Preconstruction Timeshare from a Developer, is that a deal? Or resales?

[TalkToMeForAdvice Member Find all posts View Profile Close TalkToMeForAdvice]

::Peeks his head out and wonders if anyone remembers him:: Hey everyone, I was just wondering, would a preconstruction developer be better than a resale, given that both we're in similar locations, let's say Las Vegas as a good example. With a booming market, wouldn't a preconstruction trump the resale for once?

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

oh we remember...

::Peeks his head out and wonders if anyone remembers him:: Hey everyone, I was just wondering, would a preconstruction developer be better than a resale, given that both we're in similar locations, let's say Las Vegas as a good example. With a booming market, wouldn't a preconstruction trump the resale for once?

NO especially not in Las Vegas.

Las Vegas is on it's way to being the next orlando and Branson for timeshares. A glut of supply.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

I agree with that response.

[Anne1125 Senior Member Find all posts View Profile Close Anne1125]

I don't understand why everyone says that. First, I haven't been to Las Vegas but isn't it true that only a handful are on the strip? The others don't really count (I wouldn't stay off the strip unless it was a block or 2).

Anne

[TalkToMeForAdvice Member Find all posts View Profile Close TalkToMeForAdvice]

That's true, Anne. There aren't really that many on the strip and it's no where near an Orlando. Orlando truly has a ton of supply but a huge range in quality, Las Vegas seems to have only a few on the strip as oppose to the mammoth amount we have here in Orlando.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

Vegas is easy.....IMHO

Las Vegas is pretty easy to get via exchange or on the last minute sites for cheap. I have seen many Vegas stays available on RCI via trade and on last call. I also see them consistently at www.veteransholidays.com for $299 for an entire week....at several different places on the strip and off...and several have been 2BR and holiday weeks included as well as high demand times during popular conventions. Much of this availability is from the new developers who want to bring in potential sales.

It is also my understanding that the cheapest way to get into the Hilton points system is by buying Hilton Vegas resale. Our Hilton experts can verify that. Plus the promo stays are available as well from Hilton members.

When you add up timeshares and the amount of hotel deals available I could not justify even owning in Vegas especially considering the cost to buy from a developer added to the maintenance fees.....and I am not sure I would want to stay there for all seven nights for fear I would lose any winnings I might be lucky enough to make.

[cluemeister Member Find all posts View Profile Close cluemeister]

Some differences, some similarities?

I think there are a few differences and similarities between Orlando and Vegas. A few of the differences are:

1. Disney World is so huge, it's a drive to go anywhere, including from Disney park to Disney park. There is no advantage to being walking distance to Disney, except if you buy a Disney timeshare and stay on site. Combine that with a lot of undeveloped land in Florida, and there are plenty of places to build timeshares. The strip in Vegas, on the other hand, is so close knit, that units on the strip will stay in higher demand than timeshares that are miles off the strip.

2. Vegas has continued to build thousands and thousands of hotel rooms for over a decade, with no end in sight, and their vacancy rate is still very low most of the year. Project City Center, The Cosmopolitan, and the Residences at MGM Grand are only a few mega projects underway on the strip.

Now what I see as the similarities for Vegas timeshares compared to Orlando. The big developers are building timeshare developments one block off the strip, and those are close enough to the strip that I believe they will satisfy the demand for people who want to be "on the strip". Marriott Grand Chateau, HGVC on the Strip (albeit north end), and Westgate's soon to be built timeshares behind Aladdin/Planet Hollywood are good examples of what I'm talking about.

I bought resale on ebay, so even if I lost every penny on my ts, I wouldn't lose a wink of sleep. Plus I followed tug's other rule: Buy where you want to vacation. Even with a saturated timeshare market, I'm going to enjoy going to Vegas every year!

[Bill4728 Super Moderator Find all posts View Profile Close Bill4728]

With a booming market, wouldn't a preconstruction trump the resale for once?

If a typical resale for that developer is 50%-70% of the developer price then sometimes a pre sale can be a OK deal. But if you buying from a developer which resales are in less than 50% of the developers price, IMHO, you'll never make up the loss.

Good Luck

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

Presale vs Resale.....Resale should always win

....why?

Given the opportunity to prove itself: a long-lived, well-run HOA will have a track record, will have lived by its HOA agreement and it will inspire folks to want to own there based on its history.

Presale implies that one is praying and hoping that the developer will be honest, will keep the place running with the owners in mind, and that the mf's will be reasonable (those of us who have lived through sales phases know how those mf's inflate once sales are near to or fully closed out).

Also, new owners often buy with a hope or naive thinking that special assessments will be unnecessary because of fiscally responsible and REsponSIVE management practices. In fact many new TS owners never heard of such a thing as a special assessment ....ask some folks who own in FL or NO after the hurricanes....maintenance fees have to cover costs...and if a developer keeps the mf's abnormally low to attract buyers, eventually mf's will jump or special assessments will be levied. If no cash reserves are kept, there you go!

Presale phases pin their hopes on folks who will not know enough about the do's and don'ts of timeshare buying....they like to stress all that glitz and glamour of something new and hope its newness will make a competitor look faded and less appealing.

Many a "faded" t.s. is really a diamond in the rough with a great deal of wonderful assets. And many a well sold newbie turns out to be a money pit once the developer mishandles, leaves or falls on its face. This is the ugly truth about many t.s. developments.

Our primary criteria: Resale, because we look for an HOA who wants to please the ownership and isn't trying to sell itself as a cheap and sleek way into an exchange company's inventory....because there is no guarantee of a developer's promise to a client that "you can see the world through an exchange" and to tell the truth, that is what the developers really sell.