Is a Timeshare a good investment?

[Jasmine Reed The Author]

I'm writing an article for my website and will include a link to this thread.

JasmineReedTheAuthor.weebly.com

 

[Ty1on]

No, not even resale. Good investments are redeemable

 

[T-Dot-Traveller]

I'm writing an article for my .....

JasmineReedTheAuthor.weebly.com

Is a new car a good investment ?
Yes - if you don't want to take the bus anymore.

TImeshare units can give you you more space and better vacations than small hotel rooms.
A hotel room is often 450 sq feet / a 2 bedroom timeshare could be 1200+ with a full kitchen.
[ When you are not on vacation do you live in 450 square feet? - with a spouse & 2 kids ?]

Timeshares and cars depreciate drastically the day after you buy one retail.

Good Timeshares can be bought resale- for very little $
Cars require upkeep = maintainence dollars.
TImeshares require yearly maintence fees.

Effective TIMESHARE USAGE generally requires advanced planning - if you want prime weeks - prime locations .
Myrtle Beach in January isn't difficult - July 4th Week requires advanced planning.

The unhappy timeshare owners are often those who think they simply bought a bigger hotel room and do no advanced planning.

TUG - Timeshare Users Group - is a great place to get information and share information to help have better vacations through timeshare usage.

 

[AwayWeGo]

By buying timeshares resale & making reservations with an eye to thrift (off season, last call, etc.), timeshare vacationing can mean spacious luxury accommodations at Motel 6 & Super 8 rates.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[b2bailey]

Depends on your definition of the term 'investment' --

Is it --- a thing that is worth buying because it may be profitable or useful in the future.
OR
Is it -- an act of devoting time, effort, or energy to a particular undertaking with the expectation of a worthwhile result.

 

[dioxide45]

Financial Investment? No
Lifestyle Investment? Yes

 

[Luvtoride]

Financial Investment? No
Lifestyle Investment? Yes

Yes, If evaluated as pre-purchasing vacation accommodations that are:
- geographically diverse
- larger and more roomy than hotel or other vacation “rental accommodations”
- more flexible in usage I.e. different seasons/ time of year, size of accommodations (guest room up to 3 bedrooms) and desired views like oceanfront etc.

Also, if planned properly, I can achieve rental income from my timeshares at more than my annual maintenance fees. These annual “profits” would offset some of my initial investment(hopefully resale purchase price) in the timeshare.

Would I classify it as a retirement Investment akin to bonds, stocks or mutual funds…definitely No!


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[hjsweet2002]

Not really a financial investment. But an investment in making priceless and lasting memories with family, friends, and yourself. It is also an investment in yourself; taking vacations and going places you may never would have taken or gone.

 

[dougp26364]

I’m going to say, like any investment, it depends.

If you look at it like a real estate investment, then no.

if you buy direct from the developer, probably not. It would take years to recoup your initial investment. If you take into account the time value of money, you’ll likely never see a return on your money.

If you find a timeshare on the resale market, it’s probably a better investment if, and only if, you prefer higher end hotel rooms.

we recently spent 2 nights in a Hilton Presidential Suite. This was as close to a timeshare as we’ve ever come for a hotel room and it still fell short. It had the space, but lacked a full kitchen and washer dryer. The room, for 2 nights, was $1,080, and that was a bargain. The same style suite in Kansas City would cost $1,500/night. Maintenance fees for our most expensive (MF wise) timeshare was $2,100 last year. That $2,100 allows me at least 7 nights I. A unit that’s much nicer than the hotel suite we enjoyed.

Below are links to the timeshare ($2,100) and the hotel suite (2 nights for $1,080). I haven’t organized the album for the hotel suite yet and won’t until I have time in a couple of days. I’ll also include a Branson timeshare that has a yearly MF of $1,400 for a direct comparison (Marriott’s Willow Ridge Lodge) and one that would be easier to find as a free timeshare and has year

Hilton Convention center Branson, MO

Hilton Convention Center, Branson MO 10/21 - dougp26364

1 bedroom presidential suite 12th floor

dougp26364.smugmug.com

Grand Colorado on Peak 8

Grand Lodge on Peak 8 Colorado unit August 2021 - dougp26364

Colorado 2 bedroom unit

dougp26364.smugmug.com

Marriott’s Willow Ridge Lodge
https://dougp26364.smugmug.com/Travel/TImeshare/Marriott-s-Willow-Ridge-Lodge---

French Quarter Resort

Spinnaker’s French Quarter Resort - Branson MO 9/2018 - dougp26364

2 bedroom loft

dougp26364.smugmug.com

So, as you can see, it just depends and it depends on many different factors, NOT just dollars and cents. It also depends on comfort level, a persons ability to plan and how you like to travel., For the vast majority, I’m going to say renting a hotel room or something like VRBO will work best. For planners like me, I get far more mileage ou of our timeshares. I still explain it as the difference between driving a Chevy or a Cadillac. Both get you there, one cost more but is more comfortable. It just depends on how you want to travel.

 

[bogey21]

I look at TimeShares as buying an Option to acquire a weeks vacation, a lot like buying an Option on a stock. If you pay too much, it is not a good deal. If you buy it at the right price, it can be a great deal...

George

 

[joestein]

Theoretically, if you buy a timeshare resale and use it wisely, you might come out ahead on the total costs of your vacationing over a number of years vs going to hotels directly.

We gave back our Wyndham TS in the begining of 2020. We rented a timeshare the last two summers. 2020 - I paid $800/wk for a 1 bedroom unit at VA Beach - Ocean Club. 2021 - I paid $2000/wk for 2 bedroom at Myrtle Beach - Marriot Ocean Place.

As compared to the $1700/annual of my timeshares, I came out ahead over 2 years. Plus I went to places that I would not have been able to go to with Wyndham.

An investment - maybe more like future savings, if you are going to place you want to and would have to rent or pay rack rate for.

Joe

 

[CPNY]

It’s become more of an exciting hobby. I’m going on a catamaran in bora bora saving $9,000 by using my low cost point ownership. Sounds like a fun hobby to me. The ownership cost me a few hundred bucks

 

[noreenkate]

For my upcoming trip in February I used my annual points allocation timeshare points for same location as the hotel side to book a 2 bedroom unit that sleeps 9 for 5 adult- here is the cheapest standard hotel room for the same dates that will allow 5 adults subtotal for room before taxes is $3744.00

https://disneyland.disney.go.com/resort-add-ons/tickets/



at a minimum the points room saved me $2100+ - this is typical of our stays - while I dont claim that this is all owner experiences with all timeshares it has been IMO a worthwhile investment. Times that 2100 x 5 years of ownership and I have made back the cost of membership

 

[joestein]

For my upcoming trip in February I used my annual points allocation timeshare points for same location as the hotel side to book a 2 bedroom unit that sleeps 9 for 5 adult- here is the cheapest standard hotel room for the same dates that will allow 5 adults subtotal for room before taxes is $3744.00

https://disneyland.disney.go.com/resort-add-ons/tickets/

View attachment 40892

at a minimum the points room saved me $2100+ - this is typical of our stays - while I dont claim that this is all owner experiences with all timeshares it has been IMO a worthwhile investment. Times that 2100 x 5 years of ownership and I have made back the cost of membership

I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.

I think you need to take the initial cost into play.

 

[noreenkate]

I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.

I think you need to take the initial cost into play.

look I paid including closing costs $16k for my contract-( mostly resale) at the time disney allowed 25pt direct purchase add on full membership.
I think your over thinking MY investment….apples to oranges my friend you are talking about money invested into other areas and possibly recieving if a profit I am talking hotel stays vs maintenance fees. This is why I posted the room cost vs maintenance.

Well here is what actually went down - I set aside what I would have spent on onsite hotels for 2 years ( we didn’t vacation in that timeframe ) that money was never intended to do anything but vacation at disney.
seriously @joestein - I am not anywhere near an investment guru I don’t play those kind of games- I do know firsthand what I was averaging in hotel stays for heading to the parks year and what I pay now in dues- so for us it makes sense.

honestly if I never never vacation again I would also save thousands but thats not happening either.

oh and what I paid for my points compared to today is ridiculous how much it’s gone up even on the resale market in 5 years- at this point if I sold I would make back my cash cover the realtor fees and turn a slight profit - but never be able to stay on property again

 

[Luvtoride]

Not really a financial investment. But an investment in making priceless and lasting memories with family, friends, and yourself. It is also an investment in yourself; taking vacations and going places you may never would have taken or gone.

Hjsweet...very well put! I know it may sound corny to many but the opportunity to spend so many great times on vacation with our family is the BEST return on our Timeshare Investment. I could never equate that to dividends or interest on a conventional investment. That's what makes this question so difficult to answer/ quantify.

 

[joestein]

look I paid including closing costs $16k for my contract-( mostly resale) at the time disney allowed 25pt direct purchase add on full membership.
I think your over thinking MY investment….apples to oranges my friend you are talking about money invested into other areas and possibly recieving if a profit I am talking hotel stays vs maintenance fees. This is why I posted the room cost vs maintenance.

Well here is what actually went down - I set aside what I would have spent on onsite hotels for 2 years ( we didn’t vacation in that timeframe ) that money was never intended to do anything but vacation at disney.
seriously @joestein - I am not anywhere near an investment guru I don’t play those kind of games- I do know firsthand what I was averaging in hotel stays for heading to the parks year and what I pay now in dues- so for us it makes sense.

honestly if I never never vacation again I would also save thousands but thats not happening either.

oh and what I paid for my points compared to today is ridiculous how much it’s gone up even on the resale market in 5 years- at this point if I sold I would make back my cash cover the realtor fees and turn a slight profit - but never be able to stay on property again

I think the question is 'are timeshares investments'. Sorry if the idea of DVC not being a good value currently offends you somehow. Glad it works for you, but were you really spending $16K on on-site hotels during a 2 year period?

 

[noreenkate]

I think the question is 'are timeshares investments'. Sorry if the idea of DVC not being a good value currently offends you somehow. Glad it works for you, but were you really spending $16K on on-site hotels during a 2 year period?

yes - we were spending that in 2011 . when we first started considering DVC we were spending $800 a night with discount to stay in a 2 bedroom during school breaks 2x a year.

I am not offended by DVC not being considered a good value for you - if it’s not your thing than great - but for me it has worked out. But truly is DISNEY anything ever a great value-

as others here have said it comes down to how you use it and why.-

 

[noreenkate]

I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.

I think you need to take the initial cost into play.

again not a math student by any means so if you wouldn’t mind re running the numbers at 16k vs the 42 - in all honesty I would like to understand how that changes the payback period in your method - again not being argumentativewo like to see how you figure it now.

 

[CPNY]

I guess that is DVC.. You have to take into account the initial investment. How much is DVC point today? $200 from DVC? If so that means that the upfront cost for 210 points is $42K. At a savings of $2100 that is a payback of 20 years. Not a great investment. You could take 42K and at 8% a year earn $3,360 a year and add back the $1,600 in maintenance for a total of $4960. you can get the room for $3744 and pocket $1,200. or re-invest and continue to grow the investment.

I think you need to take the initial cost into play.

Agreed, however, we don’t know how much the OP paid for their initial point contract. I’d guess at least $10,500 since they said times the 2100 x 5 years of ownership and their made their money back.

I sold I would make back my cash cover the realtor fees and turn a slight profit - but never be able to stay on property again

That’s not true. I’ve owned RCI points for 3 years and I'm staying in my 3rd DVC room in January. Sure, I don’t have access to all of the resorts and the seasons are limited. But the seasons that are released in RCI are usually the high DVC point weeks. I’ve stayed in a savannah view AKL and I have two rooms in SSR which have been fully renovated. Considering I rent a car and drive to the parks, SSR is a perfect fit.

 

[joestein]

again not a math student by any means so if you wouldn’t mind re running the numbers at 16k vs the 42 - in all honesty I would like to understand how that changes the payback period in your method - again not being argumentativewo like to see how you figure it now.

again not a math student by any means so if you wouldn’t mind re running the numbers at 16k vs the 42 - in all honesty I would like to understand how that changes the payback period in your method - again not being argumentativewo like to see how you figure it now.

Well, everything changes. The difference you quote is current. The difference between rack rate and maintenance in the past when you bought it was most likely much smaller than it is today.

However, if you could buy 210 points for $16K or $76/point then the payback period would be 7.6 years. As a similar comparison earning 8% in the market (the average return over time) would net you $1280 plus savings of $1600 on maintenance, that would total $2,880 which would make DVC preferable.

 

[noreenkate]

Agreed, however, we don’t know how much the OP paid for their initial point contract. I’d guess at least $10,500 since they said times the 2100 x 5 years of ownership and their made their money back.



That’s not true. I’ve owned RCI points for 3 years and I'm staying in my 3rd DVC room in January. Sure, I don’t have access to all of the resorts and the seasons are limited. But the seasons that are released in RCI are usually the high DVC point weeks. I’ve stayed in a savannah view AKL and I have two rooms in SSR which have been fully renovated. Considering I rent a car and drive to the parks, SSR is a perfect fit.

at the moment I technically don’t own any other timeshares so that leaves me no access to RCI and i would be dependent on rack rooms and or discounts which would at this point price me out. ( I do have some eBay contracts pending though)

personally I love SSR- the memories that I have tied to that particular resort are priceless

 

[noreenkate]

Well, everything changes. The difference you quote is current. The difference between rack rate and maintenance in the past when you bought it was most likely much smaller than it is today.

However, if you could buy 210 points for $16K or $76/point then the payback period would be 7.6 years. As a similar comparison earning 8% in the market (the average return over time) would net you $1280 plus savings of $1600 on maintenance, that would total $2,880 which would make DVC preferable.

thanks - again I have only ever based my investment on cost effectiveness of dues vs hotel…so its good to see it from the other side also…

 

[CalGalTraveler]

Investment is a loaded word implying return on investment. Stocks, real estate etc.

Luxury items such as high-end cars. boats and RVs are not investments. But people still buy them because they provide fun and utility. Timeshares fall into that class.

The problem is the timeshare industry gives the impression that you are buying real estate when it is not this class of investment. The deeds lock you into the risk of real-estate without the associated reward for taking on the risk. Choose wisely (location, location, location plus season). There are great resale deals but it must be treated as a discounted future vacation. If maintenance fees and the purchase price over 10 - 20 years cost more than renting and you cannot sell for residual value, then why take on the obligation and risk? Rent a timeshare - don't buy.

Owning a timeshare is like flipping a house. You need to know what you are doing or you will get fleeced.

 

[joestein]

Investment is a loaded word implying return on investment. Stocks, real estate etc.

Luxury items such as high-end cars. boats and RVs are not investments. But people still buy them because they provide fun and utility. Timeshares fall into that class.

The problem is the timeshare industry gives the impression that you are buying real estate when it is not this class of investment. The deeds lock you into the risk of real-estate without the associated reward for taking on the risk. Choose wisely (location, location, location plus season). There are great resale deals but it must be treated as a discounted future vacation. If maintenance fees and the purchase price over 10 - 20 years cost more than renting and you cannot sell for residual value, then why take on the obligation and risk? Rent a timeshare - don't buy.

Owning a timeshare is like flipping a house. You need to know what you are doing or you will get fleeced.

Agreed, BUT.....
- You dont buy a luxury cars or boats in a high pressure sales presentation.
- You can easily find information on prices online.
- There is an established used market for those items.

All for renting a timeshare - that is the way I am going to go for the next few years. Maybe when we stop vacationing with the kids, we will consider a timeshare again. Maybe a cheap trader to access RCI extra vacations.