???? Should I buy the timeshare

[drayton]

Just returned from my first timeshare presentation at Grande Vista and fell in love with the resort that I am seriously thinking on purchasing, papers are on my desk... Question is that I have never attended a timeshare presentation nor have had a chance to look at any other Orlando resorts... For you tenured timesharers what should be my plan of attack in researching the opportunities... I wish I could visit them all but with time and most importantly money that is out of the question, but should I try and visit maybe the top 3 ? Any comparisions, suggestions and info in regards to my dilema will be greatly appreciated!!!!!!!!!!!! oh and by the way I have to say I MISS DISNEY WORLD!!!!!!!!!! Thanks !

 

[disneysteve]

I am not a timeshare owner. I have looked into it numerous times at various locations and every single time when I sit down and run the numbers, it is more expensive to buy than to continue renting each year.

Marriott Grande Vista is a beautiful property. And Marriott has lots of wonderful locations all over the world. But do the math before you fall for the sales talk. How much do you currently spend for a week at a resort? Accomodations in the Disney area are exceedingly cheap. You can rent a 3-bedroom pool home for under $100/nite. You can rent a condo or timeshare unit for under $50/nite. We're staying in a 2-bed, 2-bath condo in October for under $38/nite. Why would I even consider making a long term investment when rates like that are readily available?

Most timeshares I've looked at charge an annual fee that is equal to or greater than what I currently pay for a week's stay. And that's beside the initial investment of thousands of dollars. Plus the annual fee will increase over the years.

If you are firmly decided that owning a timeshare is for you, then look into the resale market. Don't buy directly from the company if you can avoid it. Timeshares are generally lousy investments so resale values can be very appealing since the original owner generally takes a substantial loss when he sells the place.

 

[nepean]

If you truly want to own a timeshare you should purchase a re-sale. They are usually priced at 1/3 to 1/2 the cost. Check out TUG Timeshare Users Group website. I don't the URL handy.

Good luck

 

[CarolA]

RESALE!

Even Marriott timeshares lose a lot of value the day you purchase them

If you post on the DVC board, Dean will probably help you. He has LOTS of timeshares and has some good hints/ideas.


Also, if you only want to vacation at Disney you might want to look at DVC. I love mine (purchased on resale!)

 

[cinamin27]

my opinion - I can rent time share units & pay by the night for sometimes less than the annual maitenance fees that have to be paid by searching sites like hotelkingdom.com. You can even book by the night on marriotts, wyndhams, etc websites & when they are running specials (i.e. whydham 50% off specials they seem to run every other month or so, marriott has discount codes for rewards members, etc) get an excellent nightly rate. I just dont understand paying monthly payments for how ever many years until you pay off the 'deed' & then on top of that paying the $500-1000 maitenance fees each year.

 

[Lorix2]

Here's the timeshare users group URL: www.tug2.net

good luck with your decision. disneysteve points out why a few people I know have decided against ownership and continue to rent. We love the Grande Vista too.

 

[drayton]

WOW... what great feed back. I have just put my pen back in my desk drawer and will give this some more thought, in which now reading maybe it would be best to search around and just rent for awhile as we only visited the area once. Would be nice to visit other resorts ( with the help of this wonderful board) I am sure I will find a stay at other great locations!!!! THANK YOU SOOOOOOOOOOOOOOOOO much you saved me thousands!!!!

 

[tednvon]

Hi...one last thought!

Ever wonder why they can give so many perks and free tickets and food to sell a time share?...
Look at the math....What does a nice two bedroom condo cost RETAIL in the Orlando area. Maybe 125K to 200K tops. Resale condos are 95K to 125K.

Now assume this new condo is built at a cost of about 70 to 100K materials an labor.

Now take your time share buy in of 12K (or more) and take that times 50 weeks and you get a 600K condo!!!
Not a bad profit, plus they hit you up for the maintainance fee that is about what you can rent a nice condo for each year!!!
No wonder they can give a free breakfast, a couple of single park tickets and knock a few grand off the price!!!

There are better ways unless you buy in very young and use it all the time BUT still is a huge out lay of $$$$$$!!...Heck, if you took the 12K and put in a S&P stock fund at 10% a year you now have $1200 dollars to rent a really nice 5 bedroom house for the week.....It just isn't as darn much fun and exiting as buying a time share!!!

Think long and hard....Ted

 

[zaxmom]

We have a financial/consumer advisor on the radio here in Atlanta, Clark Howard. He has said repeatedly for years that in never pays to buy a timeshare. The other posters have convinced me he is right. I don't think I would ever do it.

 

[CarolA]

Well, I did it.

Now that said. I bought with "extra money" and I bought resale. I got a good deal.

I agree that a Timeshare is NOT an investment. You should not buy a Timeshare with money you cannot afford to lose.

My Timeshare was an investment in me. That is hard to quantify, but it was worth it. I use mine extensively since it works on a point system which means I can go for a few days here and there. (I felt this was much better then a fixed week for me!)

I actually have done the math and in my case it has paid for itself. That is not always true. (Getting a good deal helps!) It also allows me to spend weekends at Disney during the year.

 

[Lisa P.]

We have a financial/consumer advisor on the radio here in Atlanta, Clark Howard. He has said repeatedly for years that in never pays to buy a timeshare.

That's an inaccurate blanket statement. It may be true for the majority of developer purchases and perhaps that is why this advisor is cautioning listeners.

However, it really depends on what someone would have paid for rentals vs. what they would pay for a discounted resale purchase. For example, a $20,000 timeshare (week or points) may be found for just $5,000 or less. If the comparable rental would have cost $1,500 (example, beach week or fun mega-resort) vs. a timeshare's annual maintenance fees/taxes are only $500, there is a breakeven point to purchasing. If the family involved loved their timeshare resort and exchange options, and if they liked the early planning aspect of owning timeshare, then this could be an excellent, sound choice for them.

In the Orlando area, it's very difficult to find a timeshare purchase (even resale) that would have a reasonable breakeven point. This is because rentals are so cheap and so readily available through a variety of sources, including owners themselves. Orlando/Kissimmee is overbuilt with timeshares. So unless I absolutely could not be happy staying at any other resort with any other method of obtaining my accommodations, I would not recommend buying at a home resort there.

Further, I would not recommend buying a timeshare (even resale) unless the buyer had the expendable cash to purchase without incurring debt. It is definitely a leisure purchase, a selection made to upgrade the accommodations by spending more money (like a nicer car when a basic model would do). HTH!

 

[wuv tigger]

Timeshares are just like anything else, if you put the time into it you can get the value out of it.

We own two Marriott weeks that we purchased from Marriott. This year we will do 28 nights at Horizons in Orlando and our total fees for 2004 are $1,700 or $60 a night including tax. If you add 5% for the initial capital you can add another $1,400 which brings the cost to $110 a night tax included. For this we get a nice 1,100 sf 2 bdrm with a full kitchen, 47" TV, pirate pool theme ship, water works, activities, etc.

We are very satisfied with this outcome and also have the flexibility to go other places. We have been to San Diego and Williamsburg and would like to go back to Hawaii and Hilton Head in the future.

Rentals right now are cheap. We took advantage of the downturn in the travel market to purchase on attractive deals. Hopefully it will work out as the rental costs go up over time. We did a tour last time we were in Orlando and the timeshare prices were up and incentives down so the vacation market seems to be recovering.

I have also been able to combine the Marriott rewards program with my business travel. If you are not interested in the Rewards program then I would definitely buy resale because that is the only difference vs. buying from Marriott.

David

 

[wuv tigger]

that you should also consider your planning personality. You should only do timeshare if you can plan 9-12 months in advance or maybe short notice of 30 days. If you try to plan 4 months out you will not be happy with a timeshare.

David

 

[Gillian]

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. This is because rentals are so cheap and so readily available through a variety of sources, including owners themselves. Orlando/Kissimmee is overbuilt with timeshares. So unless I absolutely could not be happy staying at any other resort with any other method of obtaining my accommodations, I would not recommend buying at a home resort there.

Excellent advice with a great explanation!

We've thought about a timeshare, because we love the space, but there are so many choices in Orlando that we would never be able to pick just one. DVC is great, but we can always rent points.

 

[disneysteve]

Originally posted by wuv tigger
This year we will do 28 nights at Horizons in Orlando and our total fees for 2004 are $1,700 or $60 a night including tax. If you add 5% for the initial capital you can add another $1,400 which brings the cost to $110 a night tax included. For this we get a nice 1,100 sf 2 bdrm with a full kitchen, 47" TV, pirate pool theme ship, water works, activities, etc.

David - Thanks for the cost breakdown. It illustrates my earlier point about why I wouldn't buy a timeshare. Just for comparison - Last November, we rented a 3-bedroom condo at Windsor Palms. We paid $90/nite and split it 50-50 with my MIL, so our cost was $45/nite. After the trip, I learned that the same units are available for as little as $63/nite. This coming November, we're renting a 2-bed, 2-bath condo at Orbit One (a timeshare complex) for $37.29/nite. For the $3100 you will spend this year, I could theoretically stay there for 83 days.

While its true that rental rates will likely rise over time, so will ownership costs for a timeshare since the annual fee can and does increase, especially as the property ages and needs more maintenance.

Again, you really need to sit down and do the math before you make the decision to buy a timeshare, especially in the Disney area. Be sure that the costs of ownership don't exceed the costs of renting similar accomodations. Chances are good that ownership is more expensive.

 

[wuv tigger]

Steve,

As they say, different strokes....

I can also obtain a 3 bedroom at the Imperial Palms or Grande Vista if I want, or could even split my Horizons with someone else. However, I do not think the quality of what you are renting is anywhere near Marriott, at least from the non-Marriotts that I have stayed at. At $90 + tax you end up paying the same price for lesser quality accomodations and your future inflation rate is based on the total weekly cost instead of just the annual charges.

The same unit rents from Marriott for $168 - $225 per night plus tax depending on season, so if you want to stay there it definitely makes sense to purchase. It is similar to DVC, if you are willing to pay those rates for the quality then it makes sense to buy the points as opposed to renting.

Edited to add that I can also sell my unit that is in Marriott resales back to Marriott for about 40% of the current selling price which would net me 50% of my initial purchase. If you factor this in to the cost equation my ownership costs are reduced accordingly.

David

 

[disneysteve]

Originally posted by wuv tigger
The same unit rents from Marriott for $168 - $225 per night plus tax depending on season, so if you want to stay there it definitely makes sense to purchase.

This is true. If there is a complex that you are positive you want to return to again and again, then buying might make sense. Personally, we enjoy staying at different places each trip. I think I would get tired of staying in the same complex every year.

I can also sell my unit that is in Marriott resales back to Marriott for about 40% of the current selling price which would net me 50% of my initial purchase. If you factor this in to the cost equation my ownership costs are reduced accordingly.

This is a very good point also. Even though reselling a timeshare results in a loss from the purchase price, it does reduce the overall cost of ownership for however long you own it.

My bottom line remains the same. Don't jump into the decision because of a flashy sales talk. Run the numbers, then run them again, and again. If you love the location, can afford the price and know you want to go back repeatedly, then you may want to give it some serious thought. Unfortunately, far too many people get sucked in by the sales talk and discover after a couple of years that it simply wasn't the right decision for them. Others buy in and never regret it for a minute and enjoy years of wonderful vacations.

Personally, I don't think anyone should ever buy a timeshare at the time they attend their first presentation. You need to take time after that to research the market, analyze your finances and make a decision when you aren't under pressure.

 

[wuv tigger]

Steve,

I totally agree. If you do your homework it can work out for you. We are very happy, but I'm sure you could get a better deal than we did if you put in more time. The first time I saw a Marriott was in Hawaii. It was beautiful, but no way I could make the numbers work at $30,000 and over $1,000 per year. The units I bought were much less, and have a lock off feature that really helps cut the costs down to a reasonable level. Now we will just trade into Hawaii for our 15th anniversary for $79 It will take about a year to get the trade, but we can plan that far in advance with our FF miles and timeshare.

David

 

[mrsstats]

I own a unit that sleeps 10 in Kissimmee. I bought resale. I couldn't be happier with my purchase. I love being able to stay in something other than a hotel room. I like knowing I have my week to go on vacation every year.

My only suggestion is to buy where you want to stay. Don't get involved in joining II or RCi as that will only add to your cost. This is just my opinion.

 

[mbb]

went to the DVC presentation...came home, hung out on these boards and some others *For a WHOLE year!!*

...and ended up buying at Beach Club Villas/DVC.

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.

Good luck making your decision...feel free to pm anytime!!