Thursday, August 30, 2007

Understanding Timeshare

In stead of duplicating effort I will refer people to this article on The Hindu : Home truths about timeshare and then continue with this FAQ style article....

What are the accommodation type?

Timeshare properties are usually apartment style studio/one/two bedroom unit or a two/three or four-bedroom house. Usually these unit will include partially equipped kitchens (microwave/gas, toaster, utensils, juicer etc..) with a dining area, televisions, VCRs and more.

Do I will own share in resort when I buy Timeshare?

Many timeshare are getting sold with out property rights, means you do not own any thing there in such cases it is a contract of giving you accommodation for said period of time for stipulated years. So before buying you need to confirm about it.

Is my week a floating or a fixed week?

A fixed week purchase mean you will be entitled to take vacation in that particular week every year. Resort may provide facility to trade/exchange your week with other customer but in such system they will not guarantee about it.

In floating week system you are free to take vacation any time in your season. Your timeshare may provide you facility to split the week and take two or three vacation.

How many seasons one resort can have ?

Each week of a year is not equally in demand for holidaying, like summer weeks in hill station will have more demand for vacation. So each resort divide one year in to many seasons. Usually there are three season Red, White and Blue, Red being high season and Blue being low season.

Some timeshare properties may only have two or one season such properties are usually in business centers.

Club Mahindra has divided a year in to four seasons. It has purple season which is higher then Red season.

Can I split my week, I mean can I take a two day trip to a resort?

Not all timeshare properties allow splitting holidays. Resorts in Asia and Africa do usually have split holiday option. Holidays are usually split in to 3 night + 4 night units. In India some timeshare companies allow splitting a week in to minimum 2 night stay units.

When you are thinking of exchange holiday you may not be able to avail split holiday as per your own resorts rule.

What is exchange? How exchange works? What is exchange fee?

Timeshare companies are usually member of some resort consortium, These consortium provides a way for one resort members to avail holiday in other resorts. For you to avail holiday in another resort, you may have to deposit your holiday week to consortium along with some fee. Your deposited week will be utilized by the consortium to provide vacation to some other people in your resort.

What are the utility charges?

When you avail holiday on exchange or bonus week resort may charge guest some money as
utility charges to cover electricity, water, gas and other expenses. Ask your home resort if they reimburse utility charges for holiday taken on exchange week.

What is RCI?

RCI is
a resort consortium which facilitate holiday exchange for the customer of the affiliated resorts. Currently it has about 3700 affiliated timeshare resorts around the world.

Can my friends and relatives use my timeshare?

Timeshare companies ask you to purchase guest certificate before your friends and relatives can use your days. These certificate comes at cost.

What are the other charges? Annual Maintenance Charge?

In addition to one time purchase cost, you will also have to pay Annual Maintenance Charge. Charges will depend on your accommodation type. This charge will increase year to year depending some price indexes.

When you go to RCI resorts you may have to pay utility charges.

Is their any regulator to monitor the conduct of Timeshare companies?

These is not regulatory body in India to monitor conduct of timeshare companies.

Will my timeshare company be there for term of my vacation?

Read following news itemm from "The Hindu" news paper , what may happen to a timeshare company ..

Sterling timeshare owners' concern over losses

Sterling Holiday Resorts restructuring debt

I am not liking it, can I return my time share or sell it to some other customer?

Generally companies will not buy back timeshare sold to customer, but you should be able to sell your timeshare through different internet sites and travel publications. You should keep in mind these timeshare are not easy to resale, you may have to give good discount in order to sell it.

Do my timeshare company have enough capacity to provide accommodation to all the members?

Wednesday, August 29, 2007

A Good Blog - Articles on Finance, Investments, Insurance and Trading

Shobhit is sharing his knowledge of Finance world to educate the common investors through his blog posts. Post are simple to understand and covers wide topics in investment.

Have a look .@ ..

SEBI proposal on waiver of load for direct applications in Mutual Fund schemes

Do you know what it about?
Do you know what you pay while investing in MF scheme ..
If you invest 1 Lakh ... You pay 2250 as entry Load.

Any way fund also charges management fee from scheme corpus as their commission/fund management charge, that is their legal profit source which is not very visible to normal investors.

I will be very happy if this proposal survive stiff opposition from Mutual Fund houses.

I want to list advantage adopting no load entry :

1) It will help people switching (penalise) under performing schemes.
2) It will promote brokers to provide 2.5% commission worth of services.
3) It will make Mutual Fund more favorable mode of investment.
4) It will improve productivity in distribution/advertising.
5) It will stop bulling behavior from Bank to their customer to buy MF schemes.

SEBI should also mandate any exit load collected should get part of scheme corpus, if there any disadvantage in investor switching quite often on market movement, it is the remaining customer who suffer not the mutual fund house.

SEBI is also asking comments from public upon their "Proposal on waiver of load for direct applications in Mutual Fund schemes". Which can be sent @ Last date of sending comments is - 12 Sep 2007. If you feel strong about it send a comment to SEBI now.