Timeshare Resale Scams being a No. 1 Fraud is Affecting a lot of Owner’s looking for Relief?

Timeshare resale scams turned out to be the number one fraud that was reported to the state attorney general’s office in the US. Timeshare owners who seek for timeshare relief are greatly affected with this situation. About 18 months ago, the attorney general’s office first noticed timeshare scam complaints to surge.

A lot of consumers already fell as victims of these scams, losing hundreds or thousands of money. This is because owners have been giving out money collected as fees by the resellers. These owners have been called up and convinced that prospective buyers are willing to buy their timeshares. The selling process can just be started as soon as owners start paying such listing or appraisal fees. Only to find out that in the end, there was no actual selling that happened but just a scammer pocketing the owner’s money.

Knowing that a reseller is having the intention to do a resale scam is simple. Resellers would just contact you even though the timeshare is not posted in the market and would ask for certain fees with a promise to be able to sell the property in no time.

Until now, this has remained to be a threat to owners. Authorities find it hard to track down or identify these scammers as they are like fly by night people. So rescale scams continue to have an increasing rate of offense against the law.

It’s just up to these owners to be watchful for these scams if they need to remain patronizing resale companies because of the desire to get rid of their timeshares.

Timeshare’s Real Worth for Your Relief

Timeshares are oftentimes considered as investments by common people. However, timeshares are not investments because its value actually decreases in time. Some timeshare owners are even forced to find timeshare relief because they realized that the package is more of an expense than a source of profit or earnings.

Timeshares are not investments because the moment a contract is signed by the timeshare prospective buyer, the timeshare becomes his responsibility. The upkeep of the property is barely attended to by the timeshare company and renovations and improvements are out of their priority. It is stated in the contract that timeshare owners are responsible for the maintenance of the units. The deterioration of the property is inevitable and so is the decrease in its market value.

Timeshare salespeople also receive the commission they expect the moment timeshare buyers sign their contracts. Timeshare companies get the amount they expect to earn from the timeshares they sell the moment the transaction is carried out. So the value of the property is immediately depleted by the process. Besides, the acquisition rate of a timeshare is high because of the cost of the marketing involved in selling timeshares and not solely by the components of the property.

Timeshares real worth does not increase, rather, it continues to decrease. It is therefore not to be considered an investment. If you are looking for an investment, you will end up getting rid of your timeshare contract. So before purchasing a timeshare, think well and be sure that you can take it even if its value decreases in time.

Growth of Timesharing in the Emirates is a Relief to these Countries

The financial crisis revealed a decline of timesharing in western countries. Timeshare companies experienced a decrease in sales and more timeshare owners are seeking for timeshare relief. However, a different scenario is happening in the Emirates.

Countries belonging to the Emirates are seeing a revival of the timeshare industry. It is gaining additional popularity that timeshare companies there are now preparing for timesharing of not only vacation accommodations but also yacht and private planes.

Wael Hussein Amer, deputy general manager of Arabian Falcon, stated that timesharing is gaining a following because of the cost sharing it offers the interested timeshare package buyers. It allows people to own a property for a week or more at a much lower rate than actually buying the whole property. They consider it more viable because of the fact that these properties are usually used for a couple of days only in a year’s time.

Luxury goods buyers are the ones who are finding it really convenient. They are naturally into purchasing luxury items and now with timesharing, they get to use these luxuries and maintain their luxurious lifestyle at a fraction of the cost it amounts to once bought not under the timeshare system.

Timesharing may have seen a decrease in the US and other western countries but this growth in the Emirates is a relief enough to the industry. Some of these owners may also end up getting rid of their timeshare contracts but the timeshare industry can still be happy with that knowing that timeshares were sold out at this point in time.

Write Downs in the Timeshare Industry is a Relief to Companies

Several write downs were experienced by the timeshare industry these past couple of months. These write downs reveal that the exodus of timeshare owners who are seeking for timeshare relief is not the only dilemma that the timeshare industry is currently experiencing, especially during this economic recession.

Timeshare industry is one of the most famous vacation options in the accommodation industry. It has grown to offer the most luxurious vacation locations to people and has even enticed hotel companies to engage in this type of business.

However, the recent financial crisis revealed some of these companies closing down and others writing down some of their assets. Starwood Hotels and Resorts Worldwide, Inc. disclosed their $362 million write down with their fourth quarter earnings last Thursday. The company is discontinuing the construction of some of its timeshare resorts. They also included the amount for the raw land that they intended to use for a timeshare complexes. They will no longer continue with the plan.

This Starwood write down is not the first for the industry. Five months ago, Marriott International, Inc. also declared a write down amounting to $760 million. The moves of these companies are brought about by the decrease in sales as well as the difficulty in financing being experienced worldwide.

If these write downs will continue, the timeshare industry will surely experience a decrease in timeshare developments. This will worsen the current situation of the industry where timeshare owners are already getting rid of their timeshares.

Continuous Closure of Timeshare Companies, Not a Relief to the Market

Previous year seems to show improvements on the economy. The better financial condition that 2010 promises excites a lot of people for this year to start off right away. Because of the probability that more people will be capable of spending vacation this year, more timeshare owners seeking for timeshare relief hope to get freedom from their timeshares.

Nevertheless, the closure of another timeshare sales office was visible by the end of the season. Over the holidays, the Festiva Resorts Limited that operates in Nassau closed down its Sales and Marketing Office. There have been many reasons why the business closed down. One of the reasons is the stringent lending criteria enforced by U.S lenders. The sales and profitability of the company went down as a result.

Overall, The Bahamas disclosed an 8.4 percent drop on air arrivals as of November 2009. It was probably difficult for Festiva Resorts to market timeshare to their visitors. Low hotel occupancy hit over the whole country.

The chief executive officer of Festiva Resorts - Don Clayton, stated that they have exerted extra efforts just to retain the Nassau office. However, economic factors apart from the company lead its closure. Now, because of the sudden closure of the company, the employees lost their jobs. It seems that they were not informed in advance regarding Festiva Resort's closure.

Festiva Resorts will keep on sending owners and members on vacation to its designated Paradise Harbour Club & Marina Resort to fulfill their service. The company guarantees this service to their clients to keep them from getting rid of their timeshare.