new to the concept

[kuo20012]

I'm new to the concept and I just can't wrap around my brain how this would be cost savings but I want to keep an open mind. I've never been to a presentation but have friends who have timeshares and they seem to enjoy it.

For me, paying $18k plus annual fees of up to $1k per year for just lodging, not food or transportation, seems a bit high. I can get lodging for decent hotel around $800 for a week. What does a timeshare offer that a hotel doesn't?

And if I want to buy a timeshare from someone, am I just buying the one week, or am I buying the deed?

Thanks.

 

[TUGBrian]

well you certainly found the right place! =) Welcome!

before going into details (because this is going to be a great thread)...would it make more sense to you or appeal to you more if you could eliminate that 18k upfront payment, and just had the yearly maint. fees?

 

[DeniseM]

It's almost never a good deal to buy from the developer, but you can buy the same thing (a deeded timeshare - usually for 1 week) on the resale market for 0-30% of the developers price. (Only the very top resorts go for 30% - most are closer to 0-5% on the resale market.)

Examples: TUG Bargain Deals Forum - http://www.tugbbs.com/forums/forumdisplay.php?f=55

As far as the yearly maintenance fees - what you want to do is look at the price to rent the same property, compared to the cost of paying the maintenance fee.

For example: The maintenance fee on my 2 bdm. ocean view condo that sleeps 9 at the Westin Ka'anapali on Maui is about $2,400. Seems high, right?

But to rent that same property from an owner would cost you $3,800, and to rent it directly from Westin would cost you around $8,000.

This is a high end example - the same theory applies at more modest properties.

I can get lodging for decent hotel around $800 for a week. What does a timeshare offer that a hotel doesn't?

Remember that timeshares are complete condos with all the amenities - not single hotel rooms - so don't compare it to the price of a hotel room at a discount hotel. Many timeshare resorts also have all the amenities that hotels do: pools, restaurants and bars, weight room, activities, etc.

 

[vacationhopeful]

You can RENT one week of a timeshare ownership .. that is called "renting".

If you BUY a timeshare, the ownership might be FOREVER (like your condo or house) or could be for a set term (like many Mexican timeshares .. different country & laws). Also you can buy a RTU timeshare ... sort of like a leasehold.

Generally, the term "timeshare" is for 1 7 night stay per year.

Savings: Not much (if any) if you buy from the developer ... those buy-in costs cover their development and marketing fees. But you GET the interval you want, when you want it, and usually, with EXTRAs thrown into YOUR contract or membership ... that ONLY stays with you, the original owner ... and/or some extra benefits for a set period of time.

Buying resale, MIGHT get you the same unit and general usage terms ... but the developers have been changing the "if you buy NOT from us", you usage of "club" benefits might be NOT FAVORABLE. Every system has different rules ... and conditions ... and costs.

Read and ask a LOT OF QUESTIONS .. even buying resale can be expensive in terms of MFs and added costs. And selling a timeshare is like trying to find a home for a "dog" ... a "very bad and smelling dog who eats everything in your house" ... AND lives 200 years.

 

[chapjim]

You can RENT one week of a timeshare ownership .. that is called "renting".

If you BUY a timeshare, the ownership might be FOREVER (like your condo or house) or could be for a set term (like many Mexican timeshares .. different country & laws). Also you can buy a RTU timeshare ... sort of like a leasehold.

Generally, the term "timeshare" is for 1 7 night stay per year.

Savings: Not much (if any) if you buy from the developer ... those buy-in costs cover their development and marketing fees. But you GET the interval you want, when you want it, and usually, with EXTRAs thrown into YOUR contract or membership ... that ONLY stays with you, the original owner ... and/or some extra benefits for a set period of time.

Buying resale, MIGHT get you the same unit and general usage terms ... but the developers have been changing the "if you buy NOT from us", you usage of "club" benefits might be NOT FAVORABLE. Every system has different rules ... and conditions ... and costs.

Read and ask a LOT OF QUESTIONS .. even buying resale can be expensive in terms of MFs and added costs. And selling a timeshare is like trying to find a home for a "dog" ... a "very bad and smelling dog who eats everything in your house" ... AND lives 200 years.

. . . and pees on the rugs.

 

[csxjohn]

I'm new to the concept and I just can't wrap around my brain how this would be cost savings but I want to keep an open mind. I've never been to a presentation but have friends who have timeshares and they seem to enjoy it.

For me, paying $18k plus annual fees of up to $1k per year for just lodging, not food or transportation, seems a bit high. I can get lodging for decent hotel around $800 for a week. What does a timeshare offer that a hotel doesn't?

And if I want to buy a timeshare from someone, am I just buying the one week, or am I buying the deed?

Thanks.

The same thing your friends are paying $18,000 for can be had for next to nothing. Then you are paying the annual fees in return for the use of that timeshare, usually for one week.

If you buy a timeshare you are buying the deed. If you are getting only one week you are renting it from the owner.

I've simplified this just to create an understanding of the general concept of timeshares.

 

[jancpa]

Ignoring the purchase price, you are comparing the 'value' of 7 days at Resort X with its annual maintenance fee to what it would cost you to rent similar accommodations at a hotel.

 

[presley]

And if I want to buy a timeshare from someone, am I just buying the one week, or am I buying the deed?

You can rent a timeshare from someone. If you buy, you will buy the deed and everything that comes with that.

Many of us like timeshares because they offer a lot more room. We can get 2 bedrooms, 2 bathrooms, a full kitchen and laundry in our room. It can be very nice to have that much space and to be able to pack lighter and do a load of laundry and to be able to have as many meals in our room as we want.

What I like about hotels is that I get my room cleaned by someone else if I need that. With a timeshare, I do all the dishes and removal of trash. It's a trade off. So, it really depends on how long I am staying somewhere. If I know I will only be in the room to shower and sleep, a hotel is better. If I need the full kitchen (and I normally do), a timeshare is better.

 

[Ty1on]

What I like about hotels is that I get my room cleaned by someone else if I need that. With a timeshare, I do all the dishes and removal of trash. It's a trade off. So, it really depends on how long I am staying somewhere. If I know I will only be in the room to shower and sleep, a hotel is better. If I need the full kitchen (and I normally do), a timeshare is better.

Fords and Chevys.....I usually request no Service when I stay in a hotel, anyway. And, besides the space, I find a kitchen to be very appealing when I am somewhere longer than a night or two. Dining out can costs as much as a basic hotel room.

 

[glmyers]

Consistency and Price

You can rent a timeshare from someone. If you buy, you will buy the deed and everything that comes with that.

Many of us like timeshares because they offer a lot more room. We can get 2 bedrooms, 2 bathrooms, a full kitchen and laundry in our room. It can be very nice to have that much space and to be able to pack lighter and do a load of laundry and to be able to have as many meals in our room as we want.

What I like about hotels is that I get my room cleaned by someone else if I need that. With a timeshare, I do all the dishes and removal of trash. It's a trade off. So, it really depends on how long I am staying somewhere. If I know I will only be in the room to shower and sleep, a hotel is better. If I need the full kitchen (and I normally do), a timeshare is better.

Some timeshares have maid service like a hotel, but I understand you're merely saying it is not the norm.

Likewise some hotels have the room of timeshares. The 2-bedroom suite I get when visiting my parents in Tucker, GA has everything found in most timeshares, but again it is not typical.

The value of a timeshare is in the consistency of the accommodations and the price advantage gained by the commitment to come back year after year. That price advantage can also translate into flexibility in location through paying to exchange for other timeshares. The price advantage only holds if the timeshare is purchased on the secondary market rather than from a developer, and the property is well managed with a strong financial position. (Remember to ask about collection trends and reserves when investigating a timeshare purchase.)

 

[LannyPC]

I'm new to the concept and I just can't wrap around my brain how this would be cost savings but I want to keep an open mind. I've never been to a presentation...

Despite what number crunching a TS salesperson might throw at you, the only real savings of using (whether it be renting or owning) a TS is perhaps the cost of eating. You can prepare your meals in a kitchen for much cheaper than eating out each day.

And there are very few weeks to own that have a positive value where the rental rate significantly exceeds the maintenance fees. If you can find one of those and using that particular week each year sounds feasible and desirable, then it just might be good cost savings.

 

[ronparise]

Not every week or every resort is a deal.

But hotels in New Orleans for Mardi Gras are going for over 300 a night ($2100 a week). My week at a New Orleans timeshare cost me $1 to buy and Maintenance fees are now at $560



Hotels in San Francisco go for over $300 a night. The maintenance fees on my San Francisco studio timeshare are under $600. now this one cost me $3000 (spread over 10 years $300 a year) So even having spent $3000 to buy, my annual cost for 10 years is still under $150 a night or half what a hotel would cost

Bargains?? I think so

 

[decadude]

This is my opinion

This is my opinion and for me personally I think timeshares bought via resell that trade well on the exchange networks are pound for pound the best option for me and my family and are one solid use of a timeshare.

For example my absolute best week I picked up for $1000 resale. The point allocation it brings several very cheap vacations for my family and I over the course of a year. So we can go on say 6 really good decent vacations annually the cost break down is as follows.

$1254 exchange fee x 6
$119 combine exchanges (maybe will have to do this once)
$90 annual rci (This is about what annual rci fee come out to paid in advance)
$850 annual maintenance

Total $2313

I think the economics are clear here you will see your return on investment pretty fast. They key is use your timeshare the problem is people not educating themselves on how to get the best utilization out of their timeshare.

Welcome though you officially have found the best site on the WWW that will allow you to gain the knowledge you seek for your endeavor. Try to lay out your goals whether short-term long-term or both.

For me I have multiple timeshares because I am blessed to be in a financial situation that allows this and it allows my parents and sister that otherwise would not have a means to vacation without my timeshares so I share.

Also I plan big summertime family get togethers

:whoopie:

 

[BJRSanDiego]

As a timeshare owner I travel using (1) my home week, (2) exchanges, (3) getaways (ii) and AC's. The average "all in" cost (MF, exchange fee, split fee, ii membership fee, etc.) was $75 a night.

Can I stay at a Motel 6 for $75 a night? maybe. But I am typically staying in either a 1 BR or 2 BR unit with beautiful amenities, pools, etc.

I'm a happy camper.

 

[DaveNV]

I think the smart money for you would be to rent a timeshare in a town you like, and compare the experience to staying in a hotel in the same part of town. You can decide for yourself whether it works for you, and how you enjoy vacationing.

For me, the space, convenience, and comfort of a timeshare makes a hotel very UNappealing. I like having a kitchen, a full-sized fridge, the ability to cook meals, and so forth. Having laundry inside the unit means I can pack lighter, and save money on baggage fees. Having a bedroom separate from the living area means I can stay up late, while my spouse hits the sack early, and neither of us is inconvenienced. It's like having my own vacation apartment.

As to purchasing, in my experience buying all my timeshares resale, the real ongoing cost of ownership is the maintenance fees. Because many timeshares can be had for $1, or less, about the only acquisition cost is the paperwork fees to change the deed. Many sellers will also pay those fees, so you can get into owning a very nice timeshare literally for free. You need to be cautious about what you buy, because not all timeshares are created equal. And it's very easy to get into owning a timeshare, but may be quite difficult getting out of one. Take your time, do your research, and know what you're getting. It can be great, if you do it right.

I own an oceanfront 1 bedroom/2 bathroom ~1000sf timeshare in a modest-but-comfortable resort in Hawaii, called Kauai Beach Villas. It has an unobstructable 180-degree ocean view, and is located about 100 feet from the water. Living room, full kitchen, dining area, free laundry in the unit, large master bedroom, and two bathrooms. Sleeps four very comfortably. I got it on eBay for less than $100 about ten years ago. I can reserve any week of the year, including holiday weeks, without paying extra. The 2016 maintenance fees were $1223.00 for a week, which is roughly $175 per night.

Contrast that with the high-end Aqua Kauai Beach Resort hotel on the same property, that rents a 320sf oceanview room for $370 per night, plus taxes. Holiday rates are higher. A week there would be $2590, plus taxes. No kitchen, no laundry, no separate bedroom, only one bathroom. True, they do have a great swimming pool complex, but timeshare owners can use the hotel pool for a modest daily fee.

You'll need to make up your own mind, but I can assure you, after you've stayed in a timeshare or two, you'll never want to go back to a hotel. It's a very different experience.

Dave

 

[WinniWoman]

Everyone uses timeshares differently. Some people like points and like to do a lot of exchanging (a cost comes with that) and planning. Others like to buy where they want to go- maybe within driving distance to save on airfare- and go there every year like a second home, and only exchange to go somewhere else occasionally.

I second that you should try renting timeshares for a while to get a feel of what you might like.

 

[shellmo1]

Be sure you can afford to travel regularly

I'm new to the concept and I just can't wrap around my brain how this would be cost savings but I want to keep an open mind. I've never been to a presentation but have friends who have timeshares and they seem to enjoy it.

For me, paying $18k plus annual fees of up to $1k per year for just lodging, not food or transportation, seems a bit high. I can get lodging for decent hotel around $800 for a week. What does a timeshare offer that a hotel doesn't?

And if I want to buy a timeshare from someone, am I just buying the one week, or am I buying the deed?

Thanks.

One thing to consider - a timeshare can be a savings if you buy well. The BUT is, are you the type of family that vacations once or twice a year on a regular basis? The MF's have to be paid every year regardless of life changes that may keep you from using your week or weeks. You can deposit them with RCI or II and have 2 years to use them but they will pile up. Also, buy something that you will use at least half the time. Exchanging is nice but you can't always get what you want. If you have to travel at peak times like school breaks, then buy a timeshare you can use at those times. Don't depend on an exchange to travel at those times. Also, don't have too high of expectations if you buy an "average" timeshare, don't expect to be exchanging into the top tier resorts. We love our 2 weeks but you have to go into it well informed and be sure the money is not a burden on your finances. Good Luck!!

 

[cowboy]

Timeshares force you to vacation which is a good thing. If you own at a resort you usually have priority over villas that you might not otherwise have if renting or trading into.

 

[taterhed]

I'm new to the concept and I just can't wrap around my brain how this would be cost savings but I want to keep an open mind. I've never been to a presentation but have friends who have timeshares and they seem to enjoy it.

For me, paying $18k plus annual fees of up to $1k per year for just lodging, not food or transportation, seems a bit high. I can get lodging for decent hotel around $800 for a week. What does a timeshare offer that a hotel doesn't?

And if I want to buy a timeshare from someone, am I just buying the one week, or am I buying the deed?

Thanks.

So: lot's of answers and lot's of suggestions. For a more complete and personalized response, please consider this:

If you want the best/most complete response, try my instructions below. You'll get lots of responses from lots of people. If you have strong inclinations, don't be too dissuaded; many people have strong opinions one/way or the other. Including me! Welcome.

http://www.tugbbs.com/forums/showthread.php?t=208742
When you click on the link above this line, it will take you to a thread on this forum (TUG). Read the first post. It is a series of questions that you can answer to help the members of this board give you some (educated) advice. It's easy: just click the link above and hit the "quote" button at the bottom of the first post. Then, a box will pop-up will the questions in it. Just answer each question as honestly as possible. when you're done, just click the "submit reply " button under the box. Your post will be moved (after being reviewed) to a 'new thread' where people can help you find what is right for you. If you don't see a response/new thread after a reasonable period of time, PM one of the moderators (DeniseM I think for what to buy) and they'll get it started. Good luck!!

A few things to expect/consider when you complete the questionnaire:

Answering the $$$ questions honestly is important--People buy for $1 and $35k--overspending won't necessarily improve your vacation experience
You will get a lot of replies. People like to help. Don't be overwhelmed.
Depending on your answers, you may get some very strong/biased advice.
It is not unusual for people to have 'back and forth' discussions about your answers--you won't necessarily understand it all. That's normal.
If you don't understand peoples advice...ask questions by 'quoting' the post
There are several 'stickys' or 'faqs' that contain basic TS advice in the "New to Timesharing? Look Here!" section. suggest you read these first.
You don't need to be an expert in timeshares to own or enjoy them...
No rush. Take your time. Don't Ebay something and regret it later.

Also, IMHO, the best advice given: Rent a timeshare in your normal/favorite/desired location and see if it's right for you.
Welcome again.

 

[decadude]

Many sellers will also pay those fees, so you can get into owning a very nice timeshare literally for free.
Dave

Very true statement and this outlines another reason why a timeshare is a way to go THE RESALE MARKET

Unfortunate for developers their selling of timeshares eventually created the resale market in which if someone knows about they simply cannot compete with and remain profitable.

One of the best timeshare deals I got I was paid $250 and charge nothing no closing no anything. I was paid $250 to take a timeshare at no cost. The even better thing is this timeshare had very low maintenance fees I was actually specifically after this timeshare and the timeshare has an amazingly high trading value.

 

[csxjohn]

One thing to consider - a timeshare can be a savings if you buy well. The BUT is, are you the type of family that vacations once or twice a year on a regular basis? The MF's have to be paid every year regardless of life changes that may keep you from using your week or weeks. You can deposit them with RCI or II and have 2 years to use them but they will pile up. Also, buy something that you will use at least half the time. Exchanging is nice but you can't always get what you want. If you have to travel at peak times like school breaks, then buy a timeshare you can use at those times. Don't depend on an exchange to travel at those times. Also, don't have too high of expectations if you buy an "average" timeshare, don't expect to be exchanging into the top tier resorts. We love our 2 weeks but you have to go into it well informed and be sure the money is not a burden on your finances. Good Luck!!

I disagree with both of these statements.

First, there are many biennial and triennial ownerships that can only be used once every other or every third year. If you only vaca once in a while buy one of these.

I have owned a couple timeshares that I've used for trading only and I've always found a vacation I want from those deposits. I currently own a 3br lockoff in Orlando that give me 4 exchanges every year. I have 3 years to use those exchanges. I will probably never go there myself.

In other words, everyone is different and there are timeshare ownerships out there to fulfill everyone's needs.

 

[VegasBella]

What does a timeshare offer that a hotel doesn't?

It all depends on the hotels and the timeshares but generally a timeshare is a full-on resort with pool, spa, gym, game room, etc. They vary quite a bit but most timeshares have amenities that typical budget motels do not. Furthermore, the rooms often have kitchens and separate bedrooms... they're generally larger, like large hotel suites.

We all have different preferences. I actually STRONGLY prefer a kitchen. For my family it saves a ton of money and time. When we stay in a hotel we spend so much time trying to figure out where to eat and then there's the time spent traveling to get food and eating...it takes so much longer than just cooking and eating in our room, going out to eat literally eats into our vacation. Plus there's the cost of going out to eat. And/or we eat from the minibar and order room service and then the bill just skyrockets.

With a kitchen we eat a fairly healthy, normal diet whilst on vacation (maybe a bit more wine and sweets than usual but still better than if we ate out every meal). So that way we have energy to do fun things while on our vacation and we don't come home fatter than normal.

It really makes it a whole lot easier for us to vacation, like seriously we can vacation twice as often if our rooms have kitchens. I know this isn't a priority for everyone, we're all different. But for me and my family, the kitchen is a big deal.

 

[rjpdkp]

One thing to consider - a timeshare can be a savings if you buy well. The BUT is, are you the type of family that vacations once or twice a year on a regular basis? The MF's have to be paid every year regardless of life changes that may keep you from using your week or weeks. You can deposit them with RCI or II and have 2 years to use them but they will pile up. Also, buy something that you will use at least half the time. Exchanging is nice but you can't always get what you want. If you have to travel at peak times like school breaks, then buy a timeshare you can use at those times. Don't depend on an exchange to travel at those times. Also, don't have too high of expectations if you buy an "average" timeshare, don't expect to be exchanging into the top tier resorts. We love our 2 weeks but you have to go into it well informed and be sure the money is not a burden on your finances. Good Luck!!

We bought where we like to go and that is where we go. When younger we went to hide and get a break from the kids. Now we are older and our kids and relatives use it. We have exchanged twice in 30 years. One of our timeshares owns units in 7 regions and 41 resorts, so we don't belong to a trading firm like II or RCI.

The bottom line is DO YOUR RESEARCH. Rent a week and stay before you buy.

 

[rog2867]

Free for some

I will add my thoughts. While it is correct you can get time shares for little to nothing, you are not getting an ocean front 2 bdrm lock off unit in Hawaii for that. I own in KA'ANAPALI hawaii, a 2 brdrom lock off, also in ST. John a 2 bedroom, you are not going to find those resorts in the bargain basement listings for free or little to nothing. It really all depends on where you want to vacation. If you want to go to Florida often time shares there can be had for just the closing costs and no more. Also at least with Starwood if you buy from the developer or can get a mandatory resort you can trade that in for star points. Like it has been said best to rent one where you might want to vacation and see if you like it. Time shares are condo's that have sunken tubs, and full kitchens and washers and dryers, dining rooms, living rooms etc not just a hotel room that has a bed.

 

[DeniseM]

I will add my thoughts. While it is correct you can get time shares for little to nothing, you are not getting an ocean front 2 bdrm lock off unit in Hawaii for that.

Not true - I own multiple ocean front weeks in Hawaii that I got for free.

Also at least with Starwood if you buy from the developer or can get a mandatory resort you can trade that in for star points.

No offense - but trading for Starpoints is a really poor value. When you calculate the cost of your upfront cost and maintenance fee, it would be cheaper to just buy the Starpoints.