What is the "Foolish" take on buying into a Time Share resort? I realize it would somewhat depend on the value, but...are they a waste of money? Would I be better off "investing" in something else? It is, at the very least, a tax-deductible-interest 2nd home...right? Help? This particular one is an Embassy Suites, 4 star resort. Of course, it can be exchanged almost anywhere in the world for some place else similar in value (RCI network).
I have friends who have a time share (in Aruba!), and my sister has one too. Neither thinks of it as an investment. What you get is an apartment to vacation in, for about the same price as a smaller hotel room. Your risk is that management will be shoddy.I personally wouldn't do it, because there is only one of me and the hotel room will do just fine. If I had a family, I might well change my mind in order to have more space, a kitchen, and so on.I don't think taxes enter into it. You are talking about a capital cost of something like $20,000 (just my guess) and the interest and taxes on a mortgage for that amount aren't much. (Not to belittle those to whom $20,000 is a big deal, but for those contemplating buying a time share, it isn't.)
What is the "Foolish" take on buying into a Time Share resort?Ask my parents and my in-law's. They will tell you that as an investment it stinks. All bought and can not sell for anywhere near what they paid for them. My parents have two different weeks and they have to pay about $250 just for yearly maintenace for each week they own. They are stuck with their weeks. They tried the trading once and got the pits of an exchange.My in-laws have two weeks too, but they have RCI and they have used the exchange to their benefit. Their yearly maintance fee is over $450.00 per year per week. Both have tried to sell but both would lose money.If you want it for vacation purposes and not an investment, you might try looking into buying from owners who want to get out of their timeshare. There are list after list of them on the internet.Utahtea
There are few more idiotic and ultimately embarassing mistakes in life you can make than to think of time shares as investments. They are not in any way shape or form an investment, though they are frequently peddled that way. They are an investment like buying a new car at list price is an investment. The way these are sold is utterly despicable. You're Joe Schmoe, you take your yearly week of vacation in Cabo San Lucas, for example, you're fried out from 51 weeks of work and gaagaa in paradise. They give you an 11 cent breakfast of scrambled eggs & beans with two chips stuck in them (am I right?) and scare you into thinking you won't be able to afford this gorgeousness in two years because hotel rates are going up 15% a year and your wages are only going up 5%. "See, look at this chart we've prepared for you." A classic take-away routine. "You can't have this unless you buy now and provide for your future piece of mind. This opportunity won't last forever, in fact, we're probably going to sell these babies out today or tomorrow". Yeah, right. Own a little piece of paradise and be a big shot. Don't think you'll want to vacation in the same place forever? No problem, join RCI for a fee and you can trade weeks with people anywhere in the world you want for a fee while you pay a fee for the annual maintenance of your glorified hotel room. Please don't allow yourself to be sucked into this type of egregious rip-off.A typical time share costing $10K+ can typically be bought on the secondary market for $2500 any day of the week and for even less if you find a burnt-out owner who needs cash. Try a grand, and even that's paying too much. There are plenty for sale in any urban newspaper. There's no price, there's no liquidity. I for one don't call that an investment. I call it a scam. I'm not saying they don't serve a useful purpose or even that some don't derive good and economical use from them. I'm sure there are plenty of folks who happen to take their vacations at exactly the same time every year and are willing to commit to that for 15-20 years. How depressing! But there couldn't possibly be a worse "investment" unless you like losing 50+% before the ink on your credit card slips is dry. AL:LA
I agree that buying a time share is NOT - repeat - NOT an investment! The return stinks!However, I bought mine (WorldMark) for not very much money (far less than the $20K previous posters were talking about) because I like to take long weekends and get away from the Bay Area and because I wasn't locked into a single physical location. Yes, RCI is available, but I don't even have to use that because I can go to any of the 22 different resorts in my time share club. We used one location for part of our honeymoon, one location for a Valentine's Day weekend getaway, and yet another location for a getaway over July 4th weekend 1.5 years ago. The maintenance with WorldMark has been superb - never a problem - and the quality of the rooms have generally been far superior to all except five star hotels. I've never had a problem booking a reservation either.Oh... and I got a free vacation to Las Vegas, NV, on them as well! Had a GREAT time!
I also agree this is not an investment.However, we did buy a time share through Marriott and I think it is a good deal. There are a decent amount of resorts in the plan, and one of the best things about it that made my husbands argument to buy finally persuasive, is that we don't have to go the same week every year, we can go between April 1st and December 15th. I'm busy in the winter anyway so this was not a big deal for me. In addition, every other year, we can exchange our week for Marriott reward points. A week =100,000 points, and for those points you can stay in a Marriot hotel for a week practically anywhere.I thought this was the best of both worlds, of course this is a personal preference, but we've been extremely happy with the service at any Marriot property we've stayed in so far.Just another perspective.Nat
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