As long as we are into confessing scenarios that our skeptical minds have created, throw this one into the hopper.

The owners of Dikhololo, a perfectly respectible game reserve resort (check it out on the Net), unfortunately were too ambitious in their building plans. While they run a fine resort, it has not drawn nearly the clientele expected and the owners are currently experiencing financial difficulties. To meet their cash flow crisis, they decide to divy up the resort and sell it off as timeshares. Unfortunately, the cash flow crisis is so critical, they sell the initial units at below rock bottom prices just to get their hands on some immediate cash.

Scenario 1 (involving honest, but inept managers): The immediate fix simply exacerbates their long range financial problems and the resort goes belly up leaving the timeshare owners nothing beyond a few loan payments.

Scenario 2 (involving some skullduggery): The low prices and low maintenance fees are nothing more than a come on (an "introductory offer" as the resort managers later explain to disgruntled buyers). Maintance fees skyrocket. Owner must either pay up or default on their timeshares.

Scenario 3 (truly from hell): Same as scenario 1, except, once the resort is in default, South African law declares that timeshare purchasers are fully liable to any resort creditors. South African courts were at first undecided on this matter, but won over by a set a letters provided by a Senator Baker from Hawaii, written in protest to her TOT (tax on timeshare) bill. These letters show the defendents themselves (as multiple owners) declaring themselves to be owners and investors and not hotel guests or rentors. In face of these letters, the court had no choice but to declare timeshare owners fully liable for any of the resort's debt.

Honestly (really!!) I hope nothing like the above ever happens and those who decide to make the plunge have a good poolside laugh at us skeptics after having coming back from a day on the game reserve. I myself am simply too financially conservative as to take a risk at buying real estate sight unseen. (I grew up during too many Arizona land scams. Still, that does not prevent me from wishing others well.)

Back to Message List | BBS Home | TUG Home |

To view follow ups click Back to Message List