Timeshares - good or bad idea?

[brownhaired_girl]

Welcome, those are some impressive numbers and could be the reason that some here would try out the timeshare market. Since you seem to be keeping track I have a couple of questions I wonder if you could answer them.

Are all of these trips considered off-season trips, ie not Florida in Jan? How much notice do you normally have to travel and use the units. Does the 85 a night really include all taxes and fees and the add ons that come along with timeshares on check-out day, like cleaning fees and utilities upcharge.

And last do you happen to live in an area with a huge supply of timeshares. This can make a big difference in the utilization factor of bonus or extra weeks.[/QUOTE

I have a Down Syndrome daughter and quite a number of these weeks were in Orlando. We do travel off season mostly because I avoid the most crowded times there. We got annual passes and will be doing our 4th trip this year in a couple weeks. I work 12 hr shifts and using a holiday and couple vacation days I am able to string together 2 week trips. It does take some planning ahead. I actually live in northern MN so not a lot of timeshares around here. I would say the majority of our trips have been to FL. We have used the WI timeshare about 2-4 wks/ summer so that is about 7 hr drive. I probably can't get into a 2 bedroom Mariott during the best peak season in HI but was able to get a studio at the Mariott on Oahu in Feb (whale season). Not sure if I'll be going, if a friend will use this week or if I will end up tossing it back for something else. I will be taking my mother and friend to Costa Rica in Jan. The $85/night is an average of total costs for maintenance fees, cleaning fees and exchange fees. 3 of these weeks have been onsite at Disney. Certainly there is no guarantee that these prices won't go up. No doubt they will but for now I am making wonderful memories with my mother, daughter, and granddaughter ( husband is a dairy farmer and just will not tell those cows about vacations!)
To answer about FL in winter, absolutely!!!

 

[gerntz]

We've bought 52 week timeshares & rent them out on 12 months leases. Making plenty. Great deal. We do have to do maintenance.

 

[Sunset]

We've bought 52 week timeshares & rent them out on 12 months leases. Making plenty. Great deal. We do have to do maintenance.

How is this different from buying a house/condo unit and renting out ?

 

[CaliKid]

We've bought 52 week timeshares & rent them out on 12 months leases. Making plenty. Great deal. We do have to do maintenance.

That's a big maintenance fee though, no!?

 

[Bestwifeever]

Welcome, those are some impressive numbers and could be the reason that some here would try out the timeshare market. Since you seem to be keeping track I have a couple of questions I wonder if you could answer them.

Are all of these trips considered off-season trips, ie not Florida in Jan? How much notice do you normally have to travel and use the units. Does the 85 a night really include all taxes and fees and the add ons that come along with timeshares on check-out day, like cleaning fees and utilities upcharge.

And last do you happen to live in an area with a huge supply of timeshares. This can make a big difference in the utilization factor of bonus or extra weeks.

I have a Down Syndrome daughter and quite a number of these weeks were in Orlando. We do travel off season mostly because I avoid the most crowded times there. We got annual passes and will be doing our 4th trip this year in a couple weeks. I work 12 hr shifts and using a holiday and couple vacation days I am able to string together 2 week trips. It does take some planning ahead. I actually live in northern MN so not a lot of timeshares around here. I would say the majority of our trips have been to FL. We have used the WI timeshare about 2-4 wks/ summer so that is about 7 hr drive. I probably can't get into a 2 bedroom Mariott during the best peak season in HI but was able to get a studio at the Mariott on Oahu in Feb (whale season). Not sure if I'll be going, if a friend will use this week or if I will end up tossing it back for something else. I will be taking my mother and friend to Costa Rica in Jan. The $85/night is an average of total costs for maintenance fees, cleaning fees and exchange fees. 3 of these weeks have been onsite at Disney. Certainly there is no guarantee that these prices won't go up. No doubt they will but for now I am making wonderful memories with my mother, daughter, and granddaughter ( husband is a dairy farmer and just will not tell those cows about vacations!)
To answer about FL in winter, absolutely!!!

You should hire out as a time share booking consultant! It sounds like you use yours well and really enjoy them.

 

[brownhaired_girl]

I do love my timeshares and use them for some wonderful family vacations that, many of which, we wouldn't have taken without the timeshares . But, some of the things I have learned is that maintenance fees will go up every year and the timeshare companies can and do change the rules. The only thing you are guaranteed they can not change or take away is what is contained in your deed. As far as a booking consultant, don't think so. To hard to keep others happy Everything I have learned is available on TUG. I can only hope to learn as much by studying here. Still learning my way around the site.

 

[TrvlBug]

Also a timeshare as well as TUG fan here. We own Marriott and have learned to play the game very well basically covering our yearly maintenance costs. They are not for everyone. You need to be able to plan and travel well in advance or last minute and keep in mind they are mostly located in resort rather than urban areas.

We use one as a trader by locking off and for the approx. $700 yearly maint. fee for each, upgrade each to a 2 bedroom at a beachfront 5* resort every year. Marriott rents these out at $4K per week during our season, although we could rent them from other owners for about $2.5K. Not too shabby.

In hindsight, we have made some unfortunate purchase decisions, but fortunately, can afford them. DH just retired last month and depending on our vacationing plans now that he's retired, we may dump a couple. When we purchased, we thought we would timeshare more in retiement, however, in reality it looks like the additional travel will be to more urban, non-timeshare areas. We'll have to see how it plays.

 

[ivinsfan]

Welcome, those are some impressive numbers and could be the reason that some here would try out the timeshare market. Since you seem to be keeping track I have a couple of questions I wonder if you could answer them.

Are all of these trips considered off-season trips, ie not Florida in Jan? How much notice do you normally have to travel and use the units. Does the 85 a night really include all taxes and fees and the add ons that come along with timeshares on check-out day, like cleaning fees and utilities upcharge.

And last do you happen to live in an area with a huge supply of timeshares. This can make a big difference in the utilization factor of bonus or extra weeks.[/QUOTE

I have a Down Syndrome daughter and quite a number of these weeks were in Orlando. We do travel off season mostly because I avoid the most crowded times there. We got annual passes and will be doing our 4th trip this year in a couple weeks. I work 12 hr shifts and using a holiday and couple vacation days I am able to string together 2 week trips. It does take some planning ahead. I actually live in northern MN so not a lot of timeshares around here. I would say the majority of our trips have been to FL. We have used the WI timeshare about 2-4 wks/ summer so that is about 7 hr drive. I probably can't get into a 2 bedroom Mariott during the best peak season in HI but was able to get a studio at the Mariott on Oahu in Feb (whale season). Not sure if I'll be going, if a friend will use this week or if I will end up tossing it back for something else. I will be taking my mother and friend to Costa Rica in Jan. The $85/night is an average of total costs for maintenance fees, cleaning fees and exchange fees. 3 of these weeks have been onsite at Disney. Certainly there is no guarantee that these prices won't go up. No doubt they will but for now I am making wonderful memories with my mother, daughter, and granddaughter ( husband is a dairy farmer and just will not tell those cows about vacations!)
To answer about FL in winter, absolutely!!!

Well thanks for that information and it confirms a lot of my thinking on this subject. As ex-dairy farmers in central MN our main goal it to be away from home from the Jan-late Feb time frame. Still crop farm so have to work around that in when we go. I think you got a great deal that suits you,now next winter I'm pricing a brand 4 bedroom home in a HOA with heated outdoor pools and walking trails in Southern Utah .I'm going to be able to get in at around 100 net a nite.

We have a few different friends that will be joining us at different times and wewill split the cost on those nights which would be 50 bucks a couple.

 

[brownhaired_girl]

Well thanks for that information and it confirms a lot of my thinking on this subject. As ex-dairy farmers in central MN our main goal it to be away from home from the Jan-late Feb time frame. Still crop farm so have to work around that in when we go. I think you got a great deal that suits you,now next winter I'm pricing a brand 4 bedroom home in a HOA with heated outdoor pools and walking trails in Southern Utah .I'm going to be able to get in at around 100 net a nite.

We have a few different friends that will be joining us at different times and wewill split the cost on those nights which would be 50 bucks a couple.

Sounds like a nice place to spend some winter months.

 

[gerntz]

How is this different from buying a house/condo unit and renting out ?

It's not.

 

[gerntz]

That's a big maintenance fee though, no!?

No set fee. Just pay someone to do as needed.

 

[ivinsfan]

We've bought 52 week timeshares & rent them out on 12 months leases. Making plenty. Great deal. We do have to do maintenance.

How is this possible aren't there common areas and amenities that need to be maintained?

 

[Bestwifeever]

How is this possible aren't there common areas and amenities that need to be maintained?

I'm thinking it's a little joke (he owns the place outright?)

 

[ivinsfan]

I'm thinking it's a little joke (he owns the place outright?)

Correct but most condo developments have ongoing HOA fees for common areas and things like roofs and outside painting. You pay those forever.

 

[gerntz]

How is this possible aren't there common areas and amenities that need to be maintained?

Yep, the tenants can all have access to the porch & grass yard.

 

[gerntz]

I'm thinking it's a little joke (he owns the place outright?)

 

[gerntz]

Correct but most condo developments have ongoing HOA fees for common areas and things like roofs and outside painting. You pay those forever.

Tenants lease, don't own.

 

[ivinsfan]

I guess you just love cryptic posts and funny faces. Were you actually trying to contribute something to the discussion or be funny? That's a rhetorical question.....

 

[ChrisC]

Been a timeshare owner since 1997 and a Tug member before it was Tug. We've enjoyed our timeshares and the ensuing memories with vacationing with family and friends, which continue in our retirement years and are priceless to us.

We never believed our timeshare purchases were investments much like we also don't believe our purchase and consumption of owner occupied residential real estate, whether vacation homes or a primary home, is an "investment" in the true financial/economic sense. Timeshares are fractional real estate interests and typically purchased at an inflated price at "retail" from the developer since a huge portion of that price covers timeshare marketing and sales cost.

Timeshares have a deservedly poor reputation among the general public and that is a function of how the product is marketed, sold and ultimately used by many misinformed consumers of the product. Nonetheless, if one becomes better informed about the product, one can get exceptional value, financially and recreationally, from timeshares and their portability through exchanges or rentals.

Not gonna debate the wisdom of buying a timeshare but I think the folks who believe the product is categorically horrible miss the mark by a wide margin.

 

[Sunset]

I'm thinking it's a little joke (he owns the place outright?)

Good call.

I was totally thrown off as years ago I realized I could get some timeshares really cheap, either free or $200 each for 3 bedroom, 2 bath house units.

Immediately I thought just buy all 52 weeks of one for $10,000 and have a nice place in FL, all taken care of for the yearly fee of only $31,200

I tried to figure you if I got one at the very end of the development, perhaps I de-timeshare it at the shareholders meeting and have it as my private property, but of course there is no way the timeshare board was going to release that yearly maintenance fee of $31,200.

 

[ChrisC]

Good call.

I was totally thrown off as years ago I realized I could get some timeshares really cheap, either free or $200 each for 3 bedroom, 2 bath house units.

Immediately I thought just buy all 52 weeks of one for $10,000 and have a nice place in FL, all taken care of for the yearly fee of only $31,200

I tried to figure you if I got one at the very end of the development, perhaps I de-timeshare it at the shareholders meeting and have it as my private property, but of course there is no way the timeshare board was going to release that yearly maintenance fee of $31,200.

Yes, it's probably a joke, but as a denizen of the Tug Bulletin Board and someone who is actively looking to accumulate Marriott DC points from the resale or rental market, according to these sources I recall reports of someone who did, in fact, buy 52 weeks at the Newport Coast Marriott Timeshare Resort and there are quite a few people who will "transfer/rent" enormous batches of DC points on the resale market. Some of the folks making their Marriott DC points available for rent on the resale market have over sized holdings in fractional interests/timeshares in the Ritz Carlton Destination Club product. http://www.ritzcarltonclub.com/explore-destinations/explore-destinations.shtml

 

[retirementguy1]

I am not joking. Somewhere there were discussions about travelling around the world slowly and maintaining a house in the U.S. I was thinking that it may be possible to have a timeshare in a state of the U.S. and claim the residency there and come back once in a year.

Sorry about any thread drift but there are plenty of mail forwarding agencies that can help you establish residency. It's pretty common for full time RV'ers and sailboat liveaboards to use them. Of course you want to find a state that gives you some tax advantages and is close enough since you will likely have to return once a year for vehicle registration and annual medical checkups. A few of the most common states are Florida, Nevada, and one of the Dakotas. Can't remember which one.

I don't this would work for people living in another state and working full time. More for people who travel a lot and don't have a permanent address for gov't purposes.

 

[brett]

We stayed at a resort in Daytona Beach a few years ago. The pitch, as I recall it, was $15k for a certain time share. Came away from the presentation and looked up the re-sale sites. The equiv. Unit/time was on the market for $3k asking price.

Did a little research. Apparently 35 percent of the cost of a timeshare is attributable to the marketing costs! Also, some timeshares do not allow members to sell their units privately..they must be cold back to the corp.

We decided it was not for us. The only numbers that added up were the re sale purchase numbers. But we also do not want the hassle or the risk of assessments...which happened rencently to a bankrupt timeshare near us in Western Canada.

 

[Freedom56]

Timeshares are a bad idea... Just run away from the presentations. If your find yourself in a 90 minute presentation, just mention time-share resales and they will throw you out and give you whatever incentive.

 

[EvrClrx311]

Google: timeshare forum

The top link is a forum that would be of great value to anyone who wanted to know methods to use timeshares to their advantage. The highlighting points are:
- NEVER buy a timeshare from a resort (retail)
- Research the best points/dollar ratio. That is, you'll want the most days/weeks/points for the least yearly maintenance fees.
- Ignore the resorts games to try and convince you that buying "used" straight from people who want to unload isn't smart.

I can give Hilton as an example:
I visited one of their free weeks and discovered that a studio (two person) week worth of points in their peak month would cost $15,000 and comes with a $750 a year maintenance fee. However, on the "used" market one can purchase a one week two bedroom suite at the same month/location for just $8,000 that has a $850 yearly maintenance fee... the kicker here is that this could be traded down (the points) to become 2 weeks of the quoted one above from Hilton.

So on the used market you're getting two weeks at $425 a year (per week) maintenance fee for an upfront cost of $4,000 a week... as opposed to buying direct from Hilton for $750 a year (per week) maintenance fee for an upfront cost of $15,000. So buying "used" you get twice the timeshare value for $7,000 less up front and $100 less per year in maintenance fees.

Of course, even in this scenario I'd question, what you could do with that $8,000 (+$850 a year) to produce more value in your vacations than being stuck to Hilton's dozen or so timeshare properties as a two week yearly vacation obligation.

Hilton will tell you that you get a "perk" of added points to your HHonors account for buying retail from them, but that's minimal compared to the sunken cost of what the above implies. Highlighting the point again that you should NEVER buy timeshares direct from the resorts. The reason these cost so much is because the people selling them get a 30-40% commission on them. That's right... if I bought that $15,000 timeshare, the guy convincing me to is walking away with about $5,000 that day.