Increase rate of MF vs increase rental prices

[rmclain73]

New to timeshares and I am doing my research prior to making a purchase in Aruba. Looking at the average rate at which MF increases over time seems to be about 3%-5% annually. Surf Club is about 4.9%. How does the rate of rental prices compare? I know that not all resorts and time of season are created equal, but do you usually see an increase in what you can renti units for as well? Is there any correlation between MF fees and rental fees increasing? Based on some of the annual increase in MF I see out there, Aruba included, I would be paying around $2700 a year in 10 years time. Just wondering if the rental market rises as well, at least enough to cover MF cost if you cannot use your unit.

 

[echino]

Rental prices are not really tied to maintenance fees, it's more supply and demand, which depends on general economic conditions.

If anything, the trend is for maintenance fees to increase faster than rental rates, which causes resale prices to decrease with time.

 

[rmclain73]

Rental prices are not really tied to maintenance fees, it's more supply and demand, which depends on general economic conditions.

If anything, the trend is for maintenance fees to increase faster than rental rates, which causes resale prices to decrease with time.

So renting may be the better option over buying a resale.

 

[CalGalTraveler]

So renting may be the better option over buying a resale.

It depends on the location, type of unit needed, supply/demand and desired season. If you are looking at summer or Feb/Mar whale season in Hawaii and consistently want a 1 or 2 bed Oceanfront then rentals spike vs. MF so there is a definite advantage to owning. This also might be the case at HHI and other high demand peak season resort areas.

I am not familiar with Aruba market so you would need to compare there. If you are flexible i.e. don't mind a studio, don't care about view, and are flexible about dates outside of school vacations then renting is probably a more economical option.

 

[rmclain73]

It depends on the location, type of unit needed, supply/demand and desired season. If you are looking at summer or Feb/Mar whale season in Hawaii and consistently want a 1 or 2 bed Oceanfront then rentals spike vs. MF so there is a definite advantage to owning. This also might be the case at HHI and other high demand peak season resort areas.

I am not familiar with Aruba market so you would need to compare there. If you are flexible i.e. don't mind a studio, don't care about view, and are flexible about dates outside of school vacations then renting is probably a more economical option.

Looking at Aruba Surf Club Gold season. May 1-Dec 15. Due to the kids and school, owning our own business, we are tied to that season. We would use the 1BR for sure and could lock off and rent the studio. Some years we would use the 2BR. If we could not go at all I would rent the 2BR.

 

[AJCts411]

When I bought my weeks, I did so because rent was skyrocketing, soon the be out of my budget. So to be able to vacation there I purchased weeks. Weeks that seem to hold their value, but after 5 years they would owe me nothing, when comparing the difference between renting and buying. I think you need to do the math..ROI sort of comparison, and then determine if the resort holds any value, and assessing the risks when you want to sell/unload. Not sure if one is available, but consider a lock-off unit. We rent one side when we don;t need the two bedrooms.

 

[dgalati]

So renting may be the better option over buying a resale.

Exactly! If you're flexible on travel plans and book in the 60 day discount window. Many VIP owners will pass along the 50% discount and a possibleroom upgrade. I pay 50% less on a rental then what it would cost to pay my maintenance fees as a non VIP owner. Thats not including a possible room upgrade. I own a non VIP Wyndham accout and have rented many times from a VIP within the 60 discount window. Most VIP owners will charge $6/1000 on points rented.

 

[chapjim]

Exactly! If you're flexible on travel plans and book in the 60 day discount window. Many VIP owners will pass along the 50% discount and a possibleroom upgrade. I pay 50% less on a rental then what it would cost to pay my maintenance fees as a non VIP owner. Thats not including a possible room upgrade. I own a non VIP Wyndham accout and have rented many times from a VIP within the 60 discount window. Most VIP owners will charge $6/1000 on points rented.

All you need is a straight man, Dominic!