What’s the true benefit of timeshares

[JohnPaul]

Not a reason to buy but a great side benefit is bonus time. In most cases bonus time is available about two weeks before check in.

Using Shell, I often stay in a hotel room at Inn at the Opera in San Francisco on a weekday for $30 plus the $17.50 on line reservation fee (and you get breakfast there). So if I want two night its $60 plus $17.50.

With WM they have a unique cancellation policy based on when you reserve (the closer to check in you reserve the closer to check in you can cancel without penalty). Some reservations can be cancelled up to two days before check in. So, when we had a medical situation in the summer of 2016 and had to keep coming back to Seattle 4 unplanned times I was able to book a last minute timeshare at The Camlin in downtown Seattle for around $75 instead of $300 - $500 for a hotel room. (Well for 3 of the 4 times.)

With Vacation Internationale we are Prestige Platinum. That means that we can book bonus time at 40 days out and pay half the already ridiculously low rate of $75 a night for a two bedroom.

On a similar, but not quite the same note, with Worldmark you can also book Monday Madness and Inventory specials at very reasonable rates. For example, we are staying in the ONLY unit at Worldmark Lake Tahoe that has amazing Lake Views next week. It is a two bedroom unit and we are paying $55 a night including taxes and housekeeping (Inventory Special).

 

[jimlocke007]

For us, it's luxury vacation accommodations at Motel 6 & Super 8 rates.

Obviously, we're resale all the way on timeshares. Plus, we take advantage of RCI Last Call, etc., typically paying less for a week in somebody else's timeshare than it would cost to stay in our own.

So far, so good.

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

As former owners in Space Coast, FL and Hilton Head we hope you take the advice of one respondent and plan your exit strategy now. It took us 10 years to give away our timeshares...yes, I did not say "sell". We actually gave away $5000 worth of incentives such as prepaid maintenance, banked weeks, etc. to our "buyers" and we kissed their hands. There is no resale market in timeshares except maybe for selective prime weeks at the major hotel and resort companies. We owned smaller independent units and NOT on bad weeks. I read recently there are 600 sellers for every buyer of used timeshare. The resale market has an seemingly unlimited supply at $1 but no demand. As a marketing MBA, I don't have to get out old text books to figure this one out...hence our "negative pricing" of offering incentives. As the Internet is killing Sears, Macy's, traditional taxis etc., younger people, like my 30-something daughter who DID NOT want our timeshare, use all the Internet offerings Airbnb, etc.etc. etc. Demographics are against this business. It is "aging out" and surviving on the ill-informed consumers who fall for the pitches and unrealistic prices. Lew and Amanda Gaithersburg MD

 

[Panina]

The benefit to me is knowing I can go to exactly where I want, when I want, with the view I want at a great price. My maintenance fees are much less then renting or hotels.

 

[WinniWoman]

Why are you active on a timeshare site if you are so anti time share.

I'll admit that I have had periods of regrets, but those have all been about money. I spent a $100k on my three weeks. In the end though, it's just money. We have wasted a ton on cars, buying and trading. The homes we have lived in have been money sinks too. There have been years in which we have spent tons of money eating out and my wife loves herself a $5 cup of coffee, which can add up. My aunt just dropped $10k on a video system turning her third garage into a tv room. I have spent tons of money on computers and phones. A new iPhone is over a grand.

Over the last 7 years we have used almost every Star option of our ownership. We have dropped a day or two worth here or there because we chose not to pay to bank them, but we have travelled a ton. One of the big selling points for us was that we knew we would use it if we bought. If we hadn't, we would have spent the money just the same, but on other things. We wouldn't have traveled a fraction of what we do if we hadn't made our purchase.

I'm not a CPA, but my Bachelors is in Accounting. Is a timeshare a good investment, no. Although, I think a good case could be made for it by purchasing on the aftermarket. Our homes have not been good investments either, we would have been way better off financially staying in the apartment we lived in 27 years ago and investing the savings. We would have had a very substantial nest egg, but a very different life. The same is true of our timeshare. Our life would have been very different over the last 7 years.

My aunt is a big time cruiser. You can easily spend $4 or 5 grand on a weeks cruise. This is my annual maintenance fee, for what is six weeks of prime vacation, or much more in the off season. The studio side is almost three times bigger than the room on a cruise ship. So, if I amortized the $100k I spent over the next 10 or 20 years in addition to the last 7, I'm confident we will have received plenty of value for our money.

We love the flexibility. Having everything built into our budget makes the planning painless. I'm not looking for the best deal, because I know what my choices are and we just decide what we want to do. We do our best to make the most of our time.

Now if you don't use your time, it is a total waste.

Sent from my SM-T580 using Tapatalk

This is so right on! I have never regretted our timeshare ownerships. I have some financial investments I made that I regretted for sure.

I love my home, but I often times regret purchasing it because the market sunk where we live and we will need to sell our home in a few years to move. Meanwhile, although the value of the home has barely moved in 30 years, we have put a ton of money into it- maintaining and upgrading. Why? Because we live in it and want to at least enjoy our time in it! The money we put into it helps to make our lives easier. And ownership of the home and our 10.5 acres of land has certainly been better than living in some crummy apartment paying thousands per month in rent next to some low life neighbors. The buying of this home marked the birth of our son (who will be 30 years old in February) and a lot of memories and security this home has brought to us. Can't put a price on that! It's just the location of the house- we probably should have bought in a better area, but who knew the market would change 30 years later?

Our timeshares I would say are also one of the best things we have ever acquired! They have improved our otherwise fairly drab lives. We always have something to look forward to. We get to travel- something neither my husband or I ever did when we were kids.

True- if we can't dispose of them (the timeshares and the house!) when we are ready, that will be tough. But we could never say we regretted having them.

 

[CalGalTraveler]

As former owners in Space Coast, FL and Hilton Head we hope you take the advice of one respondent and plan your exit strategy now. It took us 10 years to give away our timeshares...yes, I did not say "sell". We actually gave away $5000 worth of incentives such as prepaid maintenance, banked weeks, etc. to our "buyers" and we kissed their hands. There is no resale market in timeshares except maybe for selective prime weeks at the major hotel and resort companies. We owned smaller independent units and NOT on bad weeks. I read recently there are 600 sellers for every buyer of used timeshare. The resale market has an seemingly unlimited supply at $1 but no demand. As a marketing MBA, I don't have to get out old text books to figure this one out...hence our "negative pricing" of offering incentives.

I agree that timeshares require extra attention to an exit strategy. The real estate bromide, "Location, Location, Location" rings particularly true. Oceanfront Maui, Oahu, NYC and other premium locations will always have willing takers. If a low resale price was paid, selling at a low price or giving away after 20 years should not matter. This is what happens to old RVs, cars, and boats, right? The difference is that if a timeshare is well maintained, it should be tastefully updated and useful after 20 years.

You are correct that the reputation of who is managing also matters (e.g. Hilton, Marriott, ILG, Disney among the best).

We regret buying our first timeshare from the developer and paying more than we should have. However we were fortunate that the property was in a premium location with a reputable management company (Hilton), and the maintenance fees are reasonable. The quality of the product is excellent so we don't regret owning a timeshare.

The greed of the timeshare industry has led to its poor reputation. Similar to stock market downturns, some people are panicking to exit causing bargain resale prices for some extraordinary properties.

 

[CalGalTraveler]

As the Internet is killing Sears, Macy's, traditional taxis etc., younger people, like my 30-something daughter who DID NOT want our timeshare, use all the Internet offerings Airbnb, etc.etc. etc. Demographics are against this business. It is "aging out" and surviving on the ill-informed consumers who fall for the pitches and unrealistic prices.

I agree with the trend to rent Airbnb and VRBO, however I view this as an opportunity not a threat. Is there a rule that stops timeshare owners from listing their units on AirBnB or VRBO to cater to this crowd?

It seems that timeshares offer a superior benefit because renters gain the ability to get immediate attention or switch rooms if there is an issue, and offer name-brand resorts which gives a sense of quality/better amenities vs. an unknown home. (BTW...this is what I learned from Tuggers on this thread.)

I am curious if owners could gain a nice premium marketing through these channels to these audiences? I also believe that Airbnb offers a performance guarantee to renters and issues security deposit insurance which should reduce scams.

Lastly, it appears from recent research that younger people are buying into timeshares. Infographic below states that the average age is 39, with 39% GenXers and 30% Millenials. 42% rented first before buying.

For those who no longer want to use their timeshare or cannot sell it, perhaps renting could offset maint. expenses and expand the resale market by gaining awareness among future resale buyers in the form of rent-to-own possibilities or try and buy (apply the rent to the sale if they decide to purchase after renting it).

 

[2turners]

TS owners for over 20 years with 7 TS in St Maarten. When we lived in Long Island could not wait for our 3 to 5 weeks in St. Maarten with family and friends. Retired and moved to Florida. Everything changed, children grew up, etc. RCI trades we have tried all over the USA but in our case we always got what I considered the bottom quality of the units. The older ones with less than desirable views. For what we pay in MF we can have a prime unit with a prime view anywhere we want to go. Trades for Disney with RCI have worked a little better but cost of TS is still higher than rentals. Bottom line for us TS are an expensive way to vacation. The MF have increase to the point the TS have no value. All our TS are for sale with no hope of ever recouping initial cost of TS. Looking back TS are not the way to go. Initial costs are just to high. Comparing yearly MF for what you can rent for is unrealistic. You must factor in your intial costs, RCI fees, cleaning fees and some just plain gotcha fees in comparison to what you can rent for.

 

[Timeshare Von]

I am not trusting in renting from others, whether it is TUG, VRBO, AirBnB, Craigslist, Redweek etc... For me, having full control of booking my own vacation in a nice spacious unit at a lovely resort is the most important factor in TS ownership.

Good point regarding the "control" issue . . . I've been very fortunate renting from TUG and AirBnB . . . but I've also had a bad experience or two as well.

 

[Timeshare Von]

I bought my first timeshare contract, a "Right To Use" arrangement in the Poconos back in the early 1980's. As the termination of that agreement approached, I had been able to travel to many places I otherwise couldn't have afforded. Living in the Midwest, I still had reason to "go home" to Virginia, so I bought a fixed week, 3BR lockoff in Williamsburg. The resale purchase price was reasonable and MF's dirt cheap at the time. That ownership spoiled me with Hawaii with RCI "internal exchange preferences" for years!

I also picked up a couple of other timeshares along the way including another Wyndham fixed week . . . this one in Flagstaff . . . as well as a floating 1-52 studio/1BR in Waikiki. In 2008 my sister gave us their 77k point contract with Wyndham in Myrtle Beach.

Today we still have the 77k points and the Waikiki unit, having sold or given away the two other fixed Wyndham weeks.

The benefit for us today is that we can go to nice vacation places and take family . . . either in our unit or via RCI exchanges . . . or I can do work travel to places like Vegas & Nashville and save my employer money vs. paying high convention rates.

 

[klpca]

TS owners for over 20 years with 7 TS in St Maarten. When we lived in Long Island could not wait for our 3 to 5 weeks in St. Maarten with family and friends. Retired and moved to Florida. Everything changed, children grew up, etc. RCI trades we have tried all over the USA but in our case we always got what I considered the bottom quality of the units. The older ones with less than desirable views. For what we pay in MF we can have a prime unit with a prime view anywhere we want to go. Trades for Disney with RCI have worked a little better but cost of TS is still higher than rentals. Bottom line for us TS are an expensive way to vacation. The MF have increase to the point the TS have no value. All our TS are for sale with no hope of ever recouping initial cost of TS. Looking back TS are not the way to go. Initial costs are just to high. Comparing yearly MF for what you can rent for is unrealistic. You must factor in your intial costs, RCI fees, cleaning fees and some just plain gotcha fees in comparison to what you can rent for.

One thing to keep in mind is that nearly every vrbo rental I have ever used (including our upcoming stay in Yosemite West) has a non-refundable cleaning fee. On the Yosemite house, we are paying a $200 cleaning fee for a 4 night stay. There's a refundable $500 deposit as well, but I expect to get that refunded. So there are gotcha fees everywhere.

 

[CalGalTraveler]

+1 Not to mention VRBO, AirBnB fees and those garbage "resort fees" at hotels.

 

[breezez]

One thing to keep in mind is that nearly every vrbo rental I have ever used (including our upcoming stay in Yosemite West) has a non-refundable cleaning fee. On the Yosemite West house, we are paying a $200 cleaning fee for a 4 night stay. There's a refundable $500 deposit as well, but I expect to get that refunded. So there are gotcha fees everywhere.

Next time you go to Yosemite try WorldMark Bass Lake Resort. About 15 miles from entrance all units are 2Bdr 2 story townhouses. We were just there last month and enjoyed it a lot.

 

[Frasier]

I have bought several timeshares over the past number of years (most resale). I bought them for most of the same reasons as everyone else, forced vacations, better accommodations and larger and better units, etc. I happened to be an accountant but I don’t think that really matters (someone brought that up earlier in the thread). Are timeshares an investment? Certainly not! Again I purchased them for me and my family’s use and enjoyment for how we like to vacation.

I have family and friends that will tell you they are bad investments and I don’t disagree from financial perspective. But I asked these same people who usually vacation a fair amount and how much they spend on vacations and their costs aren’t much different than my vacation costs including timeshare maintenance fees. But I feel timesharing is more suited to me and my family because we don't have to be in cramped hotel rooms eating out all of the time.

An important benefit of timeshares for me is traveling with my kids or them being able to take advantage of using on their own now they are young adults. Young kids now days want to travel like they were use to with their parents but at least for my adult kids that is not financially feasible. Since we usually have excess points I enjoy sending them on vacations to places they wouldn’t normally be able to afford.

 

[WinniWoman]

We barely spend over a few hundred dollars over our maintenance fees when we use our home resorts.

 

[dagger1]

I have bought several timeshares over the past number of years (most resale). I bought them for most of the same reasons as everyone else, forced vacations, better accommodations and larger and better units, etc. I happened to be an accountant but I don’t think that really matters (someone brought that up earlier in the thread). Are timeshares an investment? Certainly not! Again I purchased them for me and my family’s use and enjoyment for how we like to vacation.

I have family and friends that will tell you they are bad investments and I don’t disagree from financial perspective. But I asked these same people who usually vacation a fair amount and how much they spend on vacations and their costs aren’t much different than my vacation costs including timeshare maintenance fees. But I feel timesharing is more suited to me and my family because we don't have to be in cramped hotel rooms eating out all of the time.

An important benefit of timeshares for me is traveling with my kids or them being able to take advantage of using on their own now they are young adults. Young kids now days want to travel like they were use to with their parents but at least for my adult kids that is not financially feasible. Since we usually have excess points I enjoy sending them on vacations to places they wouldn’t normally be able to afford.

EXACTLY!

 

[sue1947]

+1 Not to mention VRBO, AirBnB fees and those garbage "resort fees" at hotels.

I've been researching vacation rentals for a trip next fall and the added fees have really gotten out of hand. It's typical for the cost of the rental to be double or more the actual per night rental cost. There is a booking fee AND a 'service' fee plus housecleaning. Now I understand housecleaning, but the rental that also includes a $250 per stay carpet cleaning fee in addition to the HK fee is really over the top.

Sue

 

[klpca]

Next time you go to Yosemite try WorldMark Bass Lake Resort. About 15 miles from entrance all units are 2Bdr 2 story townhouses. We were just there last month and enjoyed it a lot.

Thanks for the suggestion. I didn't even try this time because we are going over New Years and aren't WM owners. But we are staying at a place that sleeps 12, has level parking, and is almost new. It looks amazing. Fingers crossed that the photos are accurate!

 

[turkel]

My beloved sister is a CPA and bought her first timeshare from the developer, her second was a resale I found her at the exact resort. She considers both purchases warmly and as money well spent!!!

Would love to hear from just a few CPA's on their opinion of their TS's.

 

[breezez]

Would love to hear from just a few CPA's on their opinion of their TS's.

My wife is a CPA, with CGMA certification and an MBA.

We have 7 TS. Now we need some more vacation time from our jobs. Wish I could buy that for $1

 

[JohnPaul]

I'm a CPA (retired) and love our MANY timeshares.

 

[winger]

I'm a CPA (retired) and love our MANY timeshares.

From your perspective as a CPA, would you care to shed some light as what's to like?

 

[WinniWoman]

My wife is a CPA, with CGMA certification and an MBA.

We have 7 TS. Now we need some more vacation time from our jobs. Wish I could buy that for $1

The company my husband works for actually allows employees to buy more PTO time during open enrollment. Unfortunately, they charge like twice what your daily pay would be for each day you buy!

 

[PigsDad]

The company my husband works for actually allows employees to buy more PTO time during open enrollment. Unfortunately, they charge like twice what your daily pay would be for each day you buy!

That's crazy! My company allows us to buy up to an extra week at open enrollment (at our normal salary rate), and then at the end of the year if you don't use any or part of it, we get the cost paid back to us in our last paycheck of the year (so no penalty if you don't use it).

I always buy an extra week.

Kurt

 

[WalnutBaron]

As the large majority of TUGgers will attest, if a newbie to the Timeshare World considers a timeshare purchase (even on the resale market) as a financial investment, he/she is likely to be sorely disappointed. If, however, that person looks at a new purchase as an investment in their relationships, their families, and building great memories, they are likely to be richly rewarded.

Vacations cost money, but a vacation in a beautiful locale with a spacious and well-maintained space to enjoy it in is a genuine pleasure.

 

[Phydeaux]

My wife is a CPA, with CGMA certification and an MBA.

We have 7 TS. Now we need some more vacation time from our jobs. Wish I could buy that for $1

I think it’s great you’re happy. I’m curious though what the total of your annual maintenance fees are. Do you mind sharing? Also, did you pay $1 for each of them!