How stupid is buying a timeshare?

[cronewitch]

I know you can't give them away so I am thinking someone might give them away. So if someone were to give you a "free" timeshare what would it cost?
I think it would be an annual fee plus a fee to join an exchange then maybe a cleaning fee or a booking fee if you used it and of course air fare and associated fees for transportation, car rentals and food.

So say I had a week in Orlando for October I could trade for points in a system but didn't always want to go to the same place what would it cost to trade that for say a week in Hawaii, not counting air fare and food and things just for the room?

[milee]

Put it this way - they're such a bad financial decision (99% of the time) that charities won't even accept a free, donated one.

Think about that for a minute.  Wowza.

If they really worked to give you free, or even greatly reduced cost, vacations in Hawaii wouldn't there be a good market for them and wouldn't people want them? Again, think about it.

[tskeeter]

I'm with Milee, usually timeshares are a poor investment.

That said, when my uncle died, my brother and I bought his ski season timeshare in a premium powder location from his estate.  Worked well for one year.  Then my employer was acquired, our fiscal calendar was changed, and ski week now falls on month end close every single year.  That's when I found out how difficult it is to exchange weeks.  Especially anyplace you might want to vacation.  Then the annual maintenance fee went up 25% over a two year period.  If that keeps up, the maintenance will cost the price of a comparable condo rental in another few years.

Dang, I'm gonna hafta retire to get any value out of this timeshare thingy.

[cronewitch]

I already retired so could take advantage of last minute trades and go any time. I looked up renting a week and some were about 1,250 a week some 650 so that might be what it cost to own a week.
If I used it 10 years then I would have to try to give it away, which is hard to do. Maybe someone would pay me to take it.

[Peace Of Mind]

1.  The scheduling situation isn't always what they claim it is.  Why pay the amount of money annually that you will have to pay to be told when you can use the place?

2.  The fees/taxes/maintenance/liability, etc. is way more than they tell you.  It's much cheaper to just pay for the place you want to go to as you feel the need.

3.  Everybody I know who had one enjoyed it for the first 3 years or so and then spent the rest of their lives getting rid of it at huge costs to them when all was said and done.

DON'T DO IT!!!  Orlando has so many places to rent that are top of the line/gorgeous where you are not limited.  DON'T DO IT!!!

[gooddecisions]

It depends on the week you own and the location. My inlaws have one at a ski resort during the 2nd week of December. They thought we would be able to use it, but our kids will always be in school that week. It's really easy to find a condo for that week for around $600 for the week, which is the annual maintenance fee. What's worse, is a weekend is long enough for that resort, making it a huge rip-off. Anytime they trade, they get a cold weather, off-season option on a beach somewhere, which again, easy to find for $600. So, find the crummiest weeks in otherwise okay resort locations, price them and decide if the price without a timeshare is about the same as your admin fee.

[Artemis Windsong]

I think timeshares are a foolish investment. 

It's much easier to chose your place to go year to year instead of having a timeshare ball and chain.  Shackled is what you will feel.

Again.  Don't do it.

If you love one place enough then go buy something and let a rental agency rent it out except for the times you want to be there.

[gooddecisions]

I usually rent someobody's timeshare for the price of the admin fee. It's always cheaper than a hotel. Since you're retired and don't have to worry about the school schedule, you could easily find good deals without owning. If you know anyone in the armed forces, have them add you to the armed forces vacation club. Tons of options for super cheap: www.afvclub.com/

[Opti]

They can be hard to sell. Some timeshare companies will eventually take them back for free.

Some won't. I believe the reason charities avoid them is they are very hard to turn into cash

and are a guaranteed fee every year, so a cost not a monetary donation.

[zibazinski]

I like mine. Unfortunately, I haven't been able to travel as much so I'm banking mine but the year of 2013 I used a week in Orlando. A week in St. Martin and a week in Cayman. For $1200. I plan on a week in NY, a week in Hilton Head and a week in savannah this year. I'm thinking about where for the other week. I can go all over the world whenever I want as long as it's available. I have 4 weeks banked and I'm using 3 . When I die, I really don't care what happens to it. Didn't cost me much to begin with.

[tskeeter]

Feb 11, 2015 18:29:31 GMT -5 Opti said:

They can be hard to sell. Some timeshare companies will eventually take them back for free.

Some won't. I believe the reason charities avoid them is they are very hard to turn into cash

and are a guaranteed fee every year, so a cost not a monetary donation.

Yes, you are right that charities usually avoid timeshares because they are a financial drain on the charity.  But, as usual, there is an exception to every rule. 

I had a friend who wanted to a timeshare located in Anaheim,CA.  She'd been trying to sell it for a couple of years without success, and the seller wouldn't take it back.  Fortunately, her creative, savvy, and modest friend (insert Tskeeter's picture here) figured out that a charity, such as Make-a-Wish, might have a use for access to a family sized condo next to a well known amusement park, such as Disneyland, for a couple of weeks every year.  A successful donation was arranged and the lady with the creative, savvy, but modest friend, saved $1,300 a year in maintenance fees.

[Opti]

Nice tskeeter. Great solution.

[Value Buy]

I thought timeshares were tied to points nowadays, and you trade the points for the weeks you want. 

As far as a week in Orlando in October, it is hard to trade anywhere because it is the off season, although retirees like it because no one is there.....so it's hard to trade for Hawaii on an equal basis. You will probably have to pay an extra fee for even an offseason week in Hawaii.

Years ago my MIL had several time shares in Texas, Arkansas and Florida.

She let us take weeks and we stayed in Colorado, the Carolina coast and Ft Lauderdale over a few years. It really did not cost us much on the trading of the weeks, but that was fifteen years ago.

She has sold them all now, all at big discounts from what she paid.

[Blonde Granny]

Just use VRBO.com (vacation rental by owner) and chose your condo to rent from thousands of units in places all over the world.

[Bonny]

Feb 11, 2015 19:41:46 GMT -5 Blonde Granny said:

Just use VRBO.com (vacation rental by owner) and chose your condo to rent from thousands of units in places all over the world.

Seriously! Why make your life complicated? Go where you want when you want, cronewitch . You've got $1M to burn!

[tskeeter]

Feb 11, 2015 19:47:38 GMT -5 Bonny said:

Feb 11, 2015 19:41:46 GMT -5 Blonde Granny said:

Just use VRBO.com (vacation rental by owner) and chose your condo to rent from thousands of units in places all over the world.

Seriously! Why make your life complicated? Go where you want when you want, cronewitch . You've got $1M to burn!

Bonny, have you ever use VRBO?

[milee]

I have. We use it 2-3 times a year for vacation travel. Had good experiences, recommend it.

[Bonny]

Feb 11, 2015 19:53:07 GMT -5 tskeeter said:

Feb 11, 2015 19:47:38 GMT -5 Bonny said:

Seriously! Why make your life complicated? Go where you want when you want, cronewitch . You've got $1M to burn!

Bonny, have you ever use VRBO?

Yes, several times. Have you?

[Deleted]

I bought a timeshare on the resale market in Gatlinburg. It was $750. It was a fixed week with a $550 maintenance fee.

It was nice. The location was pretty far down the mountain (part of a collection of chalets so some were way up, which made them treacherous in winter). The July week worked for me since it was a couple of weeks before school started back. And I hadn't been to Gatlinburg much.

Then the boyfriend and I broke up. Can you imagine how lonely it might be to go alone to a timeshare? I invited my kids and their children, but late July/early August turned out to be their favorite time to give birth. No joke . . . five of my grandchildren were born in that timeframe.

I managed to leverage it a few years. I found an incredible handyman by offering to trade it on CL's for some work.  Then I got married, and my DH wasn't interested.  I traded it a couple of more times for maintenance stuff.  But I never got my money's worth ($550 worth).  I finally sold it to one of the timeshare neighbors for half of that year's maintenance fee.  That's right . . . I lost my $750 and $275 more.  I felt lucky to get rid of it.

In addition to the maintenance fee, you are also subject to assessments.  Sometimes maintenance fees are kept too low to build up proper reserves.  At the one I owned, the reserves were embezzled. 

I liked mine, but I still say they aren't worth it.  You have to keep on paying if you can't get rid of it.  Our association foreclosed and dinged people's credits as hard as they could to get people to pay up.  They recently started taking buybacks . . . at 5X the maintenance fee (almost $3000).  But people were paying almost that to unload them at shady sites who got people about to declare bankruptcy to take them on.  Yes, the industry is that bad.

There is a site called TUG (Timeshare Users Group) where you can get lots of useful info.  They aren't as negative as we are; many owners are happy, satisfied owners.  But they are realistic in ways that only owners can tell you about.  For example, many of the point programs are tiered.

Find out as much info as possible before purchasing. 

[zibazinski]

When I croak, it's over. Or if I decide before then. They never did move it out of my mom's name so if I just get tired of it , oh, well, she's dead. Good luck collecting from her. . So far I've enjoyed it. I don't need good credit anymore so don't care if somehow they can "hit" me.

[gooddecisions]

My parents bought a beach facing time share off the coast of North Carolina the first week of August back in the 80's. We went every year for 18 years. Then, they retired to Florida and didn't see the point in driving up to NC when there are so many great beaches in FL. The fees are $700/year, but that week goes for $1300 when rented and it sells fast. For 3 or 4 years they rented it and collected their profit. Then, the timeshare converted to points and their week is worth a lot of points, so they go to even nicer resorts in FL instead. I have great memories of our beach vacations at our timeshare condo and made good friends since we all returned the same week every year. I guess their timeshare worked out for them given that they've been using it for 30 years.

I scramble every year to figure out vacation plans and sometimes it's a miss. I would find it very easy if I had a spot I loved that I could go to every year for a reasonable price. 

[Deleted]

My parents own two at the Hyatt during the most popular week of the year in Key West, so they have no trouble trading and getting extra weeks during the off season at other places.  They are retired and definitely use theirs.  Still, I'm not thrilled that I'm set to inherit one of them.  Last I'd talked to her the maintenance fees were over 2K/year.  Ugh. 

[Value Buy]

Feb 11, 2015 23:11:47 GMT -5 minnesotapaintlady said:

My parents own two at the Hyatt during the most popular week of the year in Key West, so they have no trouble trading and getting extra weeks during the off season at other places.  They are retired and definitely use theirs.  Still, I'm not thrilled that I'm set to inherit one of them.  Last I'd talked to her the maintenance fees were over 2K/year.  Ugh. 

You may not be thrilled, but try and rent a week in Key West that week.

Better yet try VRBO that everyone swears by here.

I've looked for a rental in Florida, and they are higher then the time share rentals.

Your mom has a winner.

[Shooby]

I really don't get the appeal of a timeshare. Why would I want to lock myself into going to the same location and place forever? There is something now that is a "timeshare" but is a Club Vacation. We actually did go to Myrtle Beach for a week to hear the pitch on Club Vacations.   I would totally consider that if we traveled a lot.  Look into it.  It offers way more flexibility and deep discounts on "last chance" vacations where you get great deals if you are willing to book some last minute deals.  You aren't tied to a location but you can vacation anywhere whenever you want at other participating clubs.

[Deleted]

Feb 12, 2015 6:48:02 GMT -5 Shooby said:

I really don't get the appeal of a timeshare. Why would I want to lock myself into going to the same location and place forever? There is something now that is a "timeshare" but is a Club Vacation. We actually did go to Myrtle Beach for a week to hear the pitch on Club Vacations.   I would totally consider that if we traveled a lot.  Look into it.  It offers way more flexibility and deep discounts on "last chance" vacations where you get great deals if you are willing to book some last minute deals.  You aren't tied to a location but you can vacation anywhere whenever you want at other participating clubs.

I don't think you're locked into the same location (ok, maybe with some), but my parents haven't been to their actual timeshares more than 2 or 3 times in the past 15 years. Mostly they trade.  Sedoana, Breckenridge, Gatlinburg, Hawaii...  They have enough points with the ones they have to get a lot of vacations every year at other places especially if they choose off season.  Before they were retired they couldn't even use them all, so let family take weeks.  But now they travel all the time.

[yogiii]

Timeshares are not for me

I can see the appeal it has for some, it does take out a few variables.  Some people will always return to the same spot, so having the timeshare at their favorite place makes it a known.  For others, narrowing down the search to "available trades" can give a sense of security too. 

[Wisconsin Beth]

Feb 11, 2015 23:29:41 GMT -5 Value Buy said:

Feb 11, 2015 23:11:47 GMT -5 minnesotapaintlady said:

My parents own two at the Hyatt during the most popular week of the year in Key West, so they have no trouble trading and getting extra weeks during the off season at other places.  They are retired and definitely use theirs.  Still, I'm not thrilled that I'm set to inherit one of them.  Last I'd talked to her the maintenance fees were over 2K/year.  Ugh. 

You may not be thrilled, but try and rent a week in Key West that week.

Better yet try VRBO that everyone swears by here.

I've looked for a rental in Florida, and they are higher then the time share rentals.

Your mom has a winner.

I used to work with a women who owned 5.  Including one in Africa (possibly South Africa.)  She made money on renting the 4.  The African one was problematic.  But this was in the last 80s and early 90s.  And I haven't spoken to her in over 15 years so I have no current info on it. 

[Wisconsin Beth]

Feb 12, 2015 8:43:31 GMT -5 yogiii said:

Timeshares are not for me

I can see the appeal it has for some, it does take out a few variables.  Some people will always return to the same spot, so having the timeshare at their favorite place makes it a known.  For others, narrowing down the search to "available trades" can give a sense of security too. 

My ILs probably would have bought one in/near a small town in Northern Wisconsin.  They had family there and took 2 week vacations there every summer for 30+ years.  It drove my SIL nuts that every summer, that was vacation for her, BIL and eventually their DD.  There are some odd family dynamics going on, I admit.  But my point was that there are people that return to the same place year after year. 

[973beachbum]

Feb 11, 2015 23:11:47 GMT -5 minnesotapaintlady said:

My parents own two at the Hyatt during the most popular week of the year in Key West, so they have no trouble trading and getting extra weeks during the off season at other places.  They are retired and definitely use theirs.  Still, I'm not thrilled that I'm set to inherit one of them.  Last I'd talked to her the maintenance fees were over 2K/year.  Ugh. 

Well Zib did give you an idea.   If you never take it out of her name but continue to pay for it while it suits you what exactly could they do if you just decided to drop it?

Who knows though.  If there's is that good a date and place you might have no trouble renting it out for the cost of the fee plus still get to use it for a vacation or two.

[justme]

I think the only timeshare I'd ever consider is the Disney one. You can use it at the parks or any of their resorts elsewhere or for their cruises. I think it's the only one out there that actually sells in the after market. You can borrow or save points to go on a bigger or better trip.

My family just used vrbo in December and it was really nice. My friends and I are hoping to use one right before summer, but it'll be a bit rough since we'd be looking for a two night one.