posted 05-10-2005 20:41               

Bruce

posted 05-11-2005 07:22               

quote:

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Originally posted by BocaBum99:
Just spoke to them today and they are NOT taking any new business for at least a month. Timeshare resales are booming and they are out of processing capacity. That probably means it's time to sell.

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It seems as if you're a "contrarian."

I don't think this one company's inability to handle the amount of business it has is a solid indication that it's time to sell. Now, if you told me there are now five new companies opening up to handle closings, then I'll consider the contrarian aspect with more validity. As it is, I would just be even more bullish on timeshare pricing and demand.

Fundamentally, the area where the demand for timeshares is coming from is an area that is just at the start of it's demand curve: babyboomers. The upper age range of the babyboomers is the mid 50's and the lower end of the group is in the low 40's. From what I've seen of the age range of TUGgers, most of the participants are in the mid 50's. The lower aged group haven't really been involved in this activity yet.

posted 05-11-2005 12:41               

DVC has a lot young buyers - I think the average age for DVC is 35 to 40.

also I am surprised at the college kids who know more about timesharing than their parents....

there are a couple of people here at work - whose kids want a timeshare and the parents don't even know what they are talking about.

posted 05-11-2005 15:26               

The only other firms that I have used ( Duncan Realty and Escrow and Timeshare Closings ) did a good job, but they were at least a month slower than Timeshare Transfer Inc.

According to Tia, they are hiring additional employees as we speak and setting up new systems to handle this increase in closings.

Jmho, Greg

My Website

quote:

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Originally posted by rynker:
Since they aren't taking anyone for 30 days, and I may have a buyer......which company do I go with now? Please advise.

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posted 05-11-2005 16:42               

I have two deals in the works with with timeshare Closings and so far it seems to be going along fine. In fact I gave another sale to the agent there today.

posted 05-11-2005 17:27               

quote:

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Originally posted by RonaldCol:
It seems as if you're a "contrarian."

I don't think this one company's inability to handle the amount of business it has is a solid indication that it's time to sell. Now, if you told me there are now five new companies opening up to handle closings, then I'll consider the contrarian aspect with more validity. As it is, I would just be even more bullish on timeshare pricing and demand.

Fundamentally, the area where the demand for timeshares is coming from is an area that is just at the start of it's demand curve: babyboomers. The upper age range of the babyboomers is the mid 50's and the lower end of the group is in the low 40's. From what I've seen of the age range of TUGgers, most of the participants are in the mid 50's. The lower aged group haven't really been involved in this activity yet.

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I was actually kidding about declaring that it's time to sell. I guess I have been watching too much of Jim Cramer's mad money.

I can say that timesharing is booming. With the weak dollar and the real estate bubble that is forming, there is a lot of timesharing activity going on. People actually think that buying a timeshare is like buying the underlying real estate. Just wait until they get the wake up call.

I believe the best time to buy will be in a couple of years when all of those foreigners who came to the US and bought timeshares to capitalize on the boom in real estate find out that their timeshares are worth only 25%-50% of what they paid.

That is the same time when they find out how difficult it is to sell a US timeshare in a foreign country. You've got to go to the US Embassy to get the signatures for recording. And, you've got to pay a 10% withholding tax. Plus, the transfer fees overseas can be a lot higher than here. So sad.

There will be some awesome deals at that time.

posted 05-11-2005 18:32               

For balance, let me say that their service for me, has been outstanding. And, I've had some pretty complex transactions.

I always use Susan Gale and would highly recommend her to anyone who asked. I understand that many people have had trouble over the past couple months. I think their idea to stop taking new business will help a lot. Their current backlog is about 3 weeks.

posted 05-11-2005 19:31               

Bruce

quote:

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Originally posted by BocaBum99:
I just noticed, thanks to another Tugger, the thread that was no so positive about Timeshare Transfer.

For balance, let me say that their service for me, has been outstanding. And, I've had some pretty complex transactions.

I always use Susan Gale and would highly recommend her to anyone who asked. I understand that many people have had trouble over the past couple months. I think their idea to stop taking new business will help a lot. Their current backlog is about 3 weeks.

If I were them, I would raise prices by 10%. That will reduce demand a bit and they could hire additional help.

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posted 05-12-2005 05:46               

Poor foolish foreigners , good thing there aren't any Americans that buy TS at full value.

You are partially right about having to get a signature at the US Embassy but there are ways around that and the comment about withholding tax is completely wrong. They can also use the same transfer companies that you use at no additional cost.

quote:

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Originally posted by BocaBum99:

I believe the best time to buy will be in a couple of years when all of those foreigners who came to the US and bought timeshares to capitalize on the boom in real estate find out that their timeshares are worth only 25%-50% of what they paid.

That is the same time when they find out how difficult it is to sell a US timeshare in a foreign country. You've got to go to the US Embassy to get the signatures for recording. And, you've got to pay a 10% withholding tax. Plus, the transfer fees overseas can be a lot higher than here. So sad.

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posted 05-12-2005 06:21               

quote:

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Originally posted by Heron:
...the comment about withholding tax is completely wrong.

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Actually, the comment is pretty much on target. §1445 of the Internal Revenue Code requires that a U.S. purchaser (or the closing company or other transfer agent) of a U.S. real estate interest from a foreign corporation or a nonresident non-U.S. citizen must withhold 10% of the proceeds and transmit the withheld amount to the IRS within 20 days of the transaction. A purchaser failing to withhold the required amount can be liable for the tax and penalties.

There are some exceptions to the withholding requirement. The one that would most likely apply is where the purchaser (or members of the purchaser's family) plans to personally occupy the timeshare in each of the first two years of ownership. However, if, the timeshare is (for example) rented out, exchanged or used by friends during one of those two years, the purchaser may retroactively become liable for the tax and penalties.

posted 05-12-2005 06:58               

quote:

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Originally posted by BocaBum99:
I just noticed, thanks to another Tugger, the thread that was not so positive about Timeshare Transfer.

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Under the guise of "Old Business", I'll come back for a short visit. Here's that other thread:

http://www.tug1.net/tugbbs1/Forum1/HTML/008452.html

In it I was trying to say what is being said now, that TT is swamped, that is how many resales there are.

Sometimes business is so good that some of it starts to get a little bad, but that is totally unintentional and Susan and Tia would do anything they could to avoid it. Including now, it appears, turning down business.

If anyone here feels they have been dealt with crossly, that's too bad. When the pressure is on, sometimes cross words come out. Sometimes people say things they wish they could stick right back in their pie hole.

"Let him who is without sin cast the first stone."

TIA and Susan founded their company because the company they were working for was not getting the job done. They wanted to do things right and they have. Imagine how frustrating it must be when too much business comes your way.

I believe they considered coming here and making a comment, to explain the situation, but, wisely, chose not to get involved, because of the things that sometimes go on here.

In my final post in that thread I invited anyone having a problem closing to email me.

posted 05-12-2005 13:29               

In contrast, I recently closed a transaction with Tia at Timeshare Transfer. She was wonderful, and the transaction closed very smoothly. This DESPITE the fact that they are now swamped and have a very heavy workload.

I had not planned to comment in this thread, but some here are twisting the facts. My experience is that Susan was lousy even during a slow time, and Tia was awesome even during a very busy time.

posted 05-12-2005 19:25               

quote:

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Originally posted by Heron:
Are you kidding again?

Poor foolish foreigners , good thing there aren't any Americans that buy TS at full value.

You are partially right about having to get a signature at the US Embassy but there are ways around that and the comment about withholding tax is completely wrong. They can also use the same transfer companies that you use at no additional cost.

[This message has been edited by Heron (edited 05-12-2005).]

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I'm not kidding. The difference is that when I buy from an American who overpaid, I don't get the benefit of the currency exchange fluxuation that will inevitably happen. If the USD strengthens against the Euro and the British Pound, then there is an additional kicker when they decide to sell. Or from a Canadian when the USD is back to $1.50 Canadian.

Dave M explained the 10% withholding tax. Thank you.

posted 05-13-2005 06:51               

I have sold a couple of US TS and the withholding question has not been mentioned even once or been in any of the documentation prepared by the closing company. Perhaps they've considered the points you make below and it never came to my attention.

quote:

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Originally posted by Dave M:
Actually, the comment is pretty much on target. §1445 of the Internal Revenue Code requires that a U.S. purchaser (or the closing company or other transfer agent) of a U.S. real estate interest from a foreign corporation or a nonresident non-U.S. citizen must withhold 10% of the proceeds and transmit the withheld amount to the IRS within 20 days of the transaction. A purchaser failing to withhold the required amount can be liable for the tax and penalties.

There are some exceptions to the withholding requirement. The one that would most likely apply is where the purchaser (or members of the purchaser's family) plans to personally occupy the timeshare in each of the first two years of ownership. However, if, the timeshare is (for example) rented out, exchanged or used by friends during one of those two years, the purchaser may retroactively become liable for the tax and penalties.

The rules are a bit more complex than this simple explanation, but the safe action is to withhold.

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posted 05-13-2005 07:05               

So, if I may paraphrase - you are waiting for the US $ to gain strength against other currencies since you believe the seller will then be more open to negotiating a lower price because in their home currency they aren't actually losing money?

I would say that is a perfectly reasonable assumption to make.

I have not had any experience using brokers so I won't comment on their relative merits or costs.

quote:

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Originally posted by BocaBum99:
I'm not kidding. The difference is that when I buy from an American who overpaid, I don't get the benefit of the currency exchange fluxuation that will inevitably happen. If the USD strengthens against the Euro and the British Pound, then there is an additional kicker when they decide to sell. Or from a Canadian when the USD is back to $1.50 Canadian.

Dave M explained the 10% withholding tax. Thank you.

And, let's say a British citizen wants to sell their US timeshare. If they go to a broker locally in the UK, they will want to close in the UK. Their fees are higher. They can use the US timeshare closing agencies, but they'll have to settle in US dollars. Not their preferred method. These are not something they tell you at the timeshare presentation.

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posted 05-13-2005 09:29            

quote:

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Originally posted by Steve83014:
Actually, the problem I had with Susan at Timeshare Transfer was about a year and a half ago. It was in the middle of winter, and the company was not swamped. From discussions with other staff at Timeshare Transfer, a number of their clients had been complaining about Susan's lack of professional communication. It did NOT have to do with their current heavy workload.

In contrast, I recently closed a transaction with Tia at Timeshare Transfer. She was wonderful, and the transaction closed very smoothly. This DESPITE the fact that they are now swamped and have a very heavy workload.

I had not planned to comment in this thread, but some here are twisting the facts. My experience is that Susan was lousy even during a slow time, and Tia was awesome even during a very busy time.

Steve

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My last two experiences with Susan were disappointing as well, one dating back about a year ago and one several months ago. Slow, sometimes poor communication (e.g., taking over a week to respond to my phone message and email message), and oversights/errors. And I was a repeat customer, having had her handle several closings before the last two experiences. Consequently, I've decided to not use TT again unless the other party feels strongly about using TT. Though after reading Steve's posts, I think I may try TT once again in the future provided that I can work with Tia.

posted 05-13-2005 12:32               

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Kathy Holleger

posted 05-13-2005 13:02               

No need for apologies. I wasn't being clear. By the way, thank's for it anyway.

Another scenario that's possible is that the USD continues to fall. And, when the markets with real estate bubbles pop, that could spur even more dollar selling.

If that happens, foreigners should buy up as much real estate as possible in the US with their strong currencies.

Unfortunately, I feel what will happen is that markets, such as South Florida, where a huge bubble is forming will wipe out the foreigners who are speculating on the condo projects here. You hear accounts everywhere of people owning 9-10 condos to flip for a quick profit.