Timeshare Cost of Ownership Spreadsheet

[marcusa]

Hey there.
Does anyone have the Timeshare Total Cost of Ownership Spreadsheet they can share? Saw it listed here: http://tug2.net/timeshare_advice/tug_timeshare_advice1.shtml but it looks like the spreadsheet was removed as the line (https://tug2.net/Timeshare_Ownership_Cost_Comparison.xls) has is broken.

Thanks!

 

[marcusa]

Ultimately, I'm attempting to convince my wife (and myself) that a timeshare is a better deal than just renting a room from the developer every year.

I ended up attempting to create my own Cost of Ownership sheets in Google Sheets.
It tracks the cost of owning a timeshare vs the cost of renting the equivalent room from the developer. I'm basing my costs on my ideal week at the Marriott Waiohai and a similar unit available on Redweek.

This doesn't take into affect RCI or II membership costs or exchange costs.

I ask that you please look this over and let me know if I'm on the right track, completely off course, or just missing some misc fees/taxes/resort fees, etc..
Let me know! Thanks!

https://docs.google.com/spreadsheets/d/1dNEe1SMvbkjQLaALRVo9KlIGoVmanCpmF86Na_-U2Rw/edit#gid=0

 

[Steve Fatula]

That will be difficult as you cannot predict the future. For example, you both get sick and you can't travel any more ever again (you just lost your money with TS, unless you were very smart about how you did it). Etc. So, sure, you can come up with some numbers as a best guess, but, it won't prove anything. Also, there are different reasons for timeshare, money can be one but not the only one. For example, some like that it "forces" them to take trips, or, that they go places they likely would never have gone. Others, don't like the risk of things changing in their lives, etc.

It should include all costs including II, RCI.

In some cases, you can indeed come out cheaper. But, it's always based on assumptions. Can you figure out the ideal way to use it, the ideal thing to purchase, etc. I just don't see how you can do this very effectively. But YMMV. In my case, it's easier to look back in time and be very pleased with how things have turned out. There are definitely a lot of folks here who seem quite happy! Certainly not all.

 

[Mosescan]

Ultimately, I'm attempting to convince my wife (and myself) that a timeshare is a better deal than just renting a room from the developer every year.

I ended up attempting to create my own Cost of Ownership sheets in Google Sheets.
It tracks the cost of owning a timeshare vs the cost of renting the equivalent room from the developer. I'm basing my costs on my ideal week at the Marriott Waiohai and a similar unit available on Redweek.

This doesn't take into affect RCI or II membership costs or exchange costs.

I ask that you please look this over and let me know if I'm on the right track, completely off course, or just missing some misc fees/taxes/resort fees, etc..
Let me know! Thanks!

https://docs.google.com/spreadsheets/d/1dNEe1SMvbkjQLaALRVo9KlIGoVmanCpmF86Na_-U2Rw/edit#gid=0

Your first mistake is financing a timeshare. Look for a different TS or a different system that you can pay cash for. You should never finance a luxury item and TS are a luxury item. If you ever fall behind on your payments, you now “own” a TS you can’t even use.

 

[OKPACIFIC]

Hey there.
Does anyone have the Timeshare Total Cost of Ownership Spreadsheet they can share? Saw it listed here: http://tug2.net/timeshare_advice/tug_timeshare_advice1.shtml but it looks like the spreadsheet was removed as the line (https://tug2.net/Timeshare_Ownership_Cost_Comparison.xls) has is broken.

Thanks!

+1 on not financing a timeshare purchase. As far as the spreadsheet, I would recommend (1) you should use redweek/vrbo/Air b&b rental prices that are out there for the same property you are evaluating as your alternate cost. (2) assess a cost of money each year, that is, what you could have earned in interest if you had not spent the money on a timeshare.(3) You could also put some sort of cost of disposal of the timeshare at the end the study period. Depending on the quality of the property, you could have a minimal positive value (pennies on the dollar), but to be conservative, you should estimate that you will have to pay someone to take the timeshare off your hands.

Good work on your study, and looking at timeshares in an analytical way. That puts you miles ahead of a lot of people.

 

[taterhed]

A few comments:

• Financing a timeshare is not a good idea. Save and purchase.
• Timeshares make sense if you would normally take vacations and spend an amount on hotels/resorts that's close to MF's. If you usually stay at the Holiday Inn for $99 a nite, then you will not be able to justify the cost.....
• Hotels, VRBO's and AB&B do NOT necessarily equate to a timeshare. Yes, you can rent timeshares off VRBO or AB&B, but compare apples to apples. Sure you can rent somebodies spare bedroom for $200 a nite on VRBO, but that's not a week at a Marriott or HGVC timeshare.
• Our logic was: We are not taking regular vacations or enjoying where we stay. We are spending way too much time searching and scheming for a 'cheaper and better deal' at the last moment. We can afford this much for vacation....and we're not financing/spending above our means. We can book at 12 mos or 30 days (if available) for the same price. I'm tired of eating every meal at a restaurant (work, vacation, you name it).
• If you buy a 'b-grade' timeshare (not Marriott or HGVC, Westin etc...) then expect to spend less and get (as low as) nothing back. If you buy a major hotel chain timeshare at a bargain, expect to get a good portion of your money back. Buying a $10,000 dollar Marriott and marking down the value at $0 on return might be conservative, but it's a bit unrealistic IMHO. Of course, don't spend money on timeshares you can't afford to loose--worst case.

Good luck.
Patience grasshopper....

 

[DeniseM]

+1 - financing a timeshare destroys any cost savings. Buy resale and save 75-100% over retail.

Have you seen our forum for FREE timeshares? https://www.tugbbs.com/forums/index.php?forums/bargain-deals.55/

 

[marcusa]

Thanks for the suggestions, all!

100% agree on not financing. Under the Settings, tab I can adjust whether the purchase is made via cash or financing, and if financing I can adjust the terms (length/interest rate) to reflect different scenarios. I'll be adding lost investment cost soon.

Was more curious about whether or not there are additional yearly fees Im missing on this. I know there are membership fees for II/RCI and fees for exchanging etc. Anything on top of that?

+1 - financing a timeshare destroys any cost savings. Buy resale and save 75-100% over retail.

Have you seen our forum for FREE timeshares? https://www.tugbbs.com/forums/index.php?forums/bargain-deals.55/

Definitely have been looking there. Would be looking for a nicer resort style timeshare so I'm sure those go quick, if they are listed at all.

 

[DeniseM]

Just to clarify - II and RCI are not mandatory purchases, (most resorts are only affiliated with one, anyway) and with a new timeshare, you are likely to want to use it for a few years before you trade it, so I would not include II and RCI at first.

Some resorts have local taxes - Hawaii has a state tax paid at check-out, which varies from about $10-$20 per night, depending on the resort/size.

 

[marcusa]

Just to clarify - II and RCI are not mandatory purchases, (most resorts are only affiliated with one, anyway) and with a new timeshare, you are likely to want to use it for a few years before you trade it, so I would not include II and RCI at first.

Some resorts have local taxes - Hawaii has a state tax paid at check-out, which varies from about $10-$20 per night, depending on the resort/size.

Yep! I'm adding to it to add in exchange fees every X years.

 

[Steve Fatula]

Just to clarify - II and RCI are not mandatory purchases, (most resorts are only affiliated with one, anyway) and with a new timeshare, you are likely to want to use it for a few years before you trade it, so I would not include II and RCI at first.

Some resorts have local taxes - Hawaii has a state tax paid at check-out, which varies from about $10-$20 per night, depending on the resort/size.

II can be required, in Marriott points purchases, you must pay the annual fee. I forgot the name of the fee, but its based on your benefit level. So, depends what he buys. You may not call it an II fee.

 

[taterhed]

It's all in the MVC points sticky

All Members must pay the annual Club Dues fee which is based on the number of DC Points that a Trust Member owns, or, for which an Exchange Member is eligible through all Enrolled Weeks, or, a combination of both. Effective with the 2018 invoices the fees are:

• $195 Owners and Select Members
• $235 Executive and Presidential Members
• $260 Chairman's Club Members

(Historically at the DC introduction these fees ranged between $165 and $199; previous increases occurred in 2013 and 2016.)

• The Club Dues fee covers a corporate membership in Interval International's external exchange system, as well as most Marriott and II administration and transaction fees for DC Trust and DC Exchange Members.
  
• The Club Dues fee for DC Trust Members is included as a component of the annual MF's invoice, with a payment due date of December 1.
  
• The Club Dues fee for DC Exchange/Enrolled Members is invoiced separately from the Weeks MF's bills, with a payment due date of December 10.

 

[Steve Fatula]

You are also missing property taxes, assuming you buy a non points TS, at least for Marriott.

I am sure it is in the sticky. My problem is I am working with one hand for a few months. So, slow!

 

[marcusa]

tl;dr - RTFStickies

Since I'm basing my sheet solely on Marriott legacy week resale, can a mod move this to the MVC sub forum?

 

[WinniWoman]

I have rented timeshares and the most I ever paid- directly from the resort- is about $2000 for a full 8 days. Privately it has varied from about $900 to $1500.

Then you have to consider not financing a timeshare as that is a very bad idea altogether.

If you buy where you want to go each year-with minimum exchanging- just using the small exchange companies once in a while-you just have the maintenance fees and no exchange fees or membership fees. My maintenance fees run from $900+ to $700+ per week. I have drive-to, fixed weeks and just show up every year.

No scheming or pre-planning needed. No worrying about airfares and car rentals.
I save that for our additional renting week elsewhere- which is either directly from a resort, Home Away or a private owner.

 

[Olienh]

Here is a personal Google Sheet that I have been using to look at the costs of weeks vs points and factoring in the purchase price plus 10 years of maintenance costs. There is some stuff in there that you may not need and can just delete those columns. Feel free to make a copy of this if is useful to you.

https://docs.google.com/spreadsheets/d/1aVajPKPDwtCI_y5mJOSdyNVzwVRH6ECVKDhUx3RGgzU/edit?usp=sharing

 

[Steve Fatula]

Here is a personal Google Sheet that I have been using to look at the costs of weeks vs points and factoring in the purchase price plus 10 years of maintenance costs. There is some stuff in there that you may not need and can just delete those columns. Feel free to make a copy of this if is useful to you.

https://docs.google.com/spreadsheets/d/1aVajPKPDwtCI_y5mJOSdyNVzwVRH6ECVKDhUx3RGgzU/edit?usp=sharing

Unless I missed it, you are also missing annual property tax. Included for points in the MF, but not for weeks. Grand Ocean sure is cheap MF/pt!

It should be kept in mind you can't compare those weeks to points in this manner unless the weeks are enrolled. i.e. if you just bought resale weeks, and could not enroll them (say post 2010), you have more costs if you intend to lockoff, trade, etc. on the resale weeks. Still cheaper of course.

I like your column L, I did the same thing.

 

[Olienh]

Unless I missed it, you are also missing annual property tax. Included for points in the MF, but not for weeks. Grand Ocean sure is cheap MF/pt!

It should be kept in mind you can't compare those weeks to points in this manner unless the weeks are enrolled. i.e. if you just bought resale weeks, and could not enroll them (say post 2010), you have more costs if you intend to lockoff, trade, etc. on the resale weeks. Still cheaper of course.

I like your column L, I did the same thing.

Thanks for the tips, Steve. I will make some tweaks soon!

 

[marcusa]

Here is a personal Google Sheet that I have been using to look at the costs of weeks vs points and factoring in the purchase price plus 10 years of maintenance costs. There is some stuff in there that you may not need and can just delete those columns. Feel free to make a copy of this if is useful to you.

Awesome, thanks! Couple of dumb questions for you: 1. why normalize everything to DC points? What benefit does that give you? 2. Your rent price is 14 x N. Why 14? Is that # of days? If so shouldn't it be 7, so you compare 1 week rent vs 1 week that you own? 3. What does MRP stand for? 4. "10 year MRP savings" What is that columb?

You are also missing property taxes, assuming you buy a non points TS, at least for Marriott.

I am sure it is in the sticky. My problem is I am working with one hand for a few months. So, slow!

I was under the assumption that property taxes are part of the MFs. For example: https://tugbbs.com/forums/index.php?threads/marriott-2018-maintenance-fees.263645/#post-2064287 lists property taxes under the MF

 

[marcusa]

It's all in the MVC points sticky

All Members must pay the annual Club Dues fee which is based on the number of DC Points that a Trust Member owns, or, for which an Exchange Member is eligible through all Enrolled Weeks, or, a combination of both. Effective with the 2018 invoices the fees are:

• $195 Owners and Select Members
• $235 Executive and Presidential Members
• $260 Chairman's Club Members

(Historically at the DC introduction these fees ranged between $165 and $199; previous increases occurred in 2013 and 2016.)

• The Club Dues fee covers a corporate membership in Interval International's external exchange system, as well as most Marriott and II administration and transaction fees for DC Trust and DC Exchange Members.
  
• The Club Dues fee for DC Trust Members is included as a component of the annual MF's invoice, with a payment due date of December 1.
  
• The Club Dues fee for DC Exchange/Enrolled Members is invoiced separately from the Weeks MF's bills, with a payment due date of December 10.

Am I understanding correctly in that these dues don't apply to legacy week owners?

 

[Steve Fatula]

Am I understanding correctly in that these dues don't apply to legacy week owners?

That is correct. Instead, you pay more (if exchanging) as you pay for II, lockoff, Marriott exchanges. If you occupy, no addtional cost.

 

[bazzap]

Am I understanding correctly in that these dues don't apply to legacy week owners?

Weeks owners who have not enrolled their weeks do not pay these DC Club dues, but as Steve Fatula says they do have to pay for Interval membership and associated fees (if they want to use Interval)
Weeks owners who have enrolled their weeks do pay these DC Club dues.