Buying a timeshare you may not use regularly

[Asia2000]

With prices falling like they have, would you ever buy a timeshare that you would likely not use every year knowing that you could probably rent it for at least the amount of the MF?

After another 8-10 years, it would be used more regularly.

Please advise.

 

[DeniseM]

I would not buy a TS knowing I had to rent it most of the time. Right now the market is flooded with cheap rentals, and it's not that easy to rent. A few months ago, I had an Easter rental in Hawaii that I ended up giving away to a young couple in the military - I couldn't rent it at any price.

Consider buying an every-other-year deed instead.

 

[easyrider]

We have been buying certain TS's that we like. The one we bought for trades ( Eagle Crest to WM ) worked out very nice until Corporate decisions were made that ended up making the trade cost more. Instead of trading for 10000 WM points it now trades for 8000 points with $100+ trade fee.

We have used the resort mostly for bonus time, golf and other owner perks. We also have relatives in the area.

 

[Tommart]

Everyone's Different

You need to see what works for you.

We bought a primetime, week 31, lockable into two one-bedrooms timeshare that we have never used on week 31. Not sure if we ever will.

Last year we exchanged for two weeks in Hawaii. This Christmas we also exchanged a one bedroom for a three bedroom in Orlando. We exchanged one week for a week in Breckenridge, but we exchanged one week for another summer week on the same resort--so that cost us an extra $169. We have bonus weeks, and have stayed at the resort five times in late May or early September--never more than once a year. In 2009, we didn't stay at all. That's when we went to Breckenridge and two weeks in Hawaii.

Three years ago, the maintenance fee was about $300 ($150/unit), but has now increased to $525 ($262.50 each). The Orlando unit had a $900 MF, and the Breckenridge MF was $1,000. One of the Hawaii units had a $850 MF. The other was about $500. So even with the exchange fee, we're better off than had we owned in Hawaii, Orlando or Breckenridge. And I would not want to go to Hawaii, Orlando or Breckenridge often.

I think you can buy a local resort if:
1. it has good exchange power,
2. the maintenance fee is reasonable,
3. you won't be tired of going there.

We recently bought at the same resort a four-bedroom in mid-June, the time we prefer. August is too hot. We bought this more for ourselves, than for exchanging, but it can be separated into two two-bedrooms. And the resort is one that we love vacationing.

I have never rented. Exchanging is easier.

 

[funtime]

The problem is not whether to buy one but to not buy too many. Some resorts such as summer weeks at Carlsbad Seapointe in Carlsbad California offer a rental program onsite - you can either take your chances (the presumption being you will end up with slightly more than $1,000) or have them pay you $1,000 for the week and they keep the rest. The 1,000 is a little more than the maintenance fee. Or you can rent on redweek for 1100 to 1200. That type of timeshare would work for you. However, you have to look for the summer weeks on ebay - they only come up like once in 90 days and the more plentiful swing weeks do not fall within the $1,000 rental program.

Also, unfortuantely, there are a lot of really nice timeshares that are nice places to visit but are mid tier or at "no name" resorts. These are very difficult to rent. If rental is in the forefront, I would look to a resort with an established rental program and buy a summer week or buy a two bedroom Marriott lockoff. Marriott resorts usually rent fairly well and if you rent both sides, you will exceed your maintenance fee. Good luck. Funtime

 

[timeos2]

Never buy weeks only to trade or rent - anything other than use is a mistake

With prices falling like they have, would you ever buy a timeshare that you would likely not use every year knowing that you could probably rent it for at least the amount of the MF?

After another 8-10 years, it would be used more regularly.

Please advise.

NO NO NO! Buying any timeshare for anything but use as the primary purpose 90%+ of the time is a BIG BIG (as in large) mistake. Trying to rent or trade on a regular basis is almost a guarantee you'll regret the purchase and be looking for ways out that aren't easy to find and can be costly.

Buy to use. Buy for no other reason. Ignore that free advice at your own peril. It is worth far more than it is costing you.

 

[Asia2000]

Thank you for the opinions and input. I certainly can see both sides of the coin. If you were going to buy to only use every once in a while, it would need to be a very well known resort / big name in a preferred season. However, it seems even with this formula you run a lot of risk.

Many have been burned. Many have found their groove and are happy. Nothing is for sure, otherwise, everyone would be doing it.

Once again, thanks for the help.

 

[frank808]

My advice is to only buy where you would want to stay. Exchanges now might not be possible in the future. Ask all the old timers that got caught in the realignment of RCI weeks.

 

[funtime]

Different folks have different risk levels. If there were no trading element to timeshares it would certainly lose its zing for me. The only caveat I would posit for a low cost timeshare (under 400 for entire cost and closing cost) or essentially free timeshare (under 100 for entire cost) is take a chance if you think you will enjoy trading or using the timeshare and that the resort will not go under, stick owners with an assessment or raise the maintenance fees substantially and if you think that there will be someone after you that will want it when you do not. I have gotten into several timeshares that looked pretty good to me that I got out of when they no longer looked pretty good to me. Funtime