How is buying a timeshare EVER a good idea?

[Pakey]

Why not sell some or all of your contracts, or rent points and use the cash to book other vacations?

I don't need the money to pay for other vacations so I'm not interested in the hassle with renting points. I have given 470 points to family members for this year and as long as I can find someone to use them, I am too lazy to do anything with it. I'd happily sell the SSR contract if I could get anything for it and I'm ready to part with one of the two BCV contracts but only if I can unload the SSR contract first. Sometime in the next 12 months, I'm going to have to do something about it.

Either way, it's still a hassle to deal with it. I was just trying to point out where I'm at with this and how long a 50 year ownership can become. Fifteen years ago I thought WDW was the only place in the world to vacation. In 2010, I enjoyed vacations staying at the Raffles Hotel in Beijing and the Four Seasons in Cairo.

I'm not trying to talk anyone into one thing or another; I'm just stating that it's a huge commitment, not only in dollars but in years. I obviously didn't know myself well enough before I made the jump.

 

[jmpellet]

We just purchased a timeshare on eBay for $139 all in for $500 including closing costs. Many will advise (see www.tugbbs.com) to buy where you can easily get to if flying is not possible ($). We are in MA and bought on the Cape. Our MF are $350 and it gets a TPU of 35 in RCI! I booked BWV (25 points) and got the extra points as change. I'm pretty happy!

 

[LoveBWVVBR]

We just purchased a timeshare on eBay for $139 all in for $500 including closing costs. Many will advise (see www.tugbbs.com) to buy where you can easily get to if flying is not possible ($). We are in MA and bought on the Cape. Our MF are $350 and it gets a TPU of 35 in RCI! I booked BWV (25 points) and got the extra points as change. I'm pretty happy!

What are your annual MFs? Some of the Cape Cod ones seemed high to me, but then again I'm looking strictly for trading. None of my traders are anywhere near where I live.

 

[jmpellet]

The maintenance fees are $365. They did just go up this year from $315 which I understand were that amount for many years.

 

[joksten2000]

We bought DVC in 2000, bought twice more and now own 1,000 points ($5000 in Maintenance) We have enjoyed $143,900 in family cruises, Have paid $119,400 (purchase & MF thru 2011) As we are snow birds it doesn't pay for us to use points to stay at WDW.

Soon we will rent our points as the point cost to cruise is out of sight.

 

[LoveBWVVBR]

The maintenance fees are $365. They did just go up this year from $315 which I understand were that amount for many years.

That isn't bad. Is the unit a studio? It gets a nice amount of TPUs, but I also like to buy dual-affiliated units (ones that trade in RCI and II) and a studio probably wouldn't get bigger Marriott units in II. The cape can be a good trader in general, though...I've considered it myself strictly for trading.

 

[tink_n_pooh]

The only regret I have with our DVC purchase is not purchasing it sooner! The thousands of dollars we spent on hotel rooms could have gone towards the purchase price Not to mention the discounts that are available to DVC members

 

[Belle5]

I don't think DVC is a good deal, but some other timeshares can be.

For starters, you have to buy on the re-sale market to make it a good deal. Re-sale timeshares tend to go for 80-90% OFF their original price, so instead of paying $25,000-30,000, you can get a timeshare for more like $2000-3000. Huge difference. So big a difference that I'd ask why anyone would EVER "buy new". It may take a while to luck up on the right deal, but they're out there.

Then you need to investigate all the products before you fall in love with any particular spot. When we learned about the Marriott two-bedroom lock-out units, we knew that was the best deal for us. For a fee of about $100 you can "split" your two-bedroom condo into two one-week stays in a one-bedroom condo. But here's the deal: If you choose a location that has only two-bedrooms, you get a two-bedroom ANYWAY for no additional cost.

Details you can't ignore: You must choose a condo that other people will want to rent; otherwise, you'll never be able to "trade it" for anything else. Unless you're retired, you must choose a floating week during high season. And -- this is my personal opinion -- you should choose a place close enough to drive to; you may not be able to afford airfare every year.

Don't let yourself be swayed emotionally while you're choosing. For example, we absolutely LOVED the Marriott Grande Dunes, and we liked the fact that it's an easy trade -- close to Disney, close to Universal, nice golf course included in the resort. But once we were away from the place, away from all the beautiful stuff and the sales techniques designed to make you want-want-want the place, we discussed it and agreed that 1) we don't golf, and it'd be foolish to pay for the golf course just because it's a good trade, 2) we did want to be on the ocean. We don't want the amusement parks (with expensive tickets) for every vacation, but we do want to be on the ocean. So although Grande Dunes is wonderful, it wasn't the right choice for us. For this reason, I'd say you should never buy on the first day you look.

Yes, the maintenance fees are an expense, and you have to pay them even if you can't use the condo every year . . . but if you're looking at $700-900 for two weeks in a two bedroom condo, that's not a bad price. Including the trade fees and the splitting fee, it's about $500/week for a two-bedroom condo in peak season.

I recommend that anyone who's interested in buying a timeshare read the book Timeshares For Dummies (I think that's the name). It's written by a woman who used to sell timeshares, and it's very informative. She's not trying to sell you anything, so you can trust what she says.

Finally, it seems to me that this is something for which you should never borrow. It's clearly a luxury item.

I find all this very thought provoking...the only exception I might make (on an individual basis) would be the part about making sure the timeshare is close enough to drive to...in our case, it seems as if DH is telling me that we might relocate here or there on a monthly basis! It would be silly for us to buy a timeshare in South Texas, for example, if next year we might live in Seattle. In our case, it might be more prudent to buy (resale) at a place we know we like to vacation--like Florida.

 

[jmpellet]

That isn't bad. Is the unit a studio? It gets a nice amount of TPUs, but I also like to buy dual-affiliated units (ones that trade in RCI and II) and a studio probably wouldn't get bigger Marriott units in II. The cape can be a good trader in general, though...I've considered it myself strictly for trading.

It's actually a 1 bed/2bath unit. I'm hoping to acquire another unit but I want to stick with RCI (i'm not even sure if it does II) so I don't have to maintain more than one membership. At least for the time being as I get used to RCI. My cost per TPU is just $10.42 - I think that's pretty good.

 

[Belle5]

Either way, it's still a hassle to deal with it. I was just trying to point out where I'm at with this and how long a 50 year ownership can become. Fifteen years ago I thought WDW was the only place in the world to vacation. In 2010, I enjoyed vacations staying at the Raffles Hotel in Beijing and the Four Seasons in Cairo.

I'm not trying to talk anyone into one thing or another; I'm just stating that it's a huge commitment, not only in dollars but in years. I obviously didn't know myself well enough before I made the jump.

That really is some food for thought...

 

[2binak]

Maintenance fees - just want to remind people, as I'm not sure if people are reading all of this thread, that maintenance fees usually go up each year. So, using today's figures for maintenance fees in 50 years is totally incorrect, and will make for a very low end figure. I think Crisi or someone else figured it out correctly, a few pages back.

Hubby is a banker, and just used his inflation estimate calculators:..at a 2%/annual increase ...

I was one of the people doing math based on today's maintenance fees, which I know is incorrect, but I didn't have your hubby's handy dandy inflation calculator on hand

This was my original math:

$6 per point is possible:

Buy 160 point contract @ $83 per point = $13,280
$700 (current price) maintenance fees per year for 52 years = $36,400
Contract + 52 years of maintenance fees = $50,000
$50,000 divided by 52 years = $962 per year
$962 divided by 160 points = $6 per point

Maintenance fees will go up, but as they do, so will rental rates.

Using your husband's inflation estimate of 2% per year, here's a corrected version of my math:

Buy 160 point contract @ $83 per point = $13,280 (paying cash)
Maintenance fees over 52 years = $57,000 (estimated 2% increase every year)
Contract + 52 years of maintenance fees = $70,280
$70,280 divided by 52 years = $1351 per year
$1351 divided by 160 points = $8.44 per point

This is still lower than the current average rental rate of $10 per point. The OP stated

I can just rent points and come out ahead!

but that's not always the case...

 

[MrsPete]

Why would you assume 30 year ownership? As I mentioned, we have between 43 - 46 more years left on our contracts before they expire.

30 years was something of a guess. I used it because it seems that people don't tend to be able to afford time shares 'til they're in their 30s or 40s, and many people talk about loving them for 5-10 years then growing tired of them. So I was making a guess of 30 years as a mid-way ownership timeframe. You're thinking about a specific DVC contract, I'm talking about timeshares in general.

Still, if you assume 50 years and you stick to that $100,000 maintenance fee figure, you're talking about $2000/year in fees. We're paying something like 1/3 of that -- my overall point was that I think your maintenance fee figure is high.

We bought for an "investment" of sorts. DD has special needs and will never be able to support herself. We wanted to ensure that she will always know the joy of taking a yearly vacation, even if DW and I are no longer here.

I'd say you fit into a unique "other" category; that is, people who buy timeshares for individual reasons. Not applicable to most of us, but interesting to see different thought processes and needs.

You're lucky you get to take that many vacations over the course of a year. Don't I wish.

I wouldn't call it luck. We're able to do this because we live below our means in many ways -- for example, we made it a priority to pay off our house as soon as possible, and we maxed out our retirement savings from our very first professional paychecks. Now that our kids are teens, that leaves us more money for traveling and other things that matter to us.

I find all this very thought provoking...the only exception I might make (on an individual basis) would be the part about making sure the timeshare is close enough to drive to...in our case, it seems as if DH is telling me that we might relocate here or there on a monthly basis! It would be silly for us to buy a timeshare in South Texas, for example, if next year we might live in Seattle. In our case, it might be more prudent to buy (resale) at a place we know we like to vacation--like Florida.

Our thought process: We can be in Florida with an easy day's drive, and Florida has lots of timeshares that're good trades. On the other hand, Las Vegas or Hawaii require a plane flight. We may or may not be able to comfortably afford plane tickets for our entire family every year, but we can always afford to drive to Florida.

 

[edk35]

We bought 200 pts at OKW back in 1993, for I think, right around 11k.

We got park passes free for 7 yrs. DH ran the numbers, and calculated that year 7, it would begin to pay off (he didn't factor in the passes, since that wasn't a permanent incentive).

Would we buy again, right now? I don't know. There wasn't all the info out that the internet gives you now, lots of deals out there for rentals in Windsor Hills. The park passes were a crazy great incentive, which obviously doesn't exist now.

I'm glad we bought, and enjoy our dvc. However, nowadays, I would probably rent offsite. We've gotten spoiled, and I know I NEED a kitchen and washer/dryer.

We could KICK ourselves because we ALMOST bought into DVC that exact same year. BIGGEST MISTAKE EVER. However we did buy in Jan. 2007 and are very happy just wish we would have done it back then.

 

[Tiger926]

30 years was something of a guess. I used it because it seems that people don't tend to be able to afford time shares 'til they're in their 30s or 40s, and many people talk about loving them for 5-10 years then growing tired of them. So I was making a guess of 30 years as a mid-way ownership timeframe. You're thinking about a specific DVC contract, I'm talking about timeshares in general.

Still, if you assume 50 years and you stick to that $100,000 maintenance fee figure, you're talking about $2000/year in fees. We're paying something like 1/3 of that -- my overall point was that I think your maintenance fee figure is high. I'd say you fit into a unique "other" category; that is, people who buy timeshares for individual reasons. Not applicable to most of us, but interesting to see different thought processes and needs.I wouldn't call it luck. We're able to do this because we live below our means in many ways -- for example, we made it a priority to pay off our house as soon as possible, and we maxed out our retirement savings from our very first professional paychecks. Now that our kids are teens, that leaves us more money for traveling and other things that matter to us.Our thought process: We can be in Florida with an easy day's drive, and Florida has lots of timeshares that're good trades. On the other hand, Las Vegas or Hawaii require a plane flight. We may or may not be able to comfortably afford plane tickets for our entire family every year, but we can always afford to drive to Florida.

I am guessing you aren't reading the entire thread. You really should, since for those of us who own DVC, that number is not high at all. I only used myself as an example as a DVC owner, and that is where my figure came from - it is based on mathematical estimations for future maintenance fees, which go up each year.

Hubby is banker, and just used one of his many inflation calculators, that used a low 2% maintenance fee increase/annually, so with these numbers, my $1725.00 dues today will be well over $4,000.00 for my DVC contracts.

You really should read the entire thread, especially my last few posts, where my $100,000.00 figure is fully explained.

Tiger

 

[delmar411]

I am guessing you aren't reading the entire thread. You really should, since for those of us who own DVC, that number is not high at all. I only used myself as an example as a DVC owner, and that is where my figure came from - it is based on mathematical estimations for future maintenance fees, which go up each year.

Hubby is banker, and just used one of his many inflation calculators, that used a low 2% maintenance fee increase/annually, so with these numbers, my $1725.00 dues today will be well over $4,000.00 for my DVC contracts.

You really should read the entire thread, especially my last few posts, where my $100,000.00 figure is fully explained.

Tiger

this needs to be bumped up again. The maintenance fee figures are not in today's dollars. What you are paying today will be doubled, tripled in 50yrs.

We also use the 2% increase each year to calculate the total cost of what fees will end up being over the life of our contracts. The costs when you lay it all out like that are pretty staggering when you have a larger number of points.

 

[Kathi OD]

3I wouldn't call it luck. We're able to do this because we live below our means in many ways -- for example, we made it a priority to pay off our house as soon as possible, and we maxed out our retirement savings from our very first professional paychecks. Now that our kids are teens, that leaves us more money for traveling and other things that matter to us.

We also live below our means in most ways. However, DH doesn't get enough vacation time to be taking more than 2 trips per year. Guess we'll have to wait until he retires.

 

[rkmassa]

We own timeshare, but not DVC. We own with bluegreen. We went into it knowing we weren't making a financial investment, but rather an investment in our family. We like to travel. We would love to take extended family with us. we financed, but then put on a Home Equity line when we bought a house we had instant equity in. Just sold that house, so the timeshare is paid. Still have the maintenance fees. But at this point, it's the cost for our vacations. We can take probably about three weeks a year if we plan it right. We like it a lot. I like having a condo rather than a hotel room.

When we were on our honeymoon, we took a DVC tour. Looking back, I wish we had bought then. But we couldn't afford it. We have talked about doing it now, but honestly, it doesn't make sense for us. With the discount codes, etc. we can go when we want, rather than having to to go get our money's worth. Worst case, if we want to go and use our points, we can trade into DVC, or we can stay at The Fountains, a beautiful resort on International Drive.

All that being said, it's a luxury. To some it is worth it, to some it is not. DVC is worth more than other timeshares, as their values have held and you can usually sell for close to what you paid for it. Dave Ramsey and Suze Orman would probably always say NEVER, but to us, it has been worth it.

We own with Bluegreen also. Our contracts are paid for, so now we only pay maintenance fees. We have traded our fixed week and our points into RCI, so now we have 44 points waiting for us to use. The RCI points needed for a 2 bd. at Disney are currently 25. Granted I have to be a little flexible about times we can travel, although Christmas week popped up last December, and I will have to travel only during dates that are available through RCI, but we both teach, so summer is perfect for us. Weeks come up for DVC all the time, for almost every resort, minus BLT, all the time. As much as I would love to own DVC, I just can't seem to justify the costs of it, knowing I am able to trade for it through RCI with our Bluegreen points.

We were even offered a "free" Bluegreen week, meaning the owner wanted only the maintenance fees paid and closing costs paid to transfer it....he was just tired of paying maintenance fees and wasn't using it anymore. This week was worth 55 points of trading power through RCI. That would give us two 2bds. a year at Disney. There are lots of people getting rid of their timeshares, so if we buy anything else it will be another Bluegreen resale contract worth RCI trading points for Disney.

 

[Kat&Dom]

I have owned a timeshare in Mexico for 11 years that I got for strictly trading power. I have been able to exchange into some amazing accomodations - Spain, Hawaii (2x), Nashville, Mexico (2x), Dominican Republic (2x), Florida (2x), Washington, British Columbia (2x). My maintenance fees for the past 11 years have hardly changed at all. I pay $428 per year and can trade for free within Wyndham or can pay an exchange fee and trade through RCI. My membership with RCI is included in my yearly maintenance fee cost. I paid $8,600 originally for the Mexico timeshare. Within the first 3 years of owning, I felt that I had the value of that $8,600 by the places that I was able to stay in. We stayed in a 2 bedroom condo on Costa Del Sol in Spain for one week - if I had paid rack rate, it would have cost approximately $4,900 for the week.

3 years ago, I was looking on Redweek.com and found a timeshare resale for the Grand Beach in Orlando for $500. It is a 3 bedroom, 3 bath unit that I get every 2nd year. I just paid my maintenance fee of $448 and booked our unit for Thanksgiving. I am able to invite friends to join us on vacation and they don't have to worry about any accomodation cost. It is nice knowing that I have a 3 bed, 3 bath unit every other year for Disney trips.

This year for trips using my timeshare, we stayed in Orlando in April, Hawaii in May, Fairmont Hot Springs in October and Orlando in November. Our trip to Orlando from Canada in April cost $1,300 (that's 2 flights, car rental, food, and upgrade costs on my son's free Disney ticket that I redeemed through airmiles points and spending money). Our May trip to Hawaii spending a week on the Big Island and 4 days on Maui cost $2,000 for 3 flights, car rental and food, etc. Fairmont Hot Springs was $350 for fuel and food costs. Our Trip to Orlando in November was $1,600 for 3 flights, car rental, upgrading my free Disney ticket, food and spending money. So for just over $5,000, we got 2 trips to Disneyworld, 1 trip to Hawaii visiting 2 islands and 1 week at Fairmont Hot Springs. With the upgrades to our Disney tickets done this year, our next 2 Disney trips will have no park ticket cost at all for us. We will just have to pay flights, car rental and food.

Timeshares are not for everyone. You need to do your research and make sure that it is of value for you. What I personally like about owning a timeshare is that I have to plan a vacation every year to get the value out of my timeshare. I know that we would not be able to afford to do as many of the trips as we have done if I did not own a timeshare.

A co-worker of mine spent $19,000 on a timeshare 3 years ago and had not used it up until last year. Once she realized that I had a timeshare and asked some questions, her and her husband have started using their timeshare and found it to be a good value for them. They stayed in a Castle in England for a week and then spent a week in Ireland. This year, they traded their points for an Alaskan cruise. I told her that the key with timeshares is to use them so that you don't waste your money.

 

[Happiest mommy]

we almost bought from Marriott Vacation club (Harbor something?) loved the place and the idea of being able to go to other Marriott resorts if we did'nt want to go to Florida at the time financially we could not do it I kind of wish we could have done it.
It was a 2 bedroom 2 bathroom, kitchen the works lock out unit really nice if I remember corectly it was $9,000 maintnance $600.

 

[LoveBWVVBR]

we almost bought from Marriott Vacation club (Harbor something?) loved the place and the idea of being able to go to other Marriott resorts if we did'nt want to go to Florida at the time financially we could not do it I kind of wish we could have done it.
It was a 2 bedroom 2 bathroom, kitchen the works lock out unit really nice if I remember corectly it was $9,000 maintnance $600.

Seriously, you could grab that one for a lot less on Ebay. I think you mean Harbour Lakes. I wouldn't, though...you can get a cheap or free trader and just swap in. One of my traders sees tons of Marriott inventory in II. I even managed to get a 2 bdr for 4th of July Week in Marriott Lakeshore Reserve with it. Why pay the fees to buy Marriott when you can just trade in? If Marriott ever gets it together and goes to a different trade system I'll be singing a different tune, but until then I highly recommend just trading in.