[net.invest] Timeshare Condominiums

pmd@cbscc.UUCP (Paul Dubuc) (01/18/84)

In adding to the discussion of timeshare condominiums, I would
like to share my experiences as a timeshare owner.

About 3 1/2 years ago I purchased two timeshare weeks at a resort
called Fairfield Glade, near Crossville, Tenn.  The resort was
developed by a company which also has several similar resorts in
the southern states, mostly (All have "Fairfield" in their name).

They used a common ploy to get us to come and listen to their
sales pitch--two free nights in their lodge and $50 cash.  We decided
to make the trip, since we wanted to vacation in that area anyway.
The salesman we had was not the high pressure type.  He showed us
a short film explaining how timeshares work, gave us the financial
details and a tour of one of the condos.  Everything seemed good to
us so we said "yes".  I think that (with this salesman, at least) if
I had said "no" that would have been the end of it.  They even gave
us the $50 before he made the sales pitch.

With these timeshares (and most others) the year is divided up into
seasons--low, swing, and high--according to the demand for vacation
time in that area during the year.  The weeks are priced accordingly.
We paid $6500 for a high season week and $5500 for a swing week.
The purchase at this resort is like real estate.  It is not a "right
to use for 20 years" type deal.  You get a "deed" to the property
when you pay off the loan and you can sell, rent or will the property like
any other property.

With purchase at this resort membership is available in an organization
called Resort Condominiums International (RCI) which coordinates a
world wide timeshare exchange program.  In this program, like is traded
for like.  If you don't want to go to the resort where you own every
year, you can notify RCI that you will let someone else use your week
and give them your preferences (picked out of hundreds of resorts in
a directory) for other resorts covered by RCI.  If you plan this exchange
a few months in advance you are very likely to get your first choice.
e.g. If you own a high season week you can trade it for another high
(or lower demand) season week at any other resort in the RCI directory.
When you trade you get a condo that has similar facilities to the one
you own.  We usually take our vacation in Tennessee, but we did trade
once for a week at Fernwood in the Poconos (sp?).  We had no problems.
The number of resorts available through RCI seems to grow every year.
You do have to maintain your membership (about $30/yr.) and pay a fee
each time you make an exchange (also about $30) to use the exchange
privilege.   Also there is a initiation fee (about $100) to discourage
you from dropping your membership during years you don't plan to trade
and picking it up again in the years that you do.  The resort usually pays
this fee when you buy a timeshare.

My overall experience with the Fairfeild Glade resort has been very
good.  They have almost every recreational pastime you could want:
Mini-golf, boating and fishing on a small lake, swimming (one indoor
and a large outdoor pool besides the lake), three 18-hole golf courses,
tennis courts, a small shopping center, riding stables, restaurants.
The fees to use these things are range from nothing to reasonable if
you are a timeshare owner ( I can't speak for the golf courses, since
I'm not a golfer.)  The resort is fairly quiet and not crowded.  It's
really a resort community with many permanent homes on it as well as
timeshare condos.  I think this is good for the stability of the
resort.

The timeshares we own are in a condo develpment called Sterling Forrest.
They are well built. They're fairly luxurious by my standards: Thick carpet,
fully equipped kitchen and laundry, two bedrooms, two baths (one with a
Jacuzzi), fire place, nice furnishings cable TV, central air, etc.  Very
comfortable.  They have some newer ones that are even fancier.
There is also a yearly fee ($180 per timeshare week) that is supposed to
cover cleaning, taxes, utilities, maintence, furniture replacement escrow,
and the expenses of the townhouse association (a policy making body
formed to represent owners in Sterling Forrest).  The property is very
well kept.  They claim that $190 is the average fee for timeshares of
this type.

I think that timeshares can be a good deal (depending on how you
like to take vacations), but you need to be careful.  There are plenty
of bad deals out there.  Also, the resale market for timeshares
is not very well developed yet.  Don't buy one expecting to sell it
at a profit in a year or two.  The whole concept of timesharing is
still new and unfamiliar and there are still lots of new resorts
being built or converting to timesharing.  I have had my timeshare
weeks listed at the Glade Realty office for over a year, at the
original price.  I'm not in any real hurry to sell, and I'm not
trying to sell because I think its a bad deal.  I have just decided
that luxury resort vacations are not my style.  It's fun and I wouldn't
mind keeping them if they don't sell, but happiness is not found
in great posessions.  I guess I'd rather do something else with the
money.

Paul Dubuc		... cbosgd!cbscc!pmd