RTU vs Deeded

[puppymommo]

My first TS purchase was 77k Wyndham (then Fairfield) points with an affiliate resort in Mexico. Unlike the usual Wyn contract, this was a RTU contract expiring in 2021. I figured it was a good way to get into timesharing because if we didn't like it we wouldn't be stuck with it forever.

It seems to me that this reasoning is even more appropriate now as the resale value of timeshares has, if anything, declined further.

I am interested in acquiring more Wyn points and I'm thinking getting another RTU contract is the way to go ($1 or free).

Most ads on Ebay boast that they are selling a deed that does not expire. I think that a contract that does expire is preferable. That way I don't pass on the MFs to my kid!

I'd be interested in y'all's thoughts on RTU versus deeded.

Happy New Year!
Susan

 

[AwayWeGo]

Nobody Lives Forever.

I'd be interested in y'all's thoughts on RTU versus deeded.

(1) When the RTU period is over, it's over -- case closed. Then -- POOF ! -- your timeshare obligation is gone, just about the time you were done with it anyway. It's the easiest exit strategy in all of timesharing.

(2) I am pushing 69. With luck I may live another 10-20 years. That means, as a practical matter in my case, that a timeshare RTU with that many more years to run works out the same as a permanent deed, with regard to how much use I can expect to get out of it.

So it goes.

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

 

[bellesgirl]

We recently bought 3 RTU TSs in Mexico. Two are for 6 years and one is EOY for 15 years. The last one can be pulled ahead so it is effectivley for 8 years. At this point in our lives (we are in our early 60s) this is the way to go IMHO. If we want more years later, they will always be available. We also own 4 deeded weeks in the US. We will probably try to unload those in the next few years, unless our kids want them and understand they are forever.

 

[Texasbelle]

We have friends whose right to use in Mexico expired. They are okay with being out of timeshare. Just as we were paring down our weeks, a week was given to us and we bought a week. Right to use sounds like it would have been smarter, but not in Mexico.

 

[theo]

Catch-22...

Right to use sounds like it would have been smarter, but not in Mexico.

But, while RTU is the norm in Mexico, it is overwhelmingly the exception (not the rule) here in the U.S.

 

[John Cummings]

We have been timeshare owners for 23 years. We have owned 2 deeded timeshares at different resorts in Coastal California. I sold one of them 3 years ago. At the time I was happy that they were deeded. However in retrospect I now wish that they were RTU so we would be done with them and free of the obligation to pay the M/F.

If you have the option to buy RTU, I would do it so you aren't locked in forever. When the RTU expires, you can always buy another for next to nothing resale if you want to continue timesharing.

 

[Tommart]

Changed my Thinking

Your logic is correct.

Unfortunately, there's a lot more to consider than whether it's a deed or RTU. Things like:

Do you want to go there often?
Is it easy to travel there?
Purchase price.
Trading value.
Current MF.
Condition of the resort.
Season/Week
Ability to sell if needed.

I personally would place these considerations above whether it's deeded or RTU. If you buy a prime week, e.g. summer week on the beach, you should have no trouble selling it.

 

[bellesgirl]

But, while RTU is the norm in Mexico, it is overwhelmingly the exception (not the rule) here in the U.S.

We travel to Mexico so it works for us. But if we decide we don't want to go to Mexico, we can still exchange through RCI and get pretty good TPUs for the MFs. So it is a win-win. Just make sure you buy prime weeks.

 

[timeos2]

RTU has some benefit but don't pay much as the end game IS zero value!

We have been timeshare owners for 23 years. We have owned 2 deeded timeshares at different resorts in Coastal California. I sold one of them 3 years ago. At the time I was happy that they were deeded. However in retrospect I now wish that they were RTU so we would be done with them and free of the obligation to pay the M/F.

If you have the option to buy RTU, I would do it so you aren't locked in forever. When the RTU expires, you can always buy another for next to nothing resale if you want to continue timesharing.

John - my thoughts seem to nearly parallel yours. I dumped DVC because I was disillusioned with the total control the RTU gave them vs a deed. I purchased all deeded time because the residual value it appeared to have vs giving a perfectly good resort back to the developer for free which tended to upset me. But bad management (Wyndham & Wastegate), uncontrolled fees and other issues have caused me to rethink it all. Given the situation where the developer hangs on to management & control despite the deeded nature of the ownership can leave the buyer virtually helpless. Knowing you can simply walk away (but without any residual $$) in those cases seems a blessing of RTU.

So our portfolio is being converted to strictly owner controlled resorts/systems. I find it interesting that those seem to retain a resale value (not great but something and if purchased resale you may actually come out OK) while the developer controlled ones - RTU or full deeded - continue to swirl down the toilet. While the resorts may be great in some cases the fees ruin the value. And then things like ROFR and other anti-resale moves deflate the value to near zero. RTU looks real good in those cases now.

 

[Tommart]

Developer Controlled Resorts

..... I find........the developer controlled ones - RTU or full deeded - continue to swirl down the toilet. While the resorts may be great in some cases the fees ruin the value. And then things like ROFR and other anti-resale moves deflate the value to near zero. RTU looks real good in those cases now.

I concur. Developer controlled resorts continue to build and sell new units which increases the number of resales and decreases exchange value. Owner controlled resorts are stable.

I've learned this the hard way. At one time I thought it was great everytime Woodstone built a new building, but now I hope they never build another one.

Tom

 

[Kona Lovers]

We're so thankful that a couple of weeks we owned were RTU, ending in 2010. It was so nice not to have those mf's staring at us as 2011 approaches.

If we buy any more from this point on, we're definitely looking for RTUs.

Marty