Is Genl Consensus to buy for Lowest MFs?

[paralegal2003 Junior Member Find all posts View Profile Close paralegal2003]

I've read pages and pages of these postings to figure out WHERE to buy. I live in So. Cal. and take weekends anywhere from San Diego to the south to Monterey Bay to the north. Vegas is a reasonable drive also.

I figure I should buy in the So. Cal area or Las Vegas but some posts indicate just buy to minimize your Maintenance Fees.

When exchanging my RCI week (home resort in Bahamas), it was very important where MY home resort was located as some locations are more requested than others and RCI doesn't want a bunch of trades they can't use.

So buying to minimize MFs instead of for my use or trade opportunities seems too simple for me.

We are empty nesters and can vacation at any time. I don't have the restrictions people with school age children have. My travel plans are almost Crown, learned that lesson also). Does it matter for trading within the Wyndham system? Sorry this was so long.

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

Low maintenance fees are only one factor in deciding to purchase a timeshare. I recommend using a total cost of ownership model which factors in upfront capital required to purchase, an expected duration of ownership, and a terminal value when you ultimately sell it.

Then, you come up with reasonable expectations for increases in maintenance fees and compare that discount cashflow against what you expect to be able to get in a rental. If the amount to buy isn't a lot lower than it is to rent, then just rent.

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

If you are Wyndham point owner, when you exchange with RCI, all the resorts underline Wyndham are your home resort(s). Wyndham decides which one gives to RCI. So here is no difference in trading power.

Wyndham's own statistic is that about 4% of inventory was taken at ARP period (13 to 10 month when you can only make reservation on your home resort). Based on that, since you can avoid to fight for these 4% of inventory, you should be good.

However, it kind of costly to use Wyndham point internally on your area, and it does not trade very well externally now using RCI. Have you looked at WM?

Jya-Ning

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

There are a couple of problems IMHO with buying for low MF's.

If the MF's aren't sufficient to maintain the resort, owners at that resort are looking at financial problems down the road. These usually come by way of a special assessment. Polo Towers owners have been hit with two special assessments in 10 years. The first was under $200 but the second was over $1,000 for owners of 2 bedroom units.

The other solution is to increase MF's at an accelerated rate. Just a couple of years ago people were singing the praises for the low MF's at Powhattan and Greensprings resorts in Williamsburg. That developer/management company went out of business and a new one took over. MF's went up over 20% last year and I don't think they're done with increases yet.

IMHO, you should buy a resort that you're happy with. Something you're proud to own. Some place that you woudn't mind returning to every year. A quality resort will remain a quality resort. You can never count on what MF's will be at any resort past what they are today. They might be cheap today but tomorrow they could be one of the more expensive resorts to own.