Jasmine Reed The Author
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I'm writing an article for my website and will include a link to this thread.
JasmineReedTheAuthor.weebly.com
JasmineReedTheAuthor.weebly.com
I'm writing an article for my .....
JasmineReedTheAuthor.weebly.com
Financial Investment? No
Lifestyle Investment? Yes
For my upcoming trip in February I used my annual points allocation timeshare points for same location as the hotel side to book a 2 bedroom unit that sleeps 9 for 5 adult- here is the cheapest standard hotel room for the same dates that will allow 5 adults subtotal for room before taxes is $3744.00
https://disneyland.disney.go.com/resort-add-ons/tickets/
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at a minimum the points room saved me $2100+ - this is typical of our stays - while I dont claim that this is all owner experiences with all timeshares it has been IMO a worthwhile investment. Times that 2100 x 5 years of ownership and I have made back the cost of membership
I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.
I think you need to take the initial cost into play.
Hjsweet...very well put! I know it may sound corny to many but the opportunity to spend so many great times on vacation with our family is the BEST return on our Timeshare Investment. I could never equate that to dividends or interest on a conventional investment. That's what makes this question so difficult to answer/ quantify.Not really a financial investment. But an investment in making priceless and lasting memories with family, friends, and yourself. It is also an investment in yourself; taking vacations and going places you may never would have taken or gone.
look I paid including closing costs $16k for my contract-( mostly resale) at the time disney allowed 25pt direct purchase add on full membership.
I think your over thinking MY investment….apples to oranges my friend you are talking about money invested into other areas and possibly recieving if a profit I am talking hotel stays vs maintenance fees. This is why I posted the room cost vs maintenance.
Well here is what actually went down - I set aside what I would have spent on onsite hotels for 2 years ( we didn’t vacation in that timeframe ) that money was never intended to do anything but vacation at disney.
seriously @joestein - I am not anywhere near an investment guru I don’t play those kind of games- I do know firsthand what I was averaging in hotel stays for heading to the parks year and what I pay now in dues- so for us it makes sense.
honestly if I never never vacation again I would also save thousands but thats not happening either.
oh and what I paid for my points compared to today is ridiculous how much it’s gone up even on the resale market in 5 years- at this point if I sold I would make back my cash cover the realtor fees and turn a slight profit - but never be able to stay on property again
I think the question is 'are timeshares investments'. Sorry if the idea of DVC not being a good value currently offends you somehow. Glad it works for you, but were you really spending $16K on on-site hotels during a 2 year period?
I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.
I think you need to take the initial cost into play.
Agreed, however, we don’t know how much the OP paid for their initial point contract. I’d guess at least $10,500 since they said times the 2100 x 5 years of ownership and their made their money back.I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.
I think you need to take the initial cost into play.
I sold I would make back my cash cover the realtor fees and turn a slight profit - but never be able to stay on property again
again not a math student by any means so if you wouldn’t mind re running the numbers at 16k vs the 42 - in all honesty I would like to understand how that changes the payback period in your method - again not being argumentativewo like to see how you figure it now.
again not a math student by any means so if you wouldn’t mind re running the numbers at 16k vs the 42 - in all honesty I would like to understand how that changes the payback period in your method - again not being argumentativewo like to see how you figure it now.
Agreed, however, we don’t know how much the OP paid for their initial point contract. I’d guess at least $10,500 since they said times the 2100 x 5 years of ownership and their made their money back.
That’s not true. I’ve owned RCI points for 3 years and I'm staying in my 3rd DVC room in January. Sure, I don’t have access to all of the resorts and the seasons are limited. But the seasons that are released in RCI are usually the high DVC point weeks. I’ve stayed in a savannah view AKL and I have two rooms in SSR which have been fully renovated. Considering I rent a car and drive to the parks, SSR is a perfect fit.
Well, everything changes. The difference you quote is current. The difference between rack rate and maintenance in the past when you bought it was most likely much smaller than it is today.
However, if you could buy 210 points for $16K or $76/point then the payback period would be 7.6 years. As a similar comparison earning 8% in the market (the average return over time) would net you $1280 plus savings of $1600 on maintenance, that would total $2,880 which would make DVC preferable.
Investment is a loaded word implying return on investment. Stocks, real estate etc.
Luxury items such as high-end cars. boats and RVs are not investments. But people still buy them because they provide fun and utility. Timeshares fall into that class.
The problem is the timeshare industry gives the impression that you are buying real estate when it is not this class of investment. The deeds lock you into the risk of real-estate without the associated reward for taking on the risk. Choose wisely (location, location, location plus season). There are great resale deals but it must be treated as a discounted future vacation. If maintenance fees and the purchase price over 10 - 20 years cost more than renting and you cannot sell for residual value, then why take on the obligation and risk? Rent a timeshare - don't buy.
Owning a timeshare is like flipping a house. You need to know what you are doing or you will get fleeced.