Dave Ramsey on Timeshares.

[theo]

It's frankly hard for me to wrap my head around the words "timeshare" and "investment" even appearing within the same sentence (...except perhaps when spoken by a timeshare sales weasel who is already obfuscating and outright lying anyhow). Timeshares, if wisely selected and purchased resale, can (...and for us, do) certainly have a very high "value", but it is a "value" which is not quantifiable in dollars and cents but measured instead in enjoyment, great vacation experiences and fond memories.

In the purely financial sense, I would personally be very hard pressed to identify many (if any) worse "investments" than timeshare purchases.

 

[VegasBella]

Dave's advice, IMO, is targeted more to those who need the 'basics' in managing finances. Timesharing is definitely not for anyone who really needs Dave's guidance.

Agreed.

In the purely financial sense, I think I would be be hard pressed to identify many (if any) worse "investments" than timeshare purchases.

Agreed.

 

[dagger1]

It's frankly hard for me to wrap my head around the words "timeshare" and "investment" even appearing within the same sentence (...except perhaps when spoken by a timeshare sales weasel who is already lying anyhow). Timeshares, if wisely selected and purchased resale, can (...and for us, do) certainly have a very high "value", but it is a "value" which is not measurable or quantifiable in dollars and cents but instead in in enjoyment and vacation experiences and memories.

In the purely financial sense, I think I would be be hard pressed to identify many (if any) worse "investments" than timeshare purchases.

I understand your sentiments completely, but there are TUGGER's who make a living renting Timeshares. And others who vacation free, and like the poster just above, actually make money as well by knowing the systems and techniques of profitably renting their TS weeks. They have all purchased the vast majority of their weeks resale. Spending hundreds of thousands of dollars for TS's will never (I hesitate saying this because some of these renters have purchased some of their weeks retail..) be a good purchase in my opinion. I don't think Dave Ramsey has ever heard of a 'resale' timeshare..

 

[Paul_C]

I have to disagree to some extent because if you bought resale into the right system, I believe top quality TSs were and can still be a good investment beyond the priceless value they bring from a quality family time perspective. I know they definitely have been both for my family and I bet many others can say the same.

I'm specifically talking about the Marriott TS weeks program. I did buy 4 Marriotts direct many years ago, but since have bought and sold many resale units, exclusively Marriott beachfront/waterfront, and now sit with 21 Marriott TSs. All that easily rent for profit, some considerable profit and all that could sell easily close to or above what I paid for the resale units.

And I know you can still do the same with strategically purchased high demand Marriotts. I'll give a few examples, but there are numerous units that would do the same.

Buy 2 Marriott Maui Ocean Club 2BDRM OVs for about $13k each so total investment $26k. These rent easily for $3500 and often for up to $3700 if you know what you're doing.

Go to Maui every other year for a week and rent the other 3 weeks. So in a 2 year period you take a wonderful trip to Maui and you put $3900 in your pocket. Doesn't take long to recoup your initial investment at that rate. And this is not rocket science, believe me these units and similar rent very very easily at that price.

You can also do this with a few plat Marriott Newport Beach that have a lower price point and also lower rental income potential but still solid. Purchase 2 for $17k. Pocket approx $3k and enjoy a great trip every other year. Again a pretty solid ROI from an investment perspective in my book.

Also, by buying resale a nice Marriott it will retain that value or very close to it at this point with the resale market being so mature and the web making it easy to list for sale if you have to dump in an emergency for some reason. Not many TSs can say they can do that but quality high demand Marriotts will.

So anyone with $43k lying around can buy 2 Maui and 2 Newport Coast units, go to Maui one year and CA the next and put approx $3500 in your pocket every year. I'd say that a pretty good investment.

So again TSs overall, I would agree, are a bad investment, but the right ones purchased wisely can in fact be a very good investment.

Thank you for your insight and expertise in renting out your Marriott Timeshares! I had one question: When you mentioned the "$3500 in your pocket every year" is that after you've paid the Maintenance fees on your unit? Just not sure how maintenance fees fit into the scenario.

Thank you!



Sent from my iPhone using Tapatalk

 

[MOXJO7282]

Thank you for your insight and expertise in renting out your Marriott Timeshares! I had one question: When you mentioned the "$3500 in your pocket every year" is that after you've paid the Maintenance fees on your unit? Just not sure how maintenance fees fit into the scenario.

Thank you!



Sent from my iPhone using Tapatalk

Yes that is after MFs are paid. That is why I do offer my experience when some say timeshares can't be an investment. Yes they can if you buy the right TSs at a good resale price. Like any worthy investment it takes money to make money but if you have a good credit score and good income you can also use 0% credit card offers which is what I did over the years to accumulate my portfolio.

 

[theo]

Yes that is after MFs are paid. That is why I do offer my experience when some say timeshares can't be an investment. Yes they can if you buy the right TSs at a good resale price. Like any worthy investment it takes money to make money but if you have a good credit score and good income you can also use 0% credit card offers which is what I did over the years to accumulate my portfolio.

I certainly applaud and admire your personal success, but nonetheless respectfully submit that your experience and results are likely a rare statistical anomaly.

More precisely, while admittedly having absolutely no supportive facts or statistics to cite, I am inclined to believe that for every one successful timeshare "investment" enterprise like yours, there are hundreds (maybe even thousands) of people who (contrary to what they heard from sales weasels at their developer-direct purchase), never recover more than a mere fraction of their initial dollar "investment", either during and / or after later selling off their ownership. Wouldn't you agree?

My intended point is not to argue with or disparage your success, but to merely point out that for most people, the "value" of "investing" initial outlay money (and annual maintenance fees thereafter) will likely and necessarily be only in the use and enjoyment of their intervals, as opposed to yielding a positive financial ROI.

 

[dagger1]

My intended point is not to argue with or disparage your success, but to merely point out that for most people, the "value" of "investing" initial outlay money (and annual maintenance fees thereafter) will likely and necessarily be only in the use and enjoyment of their intervals, as opposed to yielding a positive financial ROI.

Timeshares were never created to compete with financial investments, only unethical sales people have made that case to the unsuspecting. They are all about the "use and enjoyment of their intervals" as you said. MF's are just prepaid lodgings to "motivate" people to actually take vacations and build memories, rather than just a bank account. You are right, TS's (resale) are a life investment, not a financial one for most people. Developer bought TS's are generally a financial mistake as well documented here in TUG. There are always the 1-5% that disprove the rule (and Ramsey) who says TS's are never a good investment.