Timeshare accommodation offers bargains
Q: My husband and I have owned one week in a New Zealand timeshare resort for 30 years. Over the past 15 years we have exchanged our weekly for an Australian timeshare holiday. Timeshare has provided us with many memorable, economic holidays. With changes in accommodation opportunities nationally and internationally and our increasing age we are wondering what is the best plan moving forward. Our family are not really interested in having the timeshare week. We are wondering what advice you may have for us please.
I put this one to financial adviser Liz Koh, who has some experience in timeshares, having bought one recently.
She says timeshares were popular 30 years ago.
‘‘The problem is the people who bought them then are too old to use them now. There is a requirement to pay an annual fee, for mine it is about $700. This is quite a big commitment if you are retired, elderly and are not able to make full use of it,’’ she says.
‘‘As a consequence there is a surplus of timeshares available for sale. You can buy a week in a timeshare for as little as, say, $1000 plus legal fees.
‘‘One of the other issues is that timeshares need to be upgraded over time and for substantial refurbishments they may need to call on owners to make a lump sum contribution to cover the cost.
‘‘Some timeshares are looking at selling the entire resort as an exit option for timeshare owners. This strategy can potentially bring a higher sale price per timeshare week.’’
She suggests you find out from your resort what the current selling price is for timeshare weeks, whether there are any plans for refurbishment which may involve additional cost, or any plans for sale of the entire resort.
There is usually a committee of owners that meets regularly to discuss these kinds of issues and you should be receiving minutes of their meetings. You could sell your week privately, through the resort, or wait for the possibility of a sale of the entire resort.
‘‘For younger people, buying a timeshare can be a good idea,’’ Koh says.
‘‘You can buy weeks very cheaply due to the excess supply, the annual fee is usually quite a bit less than the cost of a week’s accommodation and you can join a timeshare exchange group so you can exchange your week for a week at one of hundreds of resorts around the world.’’
❚ If you have a financial or consumer issues question you would like answered, email susan.edmunds@fairfaxmedia.co.nz