Timeshare - looking for info

[cruiser]

I was talking to a friend recently and they were telling me about a timeshare that they got for a condo in Kelowna.

I know that there are timeshares for many locations...usually in Alberta they are for Canmore...in BC we here about Fairmont, etc.

I am looking for info about timeshares....have you invested in it? was it a ripoff or have you made good use of it (my general impression is that they are a cash grab). What are the lengths of the usual contracts? Can you ever get out of them?

If I were to go for something, I would want to get into the more exotic locations (Mexico, Hawaii). I've seen enough of the mountains, so would like something warm.

Appreciate any feedback....

thanks,
Cruiser

 

[hmm3030]

I have a timeshare in Mexico that I use every year for two weeks.
Tip when buying: Always buy at a high level (Gold Crown) as it will be difficult to trade otherwise. The resort that you own at doesnt matter as much as the trading power it gives you through the various exchange houses such as RCI. Be careful when buying and know what you are looking for when you go to the presentations.

 

[Horse99]

timeshare? What are you really buying?

For your next 30 visits to your timeshare location, regardless where it is....you could have stayed in the most luxurious penthouse for less money over time...for the next 30 years...without your capital being tied up in a non appreciating "asset"

Do some calculations....How much do you have to pay NOW to guarantee your two week vacation each year.....plus what other fees do you have to pay, like maintenance....and what do you really own at the end of the day?

 

[HubbaHubba]

For your next 30 visits to your timeshare location, regardless where it is....you could have stayed in the most luxurious penthouse for less money over time...for the next 30 years...without your capital being tied up in a non appreciating "asset"

Do some calculations....How much do you have to pay NOW to guarantee your two week vacation each year.....plus what other fees do you have to pay, like maintenance....and what do you really own at the end of the day?

what he said!

 

[island-guy]

You can get some good timeshares on ebay right now for $1 because their owners can't keep up with the annual maintenance payments and no one has any money to buy them.

Whatever you do, don't buy directly from a developer, buy from ebay or a resale site.

One of the best deals going right now is Disney Vacation Club. Another good one is Worldmark. For a bit more money, the Marriott timeshares are a good deal. Always buy resale, never direct from the developer no matter what lies the developer tells you.

Stay away from RCI points, it sucks.

Buy what you will use, then trade it when you feel like going elsewhere.

There is a good set of forums called Timeshare Users Group (TUG) search them out and read up.

 

[island-guy]

For your next 30 visits to your timeshare location, regardless where it is....you could have stayed in the most luxurious penthouse for less money over time...for the next 30 years...without your capital being tied up in a non appreciating "asset"

Do some calculations....How much do you have to pay NOW to guarantee your two week vacation each year.....plus what other fees do you have to pay, like maintenance....and what do you really own at the end of the day?

I just paid $2 for 2 weeks a year in a 2 bedroom in Hawaii. My annual fees are about $1000 per week. Those same weeks originally sold for $35,000 each and 2-3 years ago they were selling for about $12,000-15,000 on ebay

With the economy melt-down, there are some great deals out there.

 

[Horse99]

I just paid $2 for 2 weeks a year in a 2 bedroom in Hawaii. My annual fees are about $1000 per week. Those same weeks originally sold for $35,000 each and 2-3 years ago they were selling for about $12,000-15,000 on ebay

With the economy melt-down, there are some great deals out there.

AH, you proved my point exactly.....the possibility of getting completely hosed on your investment is GREATLY possible with a timeshare....just ask the people who are selling NOW...

 

[island-guy]

AH, you proved my point exactly.....the possibility of getting completely hosed on your investment is GREATLY possible with a timeshare....just ask the people who are selling NOW...

But, if you buy for $1 now, so long as the annual fees are less than what you'd pay for a hotel or whatever in that location and so long as you are going to go there often enough, there's no down-side.

Maybe in a few years, you'll only be able to get $0.50 for your week, oh well, there goes a 1/2 cup of coffee.

 

[edmontonsubbie]

timeshares are silly....it's just some corporation moving in providing a service that you can provide yourself. It's lazy and you pay for that. Why not find three/four/five others that you trust enough....to jointly purchase a property outright. Spend $1,000 outfront to hire a lawyer to draft a partnership agreement...covering aspects of "what will happen if a partner wishes/needs to sell"....."maintenance fees"....etc etc.

I am just talking out of my ass, never owned a timeshare. The sales tactics frightened me...."can I have my lawyer look at this first?".....the answer of "no, it is a limited time offer" was enough to walk away. The wifey wasn't too happy...but....at least we got to tool around in Ixtapa in the Jeep for 24 hours. Met some cool people doing that. Eat the breakfast, take the gift. That should be my mantra....

kindest,

eddie.

 

[jim]

timeshares are silly....it's just some corporation moving in providing a service that you can provide yourself. It's lazy and you pay for that. Why not find three/four/five others that you trust enough....to jointly purchase a property outright. Spend $1,000 outfront to hire a lawyer to draft a partnership agreement...covering aspects of "what will happen if a partner wishes/needs to sell"....."maintenance fees"....etc etc.

I am just talking out of my ass, never owned a timeshare. The sales tactics frightened me...."can I have my lawyer look at this first?".....the answer of "no, it is a limited time offer" was enough to walk away. The wifey wasn't too happy...but....at least we got to tool around in Ixtapa in the Jeep for 24 hours. Met some cool people doing that. Eat the breakfast, take the gift. That should be my mantra....

kindest,

eddie.

Those high pressure sales tactics are a joke. They claim that you'll never be able to buy into their properties if you walk. Then 8 weeks later you will get an invite to attend the same thing.

 

[FunSugarDaddy]

I don't know a hell of a lot about time shares, but I did get one or two discounts at various places, listening to their presentations. I remember one of them being at Whistler, and I believe they wanted $25,000 to buy a time share at the Legend. We declined, I went home and googled and found out that they were selling on the after market for about $12K. Basically you're buying to right to take a holiday and paying for a large part of it on an on going basis rather that at the time you take it. And given the meltdown in the US I'm sure there's a hell of a lot of good deals out there.

Myself, I decided just to by a condo on the beaches of Florida and hang out there. The pro's and con's of that is you'll either get a capital gain or loss over time, you have to pay ongoing fees, but have the opportunity to rent it out, and you can basically go there whenever you want, cause you own it. But you better like the area.

 

[Ray]

Never, ever buy a timeshare from someone giving a high pressure sales pitch.

I asked if I could have my accountant look at it and tell me if the numbers were ok. Immediately, the manager walked over, offering me his CGA credentials, asking me what sort of questions I would like him to answer. I walked away.

If you really want a timeshare look at Trend West, they manage the resorts for Worldmark. But don't buy it directly from them. There are tons of resellers out there looking to dump it for a fraction of the 'new' asking price. Lots of folks are broke and need to liquidate assets.

What I would do is put that money into a mutual fund or something. Take out your gains every year and travel. Do it through your TFSA so you're not taxed on it.

 

[island-guy]

Trendwest was bought out by Wyndham.

But Worldmark is still a good TS deal, you can get the points on ebay for about $0.50 each vs from Wyndham for about $2.00 each and no matter what the salesliar tells you, points are points are points.

The ONLY TS that I have seen go up in value over time is Disney. Their points were $48 when they first started and now the cheapest I've seen them resale is about $60.

Why is that? Easy, Disney controls the supply and has a right of first refusal on all resale transactions.

 

[Big Dog Striker]

Get a timeshare because you plan to use it and not for investment price appreciation purposes.

Four Seasons and Ritz Carlton fractional timeshares are quite good ones.