# Advantages/Disadvantages to Owning



## tmoscola (Nov 16, 2007)

Can someone explain to me the pros and cons of owning a timeshare unit? I make an initial investment of $20,000 to own a week at a resort for the rest of my life. But I have to spend $600-1200 a year for maintenance fees, plus exhanging fees if I want to visit another resort. 
One of the main advantages of owning a timeshare is the bigger units with kitchen facilities vs the hotel room, but what else? How is it beneficial to own one?


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## timeos2 (Nov 16, 2007)

*Never pay too much*



tmoscola said:


> Can someone explain to me the pros and cons of owning a timeshare unit? I make an initial investment of $20,000 to own a week at a resort for the rest of my life. But I have to spend $600-1200 a year for maintenance fees, plus exchanging fees if I want to visit another resort.
> One of the main advantages of owning a timeshare is the bigger units with kitchen facilities vs the hotel room, but what else? How is it beneficial to own one?



1st NEVER pay $20,000 for a timeshare. That sounds like developer pricing OR aa "premium" brand such as Marriott or DVC (which you cannot own but only long term lease).  If it's developer pricing then go resale and that initial expense won't be $20,000 but $7000 or less (maybe MUCH less).  

Why not buy Marriott or DVC (or any other $10,000 - $20,000+) timeshare? Because you can own at one of the $7000 or less and easily stay in those premium timeshares for far less than owning one.  In fact if those are your only goal then you may be far better off renting when you want them and not owning any timeshare.  

If you do go the inexpensive, resale route of ownership then think about what you want. A week every summer on a beach - the same one year after year as if you owned a cottage or condo there? Then a fixed week for the exact time, area, resort, unit you desire is your best bet.  You will most likely never trade it and the cost becomes the annual fee (usually FAR less than rental for prime seasons) and the amortized purchase cost.  A bargain in many cases. 

Or if you want to stay in different places/units/resorts then look to a large multi-resort system such a Wyndham (there are others for sure). You can buy those for pennies on the retail dollar and then, again, only the annual fees are your ongoing costs. Stay in new resorts, great units and with the right system hundreds of locations for well under $1000/week for a 2 or 3 (or more) bedroom condo each year. If you are good you may get not one but a few weeks out of that annual fee.  And no exchange fees on top of your annual fee since you can stay within the system.  Not so with weeks or small multi-resort systems. 

Ownership can be great but not if you over pay to buy in. As you see the real cost is the annual fees so pick the right rsort or system and buy as low as possible. Then enjoy for only the annual fee a great vacation every year.


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## Steamboat Bill (Nov 16, 2007)

timeos2 said:


> 1st NEVER pay $20,000 for a timeshare. That sounds like developer pricing OR aa "premium" brand such as Marriott or DVC (which you cannot own but only long term lease).  If it's developer pricing then go resale and that initial expense won't be $20,000 but $7000 or less (maybe MUCH less).
> 
> Why not buy Marriott or DVC (or any other $10,000 - $20,000+) timeshare? Because you can own at one of the $7000 or less and *easily* stay in those premium timeshares for far less than owning one.



Almost all my timesahres are over $20,000 (resale) and I would argue that you can NOT *easily* trade into Disney or Park City during prime weeks. Thus, owning or renting is a better option if you are not flexible on dates.


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## Bill4728 (Nov 16, 2007)

Very few TS's resale price is more than 1/2 the price which the developer sold or is selling the TS for now. If you buy a TS and resale price is >50% of the developer price you will generally find it to be a super, top-end TS (like a disney or Marriott).


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## timeos2 (Nov 16, 2007)

Steamboat Bill said:


> Almost all my timesahres are over $20,000 (resale) and I would argue that you can NOT *easily* trade into Disney or Park City during prime weeks. Thus, owning or renting is a better option if you are not flexible on dates.



Bill - I agree that to say "easily trade in" for ANY prime resort, even in areas with a ton of inventory, is stretching the truth.  Thats why that line also included "rent" as thats the best way to get prime time unless you own.  And if you rent then you don't have the capital expense of $20K or more which goes back to the general statement that most people should never buy a timeshare that costs that much.  

The flip side is if you are savvy and feel that you can get the value out in use and recover some of that cost when you are done with the resort then maybe it can work out. Way beyond 99% of timeshare buyers to be able to understand and pull that off. Better to simply say don't do it so they won't be even tempted when the sales weasel starts spinning the web.


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## bnoble (Nov 16, 2007)

Suppose you had $20,000 to spend.  That would buy you about 213 points at Disney's Saratoga Springs with the current incentives.  That's almost enough to stay in a 1BR for six nights (including 2 weekends nights) in peak season.  You would pay approximately $900 in annual fees on that size points contract.

Let's assume that you can reliably earn 5% interest on a long-term investment.  That's not too hard---even a 6 month CD comes close to that pre-tax.  Post-tax 5% investments are not that hard to come by, with only modest risk.

So, you could invest your $20,000.  That returns $1,000 to you.  Add to that your annual fees: $900.  However, instead of paying those in annual fees, you have that cash available to rent lodging.  So, you've got about $1900 available to rent a timeshare.

To rent that same 2BR unit from an owner would cost you about $2375, at $11/point.  So, an extra $475.  Plus, there's also a bit more work in finding an owner who will rent to you, etc.

So, owning saves you a little bit of money (about 20%), and a little bit of time.

The advantage the renter has is that, if next year he doesn't want to go to Disney, he's got the $1900 to do something else with as he wishes.  The Disney owner doesn't.  Instead, the Disney owner would have to rent those points out for cash.  True, the Disney owner gets more cash than the renter does, but also has to do more work.

So, at the end of the day, ownership allows you to save some on very high-quality lodging, and save a little bit of time arranging it, at the cost of a loss of flexibility.  If you expect to use your ownership *at the resort you own* most years, it's probably not a bad way to go.  However, the instant you start thinking about doing other things with those vacation assets, it gets less advantageous in a hurry.


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## pointsjunkie (Nov 16, 2007)

timesharing has changed the way my family vacations forever. we love the space,we love to invite people to go with us,we love knowing that every year we can go to our favorite places without looking for bargains.

we rent out some of our units, we turn them into hotels points so my husband & i go on vacations at glorious resorts.

it has turned into a hobby for me. i also collect airmiles so we travel for free to go to the timeshares and vacations.

i know i would never lay out the cash to go to a timeshare(if i didn't own) i would try to find the cheapest way, that is just human nature, if you own you will use it because you paid for it  and you won't want to lose it.

we have spent over $70000 for all our timeshares, my kids will be spoiled and so will my grandchildren that i hope to have someday.

the wonderful memories and life  experience we have had and will have, are worth owning(if you can afford to). 

hope this helps.


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## rickandcindy23 (Nov 16, 2007)

I can trade into Orlando for $440 (MF's)  + $164 (RCI Exchange) for a total cost of $622.00.  This is exchanging into PRIME TIME units, with a bright red week.  

I can buy this same type of bright red week for much less than $1,000 on eBay.  

Foxrun with II trades into Marriotts during prime time for $590 + $139.  I love timeshare!


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## Tiger (Nov 16, 2007)

My Lawai Beach Resort 2br2ba weeks cost me $10,000 each, resale.  That's about $500 yearly for lost opportunity.  Maintenance fees are about $1000 so total yearly cost is $1500 or about $215 nightly.  I get to book a prime (4th or 3rd floor0 oceanfront suite, in prime time every year.  nearby hotel rooms (not suites) are $500 and up for oceanfront.  2br2ba condos are that much and more.  So every year I have my three weeks oceanfront Hawaii for an outlay of $4500.  And since I have my time nailed down I get my frequent flier awards done 11 months in advance.

It certainly works for me.  I haven't traded yet.  I'm sure I will someday and if I do I will get bonus weeks for depositing a hawaii week.


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## rickandcindy23 (Nov 16, 2007)

Tiger said:


> My Lawai Beach Resort 2br2ba weeks cost me $10,000 each, resale.  That's about $500 yearly for lost opportunity.  Maintenance fees are about $1000 so total yearly cost is $1500 or about $215 nightly.  I get to book a prime (4th or 3rd floor0 oceanfront suite, in prime time every year.  nearby hotel rooms (not suites) are $500 and up for oceanfront.  2br2ba condos are that much and more.  So every year I have my three weeks oceanfront Hawaii for an outlay of $4500.  And since I have my time nailed down I get my frequent flier awards done 11 months in advance.
> 
> It certainly works for me.  I haven't traded yet.  I'm sure I will someday and if I do I will get bonus weeks for depositing a hawaii week.



It is amazing that we cannot rent our oceanfront timeshares for $500 per night, and our Shearwater units have two master suites.


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## UWSurfer (Nov 16, 2007)

You also need to go back to the basic premise of timesharing.  

Since you aren't likely to need a single vacation home year round you purchase a week or two that you will use.  Even if you follow the advice to buy where you want you go, you probably don't want to go to the same place every single year, you can take advantage of exchanging it for other places or use features that various systems &/or clubs have to offer.  (Internal exchanges, floating weeks, points....)  And you do this for a fraction of what a full time vacation property would cost.

Ownership isn't for everyone...whether you are talking about your home or vacation, for a large variety of reasons.

I also echo the statement of T/S'ing changing the way we vacation, & for that matter getting out and actually GOING away on vacation.   The difference is huge in our family life.


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## luv2vacation (Nov 16, 2007)

UWSurfer said:


> I also echo the statement of T/S'ing changing the way we vacation, & for that matter getting out and actually GOING away on vacation.   The difference is huge in our family life.



I agree.  My husband gets 4 weeks of vacation and we go away someplace for every single one of them.  And we love it!  Prior to owning timeshare, we were lucky to go away for just one week.

Also, like some others have said, we have kind of made a hobby out of the searching and planning.  In addition, we have many wonderful shared memories because, since timeshare, many of our vacations are shared with friends and family.  This has made them much more special for us and our children, who are now grown and often talk about the many great places we've been to and who we've been there with!


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## talkamotta (Nov 16, 2007)

*What do you want out of timesharing?*

Before you decide if you want to buy; disadvantages/advantages, you have to decide how you want to vacation and how will timesharing play into it. This is different for everyone and can change at different times of your life. 

You can buy a timeshare from the developer. Take for ex:  Marriot Newport Coast.  You can pay $33K for premium or $28K for gold.  Nice resort, decent mf's etc.  You also get some Marriott incentives and at least with platinum you get a free trip. You are guaranteed a week's stay there every year and if you trade it you will get good trades.   Im using that resort as an example because I would like to stay in there but..... I dont want to spend that kind of money.  I bought my Longboat Bay Club for $2K on ebay a couple of years and I can trade my unit for most weeks in the first half of 2008 (gold season).  The downside is that I will pay a little more with my mf & trade fee than the mf and I might not have that opportunity next year.  ITS A GAMBLE.  For me I will take the gamble and I can be more flexible.  Im not tied to a school calendar and I dont like to travel during peak peak times.  

I tried for ever to get into Hawaii, no luck.  Decided just to buy there.  Bought my ey and eoy for less than $7K.  MF for Hawaii (at least the two I own) are high.  I wont trade them, me or my family will use them every year.

I use the formula.  Puchase price of timeshare divided by 20 years (an estimate of how long I will be able to travel???) + mf + any trading fee= Total cost per week of timeshare stay.  You have to add in other values such as the timeshares I own, the knowledge I am guaranteed those places each year +/- the time you spend working the system for trades. (Some love it and others get frustrated)  Can I rent cheaper?   Would a tent work just as well.  Do I really need that kitchen or laundry? Do I like that family room separate from the bedrooms? Do you have family or a spouse that will go with you, or will you go by yourself,  Will you use it.   Will I really take the time to learn how to timeshare?  It takes a lot of time.  

As for me, I am a single mother of 5 grown kids.  My first timeshare, even though I bought it from the developer and in Orlando, turned out to be a good investment because it introduced me into timeshareing.  Ive received many blessings, joy of giving to others, memories, education, and just plain fun from  timeshareing over the last 10 years. Wouldnt have traded it for the world.  And there is more to come.


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## applegirl (Nov 17, 2007)

Why has nobody has mentioned the II getaways and RCI insant escapes? These are what justify the cost of timeshare ownership in our minds.

The original cost of our Marriott developer week (yes, that was before we knew about TUG or resales!!!) plus our ever increasing MF's doesn't seem like such a great deal until I start doing the math with the getaways we buy. 

If I calculate the original cost of our week, plus MF's and two getaways per year at $400 for the next 20 years, it averages out to a little over $100 per night for very nice accomodations in a 2 bedroom condo in Marriott properties (which spoil us!). If our original purchase price had been resale, this figure would go below $100 for a very nice vacation lifestyle.

If you like to vacation in comfort and are willing to learn all the tricks, first decide if you want to own weeks at certain resorts or does owning points (which has more flexibility) fit your needs better?  Then proceed with finding a good resale deal (there are LOTS of tips on this forum for that) and start enjoying the good life!!!


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## Passepartout (Nov 17, 2007)

It looks to me like the OP is confusing timesharing with investing. Did no one tell him that owning a timeshare is about going to places you want to vacation, not about real estate investing? 

We are using one of our weeks right now, and are enjoying it far more than the paltry income we'd have realized from investing the (under $5k) we've spent on our total portfolio of timeshares. 

Wishing all of you a delightful Thanksgiving week while we spend ours with the kids/grandkids in Sedona.

Jim Ricks


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## talkamotta (Nov 18, 2007)

Passepartout said:


> It looks to me like the OP is confusing timesharing with investing. Did no one tell him that owning a timeshare is about going to places you want to vacation, not about real estate investing?
> 
> We are using one of our weeks right now, and are enjoying it far more than the paltry income we'd have realized from investing the (under $5k) we've spent on our total portfolio of timeshares.
> 
> ...



Happy Thanksgiving to you also.  

Last year we spent Thanksgiving in Orlando, took 2006 and 2007 years and got 2 units next to each other.  I made 2 turkeys, going from unit to unit.  Had my 5 kids and thier kids.  The dil wanted to learn how to cook turkeys so thats what we did.  The rest of the week hung out at the timeshares, went to see Cirque de Solei, beaches, a Gator's game, and one day at the park.  This year half the family is living out of state so it will be quieter. But I remember last year.  

Im getting closer to retirement.  Asked the boyfriend of 10 years; what he wanted to do after I retire.  He wasnt sure.  I told him one of the things I wanted to do was take his and my grandchildren  to Sedona.  I wanted them to go down Slide Rock, hike in Oak Creek Canyon. and I wanted to show them the ruins in Walnut Canyon. I think kids can learn more seeing a ruin than they can reading about it in a book.  Kind of like Kennedy Space Center. 

Maybe Im getting off the original topic or not,  This is why timesharing is good for me.


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## geekette (Nov 19, 2007)

tmoscola said:


> Can someone explain to me the pros and cons of owning a timeshare unit? I make an initial investment of $20,000 to own a week at a resort for the rest of my life. But I have to spend $600-1200 a year for maintenance fees, plus exhanging fees if I want to visit another resort.
> One of the main advantages of owning a timeshare is the bigger units with kitchen facilities vs the hotel room, but what else? How is it beneficial to own one?



OP, I would never spend that on buying a timeshare and all of my mfs are well below 4 digits annually.  

Depending on your goals, preferences and needs, timesharing can be very affordable.  If you simply must have 5* accomodations in the most popular places at the most popular times with the best unit views, you will pay more for it.  Those of us without top-tier luxury requirements can spend a lot less.

I like being able to have a vacation locked-in well in advance.  I like having choice -- I can dodge those exchange fees by owning in 'a mini-system' that has many resorts in it's 'network'.  Sure, I can make a deposit to an exchange company and pay the exchange fee, but it's still VERY AFFORDABLE compared to private condo rentals and even hotel rates.  Don't overlook the value of having a kitchen so that you are not forced to eat out every day.  We save a ton of money using that kitchen.  If we get a 2 or 3 bedroom and take friends or family along, the savings are even more on a per-person basis.  

Unlike Applegirl, we don't place much value on Last Call and Extra Vacations.  Partially because I have a dayjob and can't always just hit the road (plus, flying is expensive).  For some people, these are quite valuable, but I think you can find the same thing outside of the ownership model as RCI and others do more and more marketing to non-owners.  I would not buy a timeshare in order to use these programs, but if you are going to own otherwise and can take advantage of these offerings, so much the better.

Some people like to go to the same place year after year and get a certain unit and/or view - ownership works best for this scenario because you are guaranteed to get it _because you own it_.  Resort properties usually have many more amenities than a hotel also.  Planned activities, golf courses, stables, several pools/hot tubs, activity centers, etc., which may or may not be of interest.

Decide when and where you want to vacation in the next 5 - 10 years and how many people will likely be in your party each time.  Once you've figured out your objectives you can narrow down the options and then see if it makes sense for you to own.  

Timesharing is not for everyone.  Keep researching and don't do anything rash.  It's easy to buy, but not so easy to sell.


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