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Show ~ ie iaaleneaasiaiaastiihi a nana ste Wasatch ESTATE: TIME SHARE and possible for most people. It’s the time sharing option. Now before you all groan and roll your eyes and say, “Yeah, I remember the time I went to that timesharing presen- Today’s multiple choice ques- tion deals with the future of ski vacations in an area and era of sky rocketing costs which affect every aspect of the ski industry from real estate prices to rental rates; from increasing air fairs to high lift prices, and even seven dollar hamburgers. tation and they locked me in a room with a guy who smelled like coffee and Old Spice, he insulted me for two hours and gave me a — toaster.” let’s look past the unfortunate experiences of yesteryear towards what a good timeshare can do for a careful investor. A good timeshare project can actually save a family a substantial amount of money on accommodations over a relatively short period of time. The concept is simple and effective, and if it weren't for the above mentioned What is one way to control . vacations costs while hedging against inflation and guarantee- ing good accommodations? a. lower your standards regarding “good” accommodations b. don’t take vacations c. buy a timesharing unit at a favorite resort e. work to become fabulously wealthy, so it doesn’t matter O.K., it is a trick question. Any of the above choices would manner in which most people are compelled accomplish the task but lets talk to purchase time share, it would be even more successful than it is. about a way that is actually fun /POWDER BEACH REALTY Y Salt (80 1) 9 ai tae Park City © Deer Valiey (801) 645-9444 (Bas Fern Baird Principal Broker | Vacation Rentals Residential Sales ‘\ Investments Property Management f the view from the two-story windows of this magnificent includes a large, well-equipped kitchen, open living and |( dining areas, central fireplace and a library. Relax into the Hi) luxurious master suite featuring a fireplace and large jetted > | (4 if| bi) i (|) 2 y mountains. Two beautiful stone fireplaces, a sauna and a spacious main living area with large windows and are some 5 : : “, $425,000 . ' ? call the Sundance office (801)223-4088 b ; | | YW | ThePrudential @ > Coleman Real Estate Ca nS ae R.R. #3 Box FIl_ § 84604 S h anna Lew] 1S An Independently owned and operated _member of oe. Real Estate M condominium - blocks this developer is what builds A consumer ‘buys how ever many weeks he thinks would use and pays the cost for maintaining the unit for an dy Al sp au en $14,800.00, a 44% savings com- puts the payback closer to seven years than ten is the fact that while the room rate is increasing at a greater rate it is also a bigger number to begin with, so the gap between the rental vs. pared to rent. If you sell it $15,000.00, your vacations cost $7,300.00, a 72% savings! What makes a lot more sense is just to keep the unit. Many time share mainte-_ units, nance fees grows with startling including the Iron Blossom Lodge are “fee simple” speed. the time he owns. Simple eh?. properties which are owned in Of course there is the issue of Good time sharing properties return the cost of the initial © the opportunity cost of the — perpetuity. This means you can pass the property on to the kids $15,000.00 that you have to investment in seven to nine years — thus insuring their lower cost come up with to buy the unit. I in the form of savings over rent. vacations in the future. get this one all the time. This reporter is intimately familThere are many things to be The potential consumer— iar with one time share lodge in careful of when considering a would be wise consider the the area, The Iron Blossom timeshare unit. These include the opportonity: : cost sol the Lodge at Snowbird. This is how obvious things like the condition © $26,000.00 they are going to it works out for a typical one bed_of the building, the nature of the spend on rent (lets not forget that room unit with four beds during a ownership (leasehold vs. deed) if you are in a 28% tax bracket good winter week. »and the desirability of its locayou had to earn $33,280.00 in You would buy the one bedtion. However, there are other gross dollars to. have the room unit for $15,000.00 per things a that a savvy investor $26,000.00 to spend). At the end week. Its annual maintenance would be wise to check, like the of 10 years you will have nothing assessment is $730.00 for one reputation of the resort the timeto show for you $26,000.00 week ($105.00 per night). The share is in, the length of time the except the rental receipts and ten cost over 10 years is (assuming management company has been years of great vacations. no inflation in maintenance fee) in place, furniture or capital “Yeah, but Time sharing units - $22,300.00. improvement reserves, and are terrible investments. My To rent the same accommooptions for resale should the need cousin bought one and he sold it dation is $350.00 per night plus arise. ten years later for half of what he 9.625% room tax bringing the In the last ten years the timepaid.” nightly total to about $380.00. sharing industry has largely I’ve been selling these units The cost over the same 10 year recovered from its unsavory repperiod (also assuming no infla- © for thirteen years, and unless utation. Many states have moved somebody buys a really terrible tion) is $26,600.00. to heavily regulate time sharing week (there are indeed terrible In fact there will be a much projects so the opportunities for — weeks to own), I have rarely seen greater disparity between the figand incidences of abuse and fraud them sell them for half price; it’s ures in the real world, adjusted | have greatly diminished. for inflation. Room rental rates - -has been much more likely that __ Time sharing is the one of the sellers get out of their units. for. have been inflating at 5-6% a. best ways for people of moderate just about what they put into year over the past decade while means to partake in first class | them. However let’s assume that maintenance fees have been vacations on a consistent basis. you do sell your unit for half of increasing at about a 2-3% pace. As rental rates continue to what you paid. You will have This is because the home owner’s increase and property values in skied for ten years at a substantial associations are, almost without the ski resorts continue to climb discount to rent and after it was exception, set up as “not for profbeyond the reach of mere mor-. all over you’ll go home with it’ organizations thus improving tals, timesharing should continue. $7,500.00.00. This means the their tax situation while mandatto emerge. effective cost of your vacations ing relatively strict control over over that ten year period was expenses. The other factor which Little Cottonwood Canyon’s only on site real estate office now has a new name- cottonwood canyons realty. Formerly snowbird realty. With over 20 years experience in the Snowbird/Alta Resort Areas, we are now serving Big Cottonwood Canyon. Looking for a place in Solitude Resort’s new Village? We can help. Our name has changed but our commitment to service or our knowledge of the canyons and our selection just got better! |, wl iff cottonwood canyons | Snowbird Village ~Condominiums SVN EV AV AVAVAVERVENNSwEswZwilw2owZ PLE a and sells it out in of weeks. Hellgate 7s, Sundance UT terms A Sugarplum Powder Ridge Blackjack Re conc cecce nee c SO eea Pe ~ For these and other fine properties, CO ¢ PREMIER LOCATION and the sound of the nearby stream « combine to create a perfect setting for an escape to the APSA PADD PADD AERA RARE REM c tub. Caretaker’s suite, family room, hot tub, and more cre- Cl ate a gracious mountain retreat ) $1,390,000 : 4 of the special features in this 2 bedroom plus loft home. 4; Easy access, lots of deck space, great views, and more! basic WHAT’S INA NAME........::c:0:eeee00e 22 ‘ WATERFALLS AND HIGH MOUNTAIN CIRQUES fill 4 mountain home. The light filled, spacious main floor In happens: BY ALEX MILLER Homes Building Lots Shared Ownership Page 14 1 See realty Snowbird Realty PO Box 920071 Snowbird UT 84092 800-453-7122 801-742-2222 ext. 4120 801-742-2807 FAX Located in the Snowbird Center - 2nd floor a REAL Canyon popes |