what do you know of timeshares?

[greekpeakskier]

I've always stayed with my parents in SLC to ski. But my mom died this spring and I just spent the last couple of weeks moving my dad into a nursing home (and skiing Snowbird).

Everyone I talked to at Snowbird loves their timeshares. But I had never even considered a timeshare before. I sort of, unfairly, put it in the same sort of catgory as selling amway or something (though I'm not sure the comparison is unfair to amways [which my mom swore had great stuff] or timeshares [which I'm considering doing].


Any of you have timeshares? Any of you know anything about them? Anyone know anything about hidden costs? I know there is a maintenance fee, but if I go for a small place, it doesn't seem overwhelming.

I'm thinking of buying a week in April at Snowbird. Skiing is still great.

 

[Jilly]

If your interested in "buying" a vacation, then this is for you. There will be large upfront amount, then the yearly fee. Some places are offering points instead of weeks. Therefore you can trade points depending on the size of unit you need and the time you want. Club Intrawest does this.

We've looked a many different places and price ranges. DH won't go of it, he wants sticks and stones, not a piece of paper. So we haven't gone anywhere with it. We do have lots of friends that have time shares with RCI and Club Intrawest.

Take a tour next time you're out. Sometimes they offer a cheap 2 nights accomodation or just dinner vouchers. The main thing is get educated on the different plans and expenses. Even see about time shares locally. You can move your week from the east coast to the west for a fee. Don't buy anything the first visit. Look into all the deals. Extra weeks etc.

Most of all, its like buying a house - have some fun at their expense.

 

[Pequenita]

The only thing I know about timeshares is that it can be tough hard to divest your share if you need to get rid of it. That being said, I know of people who have had (and used) timeshares at the beach for 20+ years

 

[playoutside]

First, sorry for your loss.


I've owned one since 1993; I bought one that I use exclusively for trades. It has worked well for me, because I can be very flexible about when I travel. I've traded for places in US and Europe and only once been disappointed by the unit. Some things to consider.

• It is not real estate, will not appreciate and can rarely be sold at anywhere near what you paid. (There are always new units built and people want the new ones)
• There are annual fees to cover taxes and maintenance. These vary based on the size of the unit and amenities at the resort. Like most fees, they do increase over the years.
• If you plan to trade, you will also have a annual membership fee (nominal) to cover the cost to join Interval International or RCI most likely. You also will pay a trade fee.
• If you plan to trade, the quality of the unit you own and the quality of the week you own will impact what units are available to you.
• If you plan to trade during school vacation weeks, you will need a lot of luck to get a popular location.

Best of luck making a decision. If you take one of the "free" tours they offer, bear in mind the salesmen are very persuasive, good at the game and reluctant to set you free. Go in with your eyes wide open and a lot of resolve.

 

[geargrrl]

edit: just read playoutside's post. <grin>

 

[greekpeakskier]

i've seen the pushy sales people... when i am in park city, they are very aggressive (which is why i've been skeptical). but snowbird seems a bit different. the condos are older and smaller and not very expensive, and i'm not sure they can build more in little cottonwood.

when i went in to ask about timeshares at iron blosam, there was NO sales pitch. they were very blase and couldn't even answer questions very well. it was clear that they were not motivated sellers. when i asked to see one, they key carded a card and said to give it back on my way out -- no one went with me.

the only units for sale are resale units or ones at a foreclosure auction in a couple of weeks.

i like the idea of skiing once our season is over (so, april). i must also admit, i still have family in utah.

but the idea of timeshare seems.... scary. like, i'd never be able to get rid of it.

 

[greekpeakskier]

btw. playoutside, this detailed info is very helpful. it helps acknowledge the dangers and yet doesn't overstate them.

 

[ski diva]

I had a timeshare that worked on the point system Jilly described, and if you're interested in a timeshare, that's really the way to go. We bought one years ago through Disney when my husband and I went into business together and weren't sure we'd ever be able to afford a vacation again. We figured this way, we'd at least be able to go somewhere. The Disney thing worked for us because our daughter was very young and we liked to go to Disney, plus it was very easy to trade for other locations. We just sold it last month, and even in a down market it took only three days to sell. So if you have one that's fairly attractive, it shouldn't be too difficult to unload, if that's what you choose to do.

 

[playoutside]

the only units for sale are resale units or ones at a foreclosure auction in a couple of weeks.

.

I'd be careful about this...try to find out how many have been in foreclosure/how many (weeks and units) are unsold. If there are many units not owned, then there are fewer owners to share the annual costs which could cause an increase in annual fees.

I think it is not uncommon for people on vacation to be enticed by the sales pitch. I also think it is after they get home or after a few years of paying to get to their resort that they realize it may not have been for them. Unfortunately people are shocked they can't just sell it and are forced to walk away from it.

 

[Bumblebee]

In my dim and distant past I once made a living selling timeshare in the Meditteranean. It was just an enormous scam to launder money for the mob. :(

The re-sale value is virtually nill (we all know what the property market is like right now for REAL homes), they're difficult to transfer, maintenance can be extortionate, etc., etc.

If for example your maintenance costs were coming in at a couple of thousand a year you could get a really nice hotel room for that. IMO it's not really a "free holiday" because you've still to pay your flights anyway.

I suppose there will always be one which is legitimate and a bargain - but purlease, when I was in CO with the Divas this year I couldn't help but marvel at ANYONE who'd spend a couple of hundred k on a fortnight. Hell, if I were to spend $20k on two weeks in Summit County I'd have been stepping out of a limo every morning!

 

[greekpeakskier]

yep, the resale value is virtually nill (So I could buy one for 600. to 1000. dollars) and/but the maintenance costs are between 372. and 500. a year (for a week) -- depending on which of the smal units I'm considering. That's

All the "real" winter weeks are solid and sold and not going anywhere. it's only the shoulder weeks (late march, april) that have any trouble. and it's those weeks that interest me -- after east coast skiing is gone, to get in one more good week of skiing.

Any Utah divas out there who can weigh in on the general impressions of the Iron Blosam at Snowbird?

 

[abc]

I wonder how much does it cost to rent one of those small units during shoulder week?

BTW, are the maintenace cost depend on unit size or original sale price?

 

[ski diva]

Interesting article on timeshares in the May 11 issue of Time magazine.

 

[greekpeakskier]

Ski Diva -- the article outlines my experience at Snowbird this last week. I had been planning on renting a room at Iron Blosam last week and didn't -- it would have been close three hundred dollars a night for the efficiency that is like one now up for sale.

I couldn't believe how cheap the resale timeshares were. If I pick one up for under 800. and have to pay 450. a year for a week of lodging, if i eventually have to give the thing away, i'd still be ahead.

i have not made the first step though, i'm much more wishy washy than that. but it was interesting to see the article that backed up my experience last week.

i also found very impassioned discussions of time shares on epic.

 

[abc]

Sales in the once recession-proof vacation-time-share sector

"Recession-proof"? For time share? Time magazine must have been looking at something we are not.

That doesn't quite agree with what other diva put forth. Nor what I occasionally heard from others. That is, time-share is nothing "proof" at all. It simply drops in value as soon as the original owner wants to sell.

I wouldn't be too surprised at the recession making the matter worse than it always has. So, for the buyer, perhaps this is as good a time to buy as any. Just make sure that's what you want, 'cause you may not be able to sell it for much if you change you mind.

But then, that's what my Mom always said about houses too. Smart Mom.

 

[greekpeakskier]

yeah, i understand. one of the posts on epic called time shares the "herpes of the real estate market. easy to get but you can never get rid of it."

 

[Pequenita]

yeah, i understand. one of the posts on epic called time shares the "herpes of the real estate market. easy to get but you can never get rid of it."

Good lord. I was just sitting here, eating some yogurt parfait, and I nearly lost it.

 

[CMCM]

I just cannot see the advantage of buying into any timeshare. There's the big upfront fees, and then the yearly maintenance fees can often equal what it would cost to just go and stay somewhere. There's a fairly big timeshare "rental" market out there, where timeshare owners rent out their weeks, often at very very low rates. That's much preferable to having that yearly fee hanging over your head. The sellers always present it in terms of your "ownership", but jeez, you don't really own it. It's shared by 52 weekly users, nothing personal about it. I think you'd end up paying far more in the end than you would either renting someone's unused timeshare or by staying in a decent hotel for the same or less than you would pay yearly in maint. fees, which can often be quite high AND which can increase over time.

We were in Cabo San Lucas once and went to a timeshare presentation out of curiosity. I remember one was priced at $24,000 or some such, then after we got home we saw a unit in the very same place desperation priced at $1,000. A lot of timeshares eventually expire, too. In the end, I just don't see any advantage whatsoever.

 

[abc]

Well, suppose one can get an second hand time share at $1000, then it's entirely down to the yearly maintenace fee vs. the cost of renting an aparment of similar size for a week.

If the maintenace cost is quite a bit lower than the rent on the open market, it would be a good deal. Otherwise, it's not.

 

[Consuela]

Hi GreekPeak,

Sorry for your loss.

+1 on abc's comment about buying used and comparing annual fee to lodging cost, as long as it's a place you would want to go to every year.

Cheers,
Connie-Consuela