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Timeshare question

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kansas
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Timeshare question

I've never been one for timeshares, but I'm wanting a second opinion. I travel somewhere about every 6 months. 45, male, single self employed. I've always heard what a bad deal they are if you buy from the companys.

I've been to Palm Springs, Palm Desert, Puerto Valarta, Cozumel, Cayman Islands, Jamaica, Vegas, and endless other places in U.S. and Mexico. Never been to Hawaii, but would love to.

I'm the kind that likes to stay at new places, and see new things. That's one reason I didn't think a timeshare was for me. Is there any financial advantage to one? I don't think there is tax wise. And if I can get good deals on hotels, why would it be a good deal to have a timeshare? Thank You.

kansas
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1. Re: Timeshare question

I did some digging on a web site called " How things work" -timeshares. And I found out the following: They cost from $7,000 on up, average $10,000. There will be Annual fees of about $400, property tax, possible transfer fees, assesment fees, ect. And you will probably loose money when selling. I can't understand why anyone would want one. If you have a positive answer why, please tell me. I'm at a loss here. If I was to pay $10,000, it would cost me at least 6% return on my $10,000. $600 the first year.

Maybe if one is traveling with a large family it's O.K. But, I still don't see where the savings is. Thank you.

Sedona, AZ
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for Sedona, Arizona, Monument Valley
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2. Re: Timeshare question

My wife and i have been timeshare owners for over 25 years. We have taken vacations all over the world and stayed in places that were generally larger and nicer than any hotel facilities that we would have been willing to pay for. The biggest challenge is planning far enough in advance so that you can get the exchanges that you're looking for. We've rarely had to delay a trip over lack of exchange success.

We're retired now and spend about 3-4 months of every year traveling to somewhere. About 4-6 weeks of that is timeshared. The rest is visiting grandkids and cruising, so we have plenty of variety.

If you want to shop for a bargain when you purchase a timeshare, you can usually save money in the resale market, but it's a good idea to do the resorts own presentation first so you get plenty of knowledge about what is there. From an investment standpoint, you can make much more on your money by investing it elsewhere, but we believe we have gotten more than our moneys worth from our timeshare investments.

Los Altos...
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3. Re: Timeshare question

As someone who has a timeshare and have stayed in timeshares my parents own, I'd say get it on the resale market.

I do like some timeshares for the extra space and kitchen component. I really like being able to wake up and make my own coffee and cut up some fruit in the morning and just slowly come to the surface. I also like to be able to make a sandwich or cook something a few days out of the week. For that reason, I like using the timeshare I do have. But I wished I'd gotten it cheaper, on resale. I'm not interested in selling mine because I'd just lose money in the deal, and I like with the one I have.

Ireland
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30 posts
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4. Re: Timeshare question

I purchased a timeshare with Hilton probably paid a bit over the top for it but I'd rather do that than to find out later that the company

wasn't reputable. This is my second year and fourth holiday using

the programme, after booking the holididay each time, I checked with travel agent for price using the same weeks and resorts,and to

date have saved 6000 euro. If your planning on taking a lot of holidays and can book well in advance I'd say go for it. The main problem that I would have is Hiton don't have many resorts in Europe so I have to do exchanges through RCI, don't know if thats a

good thing I'm not long enough with the programme, can anyone give me help and advice with this. Best of luck and I hope you get what your looking for

Sedona, AZ
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for Sedona, Arizona, Monument Valley
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5. Re: Timeshare question

DonalIreland,

As mentioned above we have been using our timeshares for over 25 years. In that time I have only stayed at one where I am an owner one time! Every other trip has involved exchanges, mostly through RCI. The key is to be able to plan ahead. If you make your requests well in advance (8-12 months) you will most assuredly get what you want.

We're going to Palm Springs for 2 weeks next week on an exchange. We go back to Marquis Villas every year. I trade there using some of my Sedona ownership points.

And here's something I'm doing to cover maintainence costs. I've traded for a week in Scottsdale next Jan 29th-Feb 5th. I will have a 3BR unit there within walking distance of the FBR Open (PGA Golf event) and during the Superbowl. I have no intention of using it. The week is going to be offered for sale probably on EBay. I expect the price to be enough to cover ALL of my maintainence and exchange fees for the next couple of years. And all I've given up is one week of trading. Considering that I own about 6-8 weeks per year, I think that's a good trade.

Sun City West
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for Rosarito
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6. Re: Timeshare question

To learn the ins and outs of timeshares and timeshare ownership--where to buy re-sale, what trades well and what doesn't, etc.--go to www.tug2.net

The "tug" stands for timeshare users group. It's made up of people who own timeshares and know a lot. In an hour of reading there, you'll learn more than you can imagine.

Click on BBS on the top of the home page and register (it's free). Then go to the forums. Tuggers are friendly people who will share their years and years of experience. I have 7 weeks of timeshare and have made many, many trades, but many Tuggers have far more experience than I have, and collectively.......well, you'll get your questions answered.

kansas
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144 posts
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7. Re: Timeshare question

Thanks for all the great info everyone! I guess there are alot of different ways people like to travel. Some like motorhomes and stay for months in one spot, for others timeshares work best. To each his own.

I guess what I have I've learned in this is, timeshares is not the way for me to go. Since I'm single, and don't require alot of space, hotels are best for me. I eat out, so I don't need the kitchen facilites.

And I'm only gone for a week or two at a time. If there was a huge financial advantage to it though, I would buy. It sounds like alot of people are happy owning them. That's all that matters.

Happy Traveling!

Colorado
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75 posts
147 reviews
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8. Re: Timeshare question

We bought a timeshare about ten years ago. Here is what I think.

If you travel often, don't bother. You already know the value of a vacation, and probably can afford to go to nice places. You probably also know how to search the web for a good deal. With a timeshare, it is very frustrating to be limited to only the places and the times that are available on the day(s) you look. It is hard (and many times impossible) to get the good places at convenient times.

In terms of financial issues, I think the timeshare companies are coming out way ahead of the owners. We pay fees through the nose - trading, membership, maintenance, etc. If we added it up, we would be shocked at what we are paying. So we don't.

ON THE OTHER HAND, if you are in the habit of never taking a vacation, and need something to push you into going each year (like my frugal but lovable husband), a timeshare will nag at you every year to take one. Without the "our-timeshare-week-will-go-to-waste-if-we-don't-use-it-and-we've-already-paid-for-it" rationale, my family would never go. So for me, it is PRICELESS.

San Francisco...
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4,673 posts
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9. Re: Timeshare question

Excerpts from: http://tinyurl.com/34sg7j

In addition, there's an annual maintenance fee of $200. Let's see:

$600 + (12 x 7 x $130) + $200 x 7 = $12,920 + $200 x 13 years = $15,520 + unearned interest, at 5% on $12,920 for 13 years ($8,398) = $23,918 / 20 years = $1,195.90 per week per year or $170.84 per day.

In 20 years, they're getting 51 times that amount or $1,219,818!!! assuming they carry the loan themselves.

At 5%, that same $23,918 can net you about $1000 per year and you won't be stuck with a piece of property that's extremely difficult to dump. Also, you're not likely to spend $171 per day for a vacation resort accommodation for several years hence, so there's NO way you can get fair value for the money spent in a time-share condominium as, at first glance, inexpensive as this one.

At $6900 for one bedroom for one week, they're getting $351,900 plus an additional $10,200, a total of $362,100. They reserve one week out of the year for maintenance, thus 51, not 52 weeks. The unit is located in the Rocky Mountain range at a place called Silver Spring (I think . . . Silver something in Colorado).

That has to be a great business to have providing one can sleep knowing what's been done.

Another excerpted from the URL above:

What will I get in return for the 4.5 man-hours it's going to take? I'm guaranteed to receive . . .

"One week's accommodations for 2 in Hawaii including roundtrip [sic] airfare plus $1,000 cash. ($2,500 value)." According to this week's travel section, the package is worth $718 making their $2,500 value worth $782 less than they claim. The odds of winning are 10M:1.

Or . . .

"3 days/2 nights accommodations for two at Lake Tahoe." According to this week's travel section, one can fly to Tahoe and stay in a hotel for three days and two nights for $99 per person. (That's a good deal because other advertised rates are no lower than $28 per person per night.) The odds of winning are 10M:4998.5.

[Last year, a friend and I were in a contest offering a first prize of a Tahoe trip. We were hoping to get the second prize, a meal in a local restaurant, and we were delighted that we did.

Aug 16 2001, 2:10 am

Newsgroups: rec.travel.usa-canada

Over the years, I've gotten some very nice things from those crooks:

A very nice "leather" bag that served me for many years;

An Atari "computer";

Three days paid car rental in Honolulu. Had to pay about $5 taxes! Further, since the car agency was right next to the hotel, parked in their garage, too.

A three-night cruise (had to pay, legitimately, $200 port charges) that they didn't want to give to us. The ticket arrived the day before we threatened to leave for the Port of Los Angeleles to show up at the ship, on which we knew berths were available, ready to make a scene;

A black/white battery/current operated television set. Still being used after very many years;

A bottle of excellent wine.

We have other stuff yet to be received but we'll certainly try to get them.

Apple Valley, CA
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647 posts
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10. Re: Timeshare question

I have only recently started learning how to use my Marriott timeshare and it's all thank to the site tug2.net and their bulletin boards (as mentioned in above post).

A couple of things to keep in mind. Some people own a week at a certain resort, but some people own Points with a certain system, like RCI or Starwood. The points system is generally more flexible because you can more easily take several short trips, 2 or 3 nights at a time as opposed to the whole week at one time like what we own. Some folks can't really take a week at a time, so points work better for them.

With most timeshare exchange companies, you can purchase bonus vacation time each year at deep discounts. These can be a mere fraction of what the company would generally rent the units to the public for. Taking advantage of one or two of the "bonus" vacatios a year often makes up for those pesky maintenance fees you keep hearing about.

Single people would probably be the least well-suited group for timeshare vacationing though. Unless you really want lots of space when you travel and like having a kitchen even if you don't cook. Traveling the old fashion way of going to the hotels of your choice when you want is probably best for you!