Timeshares are known for its cumbersome costs that usually increase over time. For some owners, this is one of the reasons why they wanted to get out of their timeshares. Such issue is face by Broadbeach timeshare owners. Recently, a rate hike of $41,000 at a Broadbeach timeshare resort is forcing its retiree owners to reconsider holidaying on the Gold Coast.
According to Geoff Heaton, Voyager Resort part-owner and general manager, the 47% rise, which resulted from a change in the Gold Coast City Council’s rates categories, would be the ‘final straw’ for many of the 1200 timeshare owners, already struggling to meet rising levies. He added that it’s been a pretty tough time for the last three years for self-funded retirees.
Mr. Heaton said that the owners are going to find it hard to continue to holiday in the area and they’re going to find it hard to continue as a building in timeshare phase. There had land tax increase by $100,000 this year, electricity by 20-odd per cent and the rates.
Meanwhile, Gold Coast City Council advised the resort that the rates were bumped up from $87,000 mid-last year to $128,000 in January because of a category change of use from owner-occupier to holiday-let. A council spokesman said the property was re-categorized to bring it into line with other Coast timeshares.
On the other hand, Australian Timeshare and Holiday Ownership Council president Laura Younger said that timeshares were under ‘massive’ pressure from land tax increases, with some properties paying $400,000 a year. So, if the levies are going up each year it starts to really put pressure on people. If it gets too hard, they don’t pay their levies and that puts more pressure on other owners.
The said case is just an example of a number of disadvantages of timeshare ownership. There may be other similar cases with this that results to the owners wanting to get rid of their timeshares. Some of the owners today even hire a timeshares transfer company such as the Transfer Smart just to get rid of such property.