Looking for buying advice

[singingpunter]

Hello everyone! This website has been a big help for me so far. I have been researching timeshares, and I think they would be an excellent idea for our family. I am not looking for an investment, just a decent yearly vacation. Though I've been learning, I know there are still many nuances that I don't understand, and would appreciate some advice.

A relative has offered us their Diamond Resorts points. They have about 9,000, and their yearly fees are $1800. That's higher than I wanted to spend. I would appreciate your thoughts. What I would like to find is a timeshare/points that cost $800/year or less and gives our family of 6 a decent vacation each year. We also don't mind bargain shopping/taking last minute deals. We live in Alabama, so most likely we'd travel to Florida/Georgia/Tennessee. A trip somewhere else might occasionally be nice. So please give us your thoughts!

1) Where do you want your home resort to be? Florida/Alabama

2) Do you want to visit your home resort at least half the time, or do you want to trade more than half the time? Trade

3) What are your 5 top trade destinations? Florida/Alabama/Georgia/Tennessee/North Carolina

4) How many people do you usually travel with? 6

5) Can you travel any time, or are you locked into the school schedule? Anytime

6) Can you make firm plans 12 or more mos. in advance? Yes, but can also do last minute

7) Can you vacation for a full week at a time? Yes

8) What level of accommodations do you prefer on a scale of 1 to 5 stars?
4

9) How much can you afford to spend upfront, without financing? Zero. Maybe up to $300.

10) How much can you afford to spend every year for a maintenance fee that will come due right after Christmas, and increase each year? $800

11) Are you a detail oriented planner? No, but I like finding deals

12) Do you understand that once you buy a timeshare, it may be very difficult to sell or give away, and you are responsible for all fees, until you do? Yes

 

[singingpunter]

Just following up, I understand that we don't really want to to purchase a timeshare in the Orlando area. What about Gatlinburg? Are there any desirable locations in Tennessee or Kentucky that would help us in exchange services? Do we need to make sure that we purchase one that is listed as a red week for maximum exchange value?

Thanks again, -Jason

 

[bogey21]

Jason - you are right in your thinking to keep the annual MF reasonable. You only pay the front end price once; you pay the MFs forever. Just remember to only buy resale.

George

 

[WinniWoman]

Just following up, I understand that we don't really want to to purchase a timeshare in the Orlando area. What about Gatlinburg? Are there any desirable locations in Tennessee or Kentucky that would help us in exchange services? Do we need to make sure that we purchase one that is listed as a red week for maximum exchange value?

Thanks again, -Jason

If you are buying a fixed deeded week make sure it is during Prime time (aka red week- high TPU value)- high demand season- so it will be easier to trade and get at least a 2 bedroom unit- or a lock out if you can.

 

[theo]

Just following up, I understand that we don't really want to to purchase a timeshare in the Orlando area. What about Gatlinburg? Are there any desirable locations in Tennessee or Kentucky that would help us in exchange services? Do we need to make sure that we purchase one that is listed as a red week for maximum exchange value?

Thanks again, -Jason

The vague and generic term "red week" frankly doesn't mean much for exchange purposes. With RCI, what matters (for exchange valuation purposes) is the specific, numerical "TPU" value assigned to any given individual week / unit / unit size at each individual resort. That TPU valuation for a "deposit", at whatever resort, is at maximum when "deposited" more than 6 months from the actual usage date and decreases periodically as the actual usage date looms closer. You need to have a RCI membership (...or assistance from someone who does) in order to look up TPU values on the RCI web site for any given resort / unit / week.

Interval International valuation of "deposits" for exchange purposes is more cryptic. II asserts practicing a "like for like" valuation in their "internal" (i.e., secretive) exchange valuation process, which provides no overt, quantitative valuation "figure", such as that which is available in the RCI (new in recent years, btw) "TPU" model.

I'm no exchange expert and frankly have little use for RCI or II anymore, since we no longer "exchange". I am merely cautioning you against being too focused upon or too impressed by the (vague and not particularly meaningful) "red week" designation, regardless of location. The devil lies in the details --- not in the color red.

 

[bogey21]

You will get a lot of advice here and most will help you make a good decision. But after taking all of it into account I urge you to focus on your initial cash outlay and MFs. Remember that a $1,000 MF today will likely be a $2,000 MF ten years from now. In addition to MFs take into account how much of the cost of what you buy you will be able to recoup when (if) you decide you not longer want (or need) your Week.

George

 

[RNCollins]

Hi singingpunter,

I am new to timeshare ownership, having bought my first timeshare in January 2016. I would suggest to you to rent timeshares first and see if they fit with your family. You can also rent from Endless Vacations, TUG, Red Week to get a taste of timeshares without the lifelong financial commitment of maintenance fees.
https://www.endlessvacationrentals.com

Most importantly, take your time before you make your purchase. Read and explore TUGBBS. Don't make an impulsive and regretful decision. TUG is a great resource.

 

[singingpunter]

Can you explain how your transaction went for the purchase? Did it cost you what you expected? How long did it take to transfer ownership? Did you pay maintenance fees immediately, or being paying them monthly? Thanks!

 

[theo]

Can you explain how your transaction went for the purchase? Did it cost you what you expected? How long did it take to transfer ownership? Did you pay maintenance fees immediately, or being paying them monthly? Thanks!

Fwiw...

1. There is really no "average" closing / transfer time; each transaction varies. It can take anywhere from as little as two weeks to nearly a year, depending on the property, "chain", title and transfer issues or complications, etc. I'd say from my own experience over the years that 90-120 days is neither unreasonable nor uncommon for a smooth non "chain" transfer of ownership, from start to finish. "Chains" (particularly Wyndham), can sometimes add a few months to the process. Closing costs can be (and should be) very clearly and specifically known before closing or transfer. Transfer fees are a separate matter; this is a gratuitous fee charged by the individual resort, management company or "chain" (i.e., not part of closing company fees) just to change owner (and billing) information in their internal records. A $100 transfer fee would be typical for a smaller, independent resort. Wyndham charges a $299 "transfer fee" and Hyatt charges about twice the Wyndham amount.

2. Payment of maintenance fees is an individual property / transaction detail, not something which is up to the discretion of any owner, seller or buyer. Some (...but not too many) resale sellers may offer pay the next use year's fees to "sweeten" their offering and "seal the deal" to find a new "grantee", but usually only if it's an interval difficult to "move" otherwise.

In general, for most annual use interval ownerships, maintenance fees are billed annually, most often toward the end of each calendar year, usually with up to 90 days allotted for payment in full before being regarded as "delinquent" (and obviously, before next occupancy would be allowed). Wyndham is a noteworthy exception on billing, since Wyndham bills their fees on a monthly basis, throughout the entire year.

Hope some of this helps to answer your question.