Dave Ramsey on Timeshares.

[medfield98]

The below appeared in our local Newspaper. Not very positive about timesharing from this nationally known financial planning, debt reduction author and radio personality.


Dave Ramsey: Sold Dave three timeshares?
By Dave Ramsey for The News-Sentinel
Tuesday, October 11, 2016 8:37 AM
Dear Dave,
My wife and I recently sat through a timeshare pitch at my mom and dad’s community as a favor to them. We’re trying to get out of debt and take control of our money, so when the salesman said we could put the whole thing on a credit card, I told him about you and your plan. He then said that he used to be your personal financial advisor and had sold you three timeshares in the past. Is this true, or are timeshares a bad idea? — Jeremy
Dear Jeremy,
Wow! It takes a bunch of dishonest nerve, to spread that kind of crap around.
No, I’ve never in my life owned a timeshare. I’ve made just about every financial mistake known to man, except that one. I’ve also never made the mistake of having a timeshare salesman as my financial advisor. This sounds like the kind of guy who you know is lying if his lips are moving!
I’m really sorry if your mom and dad already hooked up with this bunch. Timeshares, even with honest salespeople, are just straight-up stupid. Never buy a timeshare! The customer dissatisfaction rate with those things is sky-high, and you’re pretty much stuck once you buy one. They’re almost impossible to sell, because you don’t really own anything.
For the money you spend to buy a timeshare, you could take several nice vacations and stay in some pretty decent places. People get suckered in to these things all the time, Jeremy, but it’s a really bad idea. Don’t do it! — Dave[/B][/B]

 

[davidvel]

While I generally agree with his comments, I don't think he know much about timeshares (including resale vs. direct buy).

 

[medfield98]

While I generally agree with his comments, I don't think he know much about timeshares (including resale vs. direct buy).

You are probably right he does not know much about timeshares but I think he is right that the increasing annual fees at many resorts can nip at some of the benefits.

 

[got4boys]

Since he has never owned one...he really does not really know how they work.

One of my friends is a huge Dave Ramsey fan, followed him religiously.

When she was planning her Disney trip, I mentioned that there are less expensive ways to travel than paying full boat. She knew that I used timeshares a lot.

I just let it pass as she planned and pay three times as much as what I would have paid for the same time (using my timeshare). The only difference is that I did not have daily housekeeping.

 

[jabberwocky]

Yes - timeshares purchased from developers are terrible investments, in my opinion ranking only slightly better than a Dave Ramsey book.

 

[dioxide45]

I give no thought to what Dave Ramsey thinks on timeshares. He touts Timeshare Exit Team on his website.

http://www.daveramsey.com/blog/the-truth-about-timeshares

 

[ginah777]

Dave R

I really like Dave Ramsey. He keeps me motivated. I keep his advice in my mind at all times. When I purchased my timeshare I was so afraid. I heard all the bad things. Even my lawyer double checked with me and said he receives so many bad reports about timeshares. I stuck with it. It is one of the best investments I could have made. Now, when I go on vacation:
- I don't have to sleep in the same room as my siblings and family who snore and cough at night
- I don't have to eat out every meal
- I don't have to eat junk food. I can warm up veggies in a bag
- I don't have to spend on all the resort fees and extra fees
- I don't have to worry about room service knocking on my door early mornings
- I don't have to hear loud vacuums banging into the wall early mornings
- I can get extra rooms at a discounted rate for the rest of my family and friends traveling with me
- I get VIP treatment
- Etc.

I am a proud of my investment.

 

[pedro47]

Question if customers dislike timeshare so much. Why are their timeshare properties in all 50 states and why are Marriott, Sheraton, and Hilton major players in the timeshare vacation industry ?

Dave Ramsey can you answer the above question. Plus, without timeshare their would be no need for this excellent website.

 

[dioxide45]

The customer dissatisfaction rate with those things is sky-high, and you’re pretty much stuck once you buy one.]

This is actually something where Dave is very wrong and it shows that he hasn't really don't any actual research on the product. If you look at industry measurements, timeshare ownership satisfaction and people's satisfaction with the product is actually very high. In the 80%-90% range. Of course, people's satisfaction with sales practices probably are not that high.

 

[linpat]

I agree with Marisa777 about timeshares vs hotels.
Another benefit is being able to sleep late or just hang out on a balcony without having have to put a "Do Not Disturb" sign on your door and know that housekeeping would really like to get finished with the area. Every time that I go to a conference and stay in a hotel room - I miss my timeshares.

Dave Ramsey has some good ideas and some good strategies but he does not speak for timeshare owners.

 

[Kapolei]

I don't have any problem with a financial advisor telling me timeshares are inherently stupid investments. Most of them are.

And I would not expect a good financial advisor to spend time doing economic analysis on timeshares. That kind of work would have to be 100% my own.

 

[silentg]

I agree with Marisa777 about timeshares vs hotels.
Another benefit is being able to sleep late or just hang out on a balcony without having have to put a "Do Not Disturb" sign on your door and know that housekeeping would really like to get finished with the area. Every time that I go to a conference and stay in a hotel room - I miss my timeshares.

Dave Ramsey has some good ideas and some good strategies but he does not speak for timeshare owners.

This could be said for camping by me. I don't like the idea of sleeping in a tent and being around a campfire is not my idea of fun. But I have relatives and friends that enjoy this very much. Everyone's idea of vacation is different. Timeshares are not all the same, but I enjoy timesharing and so does my husband. I say don't knock it til you try it and yes I have tried camping and don't enjoy it!
Silentg

 

[jehb2]

For the money you spend to buy a timeshare, you could take several nice vacations and stay in some pretty decent places.[/B][/B]

This part just doesn't make any sense.

Because we own timeshares we are able to take LOTS OF REALLY nice vacations and stay in REALLY NICE places and take friends and family for way cheaper than what it cost to stay in a hotel room.

What exactly is he saying.

 

[dioxide45]

This part just doesn't make any sense.

Because we own timeshares we are able to take LOTS OF REALLY nice vacations and stay in REALLY NICE places and take friends and family for way cheaper than what it cost to stay in a hotel room.

What exactly is he saying.

He is comparing it to full retail price of the timeshare. You could take a lot of nice vacations for $30,000.

Though I don't necessarily agree with the following from the link in post #6.

No way! For the money you put into a crummy timeshare, you could go to Europe every summer for the rest of your life and never have a problem.

We recently went to Europe and there is no way we could go to Europe every summer for the rest of our lives for what a full freight timeshare would cost.

 

[MuranoJo]

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.

 

[Paul_C]

I'm a Dave Ramsey fan, and a fan of Timesharing, too. I think Dave was thinking about the past, the old days where Timesharing salespeople would lure you in and you'd end up buying a $20,000 Timeshare or upgrading. Sounds like he doesn't know about getting resales for $1.00 on TUG. Of course, So much better than a hotel room, as we all know!


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[Paul_C]

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.

I totally agree!


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[pedro47]

Timeshare is not a long term investment or a financial investment; in my humble opinion. Timesharing for my family has been an investment in some good quality time with your the whole family & friends as some very decent vacation resorts.

 

[jwalk03]

Timeshare is not a long term investment or a financial investment; in my humble opinion. Timesharing for my family has been an investment in some good quality time with your the whole family & friends as some very decent vacation resorts.

I agree with this. The only people who build wealth through timeshare investments are the developers and management companies.

Timesharing is great, but it shouldn't be viewed as a investment made for financial gain, just enjoyment.

 

[Aloha-Hawaii]

I agree with Dave Ramsey for the most part... I will never buy a timeshare again.

I will be a former timeshare owner soon. I have sent back the deed-back documents to Wyndham under their Ovation Program. I should be timeshare free soon, with no transfer fees or any fees at all.

I have owned my timeshare biennial floating week for 16 years at Kona Hawaiian Resort. I don't think I received much value from my purchase because I am not much of a travel/vacation person. However, I love stay-cations.

My husband and I purchased the timeshare week when we were much younger and easily influenced. We did not think much of the life-long obligation to maintenance fees. The fees were not too high and we could manage it, but we found out that we could rent the week for about the same price we paid in maintenance fees.

I have reviewed a lot of posts from people who are very satisfied with timesharing, but it is not for everyone. For the most part it is a life time commitment to maintenance fees and people's circumstances and priorities do change. Something to think about!!

 

[WinniWoman]

I agree with Dave Ramsey for the most part... I will never buy a timeshare again.

I will be a former timeshare owner soon. I have sent back the deed-back documents to Wyndham under their Ovation Program. I should be timeshare free soon, with no transfer fees or any fees at all.

I have owned my timeshare biennial floating week for 16 years at Kona Hawaiian Resort. I don't think I received much value from my purchase because I am not much of a travel/vacation person. However, I love stay-cations.

My husband and I purchased the timeshare week when we were much younger and easily influenced. We did not think much of the life-long obligation to maintenance fees. The fees were not too high and we could manage it, but we found out that we could rent the week for about the same price we paid in maintenance fees.

I have reviewed a lot of posts from people who are very satisfied with timesharing, but it is not for everyone. For the most part it is a life time commitment to maintenance fees and people's circumstances and priorities do change. Something to think about!!

If I lived in Oahu I think I might be more of a staycation person, too! LOL!

Seriously, we love our timeshare ownerships. We have had so many years of memorable experiences and hope to have many more. We have always used them and it's been great!

But-one of our resorts is considering instituting a "buy back" program and depending on what they come up with- if anything- we would consider it even though we still love going and it seems a bit too soon for us to be getting rid of it. But I suppose we could always rent the week we want from another owner or at another resort in the area. We would keep the other week we own at another resort since that one was a recent acquisition and for other personal reasons.

 

[bastroum]

I agree timeshares are a bad financial investment (if purchased from the developer). They are however a great investment in traveling and vacationing!

 

[linpat]

I agree that timeshares are not a good investment esp considering maintenance fees.
However, for enjoyment of family time and the ability to get away from it all in really good surroundings - priceless!

 

[dagger1]

My humble Newbie opinion, for what it is worth: for some on this website, Timeshares have been an extremely profitable investment. There are an educated, motivated few who bought resale at very low prices, and have been able to use the system (which they know inside out) to rent profitably and/or at least cover all their MF's while vacationing free (the lodging part, that is.) If one doesn't vacation much, or have the ability to plan ahead, then Timesharing probably shouldn't be considered. If one always stays in studios (hotel rooms), Timesharing becomes less attractive, but still can pay off if nice resorts are desired, rather than low end hotel rooms. If 2-4 BR condos in nice resorts are desired, then resale Timeshares should definitely be considered. From what I have gleaned by reading, watching YouTube complaint videos, talking to current owners, etc., the vast majority of complaints about Timesharing have to do with the retail sales methods, and more recently issues with mega-renters and points balances (an issue hopefully remedied quickly.) Most TS owners love their vacations, the quality of the resorts, the enjoyment of planning future family trips, and the lower cost provided by Timeshare ownership. Then there are those that use TS's to live months (or longer) in different areas of the country without the necessity of buying a second home. But once again, TS's are (mainly) all about vacations.... They should be investigated if this is of interest. Otherwise, you might find yourself overpaying for hotel rooms (and way overpaying for condos in resorts). Dave Ramsey hates overpaying for anything.... MHO...

 

[MOXJO7282]

I agree that timeshares are not a good investment esp considering maintenance fees.
However, for enjoyment of family time and the ability to get away from it all in really good surroundings - priceless!

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.