High End Luxury Resorts...why buy?

[bshmerlie]

I must be missing something. Why are people buying the high end luxury resorts with maintenance fees that are $1500-$2500 and sometimes more? Why not just rent from another owner where you can often pay less than the maintenance fees and you're not commited to a huge MF every year or possible special assessments. Is there other advantages that I'm not aware of? Some of those maintenance fees are crazy prices. And really who wants to go to the same resort every year. I loved Atlantis as much as the next guy and I will go back again someday....but every year? Same with Hawaii...love it but really...every year? You're tying yourself down and you'll feel obligated to go if you're paying those huge maintenance fees even if you would like to go somewhere else. Again, I must be missing something. I don't want just one week of vacation for my MFs I want multiple weeks. I just don't see how it pays off with the higher end resorts. Rent it...It's the same price without the obligation. That goes for Disney, Hawaii, Atlantis, New York and many others. You can rent them...why buy them?

 

[csxjohn]

You can't always rent what you want when you want for a price you are willing to pay.

Many people like to go to the same place every year and don't want the hassle of trying to rent from someone.

Everyone is different and that is what makes life interesting. What works for you may not work for the next person.

 

[DeniseM]

I must be missing something. Why are people buying the high end luxury resorts with maintenance fees that are $1500-$2500 and sometimes more? Why not just rent from another owner where you can often pay less than the maintenance fees and you're not commited to a huge MF every year or possible special assessments. Is there other advantages that I'm not aware of? Some of those maintenance fees are crazy prices. And really who wants to go to the same resort every year. I loved Atlantis as much as the next guy and I will go back again someday....but every year? Same with Hawaii...love it but really...every year? You're tying yourself down and you'll feel obligated to go if you're paying those huge maintenance fees even if you would like to go somewhere else. Again, I must be missing something. I don't want just one week of vacation for my MFs I want multiple weeks. I just don't see how it pays off with the higher end resorts. Rent it...It's the same price without the obligation. That goes for Disney, Hawaii, Atlantis, New York and many others. You can rent them...why buy them?

Prime weeks at the high end timeshares usually rent for quite a bit more than the maintenance fees. For instance, I rent my 2 bdm. ocean view at the Westin Ka'anapali Ocean Resort Villas rents for $3,600 but the maintenance fee is about $2,200.

It just depends on where you want to go and if you return to the same resort every year. We own 3 ocean front weeks on Kauai that we plan to use every single year. The maintenance fee is about $1,100, and it would cost about $1,600 to rent the same view.

 

[PamMo]

Well, I'm one of those crazy people who pay exhorbitant MF's for several Harborside and Maui units, and the reason I do so is because I get the EXACT weeks that I want to travel every year, and I get units that have a great view. If I had to rent the same units, it would cost me much more than I pay in MF's. Because I bought prime weeks/views, I have no problem renting my weeks if my family can't use them that year. Everyone has their own travel needs, this just happens to suit us.

 

[slum808]

If by Disney you mean Disney Vacation Club, you can't rent for mf. To rent DVC you'll typically pay twice mf. You can find some cheap rentals on ebay, but these are most likly RCI exchanges that are being rented against RCI rules. If RCI finds out, they can cancel the reservation and you're out your money and no place to stay.

You can however, trade into some of these luxury places with a lower mf property. I've exchanged into some great name brand Hawaii properties for far less than their mf. Of course the trade off is low season or short notice.

 

[Bill4728]

Sometimes you get lucky and can make some exchanges for much nicer resorts. Right now we are in whistler at the nicest resort there ( Club Intrawest) BUT it is the first time in 12 years we have been able to trade there during "prime time" generally if we get a week there it is in low season.

IMHO buy a nice enough resort so you can trade into the high end resorts but do not expect to be able to trade into the high end resorts often during high season.

 

[timeos2]

The OP has it right. No need to buy at these high end places as the occasional rental - even if at or a little above annual fees, almost always possible to obtain - is MUCH less than buying plus the fees. Unless you want the same resort or group every year over & over you have much more flexibility renting exactly what you want only when you need it and not being tied to a resort or resort group but having the full world of resorts at your call. Plus no exchange fees or the uncertainty of trying to trade when you usually get no choice of view, unit, etc that rental provides.

In this economy it makes zero sense to buy & own these high cost resorts unless you plan to use it every year. Even renting is a risk as it isn't as easy as it some make it sound. And renting doesn't require the commitment to fees nor the capital expenditure of a purchase. Overall for most renting makes far more financial sense. Limit your timeshare buys to value resorts that give a big return for a relatively small amount of money & fees. That's where the ownership value is now. The OP has it figured out.

 

[bogey21]

Back when I was in the traveling mode with kids I bought a Fixed Crown Suite Week at Monarch on HHI in the resale market for $25,000. The unit was unbelievable, the Week was perfect, and yes the MF was high. No way I could have rented the Week for twice the MF and besides it wouldn't have been available. Bottom line is that it was perfect and well worth the money. When my kids grew up and my marriage dissolved we sold the Week at a nice profit. Normally, however, I would agree with the OP.

George

 

[ronparise]

I must be missing something. Why are people buying the high end luxury resorts with maintenance fees that are $1500-$2500 and sometimes more? Why not just rent from another owner where you can often pay less than the maintenance fees and you're not commited to a huge MF every year or possible special assessments. Is there other advantages that I'm not aware of? Some of those maintenance fees are crazy prices. And really who wants to go to the same resort every year. I loved Atlantis as much as the next guy and I will go back again someday....but every year? Same with Hawaii...love it but really...every year? You're tying yourself down and you'll feel obligated to go if you're paying those huge maintenance fees even if you would like to go somewhere else. Again, I must be missing something. I don't want just one week of vacation for my MFs I want multiple weeks. I just don't see how it pays off with the higher end resorts. Rent it...It's the same price without the obligation. That goes for Disney, Hawaii, Atlantis, New York and many others. You can rent them...why buy them?

You could make the same argument with the "low end" timeshares too, Why pay $500 mf when you can rent at the no-tell motel for $30 a night

I know that there are lots of resorts and lots of weeks where the mf is more than comparable rents...I dont buy there.. I buy where the fair market rent exceeds mf by at least 1.5 to 1

 

[bshmerlie]

You could make the same argument with the "low end" timeshares too, Why pay $500 mf when you can rent at the no-tell motel for $30 a night.

But Ron that's what I'm trying to explain. With a "low-end" timeshare you can still book high end resorts.

Example: Tonight on RCI you can book a one bedroom for an entire 3 weeks in May if you wanted at the Manhattan Club in NY for 240,000 points. That's 80,000 points if you only wanted to stay one week. May is actually a good time of year for NY. Or how about the DVC Wilderness Lodge for 42,000 points in January. I could buy the extra points at a penny a piece and still pay less than someone's MFs if they owned at one of those resorts.

I don't stay at the low-end cheap resorts....I just own them.

 

[sail27bill]

bshmerlie--There are people like myself who are tied to the school calendar and can only vacation at set times. I own at Harborside because I like to vacation in July and it is impossible to trade in during this time. Can I rent from another owner--yes, but for the 2 bedroom I own, the cost is easily 2x the MFs. I bought direct, however before the waterpark, etc. was built so it is a sunk cost. Not having to worry about plans other than a phone call--so worth it to me.

That said, I recently traded my 2 bedroom Orlando unit for a 2 bedroom lock-out at the Marriott Aruba Ocean Club. It took a lot of working with Interval to get it done. One year I did not use my Harborside, banked it with Interval, and was able to get Marriott Oceanwatch in Myrtle Beach. Both great trades in my opinion; so, yes, anything is possible. But when you are tied to the school calendar, working, raising kids, I don't want to spend the extra effort to rent or exchange. I like my Harborside even though the MFs are outrageous. Can your model work--of course. Am I happy for you--absolutely! But in answer to your question--I like the convenience and certainty.

Anita

 

[chellej]

And lets face it... in some cases its the old keeping up with the jones..."See what I can afford"

When we were staying at westin princeville there was a very nice gentleman at the grills and he was telling me how he owned 2 two bedroom units there and how much he loved them. He was obviously doing well financially and can afford it.

I just smiled and didn't tell him what my trade into a 2 bedroom cost...that would just be bragging.

Of couse it was obvious that we were both happy how we got there...me I was happy with my bargain and he was happy he could afford the luxury.

 

[sail27bill]

And lets face it... in some cases its the old keeping up with the jones..."See what I can afford"

When we were staying at westin princeville there was a very nice gentleman at the grills and he was telling me how he owned 2 two bedroom units there and how much he loved them. He was obviously doing well financially and can afford it.

I just smiled and didn't tell him what my trade into a 2 bedroom cost...that would just be bragging.

Of couse it was obvious that we were both happy how we got there...me I was happy with my bargain and he was happy he could afford the luxury.

I hear ya. Last year when we were at Marriott Oceanwatch in August we met a nice family. The husband stated how much he loved coming here and how did I like my ownership. I told him I exchanged in. The look on his face was priceless. He then said "Do you mind telling me what you used to exchange in?" I said "Not at all--my Harborside at Atlantis". The relief on his face was apparent. He said "Oh okay, I thought you were going to tell me it was some Poconos timeshare". It was kind of funny. To each his own.

Anita

 

[zcrider]

It has already been said. Yes, there is reason for SOME people to buy high end. They can easily afford it and that is where they want to go most years. Just because some people don't want to go to the same place most of the time there are an equal number of people that love going to the same place most all the time. Different strokes for different folks. I personally like to own one of each. A high end to use or rent if we don't want to go, then a cheap for trading into other high end places we want to try out. I don't use my own high end for trading as that isn't the best use of the ownership. Lots of people here on TUG own multiple weeks for the same reason. There are different ways to use each one to the maximum of it's benefits and we all have different travel needs and likes, so we buy what fits us. If you have what fits you great!! But it doesn't mean anyone else is not smart just because they don't like what you like.

 

[JohnPaul]

Same Place Every Year??

I must be missing something. ....... And really who wants to go to the same resort every year. I loved Atlantis as much as the next guy and I will go back again someday....but every year? Same with Hawaii...love it but really...every year? You're tying yourself down and you'll feel obligated to go if you're paying those huge maintenance fees even if you would like to go somewhere else.

I always wondered why anyone would want to go to the same resort every year until we traded into Key West in February one year. The place was full of people from Toronto and Detroit and Buffalo. If I lived somewhere with harsh winters like that I'm sure knowing I had a February week in Key West would be a god send.

Also, We have found ourselves staying (via RCI Points trade) at the same resort in Colorado for a ski week for a half dozen years in a row now.

We also own a ton of points with Vacation Internationale (which has 40 + available resorts for use at no extra cost) but use almost all of them at a specific South Lake Tahoe resort.

So....comes back to everyone and their circumstances being different.