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Posts Tagged ‘Hawaii’

Surging Property Taxes Contribute To Timeshare Foreclosures

February 12th, 2010 by Matthew C. Keegan | 5 Comments | Filed in News

Owning a timeshare can offer some important benefits including allowing you to return to a favored vacation spot on a regular basis without worrying about hotel accommodations, unfamiliar surroundings, or dealing with nasty front desk personnel. Certainly, timeshares have some drawbacks including their high cost, low resale value, and difficulty getting the weeks you prefer to visit.

Yet, timeshares remain a favorite with some including those who were not talked into signing a deal they really did not want.

Timeshare Troubles

Hawai'iBut, now a more recent problem has emerged, one that could lead to a rash in timeshare foreclosures. That problem has to do with property taxes and, according to the Pacific Business News (PBN), has become a huge problem on Hawai’i. (see Maui time-share taxes surge)

Like so many other markets across the nation, Maui property values have been dropping, but property taxes on island timeshares has doubled or even tripled over the past year according to PBN. That move has sparked an outcry from timeshare owners, who have charged that they are being burdened at the expense of permanent residents who are not seeing a tax increase.

Maui Taxes

At issue on Maui is that the county government is experiencing a budget shortfall and is recouping some of its lost revenue in the form of property tax increases. That move has hurt recession weary timeshare owners with PBN reporting last August that hundreds of one week timeshares have been foreclosed on by time-share operators. (see Foreclosures on time-share units remain stable in Hawaii)

The American Resort Development Association (ARDA) is an advocacy group who represents the resort development and vacation ownership industries. The ARDA says that the county of Maui became the first local government to set up a separate tax category for timeshares in 2005, charging $14 per $1000 of assessed value, the highest tax rate for timeshares in the nation.

Timeshare Mortgages

The timeshare default rate in Hawai’i is still comparatively low, pegged by ARDA in 2009 at 5%, up from 4% the previous year. Unlike conventional mortgages written by commercial banks, timeshare mortgages are held by the resort owners. If a timeshare holder defaults on his mortgage or fails to pay the annual maintenance fee—typically $500 to $1000—then their share can be taken away.

Being a popular vacation destination has worked wonders for Hawai’i which favored by mainland and Japanese visitors. ARDA says that while timeshare prices have fallen, interest in the market remains good as bargain hunters seek timeshare foreclosure deals despite the property tax surge.


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Confirmed: Air Travel Is Getting Cheaper

March 5th, 2009 by Matthew C. Keegan | 6 Comments | Filed in Consumer Tips, Travel Tips

My neighbor is planning  a late spring trip to eastern Europe, a two week jaunt that will have her touring through five countries while spending a considerable amount of time in Split, Croatia. She has visited the area before, but when she first flew over her airfare was nearly double what she will be paying this year.

airlinerYes, lower airfares are back and, if you know where to look, widely available. Thanks to an article that appeared in The Wall Street Journal (Airlines Slash Fares to Fill Up Empty Seats, March 4, 2009, D1) many more travelers will learn that 2009 is shaping up as a good year to fly.

Travelocity, the popular online booking destination, reports that airfares for the Top 100 most popular destinations has fallen, as much as by half since peaking in June 2008. These destinations include both domestic and international cities.

Noticeably, coast to coast travel has finally returned to sensible levels. Round trip fares from San Francisco to key east coast gateways such as New York City and Boston have dropped below $250, a 40 percent decrease in price. Even Hawai’i is finally becoming affordable with similar price cuts to the island state.

While last year’s high airfares were attributed to record high jet fuel costs which were passed on to travelers, this year’s low airfares aren’t really a reflection of lowcost jet fuel. Instead, passenger load is the driving factor in cheaper airfare.

Thanks to a deep recession, consumers are being very careful to reign in their travel costs, as farflung trips are cancelled and vacations closer to home are planned. This has put a world of hurt on airlines who are finding that they’re sending some of their planes out with more empty seats than filled.

Though a full fledged fare war has yet to break out, airlines aren’t likely to let a competitor’s fare special go unmatched, particularly when the same city pairs are involved.  In larger cities with several airports, consumers may find that the best deal is at the airport that they don’t usually fly out of.  Newark to Long Beach could prove to be a better deal than would a flight from JFK to LAX.

Of course, with market instability comes the threat that low airfares may not stick around. Should jet fuel prices ascend once again, prices will rise accordingly. So if you are planning a trip later this year, you may want to book the flight now before your travel costs increase.

Adv. – You can save on your next home purchase while still keeping your other expenses in line. Why not allow SayLowerBills.com help you find ways to reduce your medical expenseshousing and debt obligations in 2009?


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AAA Reports Travel Bargains Await Vacationers

June 25th, 2008 by Matthew C. Keegan | 3 Comments | Filed in Money Management

A cool economy could make for some hot vacation deals

Maui HawaiiHigh fuel prices and an economy teetering on the brink of recession may not keep people from traveling this summer after all.

The American Automobile Association (AAA) recently shared a report from the Travel Industry Association (TIA) which says that Americans are expected to take more than 327 million leisure trips during June, July and August of 2008. Representing only a slight decline of 1-1.5% over last summer, it is expected that the current economic conditions will create opportunities for vacationers to find bargains when traveling to destinations worldwide.

According to AAA’s Leisure Travel Index, the average rate for a AAA Three Diamond hotel room in July 2008 is $136 in Honolulu/Waikiki, $259 in Maui, $256 in New York City, $160 in Washington, D.C., $138 in Las Vegas, and $193 in San Francisco, with travel packages offering additional opportunities to save. By combining airfare and hotel stay in one package, vacationers can receive significant savings. In some cases, as outlined below, extras such as transportation from the airport or some meals may also be included.

AAA, which is the largest automotive membership club in the US, is offering a variety of packages this summer including the following:

Hawaii: Five nights in Maui which includes hotel and airfare from Los Angeles or San Francisco for only $529*; Chicago, $795*; Denver, $739*; Seattle, $625*; and New York, $799*. AAA prices are per person, based on quad occupancy (two adults and two children under the age of 13) for select dates available August through December.

San Francisco: Package includes a 2-night hotel stay, San Francisco CityPass Sightseeing booklet, and all state and local taxes. Prices start at $209 per person, based on double occupancy, excluding airfare.

Washington, DC: Package includes 4-night hotel stay in Washington, D.C. Prices start at $329 per person, based on double occupancy, excluding airfare.

As with any package, certain restrictions apply. Visit AAA.com for more information and don’t forget to check out special deals being offered through Expedia, Travelocity, Priceline, and other online vacation package companies.


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