Timeshares never came back after the recession of 2008. Resales are not recovering value.

[DannyTS]

An anomaly in the timeshare world. Sounds like a real gem of a resort.

You would think a resort in Myrtle Beach, Orlando, Hawaii, etc., would keep its value. If I sat in on a timeshare presentation at Westin Nanea today as a timeshare newbie, I would probably imagine the value would hold. I would be impressed with the beautiful resort and think that buying could be worthy of the price tag. But we check in on Friday for our first visit, and I have no desire to go on a presentation.

I think the barrage of commercials on radio and TV about timeshare exit companies are affecting the resale market. More people getting out, convinced that the product is going to put their kids into the poorhouse and realizing they aren't using it much, if at all. Mostly because they never figured out how to use it.

I agree with you, the exit companies play a very negative role in the resale market. On one hand there are the commercials they run on satellite radio and so on. On the other hand it is their deceitful tactic they use to make owners believe their contracts will be "cancelled" through legal litigation. As we know that does not happen and many of these contracts end up sold at firesale prices because the owners are so much in the red at that time (after paying the outrageous fees to the exit companies) that they do no longer care about the price they sell at.

Part of the exit companies process is to tell owners that their timeshare is completely worthless (they will show the 1 dollar listings on ebay) and that they will save tens of thousands of dollars in MF in the next 10-15 years by exiting now. At no point they will say: by the way Mr owner, a similar Westin Ka'anapali deed was sold on Redweek for 15,000 dollars. I would not be surprised to find out that an important percentage of the owners that sign up with the exit companies have timeshares that have some value but they end up selling them for way less than what they are worth. To add salt to the injury, the exit companies also pocket the proceedings of the sale.
Maybe we should have a flashing banner warning anyone visiting TUG about these companies.

 

[Cyberc]

The resale price of Disney is inverted to logic.

The product literally offers you less and less time as each year goes by and the contract gets closer to expiration, but for some reason people are willing to pay more for less time each and every year (and when you factor inflation it makes even less sense).

I don’t agree that Disney offers you less and less, true that every year we get closer to the RTU for each resort. Until then you get cheap accommodation at an on-site deluxe resort.

Disney has a monopoly on perks offered on property. These are meaningful perks, like early and late hours at park and access to superior transportation. The resorts off Theme parks do not hold value as well, and to the extent they do it is because people use those “cheaper” points to reserve at on property resorts.

By my calculations it took 8 years of renting to pay for my resale contract including all annual fees. Looking at current resale it would take 12-15 years.

All Disney DVC resorts are onsite resorts. As with everything else some resorts are more popular than others and therefore they are more expensive.

True if you only rent you will recoup your entire “investment” in approx 10 years. But the only investment i consider DVC and any other timeshare is the investment in my family’s vacation time and quality.

I ofc hope that when I one day liquidate my timeshare that they hold some value if they don’t I know I have gotten great use of them.

With that said the rental market for DVC is strong and will continue to be as long as there is a significant saving compared to going direct.

Disney is taking benefits away from resale, which is so disappointing for Disney to do that. Someone paid for that and their resale is affected. If only you could buy from someone who could add your name then take their name off, then you could keep those benefits as an "heir" of sorts.

unfortunately Disney have been and continues to try and hurt resale. Someone higher in the Disney food chain believes that every resale is a lost direct sale. The truth is far from that. Without a strong resale market Disney wouldn’t be able to charge the huge direct prices.

what you suggest is actually doable, It’s called a gratuitous transfer. I could add your name to my deed and then later take my name off. I’m don’t know if it’s legal or not as you could argue that you try to bypass the ROFR process.

By doing a gratuitous transfer all membership privileges remain intact.