How does a timeshare save me money?

[DeniseM]

Bruce - I am impressed! You are obviously an expert at using your CMV ownership, but I wouldn't recommend that a rookie start off with such a complicated strategy. Especially when they initially were looking for a MF of $300. I think the OP should start out with a simpler, more straight-forward plan that doesn't require renting multiple weeks, or a high MF.

Also, for the OP, you might want to clarify exactly what you own, since they won't know the acronyms.

 

[John Cummings]

I don't know what hotels most of you stay in but your descriptions don't match what we experience and we stay approximately 60 nights a year in hotels for pleasure travel.

We almost always have a small refrigerator and safe in our room. If there is no refrigerator in the unit, most hotels will give you one if you ask. Even though we don't prepare any meals while vacationing, we do like our snacks, and drinks.

We have stayed in 2BR units several times including the Royals, Grand Mayans, several in Las Vegas, etc. The largest 2 BR unit we ever stayed in was at one of the Hilton's Homewood Suites in Phoenix AZ. It has a kitchen with all utensils, huge bedrooms, 2 bathrooms, etc. You get a free hot breakfast everyday and a free light dinner with beverages Mon-Thu. We were there in the spring with our daughter and the rate we paid was $99 /night that we booked directly from the property.

There are 8 Hilton Homewood Suites in the Phoenix/Scottsdale metro area.

The suite we get at the Agua Caliente resort in Rancho Mirage, CA ( Palm Springs area ) is a a full 1 BR suite that is larger and definitely far more elegant than any timeshare resort we have ever stayed at. It does not have a kitchen but does have a small refrigerator.

I am not saying that timeshares are not a good option for some people. I am just pointing out there are other options available often at no higher cost and without the obligation that owning a timeshare has. As I said before, it also depends a lot on where you want to go. There are many destinations where timeshares are better and may be the only viable option. It is just that one cannot make a blanket statement that one is better than the other as it all depends on one's travel preferences.

 

[brucecz]

Thanks Karen, but some of my friends who are far smarter than I am do better than I do. It is not that complicated but takes some effort. But for a retired person like myself it is a hobby-addiction- job that I can work at while on vacation and make a few pennies.

But we all used to do better with RCI Points before all of the changes the past 5 years in regards to Points Partners as no more Disney Hopper tickets at about 20% of face value or about 1/2 or more off on the more exspensive airfares to Mexico, etc during prime times.

But the best advice the OP has got is to study before jumping in and maybe try some rentals and do not buy anything for the next 6 months and buy were you want to go within one days drive of home as airfare costs for a young family of 3 or 4 is costly.

IMHO lso try to pick a resort that will meet a lot of the entertainment needs at the resort to $ave $$$

Least I forget on our Timbers for $50 per reservation with no exchange fee we get free golf and ski lift ticket at our home resort. That price of $7.15 per day for a sleep 6 with screened in porch, Jennaire Grill IMHO sure beats a $300 dollar a week hotel or motel sleep 2 unit.

I think many could post how How does a timeshare save me money.


Bruce

Bruce - I am impressed! You are obviously an expert at using your CMV ownership, but I wouldn't recommend that a rookie start off with such a complicated strategy. Especially when they initially were looking for a MF of $300. I think the OP should start out with a simpler, more straight-forward plan that doesn't require renting multiple weeks, or a high MF.

Also, for the OP, you might want to clarify exactly what you own, since they won't know the acronyms.

 

[shifty1981]

Are you saying your MF plus the exchange fees come to less than $300? Wow. Do tell.

I forgot to mention that some of us (including several who have posted on this string) exchange into 1 and 2 bedroom Marriots, Disney, etc and other Gold Crown and 5 star timeshare units for a full week for less than :whoopie: $300 including the exchange fees?

Bruce

 

[shifty1981]

The more I read stories like this the more I try to imagine my siblings and parents doing a vacation together. Especially with our new children. Perhaps all you need to smooth some rough edges in the family is a real vacation.

When we go to our Aruba timeshare I notice a lot of 3 generational families and get a kick out of seeing grandparents having a blast with the grandkids floating down the lazy river. We've been able to meet our friends from Texas in Aruba and share our timeshare. Also love the convenience of making our own breakfast and lunch cheaper (especially with kids) - all the space for guests, having a full kitchen, and the washer/dryer I never knew was so handy before. When we don't use the timeshare, we rent it out easily. Or we exchange it for another location. If you don't care where you stay, then Priceline may be the best choice. We like space and comfort when we travel so timeshares are the best for us. We were paying $500 a night for just the two of us in Aruba before we got a timeshare so we don't regret our decision.

 

[shifty1981]

So when I'm considering purchasing are you saying I can just call the resort, find out if it's run by owners or the developers and then if by owners ask to talk to someone on the BOD and get a feel for their philosophy about MF, etc?

Becky is on the BOD at Foxrun and Fairways of the Meadows (basically the same resort but different units) and is a member of TUG. Plus she is a member of my Foxrun Yahoo Group. So it's not hard to talk to her. I am also on a BOD at two resorts in Colorado and have email and phone conversations with owners all the time. Our phone numbers and email addresses are included in every communication to owners.

HOA boards are made of owners like you and me, at least at the resorts where the developer is gone. We own at resorts where the developer is still present, and the experience is very different. I don't even care about turning in my proxy, and it's not apathy, it's sketicism. They have no motives but to line their pockets (I am talking about Starwood and Wyndham, for those who are wondering).

 

[shifty1981]

Nice quote.

Can you please elaborate on why now is bad to own and why later on timeshares will be cheap compared to now?

1 To every thing there is a season, and a time to every purpose under the heaven:
2 A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;
3 A time to kill, and a time to heal; a time to break down, and a time to build up;
4 A time to weep, and a time to laugh; a time to mourn, and a time to dance;
5 A time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing;
6 A time to get, and a time to lose; a time to keep, and a time to cast away;
7 A time to rend, and a time to sew; a time to keep silence, and a time to speak;
8 A time to love, and a time to hate; a time of war, and a time of peace.
...........

Timeshares, right now, make no sense - renting is far more flexible, cheaper, and less riskey.

Doesn't mean owning them is a bad thing - think of timeshare ownership as owning a sail boat - an expensive hobby that is fun, if you like that kind of thing.

Renting timeshares and condos is the way to go right now - a few years from now timeshare ownership might be the way to go again but for right now buying a timeshare, even an eBay $1 special takes on lots of risk and for the normal vacationer makes no sense.

VRBO.com is the place to find your dream vacation.

This is a fantastic time to learn about timeshares without buying them - the learning curve, to really understand and maximize their usage, is 6 months.

So learn, feel sorry for those timeshare owners making heartbreaking decisions of foreclosure and be glad you can rent timeshares for peanuts and save your money for when timeshares really get cheap.

Best of luck,

 

[DeniseM]

So when I'm considering purchasing are you saying I can just call the resort, find out if it's run by owners or the developers and then if by owners ask to talk to someone on the BOD and get a feel for their philosophy about MF, etc?

That would actually be unusual - I don't believe most BOD's are that accessible - some, but not most. I would suggest that you ask on TUG when you narrow down your field.

You can also go on rental websites and look at the asking price for rent, but this can be misleading, because many of the Ads list prices that are completely out of line, and those units will never rent. For Comps, you should look at the bottom asking prices - that is what you can realistically get.

 

[DeniseM]

Are you saying your MF plus the exchange fees come to less than $300? Wow. Do tell.

Yes and no - He owns multiple weeks at one resort so his total MF is over $1,000 and the average exchange cost is $300. He also does many rentals. As I said in post #176 - I don't recommend this for a newbie - this is an advanced strategy.

But if we were to prorate the Timbers new year June 1, 2010-May 31, 2011 $1,071.49 maintenace fee by 12 yearly reservations ( and not add any rental income) that would ad $89.30 for a grand total per II exchange $301.30.

Bruce

 

[brucecz]

Reread post #175 on this string.

Bruce

Are you saying your MF plus the exchange fees come to less than $300? Wow. Do tell.

 

[DeniseM]

Nice quote.

Can you please elaborate on why now is bad to own and why later on timeshares will be cheap compared to now?

I don't believe he is saying they will be cheaper, I believe he is saying that the TS industry in general, is shaky right now.

 

[brucecz]

Yes and no - He owns multiple weeks at one resort so his total MF is over $1,000 and the average exchange cost is $300. He also does many rentals. As I said in post #176 - I don't recommend this for a newbie - this is an advanced strategy.

Denise, those about 12 yearly reservations come from Just One CMV UDI Oak Timbers ownership.

We pay a $50 Housekeeping fee for each reservation that we use and do not have to pay a cancellation fee to change a reservation.
I have 7 of those ownerships that give us about 84 reservations per year.

Also we also own CMV UDI Cottages who also get about 12 yearly reservations come from Just One CMV UDI Cottage ownerships. We pay a $48 Housekeeping fee for each reservation that we use and do not have to pay a cancellation fee to change a reservation.
I have 5 of those CMV UDI Cottage ownerships that give us about 60 reservations per year. Those Maintenace fees are about $900 per year per ownership.

Those 12 give us about 144 yearly reservations per year. Not all are for a full week. They are the most cost effective of our about 25 to 30 timeshare ownerships. They are a sourse of entertainment. Some people collect and trade baseball cards and some play with stocks and others like me play with timeshares.

Bruce

 

[DeniseM]

Thanks for explaining it Bruce - It sounds like you really know how to maximize your ownership!

To be quite honest with you, I don't really understand what you own, since I only own deeded weeks.

You are obviously an expert, but I don't think this is a good entry level purchase for a newbie.

 

[brucecz]

Thanks for explaining it Bruce - It sounds like you really know how to maximize your ownership!

To be quite honest with you, I don't really understand what you own, since I only own deeded weeks.

You are obviously an expert, but I don't think this is a good entry level purchase for a newbie.

These are also deeded weeks that were sold with a "Special Modification of Purchase agreement". These UDI's were developed only at CMV and at Shenadoah Crossings out East by a company named RDI (who later sold out to Bluegreen) to rob Peter to pay Paul maybe because IMHO (I am guessing) of cash flow problems.

Bruce

 

[dioxide45]

The true savings for us is in getaway purchases. We have stayed 37 nights in II getaways for an average nightly rate of $56.

We have owned one timeshare since 2007 and bought another in 2009. Both resale. If I analyze our owned weeks we have stayed or will soon stay 80 nights. Our average nightly cost is $135 not including the our initial purchase. Adding in the purchase prices and our nightly rate jumps to $239.

So it isn't really about saving money. We could have stayed at hotels for less. However we often get a 2BR for those prices and travel as a group of four. The extra room is worth the extra cost.

 

[wbtimesharer]

Now I'm more intrigued. I don't get how you do this. You have lots of three day TS's? Or single days? And even when you're not at the TS you can go there and use the pool, hot tub, tennis courts, golf course, etc? And how did you get half price airline tickets and 66% off Disney tickets? I missing something.

Its working with the RCI points and weeks exchange system including the PFD. Many resorts have what is call "Day Usage" rights for owners which is one of the amenties I verified with the resort directly before purchasing.

With RCI points you can use them to purchase goods and services from "partners" of RCI. Disney used to be a partner allowing the purchase of Disney tickets which is no longer available. However, you still can use points to procure airline tickets and with some of the timeshares I own I can reserve multiple weeks a year. Using RCI's Points for Deposit option you can accumulate points by depositing weeks from resorts that aren't "Points" resorts.

Its all about understanding how timeshares work and getting the most out of them. I still consider myself an amatuer compared to others in Tug who definately know how to work within the Timeshare industry.

 

[wbtimesharer]

Perry,

Does this mean you no longer own an timeshares? Kind of like playing the stock market. Its never a good time to get in and never a good time to get out.

Personally, I believe there are good timeshares to own and bad ones. I have a couple that fall into the latter and my focus is to spin them out of my portfolio as soon as possible.

1 To every thing there is a season, and a time to every purpose under the heaven:
2 A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;
3 A time to kill, and a time to heal; a time to break down, and a time to build up;
4 A time to weep, and a time to laugh; a time to mourn, and a time to dance;
5 A time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing;
6 A time to get, and a time to lose; a time to keep, and a time to cast away;
7 A time to rend, and a time to sew; a time to keep silence, and a time to speak;
8 A time to love, and a time to hate; a time of war, and a time of peace.
...........

Timeshares, right now, make no sense - renting is far more flexible, cheaper, and less riskey.

Doesn't mean owning them is a bad thing - think of timeshare ownership as owning a sail boat - an expensive hobby that is fun, if you like that kind of thing.

Renting timeshares and condos is the way to go right now - a few years from now timeshare ownership might be the way to go again but for right now buying a timeshare, even an eBay $1 special takes on lots of risk and for the normal vacationer makes no sense.

VRBO.com is the place to find your dream vacation.

This is a fantastic time to learn about timeshares without buying them - the learning curve, to really understand and maximize their usage, is 6 months.

So learn, feel sorry for those timeshare owners making heartbreaking decisions of foreclosure and be glad you can rent timeshares for peanuts and save your money for when timeshares really get cheap.

Best of luck,

 

[PerryM]

Gold or Gold Seasons or Metals???

Nice quote.

Can you please elaborate on why now is bad to own and why later on timeshares will be cheap compared to now?

Lets just say I see no relief to what ails the USA until November 2012 at the earliest.

I don't recommend ANY American taking on ANY more debt or getting entangled in the battle of political forces replacing free market forces - just hunker down, buy gold, and wait this thing out; it's only started.

If someone has money burning a hole in their pocket to buy a timeshare you would be better served just buying US Gold Coins from the US Mint when you can.

The only Bronze, Silver, Gold, and Platinum you should be interested in is actual metal and not seasons cooked up by timeshare developers.

If you own a timeshare then hold on to it, become better educated, and maximize their usage. Renting a timeshare makes far more sense right now than buying and taking on a lifetime of MFs for your family and their family.

If this sounds gloomy, then I've failed to present just how bad it really will become...

 

[PerryM]

Priorities - timeshares should be dead last...

Perry,

Does this mean you no longer own an timeshares? Kind of like playing the stock market. Its never a good time to get in and never a good time to get out.

Personally, I believe there are good timeshares to own and bad ones. I have a couple that fall into the latter and my focus is to spin them out of my portfolio as soon as possible.

I never said that - what I have said is don't buy another timeshare and don't sell the ones you own.

Use the ones you own and go on vacation - that's why you bought them.

Take on no additional risk when we have thousand year old countries going bankrupt right in front of our eyes - don't blow your money on something so unneeded as a timeshare.

 

[shifty1981]

Thank you for your honest opinion. Someone once told my wife and I early in our marriage that it's far worse on our marriage to not have enough time for vacation than it is to not have enough time to get work done. Being a Christian, I truly believe the 7th day of rest instituted is there because God knows we need time to decompress and build memories outside of work. Not trying to get religious on anyone, but that's just a value we both have. Maybe TSing will help keep us honest in building time for the family.

Most of the people on this site because of it being a ts site are pro "Timesharing".

Timesharing isnt necessarily a money saving practice and its definitely not an monetary investment. I could just stay home or tent it in most places and it would be less money. Also it sounds like you are at the point of your life where vacation time is harder to get.

Tugs will show you how to get the most for your money w/timesharing. Most of us travel quite a lot. We like nice clean places w/a good kitchen. I dont like to eat out every meal and after a good hike in a National Park or sight seeing all day, part of my vacation is to come back and sit out on a patio and have a glass of wine and a relaxing dinner.

When I was first married and in my early 20's we just didnt vacation much. We used a tent and went to family reunions. After 10 years of marriage we finally drove down to Vegas. Stayed in a Motel 6. When we started having children I broke the occupancy rules many times. Cleaning out cereal bowls in the bathroom.

I bought my first timeshare 14 years ago and now I have 8. It works for me and my family/friends. Looking back, if I had put more of an importance vacation and family time, maybe I wouldnt be divorce. Who knows. Since I started timesharing, there is enough room for kids and grandkids and the memories we have had is where the real value comes in.

Only you and your wife can decide what your priorities are and how much of a budget you can afford on vacationing. I would try renting timeshares for now so you can see if they will work.

 

[shifty1981]

Good advice.

Can you explain how exactly to find out if something is a good renter? Is there a history of rents? How do you know if it's a good exchanger? Aside from just posting to TUG what I'm considering buying and seeing if anyone has advice on that property?

Actually, I'm not suggesting that you go the same place every year (although we go to Hawaii every year.)

What I am suggesting is the you buy a timeshare that is:

1) Within driving distance so that you can use your home resort during years when you can't afford to fly or don't want to take a trip far from home - like possibly when you have another new baby.
2) During the summer, so it matches up with your kid's school schedule, and it will be a good renter.
3) A popular renter and strong exchanger.

That way you have a lot of options.

 

[shifty1981]

This series is rentable or purchasable. I got it for $30 last year for Christmas, thought it retails around $80 I think. I highly recommend it. I'm watching The Pacific, the series about the war against Japan on HBO with a 90 day free trial from my tv provider. Told ya'll I'm a deal finder!

Good to know!! I was thinking it must be something like this, or else an inside joke

I never got to see that series as I don't have HBO..Nice to know real heroes are still appreciated!

 

[DeniseM]

Good advice.

Can you explain how exactly to find out if something is a good renter? Is there a history of rents? How do you know if it's a good exchanger? Aside from just posting to TUG what I'm considering buying and seeing if anyone has advice on that property?

Once you narrow down your list to 6 or fewer properties, you should read the TUG reviews, and ask about them on TUG. That is your best resources for this kind of info.

 

[shifty1981]

All good advice.

Except I'm curious how some people say now is the time to buy and later will be the time to buy.

Still learning the ropes. Haven't even used them (September weeks).

I got them not to save money....I've been busy (school, residency, work) for the last 10 years. Not much time for vacations.

I have 2 weeks (37 and 39) on the Outer Banks in NC, and am getting a week 38 that is also a points week (not specifically purchased for the points, but for the underlying week).

I've stayed in hotels (cheap motels mostly) when I traveled before I went to school...even the (occasional) nicer hotels were not as nice as the Timeshares we used (my Father In Law owns a couple of weeks...now Hilton Points) in FL and in the Outer Banks.

There's something fairly relaxing about being able to open your own refrigerator, pull out a drink vs. looking for the money to go to the vending machine. Pizza as a group in the living room is a bit better than pizza with 2 people at the hotel table and 2 on the beds. ((Not to mention having a Freezer to store the fish I caught on one trip to the OBX)).

If you are going to compare a Hotel...you almost need to get the price of a Suite vs. a 1 Br TS (or two suites for a larger group vs. a 2 or 3 Br. TS).

I bought my weeks based on:
#1. I know the area (went there when we lived in Richmond for 10 years).
#2. Driving distance for us from the Allentown area.
#3. Large enough to take the kids (and still have some privacy)..2 or 3 Brs, and in the case of the 3 Br, my wife's even made the comment that maybe my kids can each bring a friend one year.
#4. The weeks are 'paid for' this year....(I paid 2010 MFs when I bought it). That will MAKE me take a vacation (so I don't lose the money). I'm one to put taking the time off further and further back (work, work around the house, etc.) rather than make myself go somewhere.

Going to save me money? The MFs for my TSs are $525 and $600...I can't use both this year (the last week starts in 2011, so not an issue this year), so I'll probably Bank one (or even let a relative use it). I didn't buy them to trade (specifically), but will probably use the points week for trades occasionally. So, no...they probably won't "Save" me money...

So, I look at them like buying a car. I can go cheap (Ford Focus), maybe get a better deal on a bit nicer car (Ford Taurus)...as I might do with a Hotel room....or I can spend just a bit more than the Taurus would cost and get something like a BMW (the Timeshare). The BMW isn't going to "save" money but it will give a good bit more driving pleasure.


And, one final thought...NOW is probably the best time to buy a Timeshare. Prices are VERY, VERY low (look at the $1 auctions on ebay). When (if) the economy improves and people travel more...TS prices will go up, and it will be harder and harder to find the great deals on Priceline.


My advice to the original poster.....if you want to travel, look into a Points TS with an underlying week you'd be willing to use. Sounds like you have some younger kids....that gets to be a pain when they get a bit older (mine are 13 and 14) to travel into any kind of hotel room for other than a day or two. Look for one in Driving distance (if possible) from where you live (so you can use it if you don't want to use the points associated with it). Find something that the family likes (beach, mountains, etc.).

AFARR

 

[DeniseM]

All good advice.

Except I'm curious how some people say now is the time to buy and later will be the time to buy.

No one really "knows" but those of us who have been owners for several years know from experience that prices are at an all time low right now. Has anyone except PerryM said don't buy now? I would be more concerned with your own financial situation. I would not buy a timeshare unless I was very financially secure. If you have credit card debt, or you struggle to make your payments every month - don't do it.