New York Daily News....

TIMESHARING:

IS IT (FINALLY) TIME TO BUY?

Timesharing's bad image of past decades is quickly changing. Many vacationers now view it as a viable and economical option for future vacations.

With the entrance of companies like Disney and Marriott into the field, the timeshare market is exploding. In the past two years, almost 500,000 households have purchased a total of more than 700,000 timeshare intervals. That means there are more than 2 million owners at more than 2,000 resorts worldwide. Contrary to popular belief, a recent survey showed that most of these owners are happy with their purchase.

"It is clear that timesharing is gaining in popularity, not only here in the U.S., but also across Europe, Mexico, and in South America," says Tom Franks, president of the American Resort and Residential Development Association, the timeshare industry body. "We expect the industry to double in the next 10 years."

Timesharing is the most prevalent form of vacation ownership. Consumers typically buy one or more weeks at a specific resort and can return to that resort every year or exchange it for a week at another resort. Prices currently average around $9,000, with annual maintenance fees of around $300.

Vacation timesharing generally takes one of two forms: "Fee" timesharing gives the purchaser permanent rights--in the form of a deed--to the property. About 85% of timeshare resorts sell under fee-ownership agreements. "Right-to-use" timesharing grants the purchaser the rights to the use of the property for an established period of time, such as 30 years. Under this type of timesharing, the purchaser does not receive a deed.

Rather than return to their home resort every year, many owners opt to exchange to one of thousands of other timeshare properties worldwide. For a small fee, companies like Resorts Condominiums International (317/876-1692) or Interval International (305/666-1861) perform these exchange services for member resorts and owners. Many owners say this exchange privilege was a key reason for buying.

The Orlando, Florida market serves as an ideal example of what's available. It's a huge market for New Yorkers and others from the Northeast. There are dozens of options available and the area is a great place to own one or more weeks.

Well-established possibilities include: Island One (407/859-8900); Marriott (813/688-7700); Orange Lake (407/239-1082); and Vistana (407/239-3008). At these and other resorts, you'll find a full host of amenities, often including kitchens, decks, pools, restaurants, golf courses, tennis courts, and much more.

Just up the highway, Walt Disney World just opened their first timeshare resort, the Disney Vacation Club (407/939-3100), and will welcome their first owners soon. As would be expected, they have developed some unique features for their timeshare concept.

Disney tackled two of the major issues in the timeshare industry today: flexibility and aggressive sales techniques. Along with many other timeshare properties, Disney has moved to improve these two areas and the early reviews give them high marks.

By purchasing a real estate interest in Disney Vacation Club Resort, guests automatically become members of Disney Vacation Club and are entitled to a variety of exclusive benefits and privileges. Members also receive an annual allotment of vacation points, which may be used on vacations at the resort or at more than 100 worldwide resorts currently offered through a "Member Getaways" program with RCI. It's the ultimate in timeshare flexibility.

Each year, members choose how to use their vacation points, either for one long vacation or a series of short getaways. The number of vacation points required for each stay is based upon accommodation size, time of year, and length of stay requested. Reservations are on a first-come, first-served basis.

"The flexibility of choosing among several different vacation experiences is what sets the Disney Vacation Club apart from many similar plans," says General Manager Mark Pacala. "The vacation point system allows members to select the type of vacation best suited to their needs, particularly as those needs change from year to year."

Disney has also attacked the overly-aggressive sales techniques that used to plague the industry. They don't provide any incentives or awards for prospects attending the sales presentation and their sales force mostly receives a fixed salary, rather than high commissions for high volume.

For a one-time purchase price, guests may purchase a real estate interest in the resort, which expires after 50 years. Prices currently run from $11,730 to around $16,000.

The points system, which is becoming much more popular in the timeshare industry, is much easier to understand than it first appears. Let's say that with your Disney Vacation Club ownership interest you have 270 points to use each year. You could reserve a two-bedroom home for a week's stay in June or enjoy a five-day family reunion in July in a three-bedroom Grand Villa. Other options would be to reserve a two-bedroom home for a nine-day stay in September or an incredible stay of several weeks in a studio unit.

Should your vacation plans require more Vacation Points than your annual allotment, you may be able to "borrow" up to half of your Vacation Points for the upcoming year. If your vacation plans require fewer Vacation Points than your annual allotment, you may also "bank" points from this year and use them the next year to reserve a longer stay or a larger Vacation Home. If you decide not to come to the resort one year, you may make arrangements for a friend or relative to enjoy the benefits of your membership.

Disney's timeshare operation is typical of the exciting future for the industry and astute timeshare buyers. There are timesharing options throughout the world, with huge multi-site options like Fairfield (800/251-8736) and the Lawrence Welk Resort Group (619/485-5556) to small and intimate single resort operations.

But timesharing isn't for everyone. It's not a true real estate "investment" and the resale market is tight. Simply put, plan to buy it, keep it, and enjoy it.

The industry body ARRDA (see below) has many excellent publications about timeshare purchase. Their office is a great starting point for interested buyers.

RESOURCES

--The American Resort and Residential Development Association, 1220 L Street NW, 5th Floor, Washington, DC 20005,    202/371-6700. Ask about their many publications.

--Timeshare Traveler, P.O. Box 5628, Richmond, VA 23220, 804/358-2503. A newsletter devoted to the timeshare            owner.

Lynn Seldon is a full-time freelance travel writer and photographer, based in Richmond, Virginia. He has written for many national magazines, including USAir's inflight, Forbes, Caribbean Travel & Life, and Modern Bride. He is also publisher of the newsletter, Timeshare Traveler.