$1 Timeshares?

[wbl2745]

So the only timeshare I've ever investigated and own is DVC, but I've heard that you can find timeshares for $1 on eBay so I went to look. There are hundreds listed! In fact, there was one timeshare listed for $0.01 and the current owner would give you $1000 to buy it.

What's going on? Is this the worst case when there's no ROFR? Some of them were even Marriott Timeshares, which I would have expected to have better resale value. I don't own DVC as an investment, it's for my entertainment and the enjoyment of my guests, so I don't really care about resale value. My heirs will probably deal with either selling it or using it until it expires.

Is there some sort of timeshare crash waiting to happen? Every time that I hear the rumor of DVD considering another resort at WDW, I wonder how many units will the market bear?

 

[spiceycat]

first you need to make sure that the title is free and clear. that the person selling it does not owe anything on it.

secondly find out how much the annual dues (maintence fees) are - sometimes that is the big problem.

say you out of work and your maintence fees are close to or over $1,000 a year - you would want to get rid of that timeshare less you could afford it.

sometimes the owners get tired of that timeshare and wants out.

go join tug

www.tug2.net

now you don't have to join if you just want information. but joining lets you look at the reviews - which can be helpfully

 

[utahkennedys]

It is easy to buy a timeshare and much harder to sell it! I have bought 2 timeshares on ebay for under $100/each and they have been great, but you need to spend a long time doing research, knowing how the trading companies work, etc. before you commit. Apparently a lot of the ones for sale on eBay are ones from what is called "postcard" companies who charge a large fee (up to $5k!) to the owners to sell them the timeshare and take it off their hands so they don't owe maintenance fees anymore. I see some amazing deals on eBay for under $100 to around $1500 and they can be great deals if you know what you are doing. I have to stop myself from buying more!!

 

[chalee94]

What's going on? Is this the worst case when there's no ROFR? Some of them were even Marriott Timeshares, which I would have expected to have better resale value.

not really a ROFR issue. timeshares only make sense in theory if you buy a share in a rental property which allows you to pay fees over time that are less than renting.

the marriott resorts on hilton head are very nice. but if i restricted you to staying the 2nd week in january every year and you had to pay $1100 each year in fees as an owner, how much would that be worth to you given that you could rent the same january week for $400-500 without owning? not very much, i'm guessing.

Is there some sort of timeshare crash waiting to happen?

it's already happened for many. same thing for homeowners, in case you missed it - real estate in general got hammered, ROFR or not.

if demand for travel to wdw tanks and/or maintenance fees spike such that you can rent rooms for less than the comparable DVC maintenance fees, the value of DVC will drop to nothing.

 

[culli]

So the only timeshare I've ever investigated and own is DVC, but I've heard that you can find timeshares for $1 on eBay so I went to look. There are hundreds listed! In fact, there was one timeshare listed for $0.01 and the current owner would give you $1000 to buy it.

What's going on? Is this the worst case when there's no ROFR? Some of them were even Marriott Timeshares, which I would have expected to have better resale value. I don't own DVC as an investment, it's for my entertainment and the enjoyment of my guests, so I don't really care about resale value. My heirs will probably deal with either selling it or using it until it expires.

Is there some sort of timeshare crash waiting to happen? Every time that I hear the rumor of DVD considering another resort at WDW, I wonder how many units will the market bear?

Yes many timeshares have a worthless resale value - unless it is high demand resort and time. DVC is the exception to the rule, and even though Marriott has a ROFR they have not been as agressive in using it as DVD. tug2.net is a great forum that is timeshare based and not specific to just DVC. This is why many people say using DVC outside of DVC resorts is a waste of money. There is another world out their in the art of timeshare buying, trading and maximizing your savings.

 

[OrangeCountyCommuter]

Yes many timeshares have a worthless resale value - unless it is high demand resort and time. DVC is the exception to the rule, and even though Marriott has a ROFR they have not been as agressive in using it as DVD. tug2.net is a great forum that is timeshare based and not specific to just DVC. This is why many people say using DVC outside of DVC resorts is a waste of money. There is another world out their in the art of timeshare buying, trading and maximizing your savings.

I expect the rule will catch up with DVC... think about it, it's the final few years of your contract are you going to find a buyer willng to pay a lot for this... or will you be giving it away to get out of the dues?

 

[carlbarry]

I purchased a 49,000 point timeshare at Wyndham Star Island (Orlando) 3 years ago for $100, which at that time was a good deal. Last week, one sold for the same resort, 149,000 points, for $1, with the seller paying closing costs! So yes, there is NO market for some timeshares.

 

[tgropp]

Yes, there are a lot of good deals out there. I just purchased a semi-annual timeshare (gold season)at Marriott Beachplace towers in Fort lauderdale for $910.00...maintenanece fees at $505.00/year. This works out good as we usually go to WDW in december.Christmas time and we can spend a week at the beach before or after WDW. I spent an extra $225.00 to do a title search and make sure that everything was debt free.

 

[BBG-BLT]

I have another timeshare at Paradise Village (Mexico) 5,200 points a year. Dues are only 355 a year - nice place but now I have my DVC and don't really need my other one. I only get 3 weeks vacation = 1 week WDW, 1 week NJ Beach and 1 week Christmas visiting family.

So I'm one of those people who would sell my timeshare for $1 because I just don't use it or need it anymore - It will cost me 1,135.00 to transfer the title to someone - but yes - I'd sell my other for $1.

Someone told me - Buy where you want to go....

Took this one off my sister's hands... I should have known better

 

[lilpooh108]

I checked these Ebay timeshares out before we bought DVC and this is what I concluded----the $1 timeshares (or the less than $1000 timeshares) are priced that way where the annual dues to maintain that timeshare is greater than the rack rate to rent the same accomodation for a week.

If you can pay equal to or less than an owner would pay in dues to rent the same timeshare resort property, then the timeshare is essentially worthless.

DVC is currently holding its value well because at this point in time, the MFs you pay are much less than what you'd pay for rack rate in the same type of accomodation.

I would imagine that as the lease expiration dates approach and as MFs increase decades from now, there will be a break even point of some sort for DVC as well.

 

[princessnoelly]

We're one of those people!

We bought our time share before I got pregnant in Myrtle Beach- DH is, well now was, a huge golfer so we thought it would be perfect. We bought it and closed and then within weeks found out I was pregnant.

We've owned it for 8 years and NEVER gone. We are willing to give ours away just so we don't continue to pay the fees each year. We rent it to cover some of the cost but to transfer it would be the same as one year of dues.

For us there was never a direct flight that was affordable. We'd rather take our kids to Disney (direct flight + family fun) then fly in close, rent a car, drive with two kids and listen to, "are we there yet? how MUUUUUCCCCHHH longerrrrrr?". Plus, I don't think DH wants to listen to me guilt him over playing golf while I'm left alone with the kids.

We bought ours as a childless couple and it was a great idea. Two kids= not so great!

 

[JimMIA]

I checked these Ebay timeshares out before we bought DVC and this is what I concluded----the $1 timeshares (or the less than $1000 timeshares) are priced that way where the annual dues to maintain that timeshare is greater than the rack rate to rent the same accomodation for a week.

And it also depends on the assumptions you use. You're using one standard for other timeshares and a completely different standard for DVC.

For example, our upcoming Wyndham Bonnet Creek stay is costing us $40 per night (1 Bedroom deluxe villa), factoring in both our actual Wyndham acquisition cost (less than $2000 total) and MFs for the points used. To rent that villa from an owner would have been about $85-$100 per night.

Using that same standard and our actual DVC costs, a one bedroom at OKW during the same week would have cost us $189 per night. To rent from an owner, $270 per night.

DVC is currently holding its value well because at this point in time, the MFs you pay are much less than what you'd pay for rack rate in the same type of accomodation.

I think DVC provides good value if you look at the combination of acquisition cost + annual dues, and then compare that to Disney's rack rates. If you compare it to the rental price from a DVC owner (the same criteria you use for other timeshares), it's a much closer calculation, but still slightly positive.

The more important calculation, in the context of this thread, is how well DVC is holding its resale value.

I think the answer to that is "So far, so good -- but not nearly as well as it was a couple of years ago." The three WDW resorts still in active sales (BLT, SSR, and AKV) are selling resale for $35 to more than $50 per point less than direct prices.

I don't think you'll ever see WDW DVC resorts selling for $1 on eBay, but I think you'll see them selling somewhat lower sooner rather than later.

 

[chalee94]

For us there was never a direct flight that was affordable. We'd rather take our kids to Disney (direct flight + family fun)...

have you considered trying to trade your myrtle timeshare for something near disney? you might want to look around the TUG forums to see if that is a option...

 

[arthur06]

we have looked at "other" TS's and so far have not bought. It is wasy to buy one, but tough to sell one.

I found a nice Wyndham with great MF's for under $500. MF's were about 4.30/1,000. It was about $80 per month in MF's. At my age (31) that means that I would have over $30,000 in MF's before I even retired. That fact alone, means that I want to be "110% sure" before I buy.

 

[Dean]

So the only timeshare I've ever investigated and own is DVC, but I've heard that you can find timeshares for $1 on eBay so I went to look. There are hundreds listed! In fact, there was one timeshare listed for $0.01 and the current owner would give you $1000 to buy it.

What's going on? Is this the worst case when there's no ROFR? Some of them were even Marriott Timeshares, which I would have expected to have better resale value. I don't own DVC as an investment, it's for my entertainment and the enjoyment of my guests, so I don't really care about resale value. My heirs will probably deal with either selling it or using it until it expires.

Is there some sort of timeshare crash waiting to happen? Every time that I hear the rumor of DVD considering another resort at WDW, I wonder how many units will the market bear?

There are a lot of great deals and a lot of timeshare's for sale where that exact option is not worth it if given to you and a lot of people that own timeshares that don't match their needs but might match someone else. If one is looking in to this you should spend 6 months or so of active investigation to see what works and is a good deal for your situation.

 

[shalom]

Is there some sort of timeshare crash waiting to happen?

As has been said, the crash already happened. And don't forget the people who bought something to trade through II into DVC who were convinced that DVC was coming back - now they need to sell that and get something that trades into RCI.

Along with the economy, RCI has been changing its system. For example, a year or so back, it was possible to trade in a studio in the Branson area and get a 2 BR at the Beach Club. At one time, there were a lot of those sorts of trades, and owning a week at an okay resort with low maintenance fees could really get you places. Not so true any more, meaning a lot of long-time owners are irked and want out. While I would guess the economy is the major factor, everyone I personally know who wants to sell their Timeshare, it's because they're mad about the changes with RCI.

Personally, I think points systems are the way to go. The most variety for the least hassle. But it can't be denied that a savvy weeks owner can make their money go further. Just be sure and research your purchase well. lilpooh108's theory is only partly accurate -- a lot of those $1 timeshares, you do pay less to stay there as an owner, it's just that a lot of owners aren't getting any use out of their ownership for whatever reason.

I think the fact that DVC owners can rent out their units for considerably more than they pay in points would keep the price up even if ROFR went away, and people who know a lot more than I do believe that as well. In terms of your DVC ownership, I'd be more worried if the rental prices were diving than I would about the $1 Timeshares on E-bay.

 

[disneydenisel]

We just offered to give away our very nice two-bedroom Myrtle Beach timeshare because we weren't using it and it was just one more thing that I had to think about. Now, we did trade it into Maui one year (awesome), and I rented it out for more than maintenance fees, but I was trying to simplify things so now I will have one less thing to think about! The new owner will pay transfer fees, maintenance fees, and use it this year. I found a family who already owned at the resort and they wanted a larger villa for their family, so it was just a perfect fit.

We bought it resale from someone who paid at least $17K for it. It's been recently renovated and is a great resort. We did buy it to try to trade into DVC, but then the whole switch to RCI happened so I didn't really need it to trade into anything else. I probably could have rented it out to cover maintenance fees + a very delicious dinner and movie every year, but I was thinking about my kids and what would they do with it some day. They might not even want our DVC points.

Anyhow, so there are some great deals out there if someone wants to own at some really nice locations. A few years ago these resales were selling in the mid 3K range.

 

[Sammie]

This morning news said it is very possible gas will go as high as $6.00 a gallon and unemployment will continue to rise, so I am sure we will see even more if this comes to pass.

 

[dahwolf]

Someone told me - Buy where you want to go....


I think this is the most valid point! I didn't buy in because I just wanted to own a timeshare or vacation club points. I bought a DVC contract because that is where I want to go each year. I bought the points for BLT because that is where I want to stay each year. Unless there is some unexpected health or financial situation that pops up, I will own this until it expires, no questions asked.....

 

[gkrykewy]

This morning news said it is very possible gas will go as high as $6.00 a gallon and unemployment will continue to rise, so I am sure we will see even more if this comes to pass.

Unemployment has been gradually improving, so I don't know where "continue to" is coming from.

$6.00 gas will eventually hurt WDW, however.