Do you save money buying a timeshare???

[natarajanv]

Also, we need to include the interest lost on the principal amount as well. even in this bad times and at a minimum 2% return, that equates to ~ $330.00 per year.

what I am trying to say is, TS is a luxury, and you can't put a price on the joy and happines you got out of your vacations.....IMHO

 

[jestme]

Also, we need to include the interest lost on the principal amount as well. even in this bad times and at a minimum 2% return, that equates to ~ $330.00 per year.

what I am trying to say is, TS is a luxury, and you can't put a price on the joy and happines you got out of your vacations.....IMHO

It is easy to look back, and say take the 2% interest on the investment as a given, except, realistically, you would have had that money invested in a number of places. Including the stock market, which as you know, isn't doing well. The conservative 2% type individual probably wouldn't buy a timeshare. Returns are too risky for them. There are a lot of us out here that would gladly take a 2% gain, over the 25% loss we have endured in the past year.

 

[jehb2]

not owning is cheaper because I wouldn't vacation

Actually we do save money. But then, even though we purchased our timeshares from the developer that was over 10 years ago when Hilton charged a lot less.

Our last 3 main vacations we've gone to Hawaii for 4 weeks. Now that we have two young kids we cook all our meals in the timeshare. Our normal grocery budget covers that expense. That makes vacationing exceptionally affordable for us.

Secondly, I certainly wouldn't shell out the kind of money it would take to get the equivalent of a ocean-view condo or suite on Waikiki Beach. But even 4 weeks in a moderate Waikiki Hotel would still be ridiculous.

When we first purchased I figured we would break even at 10 years. We actually broke even much earlier because of other perks (ie RCI excess inventory). But I don't see how it makes any kind of financial sense if purchasing at today's developer's prices.

 

[etal]

What About Renting Your TS?

Some people will rent their TS to pay for maintenance fees for the next couple of years.

I have a 2bd/2ba at Lagonita Lodge in Big Bear Lake, California. Maintenance fee and property taxes are about $500 per year. I paid cash for it when I bought it.

I have the option of renting out my TS. Even if I rent a whole week for only $700, I have my fees paid for plus enough money to pay for 'bonus time' at the owners rate of $80 per night for the same 2bd/2ba unit for a few nights. If I catch a week where it happens to get good snow for the weekend, I can easily get $150 to $250 per night for the weekend alone.

My daughter is looking at buying a 2bd/2ba at Grand Pacific Palisades in Carlsbad, CA. It has a wonderful view up/down the coastline and is a beautiful place with many amenities. Rental rate without ownership is $350 to $450 per night. Maintenance fee is $385 per year. Owners apparently have access to a service that will rent your time for you for a 40% commission. Also, she will have day use of the facility. It has a full gym, so she won't need to pay membership elsewhere. She can invite people to use facilities with her.

Bottom line is that there are many factors to consider. Buying resell is the cheapest way to go, but be careful doing this. Know exactly what you are getting. Some locations have more value than others. Is the TS a deeded property? Some original owners have special benefits that may or may not be transferrable. Is free day use allowed (then are you close enough to acutally use it)? It pays to shop around and ask a lot of questions. Done right, you get a great deal on a TS that is tax deductable, you can get a lot of use out of, and can get it to pay for itself down the road by renting out every other year or so.

 

[Maverick1963]

You will never know what it is all about owning timeshare until you really own it. At first, I thought it is wise to buy resale but over the years, the difference is only the initial payment. Even the difference between direct and resale becomes nothing because vacationing costs a lot more than buying timeshare. By owning timeshare, you feel like you are back home when you are vacationing. You need initial spending but you feel more burden if you have to spend $$$ to stay 2BR every year. Timeshare will give you completely different and unexpected views about your vacation. I am so glad that I came to know TUG and bought timeshare.

 

[JonathanIT]

My daughter is looking at buying a 2bd/2ba at Grand Pacific Palisades in Carlsbad, CA. It has a wonderful view up/down the coastline and is a beautiful place with many amenities. Rental rate without ownership is $350 to $450 per night. Maintenance fee is $385 per year. Owners apparently have access to a service that will rent your time for you for a 40% commission. Also, she will have day use of the facility. It has a full gym, so she won't need to pay membership elsewhere. She can invite people to use facilities with her.

I would be very wary about purchasing the Grand Pacific Marbrisa... I believe the arrangement they have as an HGVC affiliate is that the HGVC membership does not transfer to another owner if it is sold. This would greatly reduce the value IMHO. So there are really TWO reasons not to buy this resort:

• If bought resale, there would be NO HGVC membership included... and the major value of purchasing an HGVC affiliate would seem to be the HGVC membership and accompanying points.
• If one wants the HGVC membership... the only way is to buy directly from the developer, and pay the inflated developer retail prices.

I don't know why this resort is set up this way... it is kind of a catch-22, lose-lose proposition for a prospective buyer. At least that's the way I look at it. I don't know why anyone would buy into this resort.

[Edit] -- I was thinking this was the GP Marbrisa, not the Palisades... I don't know if the Palisades comes with HGVC membeship or not... and is it transferable?

 

[benjaminb13]

Lets also remember, when renting you give the money away and never see it again. Owning a timeshare, you can resell at a later date for a lesser value, or deed it to your children down the line. Bottom line is, it is still worth money.

One of the best ways I save money is through meals. Whenever I travel andstay in a hotel. My family eats out. easily 50.00 or more day for a family of 4. With a timeshare we have meals in - probably 75.00 for the week.

 

[rhonda]

My daughter is looking at buying a 2bd/2ba at Grand Pacific Palisades in Carlsbad, CA. It has a wonderful view up/down the coastline and is a beautiful place with many amenities. Rental rate without ownership is $350 to $450 per night. Maintenance fee is $385 per year. Owners apparently have access to a service that will rent your time for you for a 40% commission. Also, she will have day use of the facility. It has a full gym, so she won't need to pay membership elsewhere. She can invite people to use facilities with her.

MF of $385/year for GPP 2BR sounds unbelievably low. As I mentioned in the other thread, I'm paying ~$420/year on my EOY 1BR at same property. Perhaps HGVC charges less on the standard dues and hopes to make up in incidental charges and fees ... but $385/year doesn't pass the sniff test?

 

[geekette]

Lets also remember, when renting you give the money away and never see it again. Owning a timeshare, you can resell at a later date for a lesser value, or deed it to your children down the line. Bottom line is, it is still worth money.

One of the best ways I save money is through meals. Whenever I travel andstay in a hotel. My family eats out. easily 50.00 or more day for a family of 4. With a timeshare we have meals in - probably 75.00 for the week.

Very good points.

For those with kids, it could be far cheaper to own at a resort with its own water park and free or very cheap activities vs having to drive to attractions and pay more for them. Yes, I understand few resorts have roller coasters onsite , just saying that many resorts have so much to do onsite that there could be significant savings in keeping the kiddies entertained and active. Few hotels have much in the way of such amenities.

 

[benjaminb13]

timeshares can also work for those who have more freedom- (no children)
For example a 2200 pt week in Hyatt can easily get an owner almost 2 weeks of vacation time if the owner has the flexibility to travel during shoulder season.
If you like to plan ahead - timeshare ownership is a blessing.

 

[1950bing]

For me ( keep in mind I am speaking only for me ) the answer is NO !
I started back in the early 80's. I purchased from a developer. I knew of no other way then. Actually, I purchased from a drawing on a plywood sign. The place was only a pile of rocks behind a chain-link fence. It was several years out from being built. I had to finance part of it. So, start with the purchase price of 4,990.00 2br,2ba,add the finance charges,add the ever increasing maint. fees which got way out of line over 20 years. ( Way beyond what the salesman said it would reach), add a couple of special assesments ( poor money management by the hoa.) add extra fees like joining a club to be able to exchange and THEN an extra charge to exchange,parking,laundry,internet connection and a few more that I forgot it was just too much. Then there was all the hassell to rid myself of the thing ending up with taking a huge loss on investment. I took 2,150 for it. The salesman said by the time I no longer needed it it would sell for at least 4 times as much. I ended up sinking more money into that thing than I paid for my first house!
It works really well if you are rich and can take a lot of time off from work and know how to work the system. In some years when I was working I would only get four days off in a row so it just was not a good way for me to vacation. I know I signed the contract so all that happened to me was of my own doing. I do think however the salesman could have spoken the truth but I later discovered that just goes with being a timeshare salesman.I really wish that I had kept all that money. I like renting from timeshare places and my favorite is B & Bs.

 

[benjaminb13]

In your case, I would agree Bing. From what i hear because of your work schedule and lack of flexibility. Just a question, did you buy a Hotel based timeshare?

 

[tjorhom]

For me ( keep in mind I am speaking only for me ) the answer is NO !
I started back in the early 80's. I purchased from a developer. I knew of no other way then. Actually, I purchased from a drawing on a plywood sign. The place was only a pile of rocks behind a chain-link fence. It was several years out from being built. I had to finance part of it. So, start with the purchase price of 4,990.00 2br,2ba,add the finance charges,add the ever increasing maint. fees which got way out of line over 20 years. ( Way beyond what the salesman said it would reach), add a couple of special assesments ( poor money management by the hoa.) add extra fees like joining a club to be able to exchange and THEN an extra charge to exchange,parking,laundry,internet connection and a few more that I forgot it was just too much. Then there was all the hassell to rid myself of the thing ending up with taking a huge loss on investment. I took 2,150 for it. The salesman said by the time I no longer needed it it would sell for at least 4 times as much. I ended up sinking more money into that thing than I paid for my first house!
It works really well if you are rich and can take a lot of time off from work and know how to work the system. In some years when I was working I would only get four days off in a row so it just was not a good way for me to vacation. I know I signed the contract so all that happened to me was of my own doing. I do think however the salesman could have spoken the truth but I later discovered that just goes with being a timeshare salesman.I really wish that I had kept all that money. I like renting from timeshare places and my favorite is B & Bs.

I would not use the experience you had as a measuring stick for TS today for many reasons:
1. You did not do your homework, or something changed, and ensured that you would be able to use the time share (4 day vacation).
2. You thought you were buying a Toyota Corolla (good reliability and value) when you actually bought a Yugo (flop). (research , research and research)!
3. Today you have many tools to your disposal to ensure that you are getting what you think (TUG, contract lawyers, Time share brokers (Seth Noch) etc.)
4. Resale - I paid less for my 4800 points in Hawaii (HGVC) last year than you did for your TS in 1980.
5. If an HOA is messing up with the money management you will find out and can do something about it (TUG, emails to other owners etc). In addition if they do mess up the whole TS community will now right away, making the parent company look bad, and they will step in.
6. The rule is (I thought) that anything a salesman says you MUST get him to show you were it is written in the contract, or assume it is not true. If that is done you will not get surprises like you did. (You can also check with tuggers to see if what he is saying is true).
7. For HGVC you have extra benefits like HHonors, open season, RCI etc, that could have helped you with the problem you had with only 4 days of vacation in a row.

What I am saying is that TS can be a good investment in vacations (not to make money) but you have to do your homework and be willing to work the system when the TS is yours.
You should not by a TS if:
1. Cannot or will not plan ahead about a year.
2. You cannot really afford it. (expensive financing needed, problem taking care of MF, cannot afford travel to TS etc.)
3. You like camping better :rofl:
4. You do not understand how the particular system work.
5. You cannot take advantage of extra benefits (Open season, RCI etc.)

My 25 cents.
Harald

 

[pianodinosaur]

I love time sharing with HGVC. However, I did not save money. I went on fabulous vacations that I never would have taken otherwise. (I would have saved money by not taking any vacations and I would have been miserable.)

 

[1950bing]

There are a lot more tools around today that did not exist in 1980. Had they been ava. then maybe things would have been different. I didn't have a lot of homework to do. It goes to show,and it is like most things, there is no one size fits all in life including how to vacation.