Timeshares that appreciate in value?

[kckaren21]

Frankly, having owned timeshares for only a few years, I would not purchase them. Given the big upfront investment, even for quality resale timeshares, it is not worth it.

I'm with Traveltime: I would not advise buying timeshares for the opportunity of possibly making money or even saving money in the future on vacations. I wish I had stopped with my first (resale) purchase of an EOY lock off unit, because that gave me access to the best benefits at the lowest cost: entry to II for AC's and Getaways, and membership in TUG, with access to rentals, last minute rentals and distressed weeks. (Although I could have joined TUG without buying a TS, I doubt I would have found it. TUG has been the BEST benefit!)

I really like our TS, but am starting to feel like the shuffling with exchanges and hassle with changing reservations is not worth it. It would be so much easier to have an easier cancellation ability. I just went through a stressful and time consuming hassle cancelling our trip to Hawaii. Hours planning/searching for TS to start/end on the right day, and then hours cancelling with II (looking for retrades and on hold to talk to customer service.)

II helped me out, but still it was a hassle. (We decided to cancel because we could go to Hawaii without a quarantine after 10/15, but couldn't go to another island (exc. Oahu) without a quarantine. They did not have this requirement when I booked a week at 3 different islands.)

 

[TravelTime]

One thing I do not like about timeshares is I feel locked into vacationing with them since I am paying for them every year. I realize now that I prefer to pay cash and stay where I want. Given the high upfront cost of timeshares, even the ones I bought resale, it does not make sense to own unless you hold over 20+ years and you only want to vacation in your timeshares.

 

[tgropp]

None appreciate in value when bought from the developer. Most resales do not appreciate either. I would consider a Worldmark membership bought resale a reliable product.

Bill

Purchased Beach Club Villas resale in 2007 for $80/point (75 and 50 point contracts) and sold for $145 Point. Wilderness Lodge which I still have purchased at $74/point and probably could sell at $92/point

 

[CalGalTraveler]

My fear is that we would never vacation as much or as well if we didn't own timeshares. Planning is half the fun.

One of the biggest risks for me is renting - the hassle of finding the right unit for a price I am comfortable with paying (*see Note), or the risk that the unit is not up to quality or cleanliness. Plus many rentals such as TS private owners and Homeaway demand upfront payment of rent months in advance with significant cancellation penalties which is risky compared to our TS where we can cancel up to 30 days in advance and can reuse the points.

For our HI Westin timeshare we breakeven over renting after 5 uses if we assume the investment value falls to zero (unlikely because the unit has been holding its value), we know we can rent it out for more than MF or sell at about what we bought it for. I like that it is an EOY - easier on the MF and doesn't require us to travel to HI every year. It is a keeper.

Our developer NYC Hilton lost a lot of value, but our Vegas resale has only lost $500 - $1000 but but we get outsized value over renting by arbitraging points into Hawaii and NYC. We stay on Billionaires Row in NYC and get units that have views of Central Park and also have access to NYC penthouse units. If you can even rent those units (rare) they rent for more than $1000 a night. If that goes upside down or we don't wish to travel to those locations, we will sell. Even though there is lost value we've already gotten the value out of the capital investment via arbitrage.

If we eventually disposed would still try to use RCI and II for getaways.

* Note: Why pay $5k to rent the same timeshare we own in HI during peak season but I am willing to pay MF of $2800. Even if our TS goes to zero value (unlikely) we are still ahead over renting if we use the unit over the years.

 

[elaine]

And our vacation travel patterns changed. With 3 young kids, we bought 2 East Coast summer beach weeks. As teens, no one wanted to go to the beach for a week anymore! I gave one away and the other I have traded with RCI for over 5 years. not ideal, but making it work.

 

[CalGalTraveler]

And our vacation travel patterns changed. With 3 young kids, we bought 2 East Coast summer beach weeks. As teens, no one wanted to go to the beach for a week anymore! I gave one away and the other I have traded with RCI for over 5 years. not ideal, but making it work.

Sounds exactly like our second home in Tahoe. Used it for years when the children were young and now they don't want to go anymore. (We now rent it out.) As college students they now prefer to use our timeshares in Hawaii or NYC and will spend family time with us vs going to spring break beach parties.

 

[easyrider]

One thing I do not like about timeshares is I feel locked into vacationing with them since I am paying for them every year. I realize now that I prefer to pay cash and stay where I want. Given the high upfront cost of timeshares, even the ones I bought resale, it does not make sense to own unless you hold over 20+ years and you only want to vacation in your timeshares.

I came to the same conclusion regarding a single destination without exchanging and decided to only have multi-destination type memberships. With the three systems I own I can reserve units at over 150 resorts with many of these resorts within driving distance. Two of the three systems are rtu's that have contracts expiring next year. By 2029 , unless I acquire more contracts, I will only have the Worldmark contracts.

Bill

 

[TravelTime]

I will say I like the space of timeshares and having a kitchen. I also like the consistent quality of the brands I still own. Now, I try to get at least a 1 bedroom unit even if I am renting through a hotel outside of my timeshares.

 

[elaine]

the internet, and more suite-style hotels has changed the game IMHO. Years ago, the only option for 2BR at the beach was a rental through a broker or service or staying in a hotel.

 

[The Colorado Kid]

My fear is that we would never vacation as much or as well if we didn't own timeshares. Planning is half the fun.

One of the biggest risks for me is renting - the hassle of finding the right unit for a price I am comfortable with paying (*see Note), or the risk that the unit is not up to quality or cleanliness. Plus many rentals such as TS private owners and Homeaway demand upfront payment of rent months in advance with significant cancellation penalties which is risky compared to our TS where we can cancel up to 30 days in advance and can reuse the points.

For our HI Westin timeshare we breakeven over renting after 5 uses if we assume the investment value falls to zero (unlikely because the unit has been holding its value), we know we can rent it out for more than MF or sell at about what we bought it for. I like that it is an EOY - easier on the MF and doesn't require us to travel to HI every year. It is a keeper.

Our developer NYC Hilton lost a lot of value, but our Vegas resale has only lost $500 - $1000 but but we get outsized value over renting by arbitraging points into Hawaii and NYC. We stay on Billionaires Row in NYC and get units that have views of Central Park and also have access to NYC penthouse units. If you can even rent those units (rare) they rent for more than $1000 a night. If that goes upside down or we don't wish to travel to those locations, we will sell. Even though there is lost value we've already gotten the value out of the capital investment via arbitrage.

If we eventually disposed would still try to use RCI and II for getaways.

* Note: Why pay $5k to rent the same timeshare we own in HI during peak season but I am willing to pay MF of $2800. Even if our TS goes to zero value (unlikely) we are still ahead over renting if we use the unit over the years.

@CalGalTraveler Very well said!