A new kind of timeshare?????

[anniet]

Okay, I was going to post this this past May when I first heard about it, but I thought it was an isolated case, but I just heard about it again, so here goes. While driving through NH we picked up a real estate section and there was a "condo" advertised for $50,000 at the Eagle Mountain House in Jefferson NH. So DBF and I decided to stop in and see what it was all about. We had been to the Eagle Mountain House before and knew it as a lovely "inn" type of accomodation, so we were curious and decided to check it out.

The woman told us that it was a condo for sale, but you had to call and reserve it if you wanted to come up because when you aren't there they would rent it out. Apparently they would keep a portion of the income from renting. So I said "Oh, so it's like a timeshare?" And the woman got very offended and said "No, it's not a timeshare, you OWN it." Of course there were "condo fees" involved. So DBF and I asked to look at it, so she gave us the key and told us where it was. While it was lovely, it was less of a condo than the DVC units. It was 1 bedroom and a sitting room....no kitchen or even small refrigerator for that matter. We walked away shaking our heads, and I was confused (of course I'm confused a lot).

Well yesterday I was at a nursing home enrolling people onto the health plan that I work for when one of the employees asked me "Do you go to Orlando?" I said "Yes, all the time." And he handed me a card for The Enclave. He said if I was interested in staying there I should give them a call and ask for his unit. I said "Oh, is it your timeshare?" He said "No, it's a condo resort and I own a condo there!" I told him I owned DVC, but I would pass the card along. So what is this "condo-resort" business? Has anybody heard of it? Are they trying to mark up units and market them as condos, when really they seem like timeshares? Has anybody else heard of this? (I'm thinking maybe Dean has) Just thought I would ask and see if anybody has any thoughts as to what these types of condos/timeshares/or whatever they are, are and if anybody thinks they are better, worse, or just different from DVC?

 

[PamOKW]

I'm a little confused about the way the NH worded it about renting your own condo when you want to use it. But, I think what both of these concepts are doing is that you do, indeed, purchase the house/condo/whatever and own it outright. However, there is a leasing company associated with the developer who will rent out the place, clean it between guests, etc., etc. for a fee. This way you get rental income on the unit.

There is a similar thing going up near Celebration. It's called Reunion Resort and they are selling all types of homes from great big ones on the golf course to condos. It's the same idea here. Some people may live there year-round and/or close it up when they aren't there. But, there is the mechanism in place to constantly rent out the homes/condos through the developer's company. You buy the home/condo outright and then it's up to you whether you use it yourself or only rent it out. The place has the amenities of a resort like a clubhouse, pool, golf courses, etc. To me it seems like a combo of Celebration (where people live) and DVC resorts (where people come and go). Some of the townhouse condos at Reunion are sold fully furnished (all furnished the same). Sound familiar?

I'd love to know if anyone has gone to see Reunion in person. I've gotten literature and attended local presentations. I don't think it's for me but I'd be curious about impressions of the place in person.

 

[goofy4dvc]

Some friends of ours own a condo in Colorado at a ski resort. The way theirs works is that they actually own a specific unit. When they stay, they only stay in that unit. They had to furnish it with their own furniture, towels, bedding and kitchen utensils. It has a keyed storage room that they use for storing personal items (like their skis and extra clothes, etc) that they don't want anyone else using. They can have the unit any time they want it, but when they aren't using it, management rents it out with a portion of the rental fee going to the owners (our friends) and a portion going to management. I think part of the management fee goes to housekeeping because they clean up and do laundry after the renters leave. When our friends use it, they do their own laundry and leave everything clean. Don't know if this is the same type of thing or not, but it sounds like it may be.

 

[InstImpres]

It's very big up north. Smuggler's Cove is the same thing. You buy the condo and furnish it than they rent it when you don't want it. In this case, they get a larger fee (though no one was specific with me) as they offer resort activities, hayrides, organied games, etc. They also do a fair amount of advertising.

What I don't like about it as a renter is every unit is different in amentities and accomodations. I was on the phone for a long time and got very frustrated. People think figuring out which BCV's have 2 beds, this is H@@L! A 2 bedroom can have every combination possible 2 queens, 4 doubles, 1 queen & 2 doubles, some have pullout in the LR and the list goes on.

I think of it as community living with a built in rental agent (though no guaranteed rentals)

JMHO,
Sandy

 

[KNWVIKING]

You simply buy the condo,figure out when you want to stay there, then try and rent out the remaining time as a way to pay the mortgage,dues and maybe earn a few extra bucks. You can usually get some great deals on off season rentals,even great monthly rates during the winter.

 

[donald@home]

Kiahuna Plantation in Hawaii is the same thing. When we booked there it was advertised just like any other resort on Hawaii (part of the Outrigger Resorts). We knew we were renting a condo, but we just thought it was a resort. There was a lobby, check in, housekeeping, restaurant, just like a resort. When we got to the room there was a guest book and a note from the owner of the unit who lives in New York. While we were there we saw real estate listings with some of the units listed for sale. We were told that if you put 30% (I think) down, the rental income (minus the management fee for front desk, advertising, housekeeping, etc) would cover your mortgage. You can use it whenever you want, you just have to let them know when you are coming and for how long, and they will block out the room for you, otherwise they would rent them for you like regular hotel rooms. I am sure some people live there.

 

[Poorman]

We own a condo in Myrtle Beach. When we first bought it 17 years ago,we had a management company renting it out. They were charging us 40% to manage it . On top of that we caught them twice renting it and not giving us the rental proceeds. I wouldn't go near a condo that you gave to a management company to rent it for you. I believe they are all crooks.

Just my opinion ,of course. Regards, Rich

PS in case you are wondering what they said when we caught them, "it was a clerical error".

 

[anniet]

Okay, this is starting to make more sense. But since the place in NH didn't have any type of kitchen- no sink no microwave and was really like a glorified hotel room- and we were told, NO you cannot live there-I think using the word "condo" for it was a bit of a stretch.

 

[DVC-Don]

I have relatives that owned a condo over on the Gulf Coast in Florida. Really great ocean view. They rented it out when they were not there until they retired and moved down there permanent. But it was a 2 bedroom, full kitchen, dining & living room unit on the 4th floor.

 

[carone0318]

When we have gone to Myrtle Beach with my dh's parents, we rented a place that sounds like they work this way. A family owns the condo and furnishes it with their own furniture, but you can rent weeks. It is at a resort - I think the name is Discovery Cove in N. Myrtle Beach. It is beautiful and it is ocean front. We stayed there twice. Now the family has gotten too big to stay in a 3 bedrm, so in 2004 we are taking the family (excluding one brother and wife) to BWV. Can't wait to impress dh's parents with the 2 bedrm.

 

[perdidobay]

This sounds like a condo we have stayed in before in Colorado at a ski resort, it was an "studio" unit, one room that had a murphy bed for sleeping and a small sink area with a microwave oven. It is owned by someone who rents it thru the management company. I have seen some condos for sale in Colorado and Lake Tahoe for 1/4 shares, too.
We rent our condo in Florida thru a management company, they get 22% of our rental income, 18% for monthly rentals. We make enough to pay 1/2 our yearly expences on the condo. Besides the mortgage payment, we have taxes, insurance, asssociation fees, utilites and upkeep. We just call and tell them when we want to come down, or reserve in advance. I can go online to see when it's booked and how much income I'm getting.
Ours has an owners closet inside so I can store supplies ( food and booze) and an outside storage so we can store floats and fishing rods, etc. I bought it furnished but tossed alot of the junk out and redid it myself. It's half way between our home and WDW so it's a great place for us to stop in on the way down and back!
Between the rental income, appreciation and principal portion of our condo payment, we are breaking even.