How is buying a timeshare EVER a good idea?

[MrsPete]

Buying timeshares is a luxury not an investment though they try and convince you otherwise.

That's absolutely true. When you go talk to timeshare people, they like to talk about "anyway dollars" (dollars you'd be spending anyway), they like to talk about how hotel rooms will cost more in the future, and they like to talk about how this is an investment in your family. That's really a slanted viewpoint intended to separate you from your dollars.

This is a luxury. If you can afford it and think it's a good choice for your family, fine. But go into it realizing that you'll likely never get back your initial investment, and you're committing to paying the maintenance fees every year. You're taking the OPTION of paying for a vacation and making it MANDATORY for yourself.

A timeshare can be a good deal for the right person, but if it's a financial stretch, if you have to borrow, or if you're at all unclear on what you're getting . . . then you're not the right person.

 

[MrsPete]

There's no "right way" to vacation, whatever makes your family happy is the right way. I want nice, big rooms with kitchens for disney and beach vacations, other vacations we're much more flexible. No one should try to convince others of the value of a vacation or vacation style, it is so relative.

Sure, some people are willing to pay $$$ for BOTH a room and tickets at the same time. I'd rather skimp on a room where we're only going to shower and sleep. Saving money there allows me to splurge on a nice lakeside cabin for Thanksgiving and a beachfront condo Easter Break -- times when I will be sitting around enjoying movies for hours at a stretch, cooking big meals, and sleeping late. I can't have the nicest rooms all the time, so it just makes sense for us. None of us have unlimited vacation dollars. If we splurge on expensive rooms at Disney, we'd have to cut out one of the other vacations.

 

[MrsPete]

It seems to me for those who stay at value resorts, it really wouldn't work, but for those who want a more deluxe vacation, it would be. It's personal preference. The same reason I enjoy my designer handbags while my co-worker chooses to purchase less expensive ones.

You're making the choice out to be more simplistic than it really is: You're making it sound as if you have two options. 1) Book at a value resort or 2) BUY DVC. The reality is that you have loads of other choices. You can book at a deluxe, you can rent points, you can rent a condo via ebay or Craigslist, you can stay at a moderate.

Since we don't have the same set of circumstances and expectations for every vacation, we don't always make the same choices.

 

[walkdmc]

I think I figured if our maintenance dues on BLT don't change, over the life of the contract, we'll have paid about $60,000 in maintenance fees. Of course, the fees will increase and tack on the initial buy in of over $30,000 for 310 BLT points and you're looking at nearly $100,000 for WDW vacations in our lifetime.

That's just to give you the lowdown on what kind of expenses BLT DVC folks are looking at, long term.

 

[crisi]

I think I figured if our maintenance dues on BLT don't change, over the life of the contract, we'll have paid about $60,000 in maintenance fees. Of course, the fees will increase and tack on the initial buy in of over $30,000 for 310 BLT points and you're looking at nearly $100,000 for WDW vacations in our lifetime.

That's just to give you the lowdown on what kind of expenses BLT DVC folks are looking at, long term.

Fees are going to increase way more than that. You only have $10,000 worth of dues inflation there. If you pay $5 in dues now, and have 150 points, you pay $750 a year in dues. If dues increase at 3% per year, in 50 years you'll pay $21.92 per point. Or $3,288 in dues. A minute with Excel and I figure your 310 BLT points are going to cost you $211k - conservatively (I think dues will go up more than 3%). ETA: And you haven't bought park tickets, or food, or transportation (and for those of us who live a long way away, with gas costs projected to increase, transportation costs could be crippling).

Now, granted a hotel room in 2060 will be much more expensive as well, which is why looking at it that way is difficult to get your brain around.

Over the ten years we've owned, we've gone from paying $3.50ish in dues to $5ish in dues.

 

[Purseval]

I bought resale at a resort with a high trading value. My dues are $500/year and I can exchange into DVC. 1 DVC exchange is worth more than I paid for the TS. The next one will cover 4 to 5 years worth of dues and if I keep exchanging I will come out way ahead of renting or buying at full price. I paid so little that I could give it away for free and still come out ahead vs renting. So yes, there are definitely times when buying a timeshare makes sense.

 

[walkdmc]

Fees are going to increase way more than that. You only have $10,000 worth of dues inflation there. If you pay $5 in dues now, and have 150 points, you pay $750 a year in dues. If dues increase at 3% per year, in 50 years you'll pay $21.92 per point. Or $3,288 in dues. A minute with Excel and I figure your 310 BLT points are going to cost you $211k - conservatively (I think dues will go up more than 3%). ETA: And you haven't bought park tickets, or food, or transportation (and for those of us who live a long way away, with gas costs projected to increase, transportation costs could be crippling).

Note to self: don't let DH read the disboards....

I still don't regret it. I'm a creature of habit and like to vacation in the same areas. I usually go house-hunting while on vacation...the OBX for example. $211K is much less than I'd pay for a house, it's in my favorite vacation spot and I don't have a worry in the world when I'm not there. No one is calling me on a Saturday morning to tell my the fridge in my unit isn't working, or my bathroom is leaking, etc. Granted, I don't build equity, won't profit financially from DVC, but it's still worth it to me.

 

[LoveBWVVBR]

I bought resale at a resort with a high trading value. My dues are $500/year and I can exchange into DVC. 1 DVC exchange is worth more than I paid for the TS. The next one will cover 4 to 5 years worth of dues and if I keep exchanging I will come out way ahead of renting or buying at full price. I paid so little that I could give it away for free and still come out ahead vs renting. So yes, there are definitely times when buying a timeshare makes sense.

Don't forget that you can get "change" in TPU's from that resort now since DVC seems to trade for a flat 25 TPUs regardless of unit size/season (except for holiday weeks which are a few TPUs more). That means that you may get more than 1 DVC week for your cheapo deposit.

You can also combine one cheapo deposit with another if you don't get enough TPUs to get DVC with one deposit alone. Since the switch to RCI and the RCI switch to TPUs, I have zero incentive to continue to own DVC. One cheap deposit week gets me multiple weeks in DVC...what is wrong with this picture? I'm sick of paying crazy DVC dues when I can just trade in for cheap. DH is pushing me to hold out for when DVC starts depositing BLT and then he'll agree to sell our DVC. I seriously can't wait.

 

[ccgirl]

All timeshares are not created equal. I actually own two timeshares. I own a studio in Hawaii. Purchased for $8,000 at 0% interest rate. Those maintenance and taxes are $525 a year. If I want to trade it is $130. Last year I traded that studio for a 2BR at BWV. I think that week alone would have cost close to $850 a night full rack rate. Both of my timeshares are also deeded. I also own a Westgate timeshare that I am very happy with. I own in Gatlinburg,TN. Those maintenance/taxes are $700 for the year. My family is not big on hotel rooms. We feel way too cramped. I also like the kids to have their own bedroom so we can stay up in the living room after they go to bed. For us, it was a no brainer. Each timeshare also has benefits for owners there. For example, at Westgate we get the waterpark for free. For those that don't own there; they have to pay. I don't want to have to rely on the honesty of someone else by renting points. Makes me too nervous. Plus, I will will each child one of the timeshares. You can get timeshares on eBay now for cheap. I have a friend that got one for $1,000. Her maintenance/taxes are $600 a year. Try going to a 2BR place for less than $100 a night. Hers is also deeded too. Timshares are not for everyone but if you not what you are doing, do your homework, and vacation frequently they can be for you.

 

[kristenrice]

You're taking the OPTION of paying for a vacation and making it MANDATORY for yourself.

This is EXACTLY the reason we bought DVC. DH is starting his 21st year on the police department. I am starting my 13th year as a full-time paramedic. We work 12 and 14 hour shifts and still manage to only need 4 hours of childcare a week for DD5 and DD7. Our daily family together time, while high in quality, is woefully low in quantity.

Now that we own a small DVC contract, we have obligated ourselves to take a vacation at least every other year. I have a bank account set up with direct deposit so that a small amount of each paycheck is allotted to our vacation. I also use CC rewards and online rebate sites like Sunshine Rewards to acquire extra vacation money.

DH and I have always been very frugal when it came to vacationing. We both just felt that it was a lot of money to spend to come home with nothing tangible. As a result, we just didn't take vacations. In our professions (as well as many others) we need a week each year to "decompress". With our DVC purchase, we can take a vacation and stay in a 1-BR villa without having to worry about how much money is is costing us. The initial buy in was paid with cash from an inheritance. I have $20 per paycheck deposited into an annual dues account so I never see it. When the bill is due, the money is already there.

If we wanted to, we could take a great vacation for a fairly cheap price. I would be perfectly content flying the four of us to Florida ($800), having groceries delivered ($200) and staying in a 1-BR DVC villa for 5 nights. The resorts offer plenty of entertainment and amenities so if we just needed a break and were cash-strapped, we could still stay in a 1-BR villa at AKV for 5 nights for about $1000.

 

[Ryansdad0727]

I am in my early 30's and both my wife and I are teachers in Texas. My first timeshare purchase was in Worldmark which i enjoy very much. I financed it but thought it was worth it since it is a points based timeshare much like DVC. There are over 60 resorts in the U.S. i can stay at. I also bought developer point so i can trade through RCI very reasonably. I have sent many of my friends on vacations to Disney through RCI at an 80% discount off of rack rates for deluxe villas. That helps pay my maintance fees. I don't regret it at all. I love staying at a nice place with a kitchen and room to move around. I would not like owning a week at one place at the same time each year.

I bought a resale DVC contract for 120 points because (1.) i love going to Disney (2.) I paid cash (3.) we just had our first kid and i knew we would use it for a long time (4.) DVC will hold it's value very well vs. other timeshares.

I think it really comes down to whether you are satisified with hotel accommodations or are willing to prepay for a little more luxury.

By pre-paying i feel i have more money during our vacations. I'm not near as big of a tightwad.

 

[Kathi OD]

This is a luxury. If you can afford it and think it's a good choice for your family, fine. But go into it realizing that you'll likely never get back your initial investment, and you're committing to paying the maintenance fees every year. You're taking the OPTION of paying for a vacation and making it MANDATORY for yourself.

This. Although at the present time if we sold our BWV points, we'd get more for them than what we paid (not much more, but more).

We bought primarily to make sure we got a vacation each year. DH was famous for losing his vacation time. By owning DVC there is no way he is going to let those points go to waste. (I know, it doesn't make sense, he was losing vacation days before).

We've owned our DVC for 11 years. We figure that the hotel cost for our DVC vacation each of those years has cost under $1500 (that includes initial purchase price and maintenance fees). IMO that's not a bad deal.

 

[Jenny-momof3]

Holy cow you guys have given me a TON to read through and ponder. Thank you!! With a large family I really have to think outside the box when it comes to vacations....heck when it comes to just about everything! I can't just book a standard room for 4 and be done with it. The world ( Disneyworld included) doesn't cater to bigger families. So planning definitely needs to be thought through thoroughly.

I really appreciate all the feedback for and against timeshares. Thanks again!

 

[Pakey]

I have 3 DVC contracts, spent about +/- $50,000 on them, paid cash, have annual dues of a little over $2500. I could easily afford it, that's never been the issue. I bought 3 contracts (2 at BCV and one at Saratoga at 175 points each because I just knew my 3 children would want them some day).

Still, it's the Biggest financial mistake I've ever made. 50 years is a long time to vacation at the same place. I've only been in about 15 years and I'm tired of it. Our children are tired of it and would prefer to go to Maui or Jamaica or Fiji or Costa Rica.... LOL The DVC villas are only considered deluxe accommodations at Disney; anywhere else they would probably be about a 3 star.

Many people love it; I'm not sure how long they have all owned. I've been to WDW on 22 vacations as an adult and I still enjoy going there on occasion but now I feel like I have to go there to burn through the points. Now my husband and I prefer nicer vacations than DVC provides. The first 10 years of ownership were great but the honeymoon is over now and I'm ready to move on.

I've been flamed here on the dis before from the loyal DVC owners but I think it's important to view all sides before making such a huge decision.

 

[eliza61]

You're welcom Jen
The advice I always give people who ask me is this.

Don't make the decision on cost alone. Think about how you really travel. What do you normally do? stay? eat? what are things that are important to you that you can't put a $$$ sign on. For example, comfort is a big one for me. my sons and dh are all over 6 ft tall, so no matter how cheap I could get a value resort, we would be miserable and a homicide would probably occur after day 5. So that is not an realistic argument in my life because I would never go to wdw if the only place I had to stay was a value...
How do you think you will travel say in the next 5, 10 years. will you still get value from a time share when your 2 oldest are 25 and 21?

Take your time, timeshares have been around for a long time, they're not going anywhere.

 

[eliza61]

I have 3 DVC contracts, spent about +/- $50,000 on them, paid cash, have annual dues of a little over $2500. I could easily afford it, that's never been the issue. I bought 3 contracts (2 at BCV and one at Saratoga at 175 points each because I just knew my 3 children would want them some day).

Still, it's the Biggest financial mistake I've ever made. 50 years is a long time to vacation at the same place. I've only been in about 15 years and I'm tired of it. Our children are tired of it and would prefer to go to Maui or Jamaica or Fiji or Costa Rica.... LOL The DVC villas are only considered deluxe accommodations at Disney; anywhere else they would probably be about a 3 star.

Many people love it; I'm not sure how long they have all owned. I've been to WDW on 22 vacations as an adult and I still enjoy going there on occasion but now I feel like I have to go there to burn through the points. Now my husband and I prefer nicer vacations than DVC provides. The first 10 years of ownership were great but the honeymoon is over now and I'm ready to move on.

I've been flamed here on the dis before from the loyal DVC owners but I think it's important to view all sides before making such a huge decision.

no flames from me Pakey, that is a honest reply and I know about getting flamed, I've been a vocal critic of disney food for about 2 years now and dissers are not known for being 'fair and balance" LOL

I'm lucky in that I have 1 small contract that allows me to bank points easily without having to worry about losing them.

I'm going on 11 years ownership and I still enjoy it. My displeasure has come more from Disney itself. the cutbacks in food and entertainment is really depressing me so I'm also at the point where the value is not there.

 

[crisi]

I have 3 DVC contracts, spent about +/- $50,000 on them, paid cash, have annual dues of a little over $2500. I could easily afford it, that's never been the issue. I bought 3 contracts (2 at BCV and one at Saratoga at 175 points each because I just knew my 3 children would want them some day).

Still, it's the Biggest financial mistake I've ever made. 50 years is a long time to vacation at the same place. I've only been in about 15 years and I'm tired of it. Our children are tired of it and would prefer to go to Maui or Jamaica or Fiji or Costa Rica.... LOL The DVC villas are only considered deluxe accommodations at Disney; anywhere else they would probably be about a 3 star.

Many people love it; I'm not sure how long they have all owned. I've been to WDW on 22 vacations as an adult and I still enjoy going there on occasion but now I feel like I have to go there to burn through the points. Now my husband and I prefer nicer vacations than DVC provides. The first 10 years of ownership were great but the honeymoon is over now and I'm ready to move on.

I've been flamed here on the dis before from the loyal DVC owners but I think it's important to view all sides before making such a huge decision.

No flames from me either. I'm sort of a DVC realist. And in part we are happy because we only have 150 points - which gets us in a two bedroom every other year. In the off years we take other vacations - and you are right, my kids like the beach (we are off to Maui in eight weeks). We didn't buy to hold for our kids, my intention has always been to sell it when it no longer has value for us - my kids vacations as adults are THEIR problem, not mine. I've never been such a huge Disney fan that I think every year is necessary - or advisable.

We also think the food has gone down hill and prefer more luxury than is available though DVC. We seldom eat anything but Signature any longer.

 

[hsmamato2]

yeah....I love Disney,but DH would never commit to that many years,that much money invested in that one place. He'd rather spend his money where he wants,when he wants. sigh. I love Disney.

 

[rentayenta]

DVC is right for our family. We stayed in a 2 bedroom at the GCV for 5 nights last June. The total cost for the 5 nights would have been over 1/3 of the cost of our DVC for one vacation.

I did the days of shoving 4 people into a standard room but vacationing like I did in college doesn't appeal to me anymore. Where I lay my head is every bit as important as how I spend my days. We like having space.

 

[Purseval]

Don't forget that you can get "change" in TPU's from that resort now since DVC seems to trade for a flat 25 TPUs regardless of unit size/season (except for holiday weeks which are a few TPUs more). That means that you may get more than 1 DVC week for your cheapo deposit.

Our TS also trades into RCI through a corporate account so we never have to worry about "1 in 4" rules, no dupes of the same city or any other nonsense.

I'm sick of paying crazy DVC dues when I can just trade in for cheap. DH is pushing me to hold out for when DVC starts depositing BLT and then he'll agree to sell our DVC. I seriously can't wait.

You do have the advantage of getting a fairly reasonable return on your money when you go to sell as opposed to many timeshares that go down to near zero. Will you be able as a DVC owner to trade into BLT? I know RCI can't so that may be another advantage of owning DVC vs RCI.