Timeshare 101/Annual Fees’

[cbaur88 Junior Member Find all posts View Profile Close cbaur88]

Hi everyone my name is Chuck I am very very new to timeshares and trying to get a handle on understanding them a bit more. I have always and still dream of owning a time share in the Florida Keys however one of my main questions that I wanted to ask time share owners was regarding annual dues or fees’. I’ve browsed many properties on websites and see the variations of fees’ with each property. I’ve got to be missing something and my question to owners is if you pay anywhere from $400.00 - $800.00 (sometimes more) in fee’s each year wouldn’t the amount you spend in fees’/dues each year come close to the price of staying at a hotel/resort for accommodations each? It might not cover the entire cost depending where you stay and your level of income.

I adore knowing that I would have a place of my desire each year to vacation in but can’t get over and see the benefit of paying dues of $400.00 - $800.00 where I can take that money each year I spend on dues/fees’ and stay at a resort. Thanks so much for your feed back I welcome it all and all different point of views. Take care – Chuck

[aliikai2 Super Moderator Find all posts View Profile Close aliikai2]

If a motel 6 size and quality is all you need


Then owning or renting a 1 or 2 bedroom timeshare isn't for you.

We however enjoy having a kitchen, a great ocean view, in a great destination like Hawaii or Mexico.

Our annual fees for the units we use are all about $800 per week, and if you want to rent the same accommodations they will run between $1600-2500 per week.

So as you can see, we are saving a fortune by owning, it all depends upon what you are looking for in a vacation.

fwiw, Greg

[qlaval Member Find all posts View Profile Close qlaval]

Hi,

I'm paying $805 per week each year for maintance at the Marriott Aruba Ocean Club for a 1 bedroom villa (4 persons).
But if you consider that Marriott rent that same unit for more then $4,500/week...

It all depend on what you're used to pay for hotel accomodations.
For some it worth it for others not so.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

After tallying the costs for a vacation we took one time - staying in Motel 6 type accommodations, sleeping four people in a room with two queen beds - I was struck at how much we had spent on food.

Later, when we went to a timeshare presentation, we realized that for the same amount of money we spent on room and food, we could stay in a 2-bedroom unit with nicer furnishings, washer and dryer, refrigerator, and fix our own food. Particularly for breakfast and lunch, everyone could get up and eat when they wanted.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Hi,

I'm paying $805 per week each year for maintance at the Marriott Aruba Ocean Club for a 1 bedroom villa (4 persons).
But if you consider that Marriott rent that same unit for more then $4,500/week...

It all depend on what you're used to pay for hotel accomodations.
For some it worth it for others not so.

I pay $990 for a 2BR at the Marriott Aruba Surf Club - I lock it off and get 2 weeks of accomodations worth $6,500......

I also have a 2BR week that the MFs are $550 and I traded into a 2BR at Disney Vacation Club - to rent the same week from Disney would cost over $4,000.

So the $400-$800 that you pay in yearly MFs will get you a week in a hotel room at an okay?/non-oceanfront FL location in off season - but see what Timesharing can get you?

[bevvy5 Moderator Find all posts View Profile Close bevvy5]

Yeah, I think it's basically a vacation style choice. My parents would never timeshare because the thought of planning ahead and staying in one place for more than two nights is absolutely horrific to them.

We, on the other hand, like to go with friends, so we almost always have a two bedroom with laundry, full kitchen - often bigger than the condo we live in. We eat in a lot. So it's very cost effective to split maintenance fees between two couples taking into account the lower food costs, etc.

But it doesn't work for everyone.

[cbaur88 Junior Member Find all posts View Profile Close cbaur88]

Thanks everyone for your feedback, it was great to hear all the different angles. By reading most of your posts I gather alot of you compare to what you would get if you were to rent your time share out. But how often do most of you rent out your 1 or 2 weeks a year out. Isn't the whole purpose is to enjoy that selected week or time frame in which you can vacation. Or are alot of you looking at it as an investment over time. Please Please by no means am I knocking having or owning a time share I would love to get involved in this type of ownership but just trying to weigh all the options and see if it would beneficial.

I would like to ask another quick question if I may. By owning a timeshare does that give you any time of tax break come income tax time? Just curious, thanks guys and all take care!

Chuck

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

I would like to ask another quick question if I may. By owning a timeshare does that give you any time of tax break come income tax time? Just curious, thanks guys and all take care!

Chuck

Nope, no tax benefits.

I gather alot of you compare to what you would get if you were to rent your time share out. But how often do most of you rent out your 1 or 2 weeks a year out.

I believe you misread. It is what you will pay if you want to rent from an owner or from the company. It has nothing to do with rent out the unit we own.

I saw quite a post from Marriott owners. They are usually consider close to the high end in TS. It is like you buy a house, you can live in $50,000 house or $400,000 house or 1M house. If they are all in the same (or similar) area, you will get different comfortable level. And sometimes is is very hard to say if it worth it.

So when you look at owner paying MF as $400. and You check the local hotel room, you may find it is $29 per night to $129 to $300 per night before tax, can you conclude that since you see $29 per night, it makes owning that TS worthless? Or stay at 300 a night very stupid? A better compare is what you usually spend for hotel stay in 7 days and in what kind of hotel quality. $400 7 night is close to $50 per night before tax. Even in $50 per night, you usually will not get a Washer/dryer A kitchen. Not to mention you probably will find the same type of room will very likely cost you $69 before tax on priceline only.

If you look at eBay, more likely, if you can find hotel within close enough range of that TS charge the same as the MF or less than the MF, it usually get no bid. On the other hand, you may see a beach summer 2 BR week that has MF in $500 range that get bid at $4000 to $5000 range even with possible SA. Because if you have to vacation at that area at that time, it could easily cost you 400 a night.

Jya-Ning

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

I pay $990 for a 2BR at the Marriott Aruba Surf Club - I lock it off and get 2 weeks of accomodations worth $6,500......

I also own a 2 bdrm at the Aruba Surf Club. Not only do I lock mine off, but I deposit my 1 bdrm side into II, and then get an AC from them. So, I get three weeks for my maintenance fee of $990. With the AC I have gotten great weeks, such as Disney Boardwalk Villas, etc.

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

Chuck,

Timesharing, when done right, is the single best thing ever created for vacationing. It is the "sliced bread" of vacation accommodations.

Why?

Because through timesharing, you can stay in Marriott, Hyatt, Hilton, Four Seasons quality resorts for Motel 6 costs with very little effort.

Why?

With a moderate effort, all of your vacations can be for FREE.

Why?

With a full effort, you can fire your boss, move to Hawaii and vacation all year long.

Not sure how long it will last. But I believe that this decade will be considered the Golden Age of Timesharing.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

so far, I believe unless you own a bad week or bad resorts, most of the one can beat the hotel or rental with similar class. The only one I can not beat is the rental supplied by exchange companies, or the tour package offered by TS companies or the last min type of give out by existing owner. Still I can see ways to beat it on very few times except the tour package. Since I don't have to be these places all the time, I will be satisfied to just beat them once in few years so if I want, I can take the opportunity when I beat their prices.

Jya-Ning

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

As a former timeshare owner,here's how I see it.
What one would spend on anual maintenance fees should be less than one would spend at a motel out of pocket in the same area. Also, timeshare places usually offer better to greater than what is offered at some motels.
Keep in mind fees go up ( what doesn't ? ) and there are other fees that may come along. Special assessments and exchange fees are out there too.
The big thing is the costs to get into the timeshare world. You can buy from a developer which is a lot of costs, or purchase on the second market which will save a lot of bucks.
I suggest that you rent from the place you have in mind to see what they offer and how they operate.
Please ask a lot of questions before you buy. If the price is good today it will be just as good next week. DO NOT sign away any of your rights just to get a better deal. Collect all of your paper work and READ it. If it is not clear then ask till it is clear.
The purchase is a legal binding contract in a court of law. It is not like buying a pair of shoes. Keep in mind what your plans are long term. If you were to die would your spouse/partner want it. Are there children and would they want it.
You need to have a plan as to what you will do after you have finished using it. The only investment in timeshares is for future vacation time. DOT NOT expect a profit from the sale of a timeshare. There are a few cases out there where profit is made but do not count on it. Look at it as money spent for time off and fun.
Again, ask questions before you buy. Timeshares do not work for everyone. There are plenty of owners that felt they were misled in their purchase and are stuck. There are areas in the timeshare world that need improvement and I saw positive changes during my ownership. There is more work to be done. There is a lot of help here on the net, just ask.
Enjoy, have fun and know what you are getting.

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

These are good questions to be asking - keep it up, ask anything.

I think it's quite possible that renting is more affordable than owning now, but I don't think that will continue for long. There are numerous rental outlets with very inexpensive offerings. It's probably something you want to keep an eye on and use for the short-term. If and when you see those rentals starting to climb in price, you might re-evaluate pros and cons of rent vs own.

Many owners own what they do because they are guaranteed that unit week every year. If that is something you desire, you would have to own because there are no guarantees with rentals. I, personally, doubt I'll ever go the same place twice, and certainly not the exact same week, so while that doesn't appeal to me, the idea of having a vacation waiting for me is like nothing I've ever experienced in terms of stress reduction.

There are workaholics that say timesharing "forces" them to vacation because it's paid for. I used to be in that category.

Of course, I want to go the Boca route and fire the boss, mouth off to the Big Cheese here and chuck the day job completely and travel the world instead. I can't say I view my ownerships as an investment, but will dabble in the rental aspects for years I can't use everything I own. I don't ever expect to make back all my money but I would never consider it a loss because of all the quality time spent away from home in finer accomodations than I could have ever dreamed of affording.

Only you can really make the right decision for you. Where and when do you want to travel?

[m61376 Senior Member Find all posts View Profile Close m61376]

For my $990 in annual MF's I have a 2 BR villa in Aruba that Marriott charges over 7k to rent for the week. Would I ever pay the 7K- NO- but I sure as heck enjoy staying in a resort that would otherwise rent for that fee. I can easily trade it to a multitude of desirable vacation destinations. I can lock-off the unit and, with an AC, potentially enjoy 3 weeks of vacation time.

After the initial outlay, it is forgotten, and I feel like I get to go to a great resort for a week for $990 with my family, rather than renting at least 2 hotel rooms. We don't have to worry about getting it together in the morning and where to go for breakfast. We can have snacks and frozen beverages easily packed for the beach/pool or daily outings in a easily packable cooler. If we feel like being lazy a couple of nights and not gorging out nightly in restaurants we can enjoy grilling some steaks and making a salad a few nights. We don't use the kitchen extensively but we really enjoy the convenience and, since we generally travel with my parents and either one or both daughters, save hundreds of dollars on breakfast for 5 people daily alone. Throw in the savings on 2 dinners and even snacks/beverages during the day and having the kitchen probably saves us $750 or so for the week. The kitchen savings offsets most of the MF's, and the convenience really adds to the vacation.

After staying in a timeshare for the first time last summer, my hubbie looked at me and said, "would you ever want to travel any other way?" We've travelled a lot over the past 15 years or so and we're only sorry that we didn't discover timesharing sooner.

[Y-ASK Member Find all posts View Profile Close Y-ASK]

I too am the fence about timesharing, although I do own quite a bit of Disney DVC points. From what information I've been able to gather is that if you can get a nice place that's well maintained for significantly less than what it cost new you are way ahead of the game. I was interested in a Marriott Myrtle Beach timeshare (Oceanwatch) but my wife was very firm in the fact that she wanted to go during the 4th of July week which of course is the most expensive time to go. The current price is a little over $40,000.00 new but resale it's probably around $28-$30,000, if you can find a re-sale. I was able to rent that week for $2,100.00 last year and $2,500.00 this year. So if I were to invest that $40,000 purchase price there's a very good chance that I might be able to cover the yearly rental cost and not have to pay any maint. fees and my $40,000.00 is still worth $40,000 five years later when I decide to vacation somewhere else .

But to try and answer your question about Hotel rooms and Timeshares, it's like comparing apples and oranges. With my family of 5 I would never want to stay for any length of time (more than 2 days) in a Hotel room. We always go for a two bedroom timeshare because you can really spread out and relax without being on top of each other. If the kids act up, send them to thier room. Also most of the places we stay have a washer and dryer which means you don't have to pack as much. Pack for three days instead of 7 or 10. 2-3 Bedroom timeshares are the way to go. Now if I were able to find a timeshare resale at a location that I would want to go every year or every other year then yes I would buy and pay the maintenance fees, no problem.

Y-ASK