With it, we only spend approximately P3,000 per night, and if the trip is stretched a week, the discount could be really substantial. Moreover, the accommodations are almost always one bedroom suites, and they say that if we are really kulit (translation: a charming *****) with the RCI agent at the other end of the line, or during low season (August to October), we could even be given a two-bedroom suite (good for 6 people). Match the hotel savings with really low airfare (through Clark, the other gateway to Hongkong, Malaysia, Singapore, Korea), it could satiate the wanderlust in anyone."

Satiating the wanderlust is a good way of describing the allure of most timeshares -- salesmen often claim that you can exchange your week for time at resorts all over the world. Who wouldn't want to be part of this exclusive club? Well, people who don't necessarily have the money to invest in the "savings" Bianca mentions above. She describes the unfortunate circumstances surrounding her parents' timeshare ownership, an event they deeply regret:

"They paid approximately P700,000 for both and they got seven days at a one bedroom suite at the back of the Flamingo in Las Vegas, Nevada (the sign on the wall says $1,000 per night and that was a source of a little comfort) and seven days at a one-bedroom suite at a manor near Legoland in California. Sounds plush, but however I do the math, it is not P700,000. They tried to save up their weeks and were planning to go to Europe but travel was put off year after year after year because the kids got married, houses had to be built, the farm needed to be farmed and so forth. The timeshares expired and they never got to go."

The timeshares "expired"? So they basically lost money and vacation time? This situations rings very true to us, we hear such stories all the time.

Bianca says it best here:

"A timeshare is a commitment. It is for people who love traveling with a passion, love to do research (for cheap airfare, great places, good food), and, at the onset, the temerity to haggle with the timeshare salesperson until that person buckles down and gives the lowest-value-for-money-price imaginable.

There will be hits and misses, we know. But we are passionately excited to see the rest of the world as a family, to hear the lyrical overtures of another language, introduce our daughter to life’s many wonders, and immerse ourselves in the magic of cultures so fascinatingly different from our own."

While we might disagree with some of the above we certainly agree that timesharing is a commitment -- and a large one at that. Individuals without any real estate experience should think twice before binding themselves to a contract where they'll be paying to vacation -- whether they do it or not.

Original article here.

More International Trouble

Timeshares are not only problematic here in the United States -- many Europeans also struggle with the same issues. Like here, the word "timeshare" is not always present in the sales pitch or the property being offered, but the business model is basically identical. "Holiday Clubs" across Western and Eastern Europe are quite popular, and scams are so rampant that last year the European Union organized a legislative crackdown that has yet to take effect.

We found this story from Malta's "Independent" on one of our many searches. Does the language sound at all familiar?

----------

A man who had a lucky escape from a timeshare con has warned others not to fall for the same trick.

The man, from Cowcliffe in the UK, who did not want to be named, was contacted by a Spain-based company that claimed someone wanted to buy his timeshare in Malta. He said: “They asked me if I was interested in selling and said they had a customer willing to pay a very good price for it. Then they said they needed a bond from me, and asked for my credit card details. That’s when I thought there was something wrong.”

The man contacted the consumer advice organisation Timeshare Consumers Association, which told him it was a fraud.

He said: “Somebody is going to fall for this at some point. People should be made aware of what’s happening.”

A spokesman for the Timeshare Consumers Association said: “This is a complete fraud. There are a lot of people who have a timeshare who want to get out but don’t realise it will be worth a fraction of what they paid for it.

“These companies, almost always from Spain, ring them up, having got their names and numbers from a stolen list, and claim they have someone wanting to buy. They then ask for credit card details for so-called security reasons.

“You should never send any money to any company on the promise of selling your timeshare – whatever reason they might give you.”

The original article.