Time-share decision: walk or stay

[retire@40]

Originally Posted by roadkill

I am currently considering the possibility of purchasing a timeshare at Daytona Beach. For those who have been through this, what was your thought process in so far as why you choose this route versus simply going the pay as you go rental route?

Here's a thread from a couple of years ago that may be helpful.

Time Share Resorts

[kcowan]

Also check out Timeshare Users Group - Timeshare Owners Helping Each other, Unbiased Timeshare Information for All Owners, Buy Sell Rent Timeshare Timeshare Users Group.

Probably a good idea to join before making any investment.
Purchase price = 3x outright purchase price
Resale price = .25 of above
Maintenance fee = $200 to $800 per week
Trading fee = $400 (250+150)

Simple math - $600K oceanfront condo
Per week - 600/50 - $12k - timeshare new = $36k
Resale - $9k with ROI of 10% then $900
Maintenance - $350
Use for 1 week - $1250
Swap instead - $1650 or $236 per night

[TromboneAl]

Now that you've decided to hang on to it for a while, how about listing it for sale somewhere at a price that would be favorable to you? That is, you're not in a rush to sell it, so you can wait for a good deal (as long as you don't have to pay for the listing (some web site)).

[roadkill]

Thanks to all for the help......

I have concluded (as others have) that the only way a timeshare would be a competitive approach to a pay as you go rental is when it is purchased as a resale (check out ebay)and not from the developer. Secondly, the "points system" seems to have the most flexibility. A 154,000 point unit in Daytona Beach would cost around $20k plus annual assesments of around $1k from the developer. The ebay price is running somewhere around $1,500 - $3,000 plus $1K annual assesments.

So, me thinks I will keep an eye on the resale market and maybe pick up a deal from an estate or someone just looking to dump their ownership share.