Need thoughts on buying new TS

Folks: We have no knowledge of timeshares, but we bought the following Sat. Have 7 days to rescind so I knew I could research if we should proceed. It's a flex week Studio with Flagship in Atl City, NJ, just 2 hrs from home. Got the 12 week Getaway package with Interval. It's $14,600, $513 maint, $89 II fee. Exchange cost is $149 with average rental price of $350/wk, I'm told.
Questions I can think of: Does equity build up eventually on the 14,600 or usually not? Is it easy to get an exchange thru II for timeframe requested? (I know that particular times, like holidays, Mardi Gras, etc. are out.) Is the exchange rental cost normally between $200-$500 that I was told? (Can't find up front info from II properties.) If I do the math on all the numbers, it looks like our one week vacation to somewhere is $1850/yr for 20 years. But the maint fee just keeps going.....Anything I'm not aware of?
Thanks in advance for your thoughts. Great website here. Will be joining if I keep TS.
Kathy

Hi Kathy and welcome to TUG!

- You should rescind immediately - you can buy the same thing on the resale market for pennies on the dollar.

Not only does equity not build up - but if you tried to resell this week, you'd be luck to get $100 for it. Sad but true.

Timeshares are like cars, except worse - as soon as you "drive them off the lot" they depreciate 50-100%. Unfortunately, timeshare sales people will tell you anything to make a sale.

Here is some info. about rescinding - it was written for another resort, but everything else applies to you - click here

Then you can take you time, do your research, and make a decision with no pressure. You can easily buy this timeshare - or another - on the resale market and not have to finance it.

I'm going to post some ebay prices for this resort for you.

Here you go - there are 2 for sale on ebay for $1 with free closing costs. One is a one bedroom and the other is a studio -
http://realestate.shop.ebay.com/i.h...kw=&_osacat=15897&_trksid=p3286.c0.m270.l1313

In the last month there have been 5 auctions for this resort for $1, and only one sold (you have to be logged into ebay to see this) - http://completed.shop.ebay.com/Time...e=1&_dmpt=Timeshares&_fsct=&_ftrt=901&guest=1

You don't want to pay $14,600 + financing for something you can buy on ebay for $1!

Rescind immediately. Make sure you follow the instructions exactly as outlined in your contract.

Do not buy this or any other timeshare until you have done your research and fully understand what you are getting into.

Your timeshare will not build up equity over time. Quite the opposite. Many timeshares have no resale value whatsoever. It is easy to buy a timeshare. Not so easy to sell one.

kathys said:

Folks: We have no knowledge of timeshares, but we bought the following Sat. Have 7 days to rescind so I knew I could research if we should proceed.

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The best decision you'll ever make regarding timeshares is to rescind this purchase while you still can. This is the only time you'll have that option, so do it NOW. Follow the rescission instructions in your contract exactly as written. Take time to learn everything you can about timeshares. Since you state that you have no knowledge of timeshares, you really shouldn't be buying one until you do--especially now.

Take a look at the Bargain Deals forum here on TUG. You'll see page after page of people trying to give away their timeshares. Sometimes there may be a good reason to buy from a developer, but most times there isn't any. Arm yourself with knowledge and be an informed consumer before you buy any timeshare in the future.

I have no experience with your timeshare but do a search both on ebay and on redweek.com to see what they are selling for. It might sound drastic to rescind but that is the best advice and read all your fine print in your contract and follow it exactly. After that, follow through on your inclination and get involved in timesharing, just do not buy "retail." Funtime

I posted the ebay prices above - 5 auctions for $1 in the last month w/free closing....

Rescind. And don't worry, you do not need to hurry to buy now that you are interested in timeshares. They will be low cost for a couple years yet, with this economy.

Rescinda-Sinda-Sinda.

kathys said:

Does equity build up eventually on the 14,600 or usually not?

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Never.

kathys said:

Anything I'm not aware of?

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Nothing that the timeshare companies sell at full freight is worth anywhere close to the money they charge -- specially under current economic conditions when so many timeshare deeds are worth approximately nothing.

Not only that, there is no such thing as a new timeshare. The only thing new is the deed. By the time the owner shows up & checks in, other people will have been staying there previously, right there in the owner's very own specific unit. All timeshares are used-used-used any way you shake it. There is no sense in paying new prices for items that plain & simple are not new.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

listen to these guys and gals, they know what they are talking about...get out now, do your research on TUG for at least 6 months, and then you'll be more confident about your TS purchase! Timeshares are great, we love ours but you really need to go in with your eyes wide open. We bought ours resale and use it and will for years and look forward to our fixed week every year. It is an investment in our family, not in our TS because at least for the short haul, our timeshare is worth pennies of the full developer price. Welcome to TUG!!

Buy Timeshares Resale. Save Thousands.

Karen G said:

Sometimes there may be a good reason to buy from a developer, but most times there isn't any.

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Nobody's come up with a good reason yet that I've read or seen on TUG.

Maybe the Good Reason -- if there is 1 -- is Double Secret Classified Information that's kept totally hidden from everybody.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

Sayanara AC

You guys are great. I know what I'll be doing tomorrow. Rescindamundo. Hey, at least I'm $100, free parking, and a free breakfast ahead, right?

Be seeing ya down the pike. Thanks!
Kathy

Kathy, you're a smart lady. We often see people who ask for advice and when they get it, they argue why they think their purchase was a good deal.

kathys said:

Does equity build up eventually on the 14,600 or usually not?
Kathy

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Not only does equity not build up, but if you do decide to unload it one day you'll probably have to pay someone to take it. (ie a years maintenance included in the transaction/ paying closing costs/ and the possible cost associated with listing it/ etc)

If you get enjoyment out of it, those costs are insignificant compared to what you'll be saving by buying resale.

I can't vouch for the sellers of those ebay resales, but I'd say any seller with high 90's rating and a over 100 transactions is pretty safe (although mistakes do get made on occasion). Besides for $1 plus closing costs its a very low risk transaction as long as you are familiar with the closing process.

Since you are new here I'd echo what the veteran tuggers will tell you. Spend a few months on the board and do some research before you buy. You might find that something else works better for you. I spent over a year on and off lurking these boards and other online sites after rescinding a las vegas timeshare. I finally felt comfortable enough buying resale on ebay and haven't had any regrets.

Cancel immediately.

part of this post has been removed--solicitation of timeshare sales is not permitted on this forum

Shar

You Typed A Mouthful.

falmouth3 said:

We often see people who ask for advice and when they get it, they argue why they think their purchase was a good deal.

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Specially when the cooling-off period has expired & they can no longer rescind. Then they're nearly desperate to convince themselves they got a good deal because they just can't stand the idea they were hornswoggled & bamboozled.

The timeshare biz is overripe for moving past its carnival-barker sales pattern based on high pressure & ballyhoo & razzle-dazzle & moving instead to a modern biz plan based on something like Wal-Mart for newly deeded timeshares & CarMax for resales.

We are not holding our collective breaths.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

More than $100

kathys said:

You guys are great. I know what I'll be doing tomorrow. Rescindamundo. Hey, at least I'm $100, free parking, and a free breakfast ahead, right?

Be seeing ya down the pike. Thanks!
Kathy

Click to expand...

The knowledge you learned about Timeshares in the past three days is worth far more than the $100, free parking, and breakfast. It was time well spent.

By the way, I am a believer of buying your first timeshare within driving distance and at a location/time that you would like to visit often.

Be aware of the details of flex and floating weeks. People rarely get the week they want, so make sure that the band is narrow, e.g. week 24-31. If it's 1-52 and you request week 27, you;ll be lucky to get a week between 20-34 at Atlantic City.