???? Should I buy the timeshare

[disneysteve]

Originally posted by mbb
Did we consider it an "investment"?
Yep.
Because it cost money.

We also consider it an "investment" in us....
worth more to us than money.

Don't mean to argue, but there is a big difference between spending and investing. Just because something costs money doesn't make it an investment. Do you "invest" in a cup of coffee each morning or in a pizza for dinner? To invest means to put money into something with the hope of earning a profit. So buying a timeshare isn't an investment from a financial standpoint because it is pretty widely accepted that you will most likely lose money when you sell it.

Your second statement is certainly true, though. If you feel that the money spent is worth it to you, then go for it.

 

[Maistre Gracey]

Originally posted by Lisa P.
In the Orlando area, it's very difficult to find a timeshare purchase (even resale) that would have a reasonable breakeven point.

Unless, of course, we are comparing DVC to a Disney deluxe.

MG

 

[Lisa P.]

Point taken, MG. Seeing as this forum primarily discusses offsite properties, my comments were basically directed at those.

 

[mcnuss]

We own at the Vistana. I went to the presentation there the first time we rented there, and while I had no intention of purchasing a unit that day, had managed to negotiate the price from $20,000 to $10,000 for a 2 BR in the new Cascades section. However, I did not buy that day, but came home and did my research. I ended up buying from Holiday Group which specializes in reselling foreclosed timeshare properties - basically, they take the devalued paper from the bank or developer and sell it for cents on the dollar. I paid $2500 inc. closing costs for a floating red week my unit - a far cry from the ten grand I'd have paid the developer. My unit is not in the new section, but it is bigger than the new ones. Our annual cost is about $300. We are very pleased with the purchase, but would not call it an "investment". For us, it's just a really easy way to vacation.

 

[mcnuss]

We own at the Vistana. I went to the presentation there the first time we rented there, and while I had no intention of purchasing a unit that day, had managed to negotiate the price from $20,000 to $10,000 for a 2 BR in the new Cascades section. However, I did not buy that day, but came home and did my research. I ended up buying from Holiday Group which specializes in reselling foreclosed timeshare properties - basically, they take the devalued paper from the bank or developer and sell it for cents on the dollar. I paid $2500 inc. closing costs for a floating red week - a far cry from the ten grand I'd have paid the developer. My unit is not in the new section, but it is bigger than the new ones. Our annual cost is about $300. We are very pleased with the purchase, but would not call it an "investment". For us, it's just a really easy way to vacation.

 

[mcnuss]

We own at the Vistana. I went to the presentation there the first time we rented there, and while I had no intention of purchasing a unit that day, had managed to negotiate the price from $20,000 to $10,000 for a 2 BR in the new Cascades section. However, I did not buy that day, but came home and did my research. I ended up buying from Holiday Group which specializes in reselling foreclosed timeshare properties - basically, they take the devalued paper from the bank or developer and sell it for cents on the dollar. I paid $2500 inc. closing costs for a floating red week - a far cry from the ten grand I'd have paid the developer. My unit is not in the new section, but it is bigger than the new ones. We are very pleased with the purchase, but would not call it an "investment". For us, it's just a really easy way to vacation.

 

[anne1125]

Just to add my 2 cents. We own 4 timeshares (over the past 3 years) and I can't say enough wonderful things about them. We have gone to places we never could have afforded with ease.

3 things to remember. Buy resale (Ebay is great), book early, and book airfare early. Then have a ball!!!!

By the way, read EVERTHING on Tug (esp. timesharing 101) before you buy.

 

[26555]

Remember, not only are there annual taxes and maintence fees (which alone could buy you a nice week through Skyauction but that's another argument) --- every 10 years they will need to have renovations. For those of you who like to rent at Cypress Pointe 2 bedroom condos for 68/night ------ even if the rates go up with the nicer remodeled units, think about the owners who had to pay $600 on top of their usual annual maintence fees to get that remodeling done. No salesman will include these big renovations costs. They will give you the impression the maintenance fee will always prefund these expense but it does not always work that way. If you have to buy a timeshare, go resale and do NOT buy in Orlando. It has the worst trade value since its so built up. Look at places that are hard to build more of ---- waterfront. The reason you can get good deals on Orlando condos is that there are so many of them --- Skyauction has the most inventory in Orlando. Get a different location even if you think the next few years you will want to go to Orlando. You can always bank your week and find an Orlando trade. They will show you a book of all the great places you can go but don't explain that you have to bank your week early and find someone to take your Orlando week before you can go to the other places. Timeshares aren't terrible but their are usually better deals out there for planners.

 

[Lisa P.]

They will show you a book of all the great places you can go but don't explain that you have to bank your week early and find someone to take your Orlando week before you can go to the other places.

Just to clarify, you only need to deposit your week early, make the request and wait. Sometimes, there are options available at the time of the phone call (or online look). Whether your owned week is ever taken or not, by another exchanger, is immaterial - that's the exchange company's problem. You do not have to wait for your week to be taken before you may confirm your vacation trade. And you don't look for (find) a taker - the exchange company does that.

If you own in an overbuilt area, and the exchange company frequently ends up with unused weeks there, your trade power drops. But you are still able to secure a trade right away if there's enough inventory where you want to go.

 

[Scotch]

Originally posted by 26555
Remember, not only are there annual taxes and maintence fees (which alone could buy you a nice week through Skyauction but that's another argument) --- every 10 years they will need to have renovations . . . think about the owners who had to pay $600 on top of their usual annual maintence fees to get that remodeling done. No salesman will include these big renovations costs.

You're referencing special assessments that may arise. A well managed timeshare would not have any special assessments as each year's m/fs would include enough in the reserve fund. There are many well run timeshares over 10, 20 years old that have never had a special assessment and they go through complete remodeling every 7-10 years. So if you do your research before you buy, this would not be a *regular* occurrence.

 

[Lisa Schone]

Disneysteve, thanks for the info regarding timeshares. Question though, how do you get such good rates for timeshare rentals? Is there a website you use?

 

[disneysteve]

Originally posted by Lisa Schone
Disneysteve, thanks for the info regarding timeshares. Question though, how do you get such good rates for timeshare rentals? Is there a website you use?

We booked a week for November through SkyAuction.com. We're paying $261 for the week in a 2-bedroom, 2-bath unit at Orbit One which is one of the older time share resorts but I've read good reviews and at that price it would have to be pretty bad for me to feel it wasn't worth what I paid.