Why buying ???

[wasim81]

Hi all,
I read alot about time shares and RCI point system and I have a question to you .....WHY BUY TIMESHARES if I can stay in the same resorts for a week a time for less than the MF/ year i would have to pay if i own a week in the same resort? To give you an example, I stayed in Silver lake resort in Orlando for a whole week and i paid $400.00. If i own a week in Silver lake it will cost me 3-6 K plus 450-600 MF/ year !!!!

Will some one explain to me why should i buy ???

Thanks

Wasim

 

[JimJ]

If you can go where you want and when you want and get prices as in your example, then buying t/s makes no sense (or cents). Buying timeshare is not necessarily for everyone.

 

[Jimster]

I agree it makes no sense but can you do that each time? That is why most tuggers are upset with RCI renting TS. BTW add RCI fees both for membership and exchange to the MF. RCI is killing the goose that laid the golden egg for a short term profit- like they care.

 

[ladycody]

It depends on when and where you want to go. If Orlando is your primary destination...then you're right...you could likely get in for less than the cost of the mf's by renting. Most TS owners buy for:
*A guaranteed ability to vacation where they want when they want.
*Trading Power to get into other resorts at other locations when desired.

I bought into WM for the ability to pretty much guarantee my ability to travel (in a 2 bedroom unit) to the Oregon Coast, Hawaii, Anaheim, Monterey, Seattle etc at significant savings in high season. It takes planning but so far I've had no trouble going where I want, roughly when I want.

In addition, I'm able to book bonus time (paying cash) for either last minute bookings or in off season when those resorts are on inventory special. For instance...if our largest resort on the oregon coast is on special during white season...I can pick up 4 nights in a 2br for about $50 per night cash. I was also able to book a friend into Eagle Crest for 4 nights in a 3br for less than $40 per night.

In the past 2 years I've booked about $4500 worth of travel (at what could be considered market value for the rooms I was in and the time I was in them) and my out of pocket cost was $1600 (mf's and bonus time fees)

On top of all that...it provides me with a committment to traveling with my family. Those trips are priceless...and since I dont feel the pinch of a one time payout (my mf's are quarterly and bonus time is so reasonable it doesnt hurt)...we travel alot more than we would otherwise.

So there is value to be received...it just depends on your wants & needs. Hope that helps.

 

[bogey21]

There are 3 reasons I continue to own timeshare weeks: (1) I bought them cheap (own 6 weeks for $6,000 total investment); (2) they are where I want them, when I want them (one expample is Deerfield Beach, Week 1 beachfront); (3) PFD (I'm retired and can take one of my weeks, get 30,000 - 35,000 points and turn it into 4 weeks using the 45 day (RCI Points) window- and yes, I have been able to do this).

GEORGE

 

[timeos2]

Don't buy

If you can find good rental rates like that at resorts in areas you wish to visit on as regular a basis as you require there is no need to buy a timeshare for your purposes. You have found an excellent, inexpensive way to enjoy timesharing.

If you want to know you have a resort/area or system you wish to use over and over again and with guaranteed levels of access then you should own. You don't sound like a candidate for that - yet.

 

[Gadabout]

In the past 2 years I've booked about $4500 worth of travel (at what could be considered market value for the rooms I was in and the time I was in them) and my out of pocket cost was $1600 (mf's and bonus time fees)

Wasim81,

But also remember that with Priceline and other services, only someone too lazy to bother looking, or with no online access (either theirs or through the library or a friend) or doing truly emergency planning (like flying in for a funeral) is going to be paying "market rate" for anything. If you can do TS planning, you can easily ferret out the cheap rentals available.

IOW, just because some company says that the rate is x amount doesn't mean that everyone, or even *anyone* actually pays that rate. Only you can determine what price some place is worth paying for. This is the problem with the rentals to the public, instead of keeping them only for exchangers--the *true* value of these rentals is being set by the wider public marketplace, and, once you've paid dirt-cheap rates to rent somewhere, no matter how nice a place, you quite naturally balk at paying much over that amount next time.

The big advantage to renting is that you only have to worry about that week--you don't have to pay MFs, or worry about RCI, or what the HOA board is doing, or anything like that.

 

[ladycody]

All I know is that if I average it out...I've paid about $53 per night for all our stays...and (with the exception of 2 nights in a 1br in Seattle), they were all 2br units....so I cant complain. (That's not including the other 30 or so nights that I booked for friends on bonus time and inventory specials.) And like I said...for me, it's easier to have the commitment in place and a means of paying for trips without having to fork out the money in a lump sum...but everyone is different.

I honestly wouldnt have bought a TS at all if I still lived in New England...I bought because of our location and the lack of easy day-trips to places like the coast, cities etc. Out east I could make very easy day trips (less than an hours drive) to a ton of historical locations, beaches, cities (Boston & Providence) etc...and owning a TS would have been far less important to me. Right now I'm 3 hours from anywhere (except the blue mountains where we have access to my fil's cabin...but it's very woodsy and there are no activities or towns near it...which is fine for what it is). TS'ing works for me here....and I bought WM because of the drive-to's...so airfare for 4 isnt required unless I want it to be.

People need to do what works for them...this works for us.

 

[spatenfloot]

Ladycody never said she was using the maximum posted rack rates. Even at average nightly rates, a properly used timeshare can save a significant amount of money. Also, some locations are not available through Priceline and you also can't choose where you stay with them.

Wasim, for places where the timeshares are not overbuilt it can be much harder to rent the week you want or the resort. Some places are difficult to get into even if you are an owner because they are so popular or the supply of rooms is limited. Some timeshares offer other benefits as well such as the bonus time rentals to owners. I stayed in a 2 BR in St. George for $45 per night that way. I am pretty sure no hotels in the area could offer a price that low and definately not a 2BR.

BTW, hi Ladycody. I see you are not :ignore: in the discussions here like in some other places, hehe.

 

[Gadabout]

Ladycody never said she was using the maximum posted rack rates. Even at average nightly rates, a properly used timeshare can save a significant amount of money. Also, some locations are not available through Priceline and you also can't choose where you stay with them.

Wasim, for places where the timeshares are not overbuilt it can be much harder to rent the week you want or the resort. Some places are difficult to get into even if you are an owner because they are so popular or the supply of rooms is limited. Some timeshares offer other benefits as well such as the bonus time rentals to owners. I stayed in a 2 BR in St. George for $45 per night that way. I am pretty sure no hotels in the area could offer a price that low and definately not a 2BR.

BTW, hi Ladycody. I see you are not :ignore: in the discussions here like in some other places, hehe.

I only mention rack rates because sometimes people get caught up in the "it would cost x amount to rent this" mode, when normally they would never have any intentions of renting that place/paying that amount in the first place.

Also, are you out sightseeing all the time or do you tend to spend significant waking hours at your chosen place of lodging? Hotels tend to be closer to tourist attractions. I would be bored just hanging out in a room/suite, no matter how nice (I can do that at home), same thing with some resort-type activities (swimming, spa, etc.). I'm not saying that I'm only happy in a city-type environment, but many TS are located where you can "do" downtown (or whatever the main tourist attraction is) in 3 hours, and then what? And for us, 3 hours to get to a 3-hour attraction (okay, let's add a couple of hours for eating onsite ) and 3 hours home is still a day trip, and the drive itself is the big draw.... We like to camp, too, so we price lodgings up from camping, not down from hotel....

As you can see from everyone's posts, lots of different ways to set a value on of owning a TS.

 

[ladycody]

BTW, hi Ladycody. I see you are not :ignore: in the discussions here like in some other places, hehe.

Seriously...it depends on the mood of the discussion. I've let my emotions get the better of me (to an unattractive extreme) once... and I dont like what it does to my posts. It makes them just a bit less worthy of serious consideration...because I'm mixing fact and conceptual thought with emotions that play no role other than to distract the reader. As a result...I've learned to stick a sock in it when I think I might get stupid. Nothing's got me riled in here...it's just a discussion between civil folks expressing opinions/thoughts without any nastiness...so none of it rankles and the sock can stay in the drawer.

 

[spatenfloot]

Also, are you out sightseeing all the time or do you tend to spend significant waking hours at your chosen place of lodging? Hotels tend to be closer to tourist attractions. I would be bored just hanging out in a room/suite, no matter how nice (I can do that at home), same thing with some resort-type activities (swimming, spa, etc.). I'm not saying that I'm only happy in a city-type environment, but many TS are located where you can "do" downtown (or whatever the main tourist attraction is) in 3 hours, and then what? And for us, 3 hours to get to a 3-hour attraction (okay, let's add a couple of hours for eating onsite ) and 3 hours home is still a day trip, and the drive itself is the big draw.... We like to camp, too, so we price lodgings up from camping, not down from hotel....

I spend most of my time out doing things away from the resort. Usually I will relax in the room one of the days since I tire myself out the rest of the time. You must be staying at very different places than I have if there is nothing to do nearby. Most places I visit have too much to do in a week, so I never get bored. Maybe you should pick a new location to visit.

My idea of camping is a resort near the outdoors. I go hiking/sightseeing during the day, then sleep in my air conditioned and pest free room with a shower and toilets. Nature is great as long as it stays outside!

 

[PerryM]

Why buy indeed!

This is a great topic with dozens of answers – all correct.

I advise folks that if they don’t want to become a “timeshare expert” just rent timeshares from RCI or Marriott or FairField or direct from the owner on www.RedWeek.com , www.MyResortNetwork.com, and www.VRBO.com.

No muss, no fuss – just shop and let timeshare owner duke it out with other timeshare owners – you just pickup the pieces of a cheap rental.

If you want to become a “timeshare expert” and know hundreds of rules, regulations, nuances, wacky secret vacillating principles and don’t mind spending a year or so becoming an expert then timeshare ownership is for you. The spoils of knowledge are just awesome – unbelievable vacations for free are not uncommon.

Flexibility is another factor. If you need to be on the ski slopes on week 52 in Park City, every year, Marriott will happily sell you that week for $70,000. Same with Maui – want to be ocean front on Ka’anapali Beach every year at the best location in the resort – Marriott will sell you a week for $80,000+

However, if you are a bit flexible in your vacation needs you can do the above for up to 1/10 the cost. The more flexible you are the cheaper the timeshare vacations. There is no reason why your timeshare portfolio can’t make a profit each year and you take all the 5 star vacations your schedule will allow.

The one thing you MUST account for if you start to buy timeshares is “Lost Opportunity” of the money invested.

There really isn’t a lost opportunity cost to the car you buy – you need it and taking the bus is not an alternative. A timeshare is not a necessity and before you put money into your timeshare portfolio you must account for the fact that you can’t make money with it in other investments anymore.

If you think that you will put in $30,000 over a number of years into your portfolio realize that if that cash were in the DOW (DIA – Diamonds – basket of stocks that approximate the DOW) you could easily pull out 5% forever to be used for vacations. That amounts to $1,500 in your pocket each year.

All timeshares have maintenance fees (MF) and in the above amount would be about $1,500 if that money bought 2 resale timeshares. Add both amounts together and you have $3,000 to be used for your vacations. With RCI hell bent on dominating the cheap timeshare rental market you could easily get 2 vacations (5-star of course) plus airfare and maybe rental cars for that $3,000.

Making the decision, unfortunately, requires a lot of timeshare knowledge in the first place. I view timeshares as a profitable hobby that has rewarded my time spent.

P.S.
If you need to finance that timeshare - renting is half the cost for the same villa. Since 80% (My guess) of all developer sales are financed at 14.99%, all those folks have made a terrible decision that later we will benefit from.