Renting TS vs. Buying TS

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Another one I could have written myself.

I am jacked sideways today, however, because I cashed the $300 check I got for renting our $625 annual fee week.

I have a $250 offer on another week later this month. My cutoff date for it is 2 days, so $250's probably gonna be it.

Such a deal!

An exactly why renting makes more sense than owning for the vast majority today. Take advantage of the unprecedented renters market. Owners are taking it on the chin big time.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Owners are taking it on the chin big time.

And some of us don't have very big chins.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

When RCI started dumping lots of rentals on the market from their exchange deposits, they depressed the rental market for timeshare owners as well as distorting their own exchange program. This is the biggest threat out there to the future of timesharing, creating a much less desirable exchange system and driving down rental prices.

I now use RCI for their cheap rentals and do my exchanging with other exchange companies. I have not rented from individuals yet, but may do some of that as well. I would rather give my rental money to a fellow timesharer than to RCI if the price is close to the same.

However, some rental markets do hold up fairly well. I have been renting out my OBX summer week the last few years, since I started my current job in Europe, and it still nets me a good profit renting it out through a local brick and mortar timeshare specialist broker. Yeah, they take out a commission, but it is well worth my not having to advertise, deal with renters, etc.

As to trades I have made, I am still getting better value than renting in most cases. On my most recent trade, the cash cost as a timeshare exchange was about a third of what it would have cost to rent. My upcoming trade into the Canaries is the one exception, as it is an overbuilt area and I am sure I could have traded in cheaper, but if I rent too many weeks, I end up with unused deposits.

I am again downsizing my timeshare portfolio, mostly due to the availibility of rentals, but would happily snap up any $1 weeks if they were summer OBX as I know I could turn around and rent them at a profit.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

When RCI started dumping lots of rentals on the market from their exchange deposits

So, ya think their rentals activity is significant?

Disclosure of Weeks Program Activity for 2009

In 2009 RCI added 585,588 units of inventory to the Weeks exchange system that were in excess of Week member deposits, and used 247,844 Weeks member deposits for rental and other purposes. . .

There were 620,179 units of inventory not subject to Exchange or used for any purpose . . .

There were 247,844 units of inventory that were deposited by members and rented or used for other purposes by RCI more than sixty (60) days in advance of the starting date of the deposited Vacation Time. The breakdown of this inventory by Trading Power Segment is as follows: 93,504 High, 84,090 Medium, and 70,250 Low.


(Note that approximately 18/25's of the rentals are better trading power weeks . . . prime weeks as we have called them.)

If I'm not mistaken, do the restrictions not end after a relatively short period (2 years from whenever), with no restrictions after that?

The Plaintiffs' attorneys are adamant that the two-year restrictions on RCI will not in any way inhibit future actions against RCI for renting deposited inventory, nor convey upon RCI the freedom to rent deposits in the future without fear of lawsuits. Whether or not this is true, it doesn't make sense, in my opinion, to settle a case with the intention of trying the same issues all over again in the near future. Since this case was initially filed early in 2006, a two-year term for changes doesn't make a lot of sense.

http://rciclassactionlawsuit.com/Obj...ettlement.html

&, even in a depressed rental market like now, can they still not get more than an exchange fee in most cases? More than an exchange fee, but, maybe, less than a maintenance fee?

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

We have had many similar discussions.

Some people like their timeshares and $$$ seems to be now object.

Some people wish they did not have them any more.

Some people fall in between.

We have six weeks, none of which we have any need for, nor do we have any present plans to add to our 120 exchanges.

When we rent our weeks, if we can, we are lucky to get $300. Even for peak weeks. Too many other rentals available.

If the conditions in the 1980s were the same as they are now, we never woulda bought.

So, there's my answer.

Having been to both the mailbox(es) and my email today, it occurs to me that I should not be ragging being stuck with 6 unwanted weeks.

It appears we have plenty of exit options.

[1950bing Senior Member Find all posts View Profile Close 1950bing]

The argument for owning has always been the desire to "own" your little slice.

But I submit the biggest downside to owning a timeshare is there is no good exit strategy for the day when you no longer need/desire/can afford to own. Seems like once in, your in for life.

Unlike the developer/large investor, who is praised by stock holders, for cutting losses and walking away from a poorly returning investment (deed back). We the timeshare owner/small time investor are stigmatized for the same effort to cut losses.

Your no benefactor leaving deeded property to descendants, you just saddle them with unexpected maintenance fees.

There becomes a new truism: death, taxes, and maintenance fees.

So very well put. I have said this before. How to get rid of a timeshare should
be a topic BEFORE signing to buy.
I have rented for years now at TS places. When I leave I don't have to worry about paying for a roof or concrete replacement and have enjoyed all things that owners have to pay for in increasing MF fees year after year.
Last minute deals are so sweet and cheap.
Renting :
bing

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

The world's first timeshare developer, Hapimag, has always had an exit strategy for members. Indeed, they buy back their timeshares for a rather decent price which is a set percentage of the then current developer sale price.

Over the years, when I have wanted to downsize or change what I owned, I have had no trouble with my own exit strategy for those weeks I decided to get rid of; I sold them. As I had bought resale myself, I have with one minor exception, at least broken even when I sold. I had little real trouble in selling weeks in South Africa, the Caribbean, Australia, and the NC Outer Banks.

The argument for owning has always been the desire to "own" your little slice.

But I submit the biggest downside to owning a timeshare is there is no good exit strategy for the day when you no longer need/desire/can afford to own. Seems like once in, your in for life.

Unlike the developer/large investor, who is praised by stock holders, for cutting losses and walking away from a poorly returning investment (deed back). We the timeshare owner/small time investor are stigmatized for the same effort to cut losses.

Your no benefactor leaving deeded property to descendants, you just saddle them with unexpected maintenance fees.

There becomes a new truism: death, taxes, and maintenance fees.

[Remy Junior Member Find all posts View Profile Close Remy]

I am not seeing much in the way of cheap rentals within driving distance of Boston for this summer. I have checked the other usual sites (Redweek, Myresortnetwork, TUG) and II getaways (RCI is not an option).

Based on my observations, i am with the minority, and am buying not renting.

[Hobbitess Senior Member Find all posts View Profile Close Hobbitess]

I can't often find rentals as cheap as I can get as an owner, either. As a points owner, I get the impression I get a better deal over all than many weeks owners -- but there are still weeks owners out there who get a better deal than I do. I think any "one size fits all" answer is wrong; whether renting or owning (or a mixture of both) is the best deal depends on what you own (or would own) and what you want to do with it.

[coachb Member Find all posts View Profile Close coachb]

Prices are so low to buy at many top resorts (often $1) that there is very little risk to doing so. You can also find rentals going for less than annual maintenance fees. I chose to buy resale at a fraction of developer price but still more than I should have paid. I really enjoy the strategy of maximizing my timeshare. I've enjoyed my exchanges and have rented it for 2x my maintenance fees several times.

I bought where I like to visit and which doesn't require a flight. I think a sound strategy. I wouldn't buy Orlando as great trades are readily available and you are precluded from trading into DVC.

[JWC Super Moderator Find all posts View Profile Close JWC]

Prices are so low to buy at many top resorts (often $1) that there is very little risk to doing so.

The risk is not in the purchase price. The risk is in ever escalating maintenance fees which you are obligated to pay whether you use it or not.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

The risk is not in the purchase price. The risk is in ever escalating maintenance fees which you are obligated to pay whether you use it or not.

One of the best protections there is to own at resorts that are member controlled rather than developer controlled. That way if the HOA directors overspend you can vote them out. Sometimes, as at two or three OBX resorts, they even put the annual budget, including the m/f, up for vote of the membership at the annual meeting.

[JWC Super Moderator Find all posts View Profile Close JWC]

One of the best protections there is to own at resorts that are member controlled rather than developer controlled. That way if the HOA directors overspend you can vote them out. Sometimes, as at two or three OBX resorts, they even put the annual budget, including the m/f, up for vote of the membership at the annual meeting.

I agree except even that doesn't protect you if the resort is having a lot of owners not paying their M/F. That creates a snowball effect as owners don't pay so M/F escalates causing more owners to not pay.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Having been on timeshare forums for a loooonnnnnggggg time (yeah, but not as long as some a you really old people ), I am amazed that it seems the tide has finally started going out.

It seems there are as many, or more, timeshare owners on forums telling people not to buy.

Some who still like their timeshares seem to be going out of their way to announce that, as if to add balance. "I really love my timeshare!!!" Well, yeah, since this is Timeshare Forums, we assumed that . . . but you can't any more.

There is no question that what has been in disfavor with the general public now is in disfavor with many of its previous staunch supporters, myself included.

Economics and arrogance seems to be doing it in. Some big companies agree. Someone say Mariott?

They shoulda cleaned up their act a long time ago, while they had a chance.

Ya think?

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I agree except even that doesn't protect you if the resort is having a lot of owners not paying their M/F. That creates a snowball effect as owners don't pay so M/F escalates causing more owners to not pay.

None of the six we own, and no longer use/need/want, were bought "retail". One was a foreclosure, two from an HOA, and 3 $1 eBay purchases.

The annual fees total $3000.