Galway Bay Cottages IRE - Help with sudden increase in maintenance fee

[senorSamba]

There are 408 weeks in this resort from what I understand. Some are owned by the "Vendor" still, which is the Management Company. Most are owner owned by people like me.

Also, the management company is Plc in my contract, but I notice they have switched to an LLC. Not sure what that is all about.

[Carolinian]

As to the budget:

Most resort budgets I have looked at show you the previous year's actuals by line item along with the coming years projections. That absence is a red flag.

Most budgets also give the number of owners so that you can do the math to see the calculation.

The euro is actually cheaper right now than it has been in past years.

There does not seem to have been provision for reserves in the past, which is major mismanagement. It also contributes to fee increases as this juncture.

Management costs seem high.

The advertising for rentals, is this for members weeks or for developer owned weeks? If the latter, this should not be an member expense.

The absence of the income side is also telling. There is usually some income other than the M/F itself, such as interest income, late fees, etc. How is that accounted for?

What is done with delinquent weeks? Are these foreclosed upon, and if so who buys them?

[senorSamba]

This is the first year I think they sent a budget out, AFAIK. I really didn't pay too much attention to it previously, just paid it.

They cited the RISING euro as a major contributor to increasing the fee.

There are 408 weeks. Most are sold. Some are still available for sale.

The management costs seemed very high to me too. There were 4 heirs to the management company. So now it's four splitting profits (which I imagine are small to none) vs just 1. I spoke to one of the heirs and he said they pretty much do not have an interest in running a timeshare company as they have jobs, family, etc. I understand that as I have the same but they should sell it or step aside if it's not worth anything.

Re advertising they have a small website and do no advertising that I am aware of.

Re the delinquent weeks, they said they do not foreclose as it is too expensive.

I need to scan and post my contract and certificate of ownership.

That's about what I know for now.

Any help is very welcomed.

[joycapecod]

There are 10 units that are timeshare and 2 that were owner owned. I know that the two that were owner owned had been for sale in the entirety...I found a real estate listing for them on an Irish Realty Site but don't remember which one as it was a few years ago.

We never before received a budget, nor a P&L. I also saw listings for http://www.vrbo.com/351583 and found this http://www.daft.ie/galway/short_term...odation/barna/ http://medresorts.net/resortdetails.aspx?id=1685 and another here this is one of the cottages pictured that is timeshare. The wholly owned units are single story.

FOR SALE - FORRAMOYLE EAST, BARNA VILLAGE, CO.GALWAY


BUNGALOW NUMBER 9. BUNGALOW NUMBER 10.

TWO 2 BEDROOM COTTAGES, WITH SEA VIEWS.

Two excellent semi-detached two bedroom cottages to be sold as one property. Set in a fabulous location overlooking Galway Bay, and the Hills of Clare, close to Barna Village, with its Shops Schools Beach and with Barna Golf an Country Club in the area. This is a prime investment opportunity for investors or owner-occupiers who wants to acquire a superb property in the Barna Village area. Each cottage will be sold fully furnished
Bungalow No. 9 Comprising: Living Room /Dining Room, Kitchen, Bathroom, Two Bedrooms. (one en-suite) Outhouse, Storage fired central heating and Solid.
Outside: Tarmacadamed Car parking area, Gardens to the front and rear

Bungalow No. 10 Comprising: Living Room /Dining Room, Kitchen, Bathroom, Two Bedrooms. (one en-suite) Outhouse, Storage fired central heating and Solid.
Outside: Tarmacadamed Car parking area, Gardens to the front and rear.

Price: €295,000 (For The Two Cottages) SOLD

Here is the link,
http://www.barnaestates.com/residential.htm

scroll down the page.



And so the 2 wholly owned units have been sold...no wonder they want out of the timeshare business,

Joy

[elgato15]

I also own one week there and my brother owns 2 weeks. I know that when we bought many years ago at the beginning Bill told us they owned the cottages outright and not by mortgages. I notice that it doesn't mention what the new owners get for rental income! You can rent a week cheaper than owning one. At this point I just want out of there. Being retired we can not afford to pay these rates.

[elgato15]

My brother and I would be willing to sell our combined primetime 3 weeks for $1.00 each effectively immediately. I emailed & left a phone message to them indicating that but have heard nothing. If I sold it on ebay for $1.00, buyer would have to pay the maintenance and closing fees, how would I go about transferring the deed?

[elgato15]

You would think that they would want to accept that deal since they can get that a good amount just from renting the weeks.

[Irishlass]

Also own a week at GBC and have received maintenance bill. Also noticed no income figures in the projection statement. If Cottages 9 and 10 have been sold (as seen on Internet) where has this $295,000 euro gone to? Should that not be used to some extent in updating the property? The current owners may have inherited this from Bill but that is all they seem to have inherited. If they want out, why not sell instead of saddling current owners with extravagant maintenance fees.

[senorSamba]

Anyone know when these two cottages were sold? Why wouldn't that money remain in the management company?

[joycapecod]

I don't know when the cottages were sold. Quite some time ago, after the developer died I was looking at property and found the listing. It must have been over 2 years ago. I remembered seeing it when this discussion regarding the huge fee incrrease occured. I would think that the monies from the two cottages should go to the management company, but since I do not know HOW they were deeded I can only speculate that the monies were placed elsewhere.

Let's face it, that sum would pay for all the necessary items and more.


Joy