Timeshare Plunge, am I crazy?

[VickynMicMouse]

I'm buying a timeshare at Mystic Dunes for an amazing price. I want too start a tradition of taking my grandkids every year. I figured a timeshare would save us money in the long run on Hotel and food.
Am I making the right decision? We will be a family of 7 traveling.

 

[tgropp]

Location of resort and the cost of maintenance fees are always the main concerns. If you are happy with the price...go for it. Vacation time with grandchildren is like nothing else.

 

[DVCjj]

You're not crazy if you can afford it. A huge regret is not buying DVC 25 years ago.

 

[BeerMe]

You'll pay maintenance fees forever

 

[Mrs. Ciz]

I have owned my timeshare in Williamsburg, Va (Wyndham Patriot's Place) since 1985. We joined RCI and regularly trade our unit for condos in other vacation destinations. It has been a terrific and economical way to vacation for my family. We've been able to do trips that we could otherwise not afford because our lodging is already covered. We've been to Mexico, Orlando/WDW, Florida beaches, beaches & mountains in the Carolinas, Lake Tahoe, ski vacations in New England, beaches & mountains in Virginia, and Sedona, to name a few places. Next on the list are New Orleans and South Africa.

We are usually able to get 2 or 3 trips a year out of our timeshare TPUs. I own a fixed week, which trades in TPUs (kind of like points) verses owning actual points. I get 32 TPUs a year when I deposit my week into RCI. My most recent trade for my Disney trip next month (Vacation Village at Parkway) was only 9 TPUs. I always do a cost analysis to make sure my timeshare ownership & trading cost is a better deal than paying OOP for lodging. My yearly maintenance fee is $800. The trading fee for RCI is $230. So my week at VV@P costs me $455 for a week ($800/32 TPUs = $25 per TPU, $25x9 TPUs= $225 + $230 trading fee). Sometimes I can get even better deals when RCI has a sale and slashes TPUs or when they have a sale on Extra Vacations. With Extra Vacation sales you can rent extra weeks at a steep discount without trading your timeshare.

My parents are also huge timeshare advocates. They own timeshares in all their favorite vacation spots and spend at least a third of the year traveling. It has been more cost effective for them than owning a permanent vacation home. Every other year they have enough space for all of us (mom & dad, 4 children plus spouses and 7 grandchildren) to vacation together in Hawaii. It is wonderful!!!

Check out tugbbs.com. It is a great resource to educate yourself on the whole timeshare process. Also, buy your timeshare cheaply on the resale market, not directly from the developer.

As long as you make your timeshare work for you in a cost effective manner, it can be an amazing purchase. Enjoy!

 

[Klayfish]

We owned a timeshare in Harborside Resort in Atlantis, Bahamas once. Horrible mistake. It's an awesome place, don't get me wrong. But it's cheaper and easier to just rent something from someone else when you want to make the trip. We've thought about buying a rental condo/house near WDW many times (we always stay off site), but decided it's just not worth it.

Guess my overall feeling is that if you have extra disposable income and don't mind spending it, there's nothing wrong with it. But it's probably financially cheaper to just rent when you want to go.

 

[mistyinca]

But it's cheaper and easier to just rent something from someone else when you want to make the trip.

This is what has always kept me from buying one. I often find better deals elsewhere than the mainteance fees would be anyway.

 

[Mrs. Ciz]

Guess my overall feeling is that if you have extra disposable income and don't mind spending it, there's nothing wrong with it. But it's probably financially cheaper to just rent when you want to go.

This is what has always kept me from buying one. I often find better deals elsewhere than the mainteance fees would be anyway.

In a market like Orlando where there is an over saturation of timeshares, you may sometimes be able to rent a condo cheaper that my cost of $455. I think $455 is a pretty good price for Easter Week though. But there are lots of other destinations where you can't touch a rental for my timeshare ownership/trade cost (Hawaii or really nice Mexican resorts, even New Orleans was much higher). My maintenance fees are only $800 a year. If the maintenance fees were really high (like $1600/year at some of those Hawaiian resorts I can trade into) then it stops making financial sense to own then trade for places like Orlando because renting would indeed be cheaper. You really have to know all your costs, know what a rental would cost and do the financial analysis to make sure owning is a better deal than renting. For me it always is.

 

[TwoMisfits]

I have loved my timeshare...my fees are now $750/year and I have routinely gotten way more "distance" out of them than I could ever hope to get in hotels (as a family of 6, we are priced out of all cheap hotel options and as a timeshare owner, I can vacation when I want and not have to worry if I can find a reliable owner to rent one who has the exact dates I want). Case in point for this year - I'm heading to Pigeon Forge in the dead of summer and I booked TWO separate condos - 1 2 bedroom for 4 nights and 1 2 bedroom for a 1 night waterpark extravaganza. It used 80% of my yearly points (so $600 value in timeshare fees), so I still have enough for a winter weekend away. The cost to book those resorts separately is currently astronomical, as is the cost to book anything "resorty" that sleeps 6 (with actual beds and not sofa beds) in Pigeon Forge for the summer. Also, the split stay, especially with the one night, would be virtually impossible to accomplish renting from an owner. And my spouse only wanted to put himself through one night of waterparking - I probably can't blame him!

So, for me, the flexibility and the low cost have made it wonderful for my family...and the certainty of the cost, since my vacation budget is a pretty firm figure.

Edit to Add - In Orlando, my timeshare does go farther - I usually get 10-11 nights (depending how many Fri/Sat I cover) at Bonnet Creek in a 2 bedroom per year...again, having an odd number of nights makes it harder to get rentals...and 750/10 is $75/night all inclusive for the ability to have my choice of dates and resorts in Orlando.

 

[Klayfish]

The fees are one thing, but how much did you pay to actually buy the timeshare? You have to factor that in too.

 

[Mrs. Ciz]

The fees are one thing, but how much did you pay to actually buy the timeshare? You have to factor that in too.

I paid $3500 for my timeshare 35 years ago. I no longer factor in the purchase price at this point because it has paid for itself many times over the years.

 

[chicagoshannon]

Unless it's Disney, you can usually pick up someone's unwanted timeshare for close to free. So you'll just be paying maintenance fees every year without much buy in cost at all.

As long as you're fully aware of the fees per year it can be a really good deal. We own a week in Vegas that we trade most of the time and also own a small amount of Disney points. My parents also own (Wyndham) and we can get 2-3 trips/year with this (in a 3 bedroom). It's working out well for us so far.

 

[TwoMisfits]

The fees are one thing, but how much did you pay to actually buy the timeshare? You have to factor that in too.

Yep, I did for the 1st 10 years I owned it...getting it young means that I get full use out of it myself...we are on year 13 now and have used the timeshare 15+ times (and have the ability to save our points to pool for big trips in years we want to take only a cruise - we then book bigger sites to bring my mom with us in following years)...

I bought direct, but it was still just $1K/year on top for the 10 years (but I bought in cash - that's how I mentally amortized it), so it's fully paid off...if you buy resale, it becomes an absolute no brainer for a big family...

Even then $1600-$1700 for 7+ days of 2 bedroom summer resorts is a good deal any way you slice it...now it's a killer deal at $750/year all inclusive (never taxed 20% on all these nights...but I did get in when others didn't want them as much, so prices were lower...

 

[bsj1701]

A huge regret is not buying DVC 25 years ago.

Agreed, my wife and I made several trips during the late 80's/early 90's and looked into DVC then. I don't remember the cost, but at the time it seemed out of a reach for a young couple just getting married and starting a family. Looking back, with the amount of trips we have taken over the years, we probably should have purchased. At today's prices, I am not sure the value is there, but anyone who can afford it, whether they think it's a good value or not, more power to them!

 

[Imagineer5]

I have looked into this time and time again, and WANT the numbers to add up, but they just don't!

In June we're staying in a 3 bedroom condo at Star Island via heroesvacationclub for $349 for the week.

In October we're spending a week in a 5 bedroom house with a private pool-sharing this house with another couple, and paying about $375 total.

I LOVE staying onsite (love the convenience of BLT, but have to do at least a 1-bedroom for the room size) but the price just gets me compared to these others. I do have an AP, so don't have to factor in parking costs.

DH & I have talked about purchasing a vacation home in the area in a couple years, so we *might* do that if we think it will pay for itself. But otherwise, any timeshare just seems like a lot of $$ spent.

 

[Mrs. Ciz]

I have looked into this time and time again, and WANT the numbers to add up, but they just don't!

In June we're staying in a 3 bedroom condo at Star Island via heroesvacationclub for $349 for the week.

In October we're spending a week in a 5 bedroom house with a private pool-sharing this house with another couple, and paying about $375 total.

I LOVE staying onsite (love the convenience of BLT, but have to do at least a 1-bedroom for the room size) but the price just gets me compared to these others. I do have an AP, so don't have to factor in parking costs.

DH & I have talked about purchasing a vacation home in the area in a couple years, so we *might* do that if we think it will pay for itself. But otherwise, any timeshare just seems like a lot of $$ spent.

Again, you are just looking at the Orlando market. I trade my timeshare for vacations all over the USA and outside the country. I always do the math, and it is much less expensive for me to use my timeshare than it is for me to rent a comparable resort condo or hotel room in Hawaii or Sedona or New Orleans (French Quarter), South Africa/Kruger Park area or Mexico, just to name a few.

 

[Monykalyn]

Check out tugbbs.com. It is a great resource to educate yourself on the whole timeshare process. Also, buy your timeshare cheaply on the resale market, not directly from the developer.

THIS!! Often Orlando TS go for $1 on resale then it is just maintenance fees.
We were gifted a week at a TS at Lake Ozark MO 20 years ago-only thing we have paid is maintenance fees(<$500/year) for a 3 bedroom, fixed week (high season). When kids were small we would use the week, now that they are older we trade. Vegas multiple times, Grand Cayman, and Orlando are our prime spots. Just traded this year for Marriott Cypress Harbour over Thanksgiving week, 2 bedroom. Our TS only trades into Interval International-we are looking at /waiting for a foreclosure at another Lake Ozark resort that will have good trading power in RCI to give more options.

 

[bankr63]

If you have already purchased at retail, I would strongly recommend rescinding according to the rescission terms in your contract (generally you have ten days to do so). Then, read A LOT on tugbbs about timeshare ownership as PP's suggest. MD purchases are in the $10's of thousands. Resale values are in the $1's. Diamond Resorts is not one of the higher end resort management systems.

Mystic Dunes has some of the highest maintenance fees I have seen (looking at $1,300-$1,600 per year). Resales at Mystic are available for $1 right now on tug marketplace, but as others have pointed out, it is still cheaper to rent from other owners than to take on the lifetime liability of ownership and the ever increasing maintenance fees. We own two wonderful timeshares (both bought resale, not retail, for a few dollars each), and we love the timeshare lifestyle, but I certainly realise that I could be doing it better by just renting when I wanted.

 

[janicept]

Maybe if you're getting it for free and just have to pay maintenance fees. I've gone to those presentations and they start my saying you get a great deal for $10K then by the time you say no to the third person it's down to $4K. My Mom has some at Wyndham and the fees go up every so often. If you don't use them you pay to roll them to the next year or you have to pay for RCI exchange, and you have to pay if a guest goes. She plans on willing them to my sister and I but I don't want anything to do with it.

That being said I'm sure there are some people it works really well for. Like if you have a reserved week that you know you will go every year and it gets you a much better place compared to what you would pay through a vacation rental place. Make sure you buy through a realtor and not through the actual timeshare place to save a lot of money.

 

[bankr63]

Maybe if you're getting it for free and just have to pay maintenance fees. I've gone to those presentations and they start my saying you get a great deal for $10K then by the time you say no to the third person it's down to $4K. My Mom has some at Wyndham and the fees go up every so often. If you don't use them you pay to role them to the next year or you have to pay for RCI exchange, and you have to pay if a guest goes. She plans on willing them to my sister and I but I don't want anything to do with it.

That being said I'm sure there are some people it works really well for. Like if you have a reserved week that you know you will go every year and it gets you a much better place compared to what you would pay through a vacation rental place. Make sure you buy through a realtor and not through the actual timeshare place to save a lot of money.

@janicept just be aware that even if willed to you or your sister, you are under no obligation to accept. If the owner of a timeshare dies, and the family does not pick it up, the ownership reverts back to resort. Many people seem to unwillingly accept a willed property without understanding that it is not necessary to accept and you are under no legal obligation to accept those liablities. Again, TUG will be your friend in learning more.