Time Shares

[imoldernu]

Have lost track of the subject over the past ten years, but it came up in a recent discussion with friends. As eyes rolled and teeth were grinding, one member of the group spoke out "for" the concept, having owned a time share for many years.
Though DW and I have no interest in this, we wondered if the "boat" axiom was true about Time Shares... "The two happiest days of life.... The second, when we bought, and the first, when we sold."

Any experiences here? Good, bad, indifferent?

Would the relatively low purchase price offer a value to younger persons as a haven from stress?
Has anything happened over the years to change the bad image, and to make ownership more safe and predictable?

Yes, thousands of articles, warnings and scary stories... but the fact remains that most of the operations still exist.

Thoughts? Advice to younger marrieds who may consider this?

 

[yakers]

I'd rather buy an annuity

 

[pb4uski]

Spending time with an annuity sales person or a time share sales person. Tough choice. I think I'll go to the dentist instead.

 

[sengsational]

You wouldn't need to sit through a pitch...if you have a dollar, you could be the proud owner of one. They have to give them away nowadays! You can find people who will PAY you to take it off their hands.

 

[karluk]

I would venture to guess that very few of the members of this forum have managed to retire early by squandering tens of thousands of dollars on timeshares. If you absolutely, positively need to buy a timeshare, there are any number of units that are available on the resale market by sellers desperate to unload them at any price. You would most likely have your pick of units for free, simply by offering to take over the annual maintenance fee.

Better yet, just say "no" and skip the long term commitment entirely. I've rented timeshares for the same price as a moderately priced hotel room. We liked the upgraded accommodations and could walk away at the end of our vacation with no lingering financial obligation whatsoever. That's my kind of deal - one that benefits me, not the developers of the timeshare.

 

[pb4uski]

+1 DW has wanted one for years since her brother has one and a friend of ours does. I keep resisting telling her that we can just rent when and as we need to. I don't think she understands the never ending costs.

I know some people who it has worked out well for and they are happy with it. In most cases they seem to be happy going to the same place at the same time for their vacation.

 

[kcowan]

Fractional ownership timeshares are getting killed by ever escalating cost increases on the maintenance fees. Points based timeshares are basically cheaper to buy and maintain but then you have to fight for a good place at a good time.

Rental is the best deal.

 

[sengsational]

Yep. You rent the timeshare from a guy who has a "worthless" TS deed and needs to cover his overpriced maintenance fees, lol!

 

[jimnjana]

Guess I'm gonna get slammed....but last year from my perspective we parepaid for an average of over 50% off 4 vacations at one of the Palace Resorts. Really how I looked at it. They looked at as I "bought" 16 weeks. No maintenance fee. No requirement to ever use all the weeks. Palace Resorts are all inclusive. We like them so for us this made sense because we will be going back. What we paid was just about 1.5 x what we paid for one week (We had gone to them twice before). So yeah, we could have paid 10x what we did and got a bunch of "free weeks" and an upgraded room. As it was we got $1200 in additional spa credit that doesn't expire, 2 wks at 999 (all inclusive total for 2) 2 wks at 1350. DW likes the fact that each time you go you get free spa treatments included plus resort credit that a portion can be used for spa or excursions. So call me a sucker if you wish...BTW for a period in the mid 90s DW and I probably sat thru 20 time share presentations just to get the free stuff and discounts. We never touched a traditional timeshare but we have enjoyed staying at them through the Armed Forces Vacation Club. A great deal for service members or vets.

 

[bssc]

The local timeshare place rents out units on Expedia for a lower cost than the maintenance fee.

 

[Tom52]

We own two timeshares that were purchased in the resale market for a few cents on the dollar of original cost. Both were purchased after much investigation and research. One timeshare is a location we like to visit every year. The other is part of a group that has over 40 locations to plan your vacation. It ends up costing us about $80/night for nice accommodations in a 2 bed/2bath unit that usually has in unit washer and dryer.
We are spoiled now and really hate to stay in a hotel room anymore. Not all timeshares are the same, many weeks are dogs and are basically worthless, but if you have a good deeded week there is still a resale market for it. We have more than recovered our original purchase price is savings and have no desire to get rid of them so long as we are healthy enough to travel and enjoy them.
I understand why timeshares have such a bad rap. The salespeople are generally considered sleazy and the upfront cost of developer timeshares is
ridiculous.
Timeshares obviously, are not for everyone, but they can also be a cost effective way to vacation if you understand how they work.

 

[mystang52]

I went to two separate timeshare presentations by Marriott, both times for the points/rewards they gave for attending. No doubt about it, I was ALMOST swayed each time. The presentations are slick and convincing.
But being a conservative guy, I refused to sign anything then and there. They even mentioned that I should sign the commitment anyway, since what-the-heck I legally had 3 days to back out. I still declined.
I crunched the numbers when I got home and it wasn't even close: from a dollars and cents perspective the theoretical payback was something like 30 years (!!). And that was the best-case scenario, as I recall [oh yeah, this was also before people started selling timeshares for a buck].

P.S. Another reason timeshare is not for DW and me. I like coming back to my room and seeing my bed made, new towels, etc. And I think DW would divorce me if I suggested we make our own dinner while on vacation.

 

[MooreBonds]

Guess I'm gonna get slammed....but last year from my perspective we parepaid for an average of over 50% off 4 vacations at one of the Palace Resorts. Really how I looked at it. They looked at as I "bought" 16 weeks. No maintenance fee. No requirement to ever use all the weeks. Palace Resorts are all inclusive. We like them so for us this made sense because we will be going back. What we paid was just about 1.5 x what we paid for one week (We had gone to them twice before). So yeah, we could have paid 10x what we did and got a bunch of "free weeks" and an upgraded room. As it was we got $1200 in additional spa credit that doesn't expire, 2 wks at 999 (all inclusive total for 2) 2 wks at 1350. DW likes the fact that each time you go you get free spa treatments included plus resort credit that a portion can be used for spa or excursions. So call me a sucker if you wish...BTW for a period in the mid 90s DW and I probably sat thru 20 time share presentations just to get the free stuff and discounts. We never touched a traditional timeshare but we have enjoyed staying at them through the Armed Forces Vacation Club. A great deal for service members or vets.

I don't see why you would get slammed. You didn't buy a timeshare - you prepaid for several weeks of vacation. NO different than if you were on a cruise and you signed up for 12 weeks of additional cruising for future cruises at a steep discount.

You didn't sign a contract to own a partial ownership in a resort, and you aren't on the hook for annual maintenance fees.....so I don't see why people would lump your prudent financial decision in with the likes of timeshare ownership.

Heck, if I found an all-inclusive resort that I really liked and had an offer for 50% off their rates (and it was a truly good price, not 50% off the rack rate that hardly anyone ever pays), you'd have to hold me back from pre-paying and buying even more weeks!

 

[SteveNU]

DW's parents have one that they no longer use. We have been banking it with RCI for the past few years. It has worked out okay but it is a hassle to keep paying the annual maintenance fee, the RCI membership fee, the exchange fee, the guest fee, etc.... We stopped banking it so we can sell it back to them this year. It will cost us $400 to deed it back to them and they will put it on the large list of units they have for sale for a fraction of the original cost.

 

[hnzw_rui]

P.S. Another reason timeshare is not for DW and me. I like coming back to my room and seeing my bed made, new towels, etc. And I think DW would divorce me if I suggested we make our own dinner while on vacation.

Lol, I feel the same as your DW.

Aside from the aforementioned issues with timeshares, I would also hate feeling beholden to stay at a certain location far from an attraction because I already own the timeshare. Then there's having to rent a car or take a taxi because I'd actually need daily transportation to get to places. First time we vacationed in Orlando, FL (to visit WDW and Universal), we stayed at my friend's Marriott timeshare. While the place is nice, it was so stressful driving in an unfamiliar location and trying to find parking that wouldn't require us to walk for miles before we even get inside the parks. The vacation didn't really feel like much of a vacation. Second time we vacationed in FL, we just took a shuttle to/from the airport and stayed at an on-site hotel. Much more expensive but definitely made for less stress. There were free shuttle rides every 10-15 minutes or we could even walk plus the additional perks were worth it (unlimited Universal Express Pass). Definitely more enjoyable than the first go-round.

 

[Willers]

A couple of years ago I received an offer to walk through a 1-on-1 presentation at a complex in Colorado. They were offering $125 to spend 90 minutes at the end of a day of skiing and I bit just to see what it is all about.

First of all, those guys are good. They had polished answers to my objections and strategically involved "current owners" to tell us how great it was.

I got to the end and there were people that bought the pitch and were signing up all around me. The two things that really stood out to me:

1) A quick back of the napkin calc showed a reasonable payback of 40+ years
2) There was no cap on maintenance fee increases.

Scary stuff for anyone that doesn't read every word in a contract. If one is bought on the secondary market and has fee limits then it might work for some. The fact that the salesman was visibly angry that I wouldn't sign on the spot really sealed it.

That said I have two friends that swear by theirs and look forward to "trading" locations each year. To each his or her own.

You mentioned advice to younger buyers:
- Read every word in the agreement
- Focus on fees that can be increased
- Let me have your number so I can rent it from you at a discount later on.

 

[kareninthecity]

We bought one over 20 years ago. Have used it to go several different places but since it is right on the ocean, we typically just use our week every year and go there. That said, our maintenance costs have risen quite a bit and last year, due to mismanagement of funds and buy-out by another company, we now have to pay an extra fee for major repairs (we can spread it out over 3 years but still....) While we have enjoyed it, we wouldn't do it again.

 

[Chuckanut]

Before you buy a timeshare from the official salesperson, take a good long look into the market for buying timeshare resales. It's a real eye opener from what I have heard. Be careful.

 

[Sue J]

My sister and BIL have 2 timeshares in the Starwood system. They bought their first one in Hawaii (Princeville) and loved it so much that they bought another week in Cancun.

They have been back to Hawaii twice and find that it's a really long, expensive flight and now they usually trade that one for another location. They recently used the trade for Phoenix or Santa Fe, Palm Desert, CA, someplace in Florida and have another trade set up for Avon, CO. The Cancun week they absolutely love and go back every year.

My sister has mentioned the yearly fees combined being close to $4,000 for both timeshares. She also mentioned maybe selling the Hawaii one but found that they would not get much for it, a lot less than they paid.

They enjoy their timeshares and know how to use the system to build up points with their credit cards and how to manage the trades. They travel a LOT, including multiple cruises every year (they just got back from a 2 week Mediterranean cruise), Road Scholar trips and other travel.

I guess some people think they are great, but many people get sucked in and have a hard time getting out of them.

 

[capjak]

The rule is buy resale only and never from the developer.

We enjoy our timeshares;

Westin kaanapali ocean resort on maui

Disney Beach Club

Disney Saratoga Springs

Marriott Grande Vista

Hilton Grand Vacation club in vegas

Great vacation experiences all purchased for 20% to 50% of retail.

I rent DVC for 2 times the maintenance fees and they are worth as much as I paid on the resale market but not looking to turn a profit just enjoy great places in rooms that have kitchens etc....Very hard for us to ever stay in a hotel.

Rent out extra time in Maui for 1.5x the maintenance fee so all in all not bad very happy with the purchases.

Through Interval International I can stay and am in October in a 2 bedroom at Marriott Lakeshore reserve for $567 and a studio for my son for $297 for the entire week

PS if you want your room made up everyday (we do not want people in our room every day) you can have that if you want for an extra fee, the maintenance fee pays for mid week cleaning and you do not have to go to the same place every year another mis conception.

 

[zinger1457]

The Timeshare Users Group (TUG) forum will tell you pretty much all you need to know (good and bad) about timeshares. Rule #1- never buy from the developer. Rule #2- if a timeshare salesman lips are moving they are lying.

Timeshare Users Group Forums

 

[Sunset]

I had one for about 8 years. Bought it on the resale market (ebay). It was lovely, big, 3 bedroom 2 bath.
I did get tired of returning to the same place (where I don't know anyone and cannot store stuff there like a cottage).
It was too big for us when we didn't invite others.
The Annual fee increased over time and got pretty expensive.
I tried to sell it, nobody wanted it.
Finally I was able to give it back to the resort and only had to pay about $300 in legal fees to transfer it.