JPinCO
newbie
Location: Grand Lodge at Peak 7 in Breckenridge
Property: 1 BR biennial Spring / Fall, Week 16 (definitely the off-season for skiing).
Costs: ~$11K for property, annual fees of $240, pmt of $160/month
Us: We were avid skiers before we got married (~20 days a year), we now have two kids (1 and 3) and we want to get them out skiing as soon and as much as possible. We also hike, mountain bike, etc; and intend to get them into mountains as much (if not more) during the summer as the winter.
We signed the paperwork yesterday (8/21), so we have 4 days left on rescission. Obviously, this is our first timeshare, and we had no intention of actually signing up before attending. We made the decision based on a few factors, but I'm still so unfamiliar with this kind of investment that I need to have a sounding board. Here were our reasons, which are perhaps a little different form other timeshares:
Primary) Ownership includes "resort privileges" as a club member, which means that we have day use access to all the facilities even if we're not staying there. Parking, ski in/out, fantastic kid facilities. We live 1-1/2 hours away, so the resort is very accessible. Those of you who ski know how much of a major hassle it is just to park at a resort - village garage parking at Vail is now $35 a day and is no where near slope side. Those of you with toddlers know that there range of attention / threshold for cold weather / duration without naps is very limited. So the convenience of having that facility, especially when you're investing in ski passes etc, is huge.
Secondary) The resort offers "Bonus Time" prices for unfilled rentals throughout the year at discounted prices (<14 days in advance); from $59 a night for offseason weekdays to $209 a night for ski season. Weeks like xmas would be booked so those won't be available, but I have no interest in going skiing during those times anyway.
Tertiary) Ownership includes membership to Interval, so the options to exchange for vacations elsewhere is a pretty big deal now that we actually have to plan out stuff with the kids.
Now, I know it's contrary to reason to purchase a timeshare to use primarily as a day-trip base, but this is the reality of most folks who ski from the Denver area where we live. Having the ability for my wife to take the kids while I ski in the morning, and vice-versa in the afternoon, is big. Sitting in a crowded lodge with a kid who needs to be entertained is a crappy option. The catch is that we have to call in 7 days in advance to get a parking spot (which I understand fill up quickly), but I have to plan everything in advance anyway these days. Our jobs allow a certain degree of flexibility, so we will likely use the facilities on weekdays year round sometimes as well. And the facilities are really, really nice; especially for the kids.
I have a lot to learn about the exchange process, but as I indicated above, right now the use / non-use of my week is not as important. If it all work out, we may look to upgrade to a bigger property and/or in the ski season expand our options to better leverage rentals, etc. The sales guy said the day privileges would transfer after sell-though; but it sounds like that could change & that could subsequently change the value of the property in 2013 when build out is complete. It's a concern, but not a huge one if we can get the use out of it in the first 5 years that I think we will. I eventually expect to exit the property in 5-7 years and look at buying a single-family property outright elsewhere in the mountains when the boys are older and we can afford it (which we can't right now).
I'm looking at it this way: In the first couple of years while our kids are pretty young, we'll take advantage of the day-use privileges about once a month (I think it'll be more, but I'll be conservative). We'll probably stay up there overnight probably 10 nights a year on bonus time, because I have friends who come in for a long weekend for skiing usually in February; plus we'll do some Spring / Summer / Fall weekends. I suppose that will average about $125 a night (a high estimate), so that'll be another $1250 a year in lodging costs on top of the note. In aggregate, that's around $3400 for 10 nights, or about $340 per night in straight cost (of course a portion of that will go into equity and some degree of tax deductibilty).
The day-use convenience is pretty significant - I would say that it would be very difficult to get those days in without parking, ski in/out + the facilities - but I'll give a conservative estimate of $100 per day, so that takes the nightly cost down to $220 per night. That's about the cost of the Holiday Inn in Frisco for a non-holiday weekend in February.
So - I would love to hear some of the more sophisticated users take a critical look at my rationale. And if there are other owners at Grand Lodge in CO that can chime in, there's a beer waiting for you at the lodge for any insight you can provide.
Thanks!
Property: 1 BR biennial Spring / Fall, Week 16 (definitely the off-season for skiing).
Costs: ~$11K for property, annual fees of $240, pmt of $160/month
Us: We were avid skiers before we got married (~20 days a year), we now have two kids (1 and 3) and we want to get them out skiing as soon and as much as possible. We also hike, mountain bike, etc; and intend to get them into mountains as much (if not more) during the summer as the winter.
We signed the paperwork yesterday (8/21), so we have 4 days left on rescission. Obviously, this is our first timeshare, and we had no intention of actually signing up before attending. We made the decision based on a few factors, but I'm still so unfamiliar with this kind of investment that I need to have a sounding board. Here were our reasons, which are perhaps a little different form other timeshares:
Primary) Ownership includes "resort privileges" as a club member, which means that we have day use access to all the facilities even if we're not staying there. Parking, ski in/out, fantastic kid facilities. We live 1-1/2 hours away, so the resort is very accessible. Those of you who ski know how much of a major hassle it is just to park at a resort - village garage parking at Vail is now $35 a day and is no where near slope side. Those of you with toddlers know that there range of attention / threshold for cold weather / duration without naps is very limited. So the convenience of having that facility, especially when you're investing in ski passes etc, is huge.
Secondary) The resort offers "Bonus Time" prices for unfilled rentals throughout the year at discounted prices (<14 days in advance); from $59 a night for offseason weekdays to $209 a night for ski season. Weeks like xmas would be booked so those won't be available, but I have no interest in going skiing during those times anyway.
Tertiary) Ownership includes membership to Interval, so the options to exchange for vacations elsewhere is a pretty big deal now that we actually have to plan out stuff with the kids.
Now, I know it's contrary to reason to purchase a timeshare to use primarily as a day-trip base, but this is the reality of most folks who ski from the Denver area where we live. Having the ability for my wife to take the kids while I ski in the morning, and vice-versa in the afternoon, is big. Sitting in a crowded lodge with a kid who needs to be entertained is a crappy option. The catch is that we have to call in 7 days in advance to get a parking spot (which I understand fill up quickly), but I have to plan everything in advance anyway these days. Our jobs allow a certain degree of flexibility, so we will likely use the facilities on weekdays year round sometimes as well. And the facilities are really, really nice; especially for the kids.
I have a lot to learn about the exchange process, but as I indicated above, right now the use / non-use of my week is not as important. If it all work out, we may look to upgrade to a bigger property and/or in the ski season expand our options to better leverage rentals, etc. The sales guy said the day privileges would transfer after sell-though; but it sounds like that could change & that could subsequently change the value of the property in 2013 when build out is complete. It's a concern, but not a huge one if we can get the use out of it in the first 5 years that I think we will. I eventually expect to exit the property in 5-7 years and look at buying a single-family property outright elsewhere in the mountains when the boys are older and we can afford it (which we can't right now).
I'm looking at it this way: In the first couple of years while our kids are pretty young, we'll take advantage of the day-use privileges about once a month (I think it'll be more, but I'll be conservative). We'll probably stay up there overnight probably 10 nights a year on bonus time, because I have friends who come in for a long weekend for skiing usually in February; plus we'll do some Spring / Summer / Fall weekends. I suppose that will average about $125 a night (a high estimate), so that'll be another $1250 a year in lodging costs on top of the note. In aggregate, that's around $3400 for 10 nights, or about $340 per night in straight cost (of course a portion of that will go into equity and some degree of tax deductibilty).
The day-use convenience is pretty significant - I would say that it would be very difficult to get those days in without parking, ski in/out + the facilities - but I'll give a conservative estimate of $100 per day, so that takes the nightly cost down to $220 per night. That's about the cost of the Holiday Inn in Frisco for a non-holiday weekend in February.
So - I would love to hear some of the more sophisticated users take a critical look at my rationale. And if there are other owners at Grand Lodge in CO that can chime in, there's a beer waiting for you at the lodge for any insight you can provide.
Thanks!
