Timeshare stories and critique my plan

[Mushe]

So, we've taken a few introductory trip deals, and never bought a timeshare at the presentation, because duh! I'm MM. But we have considered buying one on resale, if the price and benefits are right. We really like the Hyatt properties. It would be $100k for a week in Maui, with a $2200 maintenance fee. Yikes!

Here's my plan: Buy a diamond (best season) week in a 2br at the resort with the cheapest HOA fee, then plan to trade it every year for a week at whatever resort we want. There are a few in my state that would be fun to visit, and we could even break up the points for a few long weekends. I found one for $12k; annual maintenance is $1k.

So, what do you think, MM? I'd never buy it for $100k, but the lower price is a good deal to me. You could rent the week for much more than $1k, and we'd also spend more than that on a weeks' accommodations in a 2br apartment. We're going to Key West next year, so it would be perfect for us to use then, since my parents are coming too, and otherwise it's just us and DS.

[rubytue]

Go to the timeshare user group forum (http://tugbbs.com/forums/) and read read read. Read everything you can about the Hyatt system.

We don't own any, but we will eventually (parents on both sides have them). So I've done my best to be prepared. And that forum is so useful!

[lys]

There are tons of timeshares for resale --- for a reason. I would not touch one at any price.

[bexporter]

I have an inherited timeshare which is a pretty good deal for us, though there are hoops to jump through. I would not pay the principal for a new timeshare. VRBO, Homeaway, and the like have really taken the need for a timeshare program away. You can rent anywhere any time without the up front cost and fees.

[raangoli]

Can you just buy the points on resale like you would with Disney vacation club? I'm anti timeshare though so that colors my view.

[patbutcher]

Apr 26, 2016 14:22:15 GMT -5 lys said:

There are tons of timeshares for resale --- for a reason. I would to touch one at any price.

This. I used to be a secretary for a lawyer who specialized in timeshares. It was eye opening.

[Mushe]

Apr 26, 2016 14:42:33 GMT -5 raangoli said:

Can you just buy the points on resale like you would with Disney vacation club? I'm anti timeshare though so that colors my view.

You can, I think, but at 12k, it seems like an okay investment. We could sell/rent our points if we couldn't use them, but this kind of travel (kitchen access) has been the ticket for us since we had DS. I agree with a poster unthread that I'd never buy full price.

[Deleted]

You couldn't pay me $12k to take a timeshare. The rules, hoops, regulations, etc - hellz no.

I would much rather use money on actual travel that I can fit into my schedule, without having to trade weeks or stay with a specific brand.

We have had a few (distantish) family members get hooked into the timeshare stuff and 100% of them bitched and moaned about the expense and hassle, and difficulty to unload them. Not scientific, but I also have never heard a respectable finance or business expert recommend timeshares. Ever.

[raangoli]

Apr 26, 2016 14:49:42 GMT -5 Mushe said:

Apr 26, 2016 14:42:33 GMT -5 raangoli said:

Can you just buy the points on resale like you would with Disney vacation club? I'm anti timeshare though so that colors my view.

You can, I think, but at 12k, it seems like an okay investment. We could sell/rent our points if we couldn't use them, but this kind of travel (kitchen access) has been the ticket for us since we had DS. I agree with a poster unthread that I'd never buy full price.

Hmn I'd have to do more research to figured out whether there is a break even point or even a sure way to rent the points if we didn't use it. But I would still be wary because of the hoops and rules etc.

[steamboat185]

There are hundreds for sale on EBay where people are offering cash to get rid of them. It's not worth the cost. Both my parents and IL's have them and while they enjoy them the maintenance fees are almost the same price as a rental you could find on VRBO.

Good luck "trading it" trades can be really challenging.

[Mushe]

Sheesh, tough crowd!

[alleinesein]

Definitely do your research. Not all timeshare programs are the same and some can be easier to work with than others. You need to know the ins and outs of the program before you buy into it. Ones that use a point system instead of a week system tend to offer more flexibility; you aren't blocked into a set week and you can usually use your points for other lodging options (hotel rooms, etc).

I have experience with Disney Vacation Club and they have been slowly placing more and more restrictions on resale contracts. So while you can save a few $$ by buying on the resale market you are not able to take full advantage of all the options.

Don't look at it as an investment. You aren't going to make money on it. Buy it only if you will use it. I bought into DVC with my mom when we looked at how much $ we were spending on our weekend trips to Disneyland and trips to WDW every few years. For us it made sense to buy since we were spending thousands of dollars on hotel rooms; we crunched the numbers and it was cheaper to buy into DVC than to continue to pay for hotel rooms for every trip. We have already broke even since we bought our first DVC contract 11 years ago (we own in FL, CA and HI).

[Mushe]

Apr 26, 2016 15:46:11 GMT -5 @rennido said:

I was always on the general thought that timeshares were absolutely not worth it.
How is it an investment exactly? Can you sell it for more than you bought it for? Realistically?

What is the difference between renting a condo thru VRBO and a timeshare?

It's a nice, guaranteed week somewhere at a place that rents for more than the annual maintenance fee. I've been looking in Key West, and a week at a nice place with a pool, etc is $$$. We've done HomeAway or the like all over the US and abroad, and it's just another idea.

We like to do more adventurous travel too, but it's been a nice way to travel since having DS, the apartment idea. ILs own Marriott and really like it, hit we'll eventually inherit that, so I was looking at other options. They have had no problems trading their time for other resorts.

I agree that buying from the resort is a terrible idea. It costs so much that I'm not sure how it's worth it, but had read about the strategy I laid out above, buying at a resort with a low maintenance fee.

[Poppy]

To be honest, I don't know much about it other than negative anecdotes like others have mentioned. MIL has a timeshare through RCI I think and it's a pain. We've gone on her points to Mexico and on two domestic family trips. I don't like having to do Sat-Sat trips (or similar). I don't like being so limited in locations. She's always trying to use up her points. It's just a pain.

We're very active travelers and like to be near the action and also to stay at a couple places per trip. We've had several really great VRBO experiences and I like the flexibility and lack of commitment.

[OrangeBanana]

We have a timeshare. We bought it when we were 23 and everyone thought we were crazy. We have owned it for 13 years now and it has been great for us and dare I say paid for it's self. We had the foresight to buy it for only a week every other year. We could trade our week for a week somewhere else but we are really happy visiting the same place. We use the off years to go visit other places. The maintenance fee has been reasonable although I am a little nervous that someday it might go up. It's just an easy and effortless vacation for us. We need to get away as a family and if we didn't have this timeshare I can guarantee you we wouldn't vacation as often. My DH and I both hate planning trips so left up to us, vacation just wouldn't happen as often.

So in our case it's been a good buy because we use it to it's fullest capacity. We definitely don't treat it as a financial investment but we do see it as an investment in our family and that's been worth it to us.

[Mushe]

Apr 26, 2016 14:20:26 GMT -5 rubytue said:

Go to the timeshare user group forum (http://tugbbs.com/forums/) and read read read. Read everything you can about the Hyatt system.

We don't own any, but we will eventually (parents on both sides have them). So I've done my best to be prepared. And that forum is so useful!

Thank you so much for linking that forum! I have just tooled around a little while we were driving, and it looks like a great resource! FTR, I'm not just saying that because someone posted with this same strategy and got kudos.

[Mushe]

Apr 26, 2016 14:58:28 GMT -5 @sfgal530 said:

I side-eye the shit out of timeshares. If they were really a good deal, why would they have to use such ridiculous and intense tactics to sell them?

You do realize I said we would never buy from a developer, right? I never said timeshares from a traditional sale perspective were a good deal. It's like the used car concept - I'm only interested in them at resale and at a deep discount, and also if I'm actually able to use it.

[rubytue]

Apr 26, 2016 20:51:32 GMT -5 Mushe said:

Apr 26, 2016 14:20:26 GMT -5 rubytue said:

Go to the timeshare user group forum (http://tugbbs.com/forums/) and read read read. Read everything you can about the Hyatt system.

We don't own any, but we will eventually (parents on both sides have them). So I've done my best to be prepared. And that forum is so useful!

Thank you so much for linking that forum! I have just tooled around a little while we were driving, and it looks like a great resource! FTR, I'm not just saying that because someone posted with this same strategy and got kudos.

Great! The biggest thing I learned from there is that the systems are all different, and that difference can make a huge deal. Like I'm a Marriott girl, but Marriott resale aren't has good as original owners (for reasons I don't remember now). ILs are in the Hilton system, and they have some good points, but they have been frustrated by other things (namely not being as portable as they expected).

My folks are in one that is RCI. It's probably the least valuable of what is in the family, but they love it and go every chance they get. Apparently it's also fairly tradable.

We've already been told we get all of them eventually, and have been offered to be added to some of them now. So I looked around a lot to decide if I wanted them now, later, or never.

[imojoebunny]

I would not do it. Too hard to liquidate, even if they give it to you, and the fees can ruin your credit. You have no control over when they renovate, and up your fees, when the don't, and the property becomes a dump. Invest $12K in the market at a 6-7% average return, add your $1,000 a year in fees (more over time, since most can raise it at will or by a % each year), and you can rent a 2 bedroom from someone who bought into one through VBRO or some other agent without all the hassles.

[Mushe]

Apr 26, 2016 21:29:02 GMT -5 rubytue said:

Apr 26, 2016 20:51:32 GMT -5 Mushe said:

Thank you so much for linking that forum! I have just tooled around a little while we were driving, and it looks like a great resource! FTR, I'm not just saying that because someone posted with this same strategy and got kudos.

Great! The biggest thing I learned from there is that the systems are all different, and that difference can make a huge deal. Like I'm a Marriott girl, but Marriott resale aren't has good as original owners (for reasons I don't remember now). ILs are in the Hilton system, and they have some good points, but they have been frustrated by other things (namely not being as portable as they expected).

My folks are in one that is RCI. It's probably the least valuable of what is in the family, but they love it and go every chance they get. Apparently it's also fairly tradable.

We've already been told we get all of them eventually, and have been offered to be added to some of them now. So I looked around a lot to decide if I wanted them now, later, or never.

My parents have RCI too! It's a terrible story, because they bought after the sales guy told them, 'you probably can't afford a timeshare anyway.' Blech. So awful! I don't even want to use it with them because of my bad feelings. They finally used it recently, though, and liked it. My dad added me to the website so I could check out the last minute deals, though.

[orval]

My mom owns Marriott and we use them every year (Arizona for spring break, Fl for summer vacay this year). We have gone all over the place - including Spain. The biggest downside is we have to plan ahead to get the reservation we want. On the other hand, I need to plan ahead with work so I can take the days off. I definitely recommend Tugg - it does give you a lot of insight.

[scout8]

Apr 27, 2016 0:11:14 GMT -5 Mushe said:

Apr 26, 2016 21:29:02 GMT -5 rubytue said:

My parents have RCI too! It's a terrible story, because they bought after the sales guy told them, 'you probably can't afford a timeshare anyway.' Blech. So awful! I don't even want to use it with them because of my bad feelings. They finally used it recently, though, and liked it. My dad added me to the website so I could check out the last minute deals, though.

I went on an RCI pitch once and when it was clear we weren't going to be buying one, the sales person said "well, it really is for people who are more financially savvy than you." Oh, well in that case sign me up! 

[konapoppy]

I don't know much about timeshares, but the fact that you would want to trade it in each year gives me more pause. You are a planner, so I wouldn't worry about that piece, it just sounds like it could be a hassle and even your best plans might not be possible. I personally would skip it.

[shopgirl07]

Here's the thing. Timeshares are not an investment. So if you want to spend your vacation dollars on a timeshare, have at it. But don't go into it thinking it's an investment or a wise financial choice.

[Deleted]

Apr 27, 2016 0:11:14 GMT -5 Mushe said:

Apr 26, 2016 21:29:02 GMT -5 rubytue said:

Great! The biggest thing I learned from there is that the systems are all different, and that difference can make a huge deal. Like I'm a Marriott girl, but Marriott resale aren't has good as original owners (for reasons I don't remember now). ILs are in the Hilton system, and they have some good points, but they have been frustrated by other things (namely not being as portable as they expected).

My folks are in one that is RCI. It's probably the least valuable of what is in the family, but they love it and go every chance they get. Apparently it's also fairly tradable.

We've already been told we get all of them eventually, and have been offered to be added to some of them now. So I looked around a lot to decide if I wanted them now, later, or never.

My parents have RCI too! It's a terrible story, because they bought after the sales guy told them, 'you probably can't afford a timeshare anyway.' Blech. So awful! I don't even want to use it with them because of my bad feelings. They finally used it recently, though, and liked it. My dad added me to the website so I could check out the last minute deals, though.

My h and I went to a timeshare presentation in Mexico once for a $200 massage credit and they said the same thing to us. We just looked at each other and laughed at the time. It makes sense that this is one of the sales tactics They asked us earlier how much we spent on vacations and they thought I said 5k when I really said 5 figures...lol Oh, I miss those days!

Anyways, I wouldn't buy. I am suspicious of anything that starts out at 50-100k and then is "such a good deal" at only 12k. I would rather just use the 1k a year to go where ever I want, whenever I want and not have to deal.

[sm12]

Apr 26, 2016 14:41:08 GMT -5 bexporter said:

I have an inherited timeshare which is a pretty good deal for us, though there are hoops to jump through. I would not pay the principal for a new timeshare. VRBO, Homeaway, and the like have really taken the need for a timeshare program away. You can rent anywhere any time without the up front cost and fees.

I inherited the timeshare my parents had (one week every summer). It's only ~ $400/year maintenance (it is not a fancy resort, but has a great location), so it's a cheap vacation for us.  If we don't go, another family member uses it, or we could rent it.  I wouldn't buy one, though. I agree that VRBO makes it unnecessary. 

[youhadmycuriosity]

From what I recall when my parents used RCI, it's difficult if your week is in a less desirable location and you're trying to trade for a more desirable location. They own a week in Colorado and Florida- when I moved to Hawaii they really wanted to use their week to visit me, but couldn't get anything within something ridiculous like 2 years. They ended up getting a hotel instead. I bring this up since you mentioned Maui - I assume that places with the lower maintenance fees may not be as popular, which would make it difficult to trade. Other programs may have different rules. Good luck either way!

[icedcoffee]

Many timeshares are such a bad deal that when people can't sell them they deed them to unsuspecting people (apparently, you don't need the other person to sign anything). Anyway, a nonprofit I work with started randomly receiving the maintenance fee bills. The previous owner transferred their timeshare to them without any notice. Basically, they dump them on nonprofits who end up needing to spend a lot of time and resources dealing with it.

[craftyesq]

We have a time share where we have the property a quarter of the year. It was given to us as a gift because the previous owners couldn't sell it. It costs us money each year, even with renting out our time, and we have been trying unsuccessfully to sell it for quite awhile.

Take your 12k and create a vacation fund.

[BlondeSpiders]

We have a timeshare through Diamond Resorts Int'l. We pay for points that can be used at a variety of resorts and can also be exchanged through Interval, which has thousands of hotels and other resort options.