Timeshares (for sale, real estate market, foreclosures)

[Spammasubi]

I was recently reading about the new Disney property here on Oahu. Apparently they are offering timeshares, and I started to wonder what is the state of the timeshare market and their subject properties in Hawai'i.

I am making the assumption that timeshares are generally owned by non-residents of Hawai'i, and most of these owners are comprised of folks living on the mainland.

Out of curiosity, has/is the timeshare real estate market in Hawai'i suffered the same problems that have been experienced on the mainland and to a lesser extent in Hawai'i, i.e. shortsales, foreclosures, bank repos, etc., etc.?

I have not read nor heard much about this, and I wonder if a problem exists that is not completely understood or being reported. I am somewhat unfamiliar with timeshares; how they work and how one invests in a timeshare.

Anyone on this board that might have a better understanding or knowledge of the timeshare industry in Hawai'i that can describe its current state?

[Joliefille]

Did you read the Star article about Disney suspending time-share sales and firing their VP of time shares? Interesting article.

[Spammasubi]

No I didn't. I hate to admit this, but I stopped reading the online Star when they went subscription,
and I only occasionally read the paper edition. Joliefille, does the srticle have any relevence to my
inquiry?

[Jackrabbit808]

Yes, it has relevance. Disney timeshares were being sold too low according to the higher ups and they fired three senior management staff to reorganize their timeshare prices.

The thing about timeshares is that you are only investing in the ability to stay at a particular hotel for a certain amount of time. You NEVER end up owning a room at Aulani. After you pay off your timeshare you are basically collecting points to stay at the hotel or other hotels in the DVC.

It is a point system where you get a set amount of points based upon how much you pay per month. You let these points accumulate and then use them to stay at Aulani or other DVC (Disney Vacation Club) hotels.

It takes some time before you "get your money back". I believe that a year of investments (approx $3000/year) in Aulani at the minimum tier allowed you to stay there for three nights. Timeshares aren't beneficial until you pay them off and are just collecting points every year to go on vacation.

Locals with lots of disposable income or a love for Disney probably invest in Aulani. Rooms are about $300 a night. Ouch! I would hope that Disney gives locals some sort of discount for helping build Aulani, but this probably isn't the case.

[NandVsMom]

Yes they do have kama‘aina rates. Just don't know if they limit the availability.

[Trackwatch]

Time shares are the biggest waste of money, just look at all the "for sale" ads with few takers.

[Jeepers Creepers]

Why not look at vrbo dot com - vacation rentals by owner, and it appears it may be cheaper than hotels and stay longer for less money. Just a thought. Ps-I have no gain from this input, either..

[mdand3boys]

Originally Posted by Jeepers Creepers

Why not look at vrbo dot com - vacation rentals by owner, and it appears it may be cheaper than hotels and stay longer for less money. Just a thought. Ps-I have no gain from this input, either..

No need for the *dot*com*.
http:vrbo.com

Vacation rentals are an excellent way to move into Hawaii, whether you just want to try it for a few months, or do a long-term rental. With the economy so down, many landlords are willing to drastically negotiate off of their advertised rate. Deal direct with the owner, via phone. Explain your situation and what you are looking for. A friend just scored a long-term rental for a 2000sf house on an acre for $1,500 month, GET (tax) included. Beautiful place loaded with tile, granite everywhere, etc... Asking price was $3,000.

[Jackrabbit808]

So I looked into Disney Vacation Club timeshares.

Here is the kicker: Your deed expires after 50 years.

So after paying $20,000-$30,000 and maybe transferring it to the kids...it goes poof.

Not the best investment...but if you have the disposable income...I guess whatever.

[srjth]

Originally Posted by Trackwatch

Time shares are the biggest waste of money, just look at all the "for sale" ads with few takers.

I just sold my DVC timeshare a couple of weeks ago. It sold for only $1000 less than what I paid for it 6 years ago, thanks to DVC's "first right of refusal" policy. It was on the market for less than 2 months and I've definitely gotten good use out of it every year. Now I'm in the market for a different timeshare as my kids are older now and we've had our fill of Disney.