Is timesharing cost effective?

[XM202]

New member here. Here is my situation. There is an area in Florida (Key West) where I am considering buying a resale TS. Where I want to be goes for around 5-7K on the resale market (Ebay/Redweek). The MF is around $1000 yearly. But I also see weeks for rent at these places go for $600-$800 on EBay. So here is where I am stuck. Why would I outlay 5-6K plus pay a main fee every year when I can just rent a week each year off of a current TS owner. I pay less each year and do not have the initial cost outlay. Am I missing something here? What would I gain by being an owner? Thanks in advance.

 

[RMitchell]

And...you wouldn't have to pay special assessments either. Sounds like you have a plan.

 

[DeniseM]

Welcome to TUG!

Florida is over-built so renting may be the best deal.

I dont know what the TS is, but $6-7K is pretty high for a resale in today's economy - especially in Forida. Remember that someone can ask anything they want, that doesn't mean they will get it. Many of the timeshares for sale will never be sold because they are over-priced - especially in this market. You might want to check completed sales on ebay to see if this resort has sold on ebay recently - that will be more accurate than "asking" prices listed on websites.

Good luck!

 

[aliikai2]

Many times rentals for off season weeks,

will go for very little, and if that is when you wish to visit, by all means this is the way to go.

If on the other hand you want to visit during the PRIME weeks, I think you will find the rent then is 2 to 3 times what your annual fees would cost.

You will always see the odd special case where someone has had a change in their plans due to unforeseeable causes, that rents trying to get back most of their annual fees, but these aren't always going to be available.

You need to decide if you can live with the possible rental, or if you want to plan your travel in advance.

fwiw,

Greg

New member here. Here is my situation. There is an area in Florida (Key West) where I am considering buying a resale TS. Where I want to be goes for around 5-7K on the resale market (Ebay/Redweek). The MF is around $1000 yearly. But I also see weeks for rent at these places go for $600-$800 on EBay. So here is where I am stuck. Why would I outlay 5-6K plus pay a main fee every year when I can just rent a week each year off of a current TS owner. I pay less each year and do not have the initial cost outlay. Am I missing something here? What would I gain by being an owner? Thanks in advance.

 

[geekette]

No, you aren't missing anything. In many cases, owning does not make economical sense. Cheap rentals abound.

If you can reliably go where you want without owning, no reason to own.

There's the rub - if Key West is where you want to be every year at the same time, do you believe you can reliably score a cheap rental there every year? If you can, are the accomodations to your standards? If either of these is to the negative, buying may be a better idea to suit your plans.

One of the key reasons to buy is to guarantee yourself the location, resort and quality that you want. If these are flexible, renting can be a great way to go.

 

[XM202]

Hyatt Key West

I am looking at all three of the Hyatt properties on Key West. I have researched and found prime week TS to go in the 5-6k range. They were originally 20k from the developer. Thank you for the responses, but when I crunch the numbers, buying a resale even at those prices makes little sense.

 

[london]

Resale vs Renting

I am looking at all three of the Hyatt properties on Key West. I have researched and found prime week TS to go in the 5-6k range. They were originally 20k from the developer. Thank you for the responses, but when I crunch the numbers, buying a resale even at those prices makes little sense.

Renting appears to be a better option for you.

If maintenance fee's are 1000 and you can rent week for 1500, then your net cost is 500 more per week.

You could rent for 10 years, and pay only 5K extra. Not counting for inflation on Maintenance fees or rental fee increases.

Plus you are not tying up 5 or 6K at one time.

Why some people pay 25K and more for a week of timeshare is a good question.

 

[Carmel85]

I am looking at all three of the Hyatt properties on Key West. I have researched and found prime week TS to go in the 5-6k range. They were originally 20k from the developer. Thank you for the responses, but when I crunch the numbers, buying a resale even at those prices makes little sense.

Im not sure what you are considering prime weeks?

We bought Hyatt because when we want to say in prime weeks winter or summer it costs $800 to $2000 per night at some of the great Hyatt resorts and most of the time when we tried to rent before we bought Hyatt it was very tough prime weeks.

How many points where you buying at hyatt for 5-6K?

 

[pranas]

Welcome to TUG!

Florida is over-built so renting may be the best deal.

I dont know what the TS is, but $6-7K is pretty high for a resale in today's economy - especially in Forida. Remember that someone can ask anything they want, that doesn't mean they will get it. Many of the timeshares for sale will never be sold because they are over-priced - especially in this market. You might want to check completed sales on ebay to see if this resort has sold on ebay recently - that will be more accurate than "asking" prices listed on websites.

Good luck!

I don't think this applies for a nice resort in Key West.

 

[AwayWeGo]

Pick Your Own Cost Level. Ditto Effectiveness Level.

Via (resale) timeshares, we are able to enjoy luxury accommodations at roughly Motel 6 & Super 8 rates.

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

 

[frankhi]

I bot a week at the hyatt beach house for 6700 about five years back. Just paid the maintance fee, it was 843. Every year we use the points to go to the Hyatt Sunset Harbor for 4 nts in a 2 br, and a week in a 1br at one of the Royals in Cancun or one of the Marriotts in Aruba. Have never had an exchange problem.


btw, because of resale timeshares, we are able to stay 7 nts in what would be a suite in the hotel section at the Kauai Marriott and also 7 nts at the Maui Marriott for 200/nt.

 

[derb]

Via (resale) timeshares, we are able to enjoy luxury accommodations at roughly Motel 6 & Super 8 rates.

This is the best sumation I have ever read. Short and on the mark.

 

[julienjay]

Would it be worth it to buy a cheaper timeshare elsewhere and then trade into Key West? (Although that is a tough trade, yes?)

The reason I ask is that I bought a Palm Canyon timeshare (two actually) in Palm Springs for about $500 each (that includes closing costs) on eBay. Maintenance fee is about $500 a year.

So far I am into year 2 and have traded into 2-BR units at Four Seasons Troon and Four Seasons Aviara, two places I could never afford to buy in a million years!

But I have seen trade availability to DVC, Maui, even Key West. It all depends if you need to go at prime times.

(Plus I have rented 4 cheap Getaway weeks at Marriott in Palm Springs for about $350 a week for 2-BR units this year, which was kind of a bonus.)

So for me, YES, time-sharing is VERY cost-effective!

 

[djs]

One thing to keep in mind is if these are exchanges/getaways that are being rented on eBay. If they are, then there's always a risk that II will find out and cancel the reservation; you may not even find out until you get to the resort. BUT if these are owners, renting out their owner weeks then that's the way to go.

 

[mqlet]

Would it be worth it to buy a cheaper timeshare elsewhere and then trade into Key West? (Although that is a tough trade, yes?)

The reason I ask is that I bought a Palm Canyon timeshare (two actually) in Palm Springs for about $500 each (that includes closing costs) on eBay. Maintenance fee is about $500 a year.

So far I am into year 2 and have traded into 2-BR units at Four Seasons Troon and Four Seasons Aviara, two places I could never afford to buy in a million years!

But I have seen trade availability to DVC, Maui, even Key West. It all depends if you need to go at prime times.

(Plus I have rented 4 cheap Getaway weeks at Marriott in Palm Springs for about $350 a week for 2-BR units this year, which was kind of a bonus.)

So for me, YES, time-sharing is VERY cost-effective!

What weeks and how big are your units in Palm Canyon? Also, which trading company are they with? They sound like pretty sweet traders!

Thanks!

 

[julienjay]

II - both times I have used 1-BR President's Day weeks

I have been lucky so far! YAY!

 

[duck_widow]

Thanks Julienjay for the info on Palm Canyon. I'm in the same boat - thinking of just renting. We like to take the kids out of school and vacation in October to avoid crowds and craziness. Although if I could pick up a cheap, good trader with low MFs (such as Palm Canyon) that might also be a way to go.

You said your MFs were about $500. What is your total trade cost after paying the fees? I assume you'd need an II membership and also have to pay an II fee.

Would that trade into Marriott Newport Coast Villas in October?

Thanks so much,
-Kathy

 

[julienjay]

$139 exchange fee in II, and also membership fees are something like $78 a year (I think).

These are the available dates I can see right now at Marriott Newport Coast Villas in II, but it changes day to day:

Nov 29 2008 - Dec 06 2008
2 BR

Sep 18 2009 - Sep 25 2009
2 BR

Sep 19 2009 - Sep 26 2009
2 BR

Sep 20 2009 - Sep 27 2009
2 BR

Sep 25 2009 - Oct 02 2009
2 BR

Good luck!

 

[duck_widow]

Wow that's great!

Do you trade a 1bd or 2bd? How many points do you need to trade for a 2bd somewhere else? Do you have annual or EOY usage?

The pool at Palm Canyon looks amazing! Kid heaven.

Thanks again.

 

[julienjay]

We have 133 points and normally book a 1BR (but have always traded into a 2BR thus far, knock wood)

We have EOY usage but we own two timeshares there so essentially have every year.

 

[MaryH]

XM202,

If you are talking 5-7K, then I guess you are looking at Bronze or Silver 1300-1400 point weeks. M/F are over 1100 at Sunset Harbour, around 1000 at Windward Point and about $900 for Beach House.

If you alway go in a 2bdrm in a low season being booked 2-3 months out, then you may be better off renting or trying to exchange then owning. I have exchanged into Beach House twice (2006, 2008) using an IPV blue week in II since it is light red and I booked in flex change or just outside it. For me the M/F plus exchange fee is around $500.

I am planning to buy a Hyatt week since this gives me flexibility in booking the size I need studio and 1bdrm if I am alone or only traveling with 1 other person sometimes vs 2 bdrm if some friends are travelling with me. Also the partial week could be very useful for me since I can book weekends or 2-4 day weekdays. I don't often take vacation for a full week. The last 3 exchanges I made, I was only there for about 5 days each, although for one 1 a friend arrived earlier so the whole week was used. The others the unit was empty for a few days. Also it give me options to book Carmel and some other locations. Alternatively, it also give me the option of a smaller unit in higher season at a reasonable cost.

 

[jkahunas]

I've come to the same conclusion before - that owning doesn't work for me because I have just gone and rented at less than the MF. I don't have a regular location or week that I want.

I do have an additional question: Several folks have referenced "Getaway" weeks. Can someone point me to information on those? Is that another way to rent?

Thanks,
- J

 

[theo]

Several folks have referenced "Getaway" weeks. Can someone point me to information on those? Is that another way to rent?

"Getaway Weeks" is a term used by Interval International for their rentals. RCI calls its' comparable program "Extra Vacations".....although RCI also "rents" through numerous, assorted other channels too, including directly to the (non-RCI member) general public.

However, you must actually own an II affiliated timeshare to join II in the first place, in order to then be able to access those II "Getaway Weeks".

 

[calgarygary]

I'm still new to the whole ts way of vacationing but it has worked for us. We used our staroptions to trade into Harborside this year at a cost of apx. $120/night for a 2 bedroom and got our daughter a gc through II for a 2 bedroom at Vistana Villages for an avg. of apx. $75/night. You can't come close to that combination of quality accomodations in great resorts for that cost in the non ts world.

 

[PeelBoy]

Interesting topic.

I have owned timeshare for 12 years, but started tracking the expenses since 2007. Now I own 4 TS and have access to 4 exchange companies (II, RCI, DAE and Redweek), so a spread sheet is absolutely necessary for better management.

In the past 3 years from 2007 to 2009, I have gone to or will go to Williamsburg, Cancun, Hungary, Myrtle Beach, Cabo, Paris, Rome, San Francisco, San Diego (FSA), Vegas, South Lee and Madrid.

The number of days is 133 days. The total expenses (MF + exchange fees) is $9,210.25. The average cost per day is $69.25.

I still have 1 week with DAE and 1500 points with Redweek which I have not decided what to do. Probably I will save the DAE week for a week in UK where accommodation is costly, and the 1500 points for two weeks in Asia, either Thailand or Indonesia.

If I add 21 days to 133, I will have a total of 154 days and the average cost per night will be $59.81.

Is it cost effective paying $59.81 per night for FSA, Royal Sands, Grand Mayan, Donatello, Hycinenda Encanta, Marriott Grand Chateau and in those expensive cities like Rome, Paris and Madrid?