I'm thinking of buying a timeshare in a nice beach location like Hawaii or Florida. But when I inquired with the timeshare companies, the maintenance fees were sky high!!! However, some other resorts with the same kind of amenities did not charge a huge maintenance fees. Why is this difference? How can two resorts, both in two different prime locations, with the same kind of amenities charge different maintenance fee? Could someone explain this?
Thanks bobbyk; thanks oldnhappy. The information was really useful. Seems like I have no other option but to pay the MF charged by these resorts. :)
Thanks once again.
What bobbyk says is right. Resorts that are prone to natural calamities usually have high insurance charges, which gets reflected in your maintenance fee. Especially after Katrina and other hurricanes, the insurance charges for those resorts have increased a lot. Apart from this, there has been a general increase in MFs in most of the resorts, irrespective of the location, thanks to the rising prices and inflation.
Yes, the maintenance fee is likely to be high in locations like Hawaii and Florida or any other beach destination for that matter. It is due to the fact that their insurance charges are pretty much higher than other resorts, as they have the danger of getting affected by natural calamities like flood, hurricane, etc. So, in order to make up for those high insurance charges, these resorts tend to charge a bigger MF than the other ones. Hope this explains.