More points, or....

[Desnik]

buy a vacation home? What would you do?

We currently own 150 SSR points, and 50 AKV points. We are looking to add on at the Contemporary(if it is DVC) about 150-200 points. We are also considering buying a vacation home about 3 hour drive from us. DH would do both!(gotta love him!) But I'm too cheap to do both!LOL We could spend most of our free time at the vacation house but only use points 2 times a year.

 

[Starr W.]

We looked at a vacation home before we bought DVC and our other timeshare week. It just seemed like a bigger pain than it was worth for us. How often would we use it really?

About went with a fractional ownership(8 weeks) but the weeks rotate and who really wants the "mud weeks". You only got 2 weeks in the summer and every x number of years you got Xmas or NYE. With kids in school it just didn't make sense for us. The rental program is good for the renter, not the rentee.


OT, haven't seen you update your PJ for awhile.

 

[Desnik]

OT, haven't seen you update your PJ for awhile.

I know I've been so busy with other things taking up my time. I haven't had time to devote to our vow renewal. I guess that's a good thing because it will make the time go by faster!LOL

 

[global_mom]

We own both; a vacation home in the NC moutains and 340 DVC points. I would trade the house for points in a heartbeat! Not literally but pretty close. We thought that having a vacation place would be so great and it is only 2 hours away. I went to college in a little town in NC (Cullowhee) and knew that I wanted to have a house there when I "grew up". So, I sort of grew up and we started looking for a second home and found one that we loved and paid cash for it.

Please let me tell you that owning a second home is a huge pain in the rear end!!!! Things go wrong just like they do in a real home and it is an ordeal and money drainer to fix, repair etc.

We spend about 7-10 days a year at our NC house and about 21-30 days per year at Disney resorts. I am 39 and DH is 44 and the kids are all under 12. Guess where they would rather be? You guessed it: Disney World.

The good part about owning a vacation place is the increase in value, some tax benefits etc. And it is really nice to let family and friends use the place as it would be empty most of the time. If we sold it I could buy about 6,000 points! Of course we would not really do that but it is fun to dream about it.

I guess my advice would be to think long and hard about the committment when you buy a physical home versus the ease of buying more DVC.

Good luck in your decision making!

 

[Grandbuddy]

Then thought about yard work and home maintenance in two places...being several hours away from a property the night of the first unexpected freeze of the season...having a property where the neighbors are also absentee, and the resulting vulnerability to theft and vandalism

and thought about the blessings of not owning a second place, after all.

 

[ranthony]

We were fortunate enough to buy a vacation home before the real estate boom. It was all about location for us. The place needed some TLC but the bones were good, kwim?

We've enjoyed our summers there for the past 7 years (we're teachers)and are finally getting it to the point that we could rent it when we're not there. When all is said and done we could easily see an income of $10,000 per year just for renting it when we're not there and if we decide to rent during prime weeks (when we typically go) that # could double.

If you can rent the home it might be worth considering and then you could do both...have the vacation home and the $ to buy more points!

I agree with the pp about upkeep but a good property manager could take care of everything for you (for the right price, of course).

 

[Dean]

Everyone is different. We have started to do long range planning for retirement or semi-retirement and did contemplate a Condo on HH. The truth is we like to go different places though HH and DVC are are mainstays. My approach has been to plan with timeshares. I currently have timeshares set up in such a way I can travel about 18-20 weeks a year with much of it being prime season and mostly 2 BR units. If I work the system, I can likely stretch it to 30 weeks a year if I really try and as few as 10-12 if we take others along consistently and go for higher demand times and locations. For most of the trips being to easy to get places like Orlando, Branson, LV and Williamsburg I could likely get it up to a full 52 weeks a year mostly in 2 BR and still have 3 weeks in a 2 BR for HH in summer and 2-3 weeks at DVC in a 1 BR or greater (even without trading in). What we own is 4 Marriott weeks, 433 DVC points, 72K Bluegreen points and a MX resort that works on it's own points system. My calculations assuming using the 3 Marriott HH weeks and the DVC points and doing a combo of using and trading the rest. It also assumes bonus weeks and uptrades for the appropriate options. My up front costs were about $80K with yearly costs currently in the $8500 range, both much less than owning a condo though with obvious trade offs. We also looked at a couple of fractionals on HH that could be traded as regular timeshares but none just grabbed us.

 

[BroganMc]

My family (specifically my dad) owns both a beach condo (3 hrs away) and 430 DVC points (plus 4 Marriott weeks).

He and my mom bought the condo back in the '70s when my sibs and I were all gradeschool kids. It was great then since we always had a place for summer vacation. My mom would stay at the beach with us kids and my dad would commute home for work. I think we averaged about 3-4 weeks of the year.

Then it became a weekend getaway for my parents once my sibs and I grew up and started going our own ways. Now it's become the summer vacation spot for my sibs and their gradeschool kids. But for my dad?

Well since buying timeshares, he's averaged 1 weekend a year in the place. When he's home, he likes to be home. And when he travels, he enjoys going off-season to warmer climates. (The beach here is really only pleasant 4 months of the year.) With his timeshares he can manage 8 to 12 weeks or more a year. He splits it up with a two week trip every couple months.

The place has made a very nice real estate investment for him though. But it costs him around $10k a year just to do the most minimal upkeep (fees, taxes, utilities). When he's had to update the furnishings and do other refurbishment, you're talking another $10k or more. And then it's a pain to have to keep track of who's using it and what needs fixing. He's put a lot of elbow grease into the place over the years.

I think he pretty much holds onto the place for my sibs (they couldn't afford the beach otherwise), investment value and sentimental reasons. (My mom decorated the place with lots of family trophies and photos.)

Based on that example, I think it really only makes sense to invest in a second vacation home as an investment. If you truly think you'll get at least a weekend a month or more out of the place, then that makes it worthwhile. Otherwise, timeshare ownership in a good program gives you more bang for the buck than most places.

 

[Grandbuddy]

Everyone is different. We have started to do long range planning for retirement or semi-retirement and did contemplate a Condo on HH. The truth is we like to go different places though HH and DVC are are mainstays. My approach has been to plan with timeshares. I currently have timeshares set up in such a way I can travel about 18-20 weeks a year with much of it being prime season and mostly 2 BR units. If I work the system, I can likely stretch it to 30 weeks a year if I really try and as few as 10-12 if we take others along consistently and go for higher demand times and locations. For most of the trips being to easy to get places like Orlando, Branson, LV and Williamsburg I could likely get it up to a full 52 weeks a year mostly in 2 BR and still have 3 weeks in a 2 BR for HH in summer and 2-3 weeks at DVC in a 1 BR or greater (even without trading in). What we own is 4 Marriott weeks, 433 DVC points, 72K Bluegreen points and a MX resort that works on it's own points system. My calculations assuming using the 3 Marriott HH weeks and the DVC points and doing a combo of using and trading the rest. It also assumes bonus weeks and uptrades for the appropriate options. My up front costs were about $80K with yearly costs currently in the $8500 range, both much less than owning a condo though with obvious trade offs. We also looked at a couple of fractionals on HH that could be traded as regular timeshares but none just grabbed us.

I like being at home well enough that traveling that much sounds like a chore! BUT, I am happy that you are able to hold up to that kind of travel schedule, and that you enjoy it. (No judging here...just adding to the discussion.)

 

[BroganMc]

Heck, I'm just impressed he can get that much time out of those weeks. Of course, I have no idea how Blue Green or MX work.

 

[global_mom]

I forgot to mention the cost of furnishing a place. Some come furnished but that would not have worked for us (ick). We spent about $5000 for the basics: beds, kitchen table, etc. Just the linens alone for 9 beds was $2000! Then we spent alot with the decorating over the last 3 years (helped that I owned my own interior design firm during this time).

Dean - I am impressed with your travel schedule and you have not even retired yet! Wow!! Any "tricks of the trade" you would like to share?

Another poster mentioned renting the house to make $$$ and this can be a great idea. We have just put our home into a rental pool but we will practically cease going up there b/c I cant stand the thought of strangers sleeping in my bed (I know that sounds weird from someone who spends 30+ days a year in hotels). Plus you need to facter in the assocciated costs: we had to add wireless internet and long distance, our utility bills will increase hugely and we have fees that are paid for the management on the place. Somebody please tell me why I bought this place to begin with?

 

[tomandrobin]

The vacation home only makes sense if you plan on using it alot. We looked into owning one, but realized that we would only use it several times a year. The costs of ownership were pretty high. We rationalized that it would be cheaper to rent a room at a nice hotel or BB. The monthly costs of electris/gas, water/sewage, insurance, phone, cable/sat, HOA, lawn care, etc alone would more then cover our hotel stays. And don't forget about the cost to decorate and furnish the place. Who is going to clean it?

We have realized that timeshares and fractionals work much better for us. If you don't believe me, ask me about my Myrtle Beach condos.....

 

[Starr W.]

The vacation home only makes sense if you plan on using it alot. We looked into owning one, but realized that we would only use it several times a year. The costs of ownership were pretty high. We rationalized that it would be cheaper to rent a room at a nice hotel or BB. The monthly costs of electris/gas, water/sewage, insurance, phone, cable/sat, HOA, lawn care, etc alone would more then cover our hotel stays. And don't forget about the cost to decorate and furnish the place. Who is going to clean it?

We have realized that timeshares and fractionals work much better for us. If you don't believe me, ask me about my Myrtle Beach condos.....

Okay what about those MB condos? Weren't you looking to do a trade?

The fractionals we looked at came decorated and if you wanted to decorate yourself you had to use their interior decorator(they wanted the same "feel" in all the units).

I think cleaning was included in the fees(the ones we looked were 90% sold out, so someone was in there most of the year).

 

[bwvBound]

Related thread: DVC vs. vacation home, March 2007

Only 90 minutes from our primary residence, our's is more a "weekend home." Love it!

 

[Desnik]

Wow, you guys are great! Thank you so much for such insight. You are really making me think about things I hadn't.

Our thought process was this. It is a real estate investment and we would make money from it if we were to sell it years from now. Our children are young(10 and 5) and we like to go to this destination with them 3-4 times a year now, that would increase if we had a place there. The house or townhome we would purchase is new construction so the up keep shouldn't be too bad. Especially if we go the townhouse route, the HOA fee would cover upkeep of the outside.(lawn maintenance, snow removal) It would be a place our family members(who don't get to travel like we do)can enjoy with us. It is in a development so it's not like it's a house in the middle of nowhere with no neighbors around that would leave it more susceptible to vandalism or burglary. As far as furnishing the place, we would take most of the stuff in our current home and move it there because we are currently changing the decor in our house room by room and we are buying new furniture here anyway. We don't have any plans of renting it out. We also thought, since it is central to so many other great vacation destinations, it would be even better for us.(no airfare) Am I thinking about this the wrong way? I love my DVC and need my Disney fix twice a year but the airfare gets expensive and I would love a vacation spot that that wouldn't be an issue. Also, we go to WDW in the off season taking the kids out of school, I know I won't be able to do that much longer.

 

[Desnik]

Related thread: DVC vs. vacation home, March 2007

Only 90 minutes from our primary residence, our's is more a "weekend home." Love it!

Thanks for that link!!

 

[ranthony]

Or short term for that matter.

While I think its great that there are people that can maximize their timeshares and get the vacationing style they desire, we all know that what you really own is...well, nothing.

My kids are small and I know we have many years ahead of us enjoying our lake house plus we have the option to rent to make $. Then, when we're ready to pass it on, they can either keep it for themselves and their children or sell it and split the $$ to pay for college for their kids/weddings/their own homes,etc. With a timeshare that potential is not there.

Don't get me wrong, I love my DVC and say more power to the people that own other timeshares to get the vacationing style they choose. To each his own, right? However, our initial investment will be reaped many, many times over if and when we choose to sell, or the kids sell, regardsless of if we rent or not. Renting only makes that financial investment that much more lucrative.

If your vacation property is in an area that could be easily marketed year round (actually, it's tough to think of somewhere that wouldn't be to some extent or another, even if only to pay for taxes) and if you'd feel comfortable renting, then it may be an option you haven't considered.

 

[global_mom]

Wow, you guys are great! Thank you so much for such insight. You are really making me think about things I hadn't.

Our thought process was this. It is a real estate investment and we would make money from it if we were to sell it years from now. Our children are young(10 and 5) and we like to go to this destination with them 3-4 times a year now, that would increase if we had a place there. The house or townhome we would purchase is new construction so the up keep shouldn't be too bad. Especially if we go the townhouse route, the HOA fee would cover upkeep of the outside.(lawn maintenance, snow removal) It would be a place our family members(who don't get to travel like we do)can enjoy with us. It is in a development so it's not like it's a house in the middle of nowhere with no neighbors around that would leave it more susceptible to vandalism or burglary. As far as furnishing the place, we would take most of the stuff in our current home and move it there because we are currently changing the decor in our house room by room and we are buying new furniture here anyway. We don't have any plans of renting it out. We also thought, since it is central to so many other great vacation destinations, it would be even better for us.(no airfare) Am I thinking about this the wrong way? I love my DVC and need my Disney fix twice a year but the airfare gets expensive and I would love a vacation spot that that wouldn't be an issue. Also, we go to WDW in the off season taking the kids out of school, I know I won't be able to do that much longer.

Your reasoning sounds just like ours at the time that we decided to buy our NC house! Everyone is different so only you can make the right decision for your family.

The only other thing that I will recommend to keep in mind is how things can unexpectedly change over the years that can greatly effect your situation. I dont really mean financial crisis but smaller things that happen along the way. The kids get older and have tons of weekend activites so you dont get away as often; aging parents may need more care thus limiting time away; minor financial obligations can get in the way and effect what you can/can not do with the vacation place; you simply get a little bored with the location.

We were so excited when we bought our house, and we do acutally love it, but our priorities have unexpectedly changed in just the 3 short years that we have had the house. We also bought DVC and we just acquired a giant houseboat which I have nicknamed "the moneysucker".

Anyway..... if you do make the purchase, enjoy it to the fullest. Life is short and working hard to have great "toys" is a rich reward! And of course, the family memories are priceless.

 

[bobbiwoz]

Our solution was to buy a home in Cape May with my DSis! We did this 10 years ago and it's the best investment we've ever made. We do not rent it out, we bought it furnished and slowly we are replacing the bedding. It would only work with siblings that get along. We have a legal document outlining the terms if one of us decides to sell. It's too small for our "whole family" vacations, but then we split the cost of renting another place. However, all branches of our family love Cape May and it's a great destination.

I have 2 dogs and will probably always want a dog as a companion. It was important to own a property that would allow us to have a fenced in area. Also, I want to set roots down, go to a church I am familiar with, know my neighbors and being owners gives us that stability. We have traditions like hosting Coast Guard recruits (basic training for CG is less than a mile from our house) for Thanksgiving or Christmas dinner. If we only owned timeshares I would not be happy. We have the best of both worlds, and splitting all costs in half makes it especially attractive since we live 11 hours away by car. I do probably spend more nights a year at DVC, the Cape May time is very very satisfying to me and my whole family.

Bobbi

 

[tomandrobin]

Okay what about those MB condos? Weren't you looking to do a trade?

My condos at Mytle Beach and the Myrtle Beach trade are two different things. I have condos that I rent, the trade is a timeshare at Sheraton Broadway Plantation.

The condos were for investment. They are strictly rentals. The housing boom, energy costs, the Huricanes a few years back in Florida, Katrina and upkeep/maintenance costs have turned all of the units into negative cash flows. The rentals fees have gone up, but the insurance tripled, utilities doubled, Hoa fees doubled, etc.