Post reply

Note: Please do not post ads in the timeshare forums. If you want to add a timeshare posting, go here.

Subject:^*

Your Message:^*

Alert me to replies in this topic
Quote original message in your reply

Original Message:

Re: Timeshares is good investment or not. (by Peter C.):

hey,

i'm sorry we can't reach a concensus. I really wish the anti investment people could at least admit there are many ways to make money with timeshares especially when buying resale, just as I can admit it is very difficult when buying direct, and of course there are less valuable timeshares. It doesn't matter whether we are discussing making money or saving money from renting hotels. I'll leave you with one example.

In 2008 the maintenance for a DRI 19 resort trust contract was $0.0803 per point. There are also Club dues of about $300/yr. If I was paying for 11,500 pts and in Club that amount would secure one 1BR DOV at DRI Kaanapali Beach Club. Main/Dues = $1,225 for 2008. You almost never see a 1BR DOV for rent anywhere near that amount, and I have very few offers in 2008 below that amount for a 1BR DOV. I usually rent the unit for $1,700 even though I advertise in the $1,900-$2,100 range. Sometimes I'll go lower $100 if I can use a 1BR OV to upgrade from. If I can book the 1BR DOV less than 60 days in advance, I get a 50% point reduction anf then I can spread the $300 dues between two units. This lowers my cost to $615/unit if I rent two units sub 60 day. I have never rented a 1BR DOV for less than $1,200 and almost always I've rented them for $1,300. that's about $600 gross to cover my time, overhead, and aquisition costs (cost of capital). True, I rent a lot of lower point units, but the concept is the same and that $300 Club fee is for my entire account rather than a small franction of what I own.

Other timeshares are more valuable with higher margins, and of course others are less valuable with lower margins. I stay away from a lot of timeshares because I don't see how I can make money on them. OK, there are timeshares which are bad investments. But there are also timeshares which are great investments, not for the sole purpose of making money but for the enjoyment, rich features vs a hotel, and saving rent/hotel bills.

Any investment requires common sense and care. Please don't say timeshares are a bad investment just because some timeshares are a bad investment.