Post reply

Re: Huge Difference Between Purchase and Resale (by Orville F.):

ken1193 Orville has stated, in pertinent part:

In Reference to Ken (above)

I cannot convince you of what hasn't yet occured, as I'm neither a fortune teller nor an expert. However, let me first start by saying that their are at least a couple ways to value real estate. One is "replacement" and the other is "income" I own a vacation home and it is not on a beach, or anywhere like the many timeshares are. It is very close to home (1 hour away). It also has none of the amenities of a time share. The cost basis is about $200,000. The upkeep (utilities/taxes/insurance/annual maintenance) runs around $300 per month. We spend a total combined amount of time there of maybe 3 weeks per year. Mostly on weekends and usually to clean gutters, mow grass, etc. Having said that, know that I am not alone in my second home experiences. Also know (inquire with your local real estate service) That there has been a steady rise in the sales of second homes. The better location, of course the more it will cost in taxes, cost base etc. In essence, I paid $200,000 and spend $1200 per week for my "vacation time" I have to purchase my own furniture, fix anything that is broke, wash my own sheets, and if I had a pool, I'd have to take care of that too.

Here's my second point, timeshares secondhand via the internet is relatively new. People will not pay $25,000 for a timeshare if they can purchase a like property for $5,000. It's a case of supply and demand. If there is an increase in demand for timeshares (which my vacation ownership exaple above shows there should be) and people are hearing more and more not to buy directly from the builder, which is gradually becomming known. And timeshare ownership (secondhand) is now within reach of the average Joe. Well the demand obviously will push prices higher.

And as far as maintenance fees go. I just spent $239 a night at the Marriott with no bells and whistles. I pay about $1200 per week "that I use" on my second home. I spend about $600 per week just to live in the house in which I reside. I have no beach and perfect wheather, no maid service, no pool boy.

I hope this may have gotten the wheels turning. I have rental properties. At first, I paid to have renters and headaches. Now they pay, but I still have headaches. In a few years the renters will pay not only for their "space" but will also pay enough for someone else to handle the headaches.

I believe this is a great time to purchase timeshares secondhand. I believe the prices will rise and I believe people will begin competing to rent from owners. Everything takes time, but knowledge and the internet makes for some very fast progression.

I would never look at timeshares as an investment, however, looking back, I can say that the best time to get the best buys in anything is when they are out of favor.

Having said that, from some of the suggestions above "don't buy if you can rent from an owner" and "why have the initial outlay, maint. fees and special assessments" I feel safe to say that to many people timeshares may be out of favor. How long do you think it will be before owners can place their time for minimum fees on a first in first out basis and pehaps even profit from these competing renters. Or do you feel that people will prefer staying at hotels, or that there will be too many vacation properties to fill, maybe less people will want to vacation?

My thought is.. If the price is right and the location is desireable and you plan to vacation anyhow, buy now when you're not competing with everyone else. At least you'll know that when you want to go you'll have a place to go to. That must be worth something?