Timeshare 101; What's One Really Cost?

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

LOL........

Mike,

You're are absolutely right......you definitely got your money's worth. It doesn't get cheaper than that. Good for you!!!!........

Maybe I don't understand timeshares but when we can travel for "next to nothing" it works for me. Fortunately, I bought my first timeshare resale on ebay, thanks to various BB's. I bought a RCI points unit and have 3 grown children with a truck load of grandkids. My TS cost me $585.00 (including closing) and the MF are $500. For that I get 42,000 points. So far, we have used only the 8,000 point exchanges so we get 5 weeks a year for $149.00 per week. Here's how it works for me per year:

$ 50.00 Ownership (for 10 years)
$500.00 Annual MF
$ 99.00 RCI membership fee
$745.00 Exchange fees for 5 exchanges (no GC's because they are on the account

$1,394.00 Total cost for 35 nights

$39.83 per night for a 2 bedroom and sometimes a 3 that will handle 6 or 8 people. My middle son has 5 kids and they have 'made due' with a 1 bedroom once but usually try for a 2 bedroom.

For that price you can't even get a motel 6, let alone a kitchen (try feeding 5 kids at a restrauant), pool, and all the other extras that almost every TS has. I only wish we had discovered TS's many years ago.

Mike S.

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

Maybe I don't understand timeshares but when we can travel for "next to nothing" it works for me.....

You understand timesharing just fine! It's the poor schmoes who buy from the developer and pay 20% interest who don't understand it!

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

Staying in a cramped, two-star hotel near Disney main gate with lumpy beds, a noisy air conditioner, a nice assortment of bugs --- $32 a night.

Earplugs so you can sleep with all the noise --- $5.00

-OR-

Staying in a two bedroom condo with a full kitchen, central air conditioning, good security, and a Jacuzzi --- PRICELESS

Which would you pick? Most of us timeshare owners do not wish to stay in the 32 buck hotel..................

Many of us have seen these things before, so just look the other way while I present this for the new folks, or folks in the thinking stage.

Of course, the folks who need to see this are not here. At this moment they are at a kiosk at Denny's on 192, forking over their deposit money (which the kiosk person puts in their pocket) for a tour.

I am going to assume the following: new price $25,000, annual fee $600, length of ownership 10 years, proceeds of sale after 10 years $10000. (Some of these are very generous).

Add to the $15000 loss in the investment, $6000 in fees, and another $15000 in opportunity cost (had the $25000 been invested at 6% return instead).

Total cost: $36000 ($3600 per year--per one week vacation)

Seems like that would be a tough sell when the entire world can get this:

- - - - - -
2-star hotel in Disney Main Gate - Champions Gate
This limited-service establishment offers basic accommodations, often with a few extra features. See hotel details
Area details: Close to many top theme parks, famous restaurants and entertainment venues. See area map
$32 per room per night
- - - - - -

A salesperson certainly wouldn't want to give someone a chance to think about it!

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

So far all the typical replies.

Jenny just got back from Girls Week out to Fairfield Nashville, all the girls in her family.

She heard all the same complaints.

Why don't they bring clean towels every day?

Why do week have to take the trash out?

Why don't they make our beds?

Yet, they could not have afforded to do it with 8 people in a hotel.

But, those who are not accustomed to timesharing do miss the things we timesharers are willing to give up.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

So far all the typical replies.

Jenny just got back from Girls Week out to Fairfield Nashville, all the girls in her family.

She heard all the same complaints.

Why don't they bring clean towels every day?

Why do week have to take the trash out?

Why don't they make our beds?

Yet, they could not have afforded to do it with 8 people in a hotel.

But, those who are not accustomed to timesharing do miss the things we timesharers are willing to give up.

well you don't give all that up at all resorts....the very first time we had to strip our beds, take out trash and had no daily or even <GASP> mid-week was at Powhattan in Williamsburg. The only other resort that was that way was <checking to make sure I'm on TS4Ms so I won't get flamed><OK it's safe> OLCC.

That's out of 24 or so exchanges to Hawaii, Caribbean, California, Arizona, Mexico...even NewJersey.

I'll have to pull my list as many, many <OK MOST> of our exchanges had daily service for trash and bed-making with a mid-week full clean and linen/towel change.

Hmmm <remind self to include that tidbit in resort database when we have that option>

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

Quote:
The only other resort that was that way was <checking to make sure I'm on TS4Ms so I won't get flamed><OK it's safe> OLCC.

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

lawren2

well you don't give all that up at all resorts....

I have to agree with Lawren......I have never given any of those amenities up yet.....never. In fact, there are many timeshares that offer room service, and concierge service, as well.

I try to stay at timeshares that are connected to a quality resort, or hotel, so that I am able to use all those amenities as well.

Everybody's idea of vacationing is different, and so are timeshares. There is no blanket formula, or cost sheet that will apply to everyone. We each look to get something different out of our vacations. We all have different wants, and needs. Thankfully, there are timeshares available to suit each of our requirements.

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

I think most of the resorts I've been in offer daily cleaning for an extra charge. Even if you opt for cleaning every day, it's still a lot cheaper than getting a similar suite at a hotel.

The Manhattan Club actually changed the sheets every day when I was there. Unfortunately, they now have a (mandatory) resort fee to cover this. The Manhattan Club is still much cheaper than a hotel suite in that neighborhood, though.

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

Ah yes, the new breed of timeshares, those that offer what traditional timeshares don't.

I have to agree with Lawren......I have never given any of those amenities up yet.....never. In fact, there are many timeshares that offer room service, and concierge service, as well.

I try to stay at timeshares that are connected to a quality resort, or hotel, so that I am able to use all those amenities as well.

.

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

Careful Mike. There's that lose-what-your-brag-about rule!

That's why I seldom talk about ours.

Of course, this rhetorical thread was not directed at all of us savvy folks. It was intended for the other 99.99%, when I said in the OP:

"Of course, the folks who need to see this are not here. At this moment they are at a kiosk at Denny's on 192, forking over their deposit money (which the kiosk person puts in their pocket) for a tour."

Maybe I don't understand timeshares but when we can travel for "next to nothing" it works for me. Fortunately, I bought my first timeshare resale on ebay, thanks to various BB's. I bought a RCI points unit and have 3 grown children with a truck load of grandkids. My TS cost me $585.00 (including closing) and the MF are $500. For that I get 42,000 points. So far, we have used only the 8,000 point exchanges so we get 5 weeks a year for $149.00 per week. Here's how it works for me per year:

$ 50.00 Ownership (for 10 years)
$500.00 Annual MF
$ 99.00 RCI membership fee
$745.00 Exchange fees for 5 exchanges (no GC's because they are on the account

$1,394.00 Total cost for 35 nights

$39.83 per night for a 2 bedroom and sometimes a 3 that will handle 6 or 8 people. My middle son has 5 kids and they have 'made due' with a 1 bedroom once but usually try for a 2 bedroom.

For that price you can't even get a motel 6, let alone a kitchen (try feeding 5 kids at a restrauant), pool, and all the other extras that almost every TS has. I only wish we had discovered TS's many years ago.

Mike S.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

I used to do elaborate spreadsheets with expected inflation, opportunity cost, cost of capital, exchange rate hedging and various scenarios for terminal value of timeshares. That's when I thought that a timeshare was an asset that I kept long term.

Now that I have more experience, I have determined the following:

1) timeshares are, for the most part, depreciating assets. So, they should be modelled accordingly. Lots of structural changes to timesharing will be required in order for that to change.

2) developers dominate the timesharing market, so there is a big distortion in the maintenance fee picture. Resort developers like to make maintenance fees look low when they are selling and when they leave, they raise the fees so that their increase is greater than inflation. So, it's hard to predict the stability of MF prices over time.

3) there is such a large standard deviation for purchase price of a timeshare that it is easy to get a great deal and sell for more than you bought.

So, the right equation for me is to use a ONE YEAR average duration of ownership. In this way, I have low risk for special assessments and no risk for maintenance fee increases. And, as long as I buy timeshares for more than $1000 less than the internet market price, I can dump it quickly if I need to.

Using this approach, it is EASY to have 100% of your vacation expenses paid for since the terminal value of your timeshare is much higher than the purchase price.

The conventional wisdom is wrong. Don't buy where you want to go every year within driving distance. Buy where you know the internet price and buy anything that is more than $1000 lower than that. Use, exchange or rent the unit and then dump it within a year.

If your net cost of a vacation including lodging, airfare, food and entertainment is anything more than $0, then you can do better with a little extra effort and a slight change in mind set.

By the way, there are some timeshares that are just collectables. You buy them and keep them because you like them. Just like collectable cars. I have several of those. Many high end fixed weeks with great views are like that. And others are great to have just to see what you can do with them. That's what many of my point offers do for me.

Whatever your reasons are for owning, just be sure that you are clear about why you own and that what you own is consisent with that desire. For many people, I don't think that's true.

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

Salesmen leave fees out when they are talking about savings.

Sunterra's Kaanapali resort, formerly Embassy, conversation with salesmen:

After showing us inflation of Motel 6 and spreadsheet showing future inflation:

"You can freeze your vacation costs by buying today for $25,000!." (I don't remember the exact price)

"How many more years do you plan to vacation?" Mike Connelly asks

"At least 25 more years," Rick answered.

"That's only $1,000 per year for a week in this amazing resort. You can use your points to get two weeks elsewhere."

"What about maintenance fees," I ask. He ignores me.

Rick says, "Maintenance fees do go up."

Mike Connelly: "How many vacations could you take at the last minute. Where do you like to travel? Let me show you what you can get right now, if you could travel within sixty days."

Then they take us to the giant calculator that looks like a plasma screen and put the sales price and divide by the number of years we are going to vacation, forgetting the annual maintenance fees. Ridiculous.

I guess they are cutting out some of the costs.