Why would I want to buy when I can rent?

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

I'm researching timeshares again on a recent sales pitch that I promptly turned down. I really thought buying a resale would be the best bet, but when I start doing the math on the initial expense, and the maintenance fees, I really don't see why I would want to buy into a timeshare.

Basically the other option is to rent, either a hotel, or a timeshare someone else owns. I looked at the prices for the times I would like to go, and they are around the same compared to the yearly maintenance fees.

So my main question is this, since a timeshare is not really an investment (like a house) what are the advantages of owning a timeshare and being bound to pay the maintenance fees yearly rather than just doing some research and renting out a place during the same time for just about the same cost of your yearly maintenance fees? Also, since I'm renting, I'm not bound to even go that year if I don't want, and keep all the money in my pocket!

Thanks!
--Michael

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

Right now renting is a very attractive way to go. For some people, buying will never make sense. Maybe you are in that category?

Buying gives you a guarantee that you can be in Resort X at Week Y (floats and points vary this concept, but same general idea). You don't have to try to find an owner looking to rent out at a price you will pay. Owning allows me to put my plans in place very far in advance. I like that. I don't have to accept what I can find, I can request what I want and be offered CHOICES. Do I want a 2 or 3 bedroom? Do I want to be in section A, B or C? Can I have a Friday check-in instead?

If you are not overly picky about the where and whens, yes, renting can put you ahead financially. Your choice of resorts should be less than the owners get, but the tables have been turning on that (thanks to RCI and others that allegedly do public rentals of owner inventory).

At this point I would not find a hotel room acceptable for vacation (maybe on the way to a timeshare but not as The Destination). Nor would I be the least bit happy with the sparse amenities on-site, not to mention the lack of kitchen, rooms, etc.

It's easy to make the argument based on dollars alone. But for me, it's not the money. It's the spacious accomodations, the onsite offerings, the locations. These add a lot of value to my trips. Sure, I might be able to find the same exact thing by finding an owner rental. But I might not. I like the guarantee. That's why I own.

An added bonus is being able to give someone a vacation without having to put out an extra cent.

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

Sounds pretty much like what some veteran timeshare owners have been saying for many years, how the Internet has changed the equation, and how the timeshare industry has elected to ignore that.

Ownership still has it's advantages for areas and times when rentals are scarce and expensive. Some ownerships come with other advantages such as anytime use of amenities by owners, which is desireable for locals. Some annual fees are still low enough so that use or exchanges is still economically advantageous.

But, for many destinations you would be better off googling ________ Timeshares For Rent.

[brother coony Senior Member Find all posts View Profile Close brother coony]

Driffent stroke for driffent folks,I love My timeshare so does my family I have I one bedroom and Maintance fees are $2,240 for one week in NYC and hate the fees But would still buy it again knowing what I know now, every year I have family members fighting to use it if I woun,t be, and reinburse my fees,
its A life style thing if you can afford it, like buying a carvette convertable and driving it in summer only, Dont knock it ontill you try it

Lot of folks knock it ontill they try it , then they buy 5 more
I would say 80% of owners here own more than one

But it's not for everyone, But if you have a family, kids there is noting like a great beach front summer week when they are out of school
Shoot, you can bribe them to get good grades, Bad grades you dont go

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

I love my timeshare so does my family I have I one bedroom and Maintance fees are $340 for one week in NYC and hate the fees But would still buy it again knowing what I know now, every year I have family members fighting to use it [/quote]

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

I don't have to accept what I can find, I can request what I want and be offered CHOICES.

Cash plus Expedia works pretty well for that too.

Owning, for me, has to be less than rental costs by a fair margin. I compute annual ownership costs as 8% of my acquisition price (including all fees), plus any MFs. That needs to be a fair fraction below market rental rates, because owning carries more risk than renting---special assessments, changing vacation preferences, etc.. It's next to impossible to meet this criterion on a developer sale, and surprisingly difficult on many resales.

In particular, if you are not beholden to the school vacation calendar, owning to use is probalby a losers game when compared to renting.

On the other hand, it is also possible to take advantage of certain inefficiencies in the exchange marketplace, and use a very low-cost week to get into a unit that would have very high rental costs---and end up spending less in total than the owners at that resort do in just MFs. This is not for the faint of heart, because the rules of the game (and the inefficiencies they create) are subtle, take a long time to learn, and are constantly changing. This game of cat and mouse adds to the fun for some, and is painful for others.

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

I think JLB got it right. It all depends on how much you want to go somewhere and whether it is available as a reasonable rental. Timeshare owners cannot rent for less than the annual fee without losing money-eventually rentals will go up or the timeshares will fail.

[funtime2 Senior Member Find all posts View Profile Close funtime2]

We only own one timeshare because we are both still working and not retired! We would not travel any other way. When I get a call at home to visit a timeshare for sale - my first question is "will I be staying at the resort or in a hotel" if the answer is hotel I tell them that I am not interested if I can't stay on property! Most of the time that is where the converstation ends.

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

If you are solely comparing a developer purchase price of a timeshare vs rentals you are 100% accurate in your statement.

I have bought every single one of mine as aftermarket. Probably 10 to 20 cents on the dollar of developer prices. I do not own the big name properties as for all intents and purposes those are not what appeal to me.

With the expansion of the internet outlets and cheap rentals in the last 10 or so years there are various ways of traveling and staying in properties without the on-going liabilities of maintenance fees, special assesments and what have yous.

Still and all I would purchase timeshare again, although today they would be even cheaper and I would more likely target more specific areas and use times. Perhaps a points system that aligned well with our uses.

A 2 bedroom beachfront in primetime for +/- $700 week floats my boat just fine and I don't think you can manage that with any manner of rental.

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

Driffent stroke for driffent folks,I love My timeshare so does my family I have I one bedroom and Maintance fees are $2,240 for one week in NYC and hate the fees But would still buy it again knowing what I know now, every year I have family members fighting to use it if I woun,t be, and reinburse my fees,
its A life style thing if you can afford it, like buying a carvette convertable and driving it in summer only, Dont knock it ontill you try it

Lot of folks knock it ontill they try it , then they buy 5 more
I would say 80% of owners here own more than one

But it's not for everyone, But if you have a family, kids there is noting like a great beach front summer week when they are out of school
Shoot, you can bribe them to get good grades, Bad grades you dont go

Right down the street from Bro Coony's resort is the Marriott Marquis - here is what it costs to stay one week in a 1BR suite....this would be comparable to the suite he owns.

Suite, 1 King or 2 Double, Sofabed Room details 679.00(USD)per night Rate
Deluxe suite, 1 bedroom suite, 1 king or 2 double beds, bedroom connects to adjacent sitting area includes sofa bed
The rate for this room changes on 08/17/2008 to 719.00(USD) per night

Additional Information
Executive Suite 21' X 27' (567 SQ FT)
*** One Bedroom Suite with King Bed and sofa bed****
*** Separate living room area with dining table & four chairs **
*** Two television one in the bedroom & one in living room***
*** Full size sofa bed and refrigerator in living room****

Holding Your Reservation
We will need a credit card number to reserve your room.
Canceling Your Reservation
You may cancel your reservation for no charge until August 14, 2008 (1 day[s] before arrival).
Please note that we will assess a fee of 875.35 USD if you must cancel after this deadline.
If you have made a prepayment, we will retain all or part of your prepayment. If not, we will charge your credit card.

This fee equals 1 night of your room charge plus tax (for the first night of your reservation).

So $875 x 7 = $6125 for the week
Versus $2,240 MF

I own at the Marriott Aruba Surf Club.

MF $1100. locks off into a 1BR and a studio

studio in March $485 plus tax = $523 x 7 = $3665
1BR in March $620 plus tax = $669 X 7 = $4683
Total for a 2 week stay = $8348
Would I pay Marriott this rate - not me! but there are people there who do..... in 2 years I made back my purchase price - now I get 2 weeks in Aruba for $1100

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

Buying a resale TS is sometimes a better choice than renting.

Buying a resale TS is almost always cheaper than renting from a developer (like GrayFal's Aruba Marriott example)

Buying a resale vs renting from a TS owner is the tricky part. You must find an owner who has the week at the resort you want. Years ago, that was almost impossible but with the internet and the many TS website it is not only possible but may be a better choice than buying.

Personally if we didn't own, we likely find a reason not to vacation as much as we do. So buying a TS has basically forced us to vacation more than we would have otherwise.

[odaddy Gold Contributor Find all posts View Profile Close odaddy]

I get 2 weeks in Aruba for $1100[/COLOR]

And you get to choose the weeks you want thats the best part,

It all depends on Where you want to stay and when you want to go, run the numbers and it should be fairly clear which way to go. I also agree
with Bill, it sure has pushed us into many wonderful vacations that absolutely would never have been taken.

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

On the other hand, it is also possible to take advantage of certain inefficiencies in the exchange marketplace, and use a very low-cost week to get into a unit that would have very high rental costs---and end up spending less in total than the owners at that resort do in just MFs. This is not for the faint of heart, because the rules of the game (and the inefficiencies they create) are subtle, take a long time to learn, and are constantly changing. This game of cat and mouse adds to the fun for some, and is painful for others.

Brian that paragraph has got to be the best "in a nutshell" description that I have seen in a month of Sundays.

Certainly, beating the system has always been a major part of the draw for this particular addict.

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

Thanks for all the discussion. I think I am in the spontaneous boat, I like finding a good deal at the last minute, and my family isn't bound to the school calendar, so we can vacation a little cheaper, especially when we're fine going to the beach early September. Same resort year after year seems a little boring to me, and if for some reason times are tough, we can keep our money and not go anywhere!

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

Last minute, flexible, offseason travel? Yep---renting is likely to work well for you. Enjoy it! Once you get used to the condo lifestile, it's hard to go back to hotel rooms.