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Reevaluating the time-share: Is it right for you?

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In this story:

Swap options

Sweet deals



(Tribune Media Services) -- If a time-share seller offered you the deal of a lifetime a decade ago, you might have done better buying London Bridge.

Back then, many time-share developers didn't provide what they had promised. Some went belly-up before they provided anything at all. The time-share game was disreputable. Many buyers lost big.

But times have changed.

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With hospitality giants like Marriott and Ritz Carlton now major players, time-share has gained not only credibility, but also cache. The time-share lifestyle means ambiance and excellence. And there are some great deals to be had -- especially if you buy secondhand.

Of course, the time-share principle has remained the same, whether you buy new or resale: You pay a certain amount up front for a guarantee that you'll have access to the same accommodations -- at a hotel or resort, beachfront or on top of a mountain -- for a specified duration, usually a week or two, at the same time each year. For people on a fixed schedule who enjoy returning to the same spot, time-shares can be a choice vacation solution.

Swap options

There's some built-in flexibility, too, because you have the opportunity to swap your unit, and sometimes change your time of year, with owners of other units in other places. Swap opportunities increase as the time-share market sweeps across the nation and the globe.

The annual sale of time-share units continues to rise dramatically. In 1989 about 100,000 units were sold, compared with 1999 sales of about 555,000. During the same period, the percentage of units acquired through resale has soared to 15 percent in 1999 from 2 percent in 1989.

Of course, time-share purchase has never been -- and still isn't -- recommended as a good growth investment. Many original time-share buyers found themselves seduced into high-price purchases by free weekend stays at the property and plenty of perks, including intense sales pitches served up with the cocktails and canapes.

Original owners, even when they're not pressed to divest, find that resale prices always favor the buyer. In fact, there are some very sweet deals for secondhand time-shares.

Sweet deals

Just compare original and resale prices. For example, a time-share at Carlsbad Seapointe Resort in Carlsbad, California, that originally cost $14,900, is being resold for $7,950. The annual maintenance of $586 hasn't changed. It's for late high season (week 9), and it sleeps up to six people. If you keep the unit for five years, and use it to capacity, you'll be paying $363 per person for a week's seaside accommodations. Not at all bad.

Similarly, a six-sleeper unit at High Point World Resort in Kissimmee, Florida, originally $9,500, is now $2,500 with maintenance of $545, for week 15. Here, the math works out to $175 per person for a mid-April week near Disney World, Universal Studios and other Florida theme parks. Pretty sweet.

Of course, you have to consider the additional costs of transportation, food and sightseeing. But with both of these time-shares, the resale buyers are looking at savings of about $7,000 -- that's enough to cover maintenance fees for more than a decade. With resale to a third owner, you might be spared a substantial loss of your investment.

So if you're interested in owning a time-share, but budget is a consideration, secondhand is the way to go.

That said, you must still be a careful, intelligent consumer. Thoroughly check the credentials of the individual or company with whom you're dealing. Visit the time-share unit and, if possible, speak with other owners at the location about their level of satisfaction with management, maintenance and repairs, swimming pool, tennis courts, golf course, health club and other amenities, and nearby attractions.

Ask how difficult it will be to swap your unit and time slot for a time-share in another place at another time of year -- just in case you wish to broaden your horizons or your vacation schedule changes. Comparison shop other time-share units in the same area.

For general guidelines regarding time-share purchase, visit the Federal Trade Commission's Web site at www.ftc.gov. Time-share resale scam advisories are posted at www.ftc.gov/bcp/conline/pubs/homes/resales.htm, and you can complain about any difficulties you encounter in your transactions at (877) 382-4357.

For statistics and trends related to time-share, the American Resort Development Association is helpful.

(C) 2000, Jennifer Merin.
Distributed by Tribune Media Services, Inc.



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