Anybody else tempted to buy a timeshare this year?

[redrosesix]

After finishing our 2nd annual trip to WDW, we realized that we will be going every year so on a whim I started looking into timeshares, including DVC (which we will probably do eventually but not right away because it is $$$). There are a lot of great deals on Orlando timeshares right now! Some are being sold for $1!

Veeerrry tempting!

 

[MagicKisses2]

My husband and I were looking in early 2008. YES, we were and still are very tempted.

We looked at DVC as well as the local Bonnet Creek. We waivered, but IF we do go with one, I would pick DVC. Looking at the network of resorts (in and out of Disney) and the locations (US Nationwide and outside of the US) I really liked it.

Price is a factor, and I want to get something that we would use at locations that would interest us. That is one huge plus with the DVC vs Bonnet Creek. The locations were so much better! Bonnet Creek was also much more expensive.

Plus, we LOVE Disney, so it would be a must do vacation every other year (or so).

Also, a co-worker purchased a DVC resale at a great price.

Something to think about!

 

[Brian Noble]

There are a lot of great deals on Orlando timeshares right now!

Conventional wisdom is that you should not buy in Orlando---it's easy to trade into through either II or RCI, and fees there tend to the high side vs. other locations. The exception might be if you want a high-demand week (Christmas, Easter, President's, etc.) at a high-demand resort.

I know you've been over at TUG (or maybe TS4M), and that's good, 'cause you'll learn a lot---but take your time! It's easy to buy a timeshare, but very very hard to sell one.

That is one huge plus with the DVC vs Bonnet Creek. The locations were so much better!

DVC has seven resorts at WDW, and one each in Anaheim, Hilton Head, altantic coastal FL, and HI. Wyndham has locations in dozens of states (including HI, Washington DC, San Francisco, New Orleans, and San Diego), Mexico, and the Carribbean, plus limited access to several WorldMark resorts.

Exchanging outside of DVC is generally considered a poor value proposition. Fine to do once in a while, but not something you'd want to make a habit of. There are many (MANY) less expensive alternatives to get access to the same inventory.

Bonnet Creek was also much more expensive.

From the developer, maybe. On the resale market, not even close. You can easily buy enough Wyndham points to get a 2BR at Bonnet Creek at any time of year for less than $3K, with annual fees of less than $1200. Even a cheap OKW 2BR resale for a week in high season would run about $18K, with fees of $1400, and that couldn't get you Easter or Christmas.

There are many reasons one might prefer DVC over Wyndham---it's Disney, after all---but location choice and cost aren't among them.

 

[littlestar]

We did a few years ago.

Definitely do lots of homework on Tug before you buy anything, though. We had owned DVC for a couple of years and found we were vacationing in Orlando at least three times a year. Buying more DVC points for that many trips was just too expensive - upfront cash and dues wise so that's when we started investigating a resale timeshare purchase to compliment our DVC points.

We ended up staying at Marriott's Horizon in Orlando on a cash deal and loved our stay there. So we purchased a resale Marriott - a little EOY (every other year) week at Marriott Horizons Branson for $1,200. We have since sold that silver week and now own a Gold week at Marriott Horizons Branson.

We also own another EOY resort at a dual affiliated resort in North Carolina. That purchase enabled us to be members of both II and RCI (the two largest exchange companies) so we take advantage of their low cost cash weeks for extra vacations quite frequently since we travel off season.

If you have a relative or close friend that already owns a timeshare, you might not need to buy anything. Our family and friends frequently book cash deals through our membership.

 

[redrosesix]

Conventional wisdom is that you should not buy in Orlando---it's easy to trade into through either II or RCI, and fees there tend to the high side vs. other locations. The exception might be if you want a high-demand week (Christmas, Easter, President's, etc.) at a high-demand resort.

I know you've been over at TUG (or maybe TS4M), and that's good, 'cause you'll learn a lot---but take your time! It's easy to buy a timeshare, but very very hard to sell one.

Yes, I think I've already read every single thread on TUG -- it's not nearly as big as Dis, which is where I found out about it. We're Pres. Week, every year for at least the next 5 years. But we also know that it can't all be about Disney -- Seaworld and US are out there. So, we need to consider buying in, but carefully for sure.

Resale is the way to go, for sure. For DVC, it's our only choice since we can't deal directly with them. But our first DVC vacation can't be til 2011 -- the timeline (partly because of the $$$) just doesn't work for getting a reservation in time for the dates we would need it.

BTW -- where would I buy in besides Orlando? I thought the rule was to buy where you plan to stay -- other than PEI, Orlando is the only place we go every year.

 

[Lisa P.]

We're Pres. Week, every year for at least the next 5 years. ... But our first DVC vacation can't be til 2011 -- the timeline (partly because of the $$$) just doesn't work for getting a reservation in time for the dates we would need it.

Buying into DVC makes sense if you'd otherwise spend your money paying to stay in onsite deluxe (or maybe moderate) hotels or suites. Only buy the amount of points you'd use for your DVC stays, banking and borrowing in off years or to "save" up points for a future or splurge trip. Using DVC points for non-DVC vacations is generally an overpriced way of getting your vacations.

If you expect to stay onsite at Disney yearly, and you don't want to buy for another year, consider making monthly payments to yourself to save up and buy for cash, rather than taking on debt for a luxury purchase.

BTW -- where would I buy in besides Orlando? I thought the rule was to buy where you plan to stay -- other than PEI, Orlando is the only place we go every year.

For you, it makes sense to buy where you want to stay, even at the home resort you expect to want most often. But for someone who wants to travel around to various destinations and trade via an external exchange company, like RCI or II, it's better to buy a prime week at a good, well-managed, quality resort within a day's drive of home, which one may like to use some years instead of trading if airfare gets too high, and which is a strong trader with lower maint fees and taxes than commonly found in Orlando resorts. If someone is interested in Bonnet Creek, for example, they do not need to own their Wyndham points at this home resort. They may prefer to own at a home resort with lower fees and reserve vacations here.

 

[redrosesix]

Buying into DVC makes sense if you'd otherwise spend your money paying to stay in onsite deluxe (or maybe moderate) hotels or suites. Only buy the amount of points you'd use for your DVC stays, banking and borrowing in off years or to "save" up points for a future or splurge trip. Using DVC points for non-DVC vacations is generally an overpriced way of getting your vacations.

If you expect to stay onsite at Disney yearly, and you don't want to buy for another year, consider making monthly payments to yourself to save up and buy for cash, rather than taking on debt for a luxury purchase.

Good advice. I'm not crazy about the idea of financing through anybody but DVC (even if it is temporary) because that would just slow down the whole process of buying resale. My only other option would be to buy directly from DVC on our next trip down there. And we're also waiting for the exchange rate to stabilize -- if I bought right now, it would be like paying 20 percent extra.

For you, it makes sense to buy where you want to stay, even at the home resort you expect to want most often. But for someone who wants to travel around to various destinations and trade via an external exchange company, like RCI or II, it's better to buy a prime week at a good, well-managed, quality resort within a day's drive of home, which one may like to use some years instead of trading if airfare gets too high, and which is a strong trader with lower maint fees and taxes than commonly found in Orlando resorts. If someone is interested in Bonnet Creek, for example, they do not need to own their Wyndham points at this home resort. They may prefer to own at a home resort with lower fees and reserve vacations here.

Yup, the closest timeshare to us would be in Quebec, a 15 hour drive away at a ski resort we've never been to. And I would never do that drive in winter.

 

[HeatherC]

Just remember that even if you pay $1 for a timeshare, you will still have those annual maintenance fees....every single year. And they will continue to go up....probably every single year or every other year if you are lucky.

With all the lodging options in Orlando, it is just as possible to stay in a beautiful resort for less than you would pay in maintenance fees.

As an example, we usually travel for at least 10-12 days over President's week every year. This year we stayed at Bonnet Creek for $120 a night...including the tax. That was for 12 nights and with no commitment. Some of the maintenance fees there are about $1000 a year...and that is only for 7 nights...we got 12.

We've also stayed at Sheraton's Vistana Villages, Marriott's Grande Vista, Silver Lake and Orange Lake Resorts for under $130 a night with no tours and no commitment. Orange Lake and Silver Lake we got for under $300 a week. Way less than the maintenance fees.

Not trying to talk you out of it, just letting you know that this is an additional yearly expense that will increase over time. In other locations, I think a timeshare is great. Orlando just has so much competition that it often works out to be cheaper to rent there.

Good luck in your decision.

 

[spiceycat]

agree Heather - always, always compare the fees that you will pay each year to the rate that the resort expects to charge for your time.

there are several timeshares our there that are charging their owners much more than the generally public for their week.

when asked about their heavy expenses to owners, they claim their owners can change weeks - that is generally very hard to do.

disney has floating weeks that are simple to use. my other timeshares has a system that is much harder - you need to fax your request the Wednesday a year and a week before you intend to use it. Or call on Friday. Now if you don't do this every time - you will be told there is nothing. Despite the fact that there is something - because they rent them.

on top of that the phone system does not work properly - it should open at 8:00am central time - it generally doesn't - it starts at 8:03, 04, - whatever.

if you don't call in those few open minutes - you won't get what you what.

now compared to some of the other system - this one is not as bad as some.

that say would rather have floating weeks - if you can give it the time you can generally get a better week than fixed weeks.

disney you can call at any time and get what you want if available.

Really, really think hard before buying something in orlando besides DVC. Orlando has lots of timeshares - but their maintence fees are HIGH. they have to stay high because the competition is so good.

DVC, Marriott, Hilton - are all in Orlando so they made the field hard.

redrosesix - are any of the US states closer to you - some of the northern timeshares trade very well - if you get the right week - summer. Sorry don't know enough about Canada to be helpfully.

 

[Brian Noble]

I thought the rule was to buy where you plan to stay -- other than PEI, Orlando is the only place we go every year.

Lisa explained this well. For you, with a President's Week constraint, buying in Orlando (or, a mini-system that has good availability in Orlando, like Wyndham) probably makes sense. You can easily get President's Week at Bonnet Creek, owning anywhere in the Wyndham system, as long as you have enough points. The other Wydnham resorts also have good availability then---they aren't quite as nice, but they cost fewer points.

But, for those with a little more flexibility about when they go, it's easy to get in for a lot less money.

 

[mareed]

With all the lodging options in Orlando, it is just as possible to stay in a beautiful resort for less than you would pay in maintenance fees.

This is the exact reason we will NOT be considering a timeshare purchase even though we visit WDW multiple times a year! It just doesn't make financial sense for us.

 

[Brian Noble]

That's a fair consideration. It's surprisingly easy to buy a deed that costs more to own than it would to rent. However, depending on how well you can work the system, you can often do better than you'd think.

For example, I've got two weeks in 2BR units at Wyndham resorts for Summer 2009---Smoky Mountains in TN in late June, and Bonnet Creek in mid-July. My MFs are very low for Wyndham---not quite the lowest in the system, but close. Those weeks would cost me about $1,465 in fees to book internally with Wyndham points.

In contrast, a "typical" Wyndham owner, with fees closer to the average, might pay something more like $1,950. So, by owning the right deed with low fees, already I'm doing well.

But, I didn't book them internally. I booked them by depositing weeks worth fewer points to RCI, and then exchanging back in. The total for the two weeks, including all MFs and exchange company fees, was about $850. I could do this because I was relatively flexible about exactly when I visited and could afford to be patient to book. What's more, I could have knocked another $100-$150 off that had I been a bit more aggressive about what I was using to trade with.

 

[redrosesix]

We have seriously been considering buying a week at the Hilton at Sea World, but seeing all those TS's for such cheap prices has made us seriously question that idea. Although I have no doubt that if I buy a DVC membership I can probably sell it in 10 years for a reasonable price, I just don't have the same confidence in anything else. Including Hilton, now.

Since we can't use a fixed week, that means we can't buy most of those $1 TS's, or most of the ones selling for $1000. I was just curious if anybody else had considered buying with the prices so low. From reading the TUG threads, at least some people are opting to pick them up at these prices.

BTW, because Nova Scotia is separated from Maine by the ocean, it would take us a day to drive to Boston (although its about 45 min. by plane) So, although we travel a lot, there isn't a closer TS that we would consider buying into.

 

[spiceycat]

though HGVC was still okay - and last I heard it has the lowest fees of any of HGVC properties?

they are building a new one in Orlando - now.

 

[GetGlowing]

Never ever buy a timeshare from a developer. Buy on the secondary market. As has been mentioned, you can pick up memberships for $1 some places. Timeshare salespeople will look you directly in eye and tell you the biggest lies to get you to sign on the dotted line. Once you've signed the contract (and don't think to rescind) you're stuck.

We are timeshare owners, and have been for a long long long time. When we first purchased (from the developer, and yes were were lied to all through the process), our annual fees were around $350, which was VERY reasonable. Now they are close to $800 with promises (threats) from the company that they will only go higher. (They are trying to coerce members of my ts group -- Equivest -- to upgrade to a different product they also manage).

Here's the trouble with timeshares: Once you own them, you can't get rid of them. All those people selling for $1 aren't offering come-on, bait-and-switch prices. Those are people who can no longer afford / use / need their timeshare, but they signed a contract and are stuck.

If you are considering a timeshare purchase, DO YOUR HOMEWORK. Some people absolutely love them. Others, not so much. Research on TUG, RedWeek, DIS, Yahoo Groups, Trip Advisor, anywhere else to learn the highs and lows of the company you want to purchase from. Read the good reviews and the bad, read messages by the happy owners and the ones who are pissed.

KNOW WHAT YOU ARE GETTING for the deed/points you purchase. Is your annual RCI or II membership included in your annual fee? Or do you have to pay that OOP? How easy and how expensive are exchanges if you don't want to use your home resort/week? Is your usage annual or every other year? If EOY, do you still pay annual fees? What booking gotchas are there? With the one we own, the first booking call we make in a year is free. Subsequent calls for reservations during that same year incur a booking fee. Using II to trade outside our home system is an additional $125/reservation.

How much would it cost to rent the resorts you want every year, either from an owner or through the management company? With Starwood, Marriott, Disney, etc., you can book these resorts as if they were hotel rooms right from their public websites. How much would it cost to rent that comparable week out of pocket vs. the annual fees you pay?

There are a LOT of things you need to consider. Don't stumble into a purchase because "now is a good time to buy." Learn the plusses and minuses. Talk to owners. Make an informed decision.

 

[TnTWalter]

Nope. I can rent for less than some people's yearly maintenance fees. They're selling for $1 but you pay usually more than >$500 per year in fees that go UP every year....

 

[MaryKLady]

There are a LOT of things you need to consider. Don't stumble into a purchase because "now is a good time to buy." Learn the plusses and minuses. Talk to owners. Make an informed decision.

Agreed.

We own, not DVC, but we love it anyway. We did buy from a developer but the price was comfortable for us. I felt fine doing it that way because I didn't know enough about the ins and outs and was afraid of the resale companies, it's just me . Our maintenance fees do go up every year but they are still concidered low in comparison to some others. We never use ours but trade it. And just the other week, we did some math to find out how it was working and so far it has already paid for itself and then some compared to how we were traveling before. But that is because we bought the right week for us and use it...it never makes sence if you're not going to make it work for you.

 

[Brian Noble]

There are a LOT of things you need to consider. Don't stumble into a purchase because "now is a good time to buy." Learn the plusses and minuses. Talk to owners. Make an informed decision.

This is such good advice. I have nothing to add. Excellent post.

 

[Lthouseprincess]

I will give our Timshare to any one who wants it, they would just have to cover any costs that are involved in the transfer of title. We own a 2 bedroom at Blue Tree. We have had it for 11 years and used it twice. It is too big for the two of us and I don't want to cook on vacataion.