Are Time-Shares Worth It?

By Daniel Eisenberg

Nearly 2 million U.S. households own time-shares, paying an average of $10,500 for an annual week at a condominium in a hot spot like Florida or Hawaii. As operators have spruced up lodgings and given owners more flexibility, time-share sales have risen 14% a year, making them the fastest-growing part of the hospitality industry. Trusted brands like Marriott are expanding their offerings in what is globally a $6 billion- a-year business. To help you decide whether to join this parade, TIME asked some time-share veterans about their experiences.

PROS

--Warren and Edith Bridges of Weymouth, Mass., were wary of the hard-sell tactics used to market time-shares. But 11 years ago, Bridges, 59, an electrician, and his wife, 57, a tutor, shelled out $8,000 for one week each year in a fully equipped two-bedroom "villa" near Disney World. The Bridgeses soon learned that they had acquired a valuable currency in today's booming vacation market. Before long they were trading their place for a week's skiing at Lake Tahoe or a visit to New Orleans. "I guess I always thought there was a scheme," says Edith Bridges. "But it's working for us."

--"Let Marriott worry about storm insurance, hurricanes and repainting the woodwork every year," says John D. Strong, 63, of Decatur, Ill., who has 14 weeks at four properties in Hilton Head, S.C., where beachfront property was too expensive for him to buy outright. Strong and his peers are also getting variety through bartering. For a fee of about $120 a year, companies like Resort Condominiums International and Interval International will broker an exchange, letting time-share owners in, say, Florida, the most popular destination, journey off to Colorado or Europe.

--James Ingraham and his wife Pennie of Washington Township, N.J., bought their first share on St. Martin, where they love the beaches and the local culture, then bought another at the new Manhattan Club in New York City, which they use as an outpost for trips to take in theater, restaurants, Japanese spas and night life. As James puts it, "The bottom line is that we enjoy time-share vacations because you can bask like a rich person for a small window of time."

CONS

--The palatial condo you bargained for could turn out to be a weed-bound motel. Because that actually happened to William Rogers, he created a Timeshare Users Group website www.tug2.net) which now has more than 3,000 members who rate their shares via chat room and bulletin board. And even if you find the share of your dreams, "the trading is not all that easy, because you can't get the places during the times you want," cautions Joan Bennett of Indianapolis, Ind., who with her husband Dick owns a 13-week share in Hilton Head. "To be sure of getting a place you want, you should start working on it six to eight months ahead of time," advises retiree Mike Parker, who with his wife Dottie owns three time-shares.

--"Anyone who thinks he can make money on this is crazy," says Denver resident and time-share owner Jim Crigler. Resale values on shares are notoriously low--typically half the purchase price. In addition, annual maintenance fees, which average around $350, can be a drain. And condo associations can be dictatorial, complaining about such violations as too many plants on the balcony.

--While the industry has largely cleaned up its act, it is still plagued by the occasional scam artist. Most recently, shady sales brokers have been preying on would-be sellers, charging up-front fees of $500 or demanding a 30% to 40% commission. Stewart and Peggy Spangler of Pawleys Island, S.C., have already spent more than $800 trying to sell their property near Fort Lauderdale, Fla.

--Reported by Dee Gill/St. Petersburg, Maureen Harrington/Denver, Anne Moffett/Washington, Adrianne Navon/New York, Mark Shuman/Chicago and Tom Witkowski/Boston

With reporting by Dee Gill/St. Petersburg, Maureen Harrington/Denver, Anne Moffett/Washington, Adrianne Navon/New York, Mark Shuman/Chicago and Tom Witkowski/Boston