Timeshares is good investment or not.

carvana wrote:

... I still contend that for the average person a timeshare is not a good monetary investment. Just look at all of the discounted timeshares for sale on the internet and that will answer the question posed without the necessity of any research ... For most folks, the purchase of a share of Citigroup stock is a better monetary investment than a timeshare...

Citi is down about 60% for the year, not a normal year but still a valid point that any investment can go bad. I concur getting a good return an a direct purchase timeshare is more difficult. If people had the support of experts willing to help them with timeshares as there is with investing in stocks rather than the people more focused on taking advantage of timeshare owners, the average timeshare owner would be much better off. And they would realize they have an excellent investment becuase they used it to its fullest extent.

If people were supported and educated in the use of timeshares rather than taken advantage of, timeshare values would rise and this conversation would not be happening.

jayjay wrote:

...Not in this market, no matter how much you know. Hawaii is one example ..... used to be a very high demand area for tourists .... not so any longer with skyrocketing air fares and this economy... I can guarantee that you have had only losses in the last 6 months and that you're business model will collapse.

yes, it is difficult in this market. But just today a Marriott Maui owner signed up with me and I'm running ads for her. I don't expect her units to rent for the listing prices, but I am confident they will rent for more than her maintenance, after my expenses.

The air and rental market have certainly had difficulties over the last 6 months. But not certain loses, and not for me. First, airfare has DROPPED significantly from the oil high periods. Second, customers are as frequent now as at the beginning of the year. The issue is agreeing on a price they are willing to pay (much lower than normal) where owners can make money. So far I'm doing fine, and I've helped a number of owners do better as well.

Our greatest weakness is of course our individuality. Individual owners don't spend enough time/money to market their units and there are far too few reputable rental management companies. There are far too many rip offs. THAT is what is hurting our timeshare rental/resale market. We need more reliable rental/resale entities offering owners a better ability and access to low up front fees to list with a commission when rented.

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.

ghhww wrote:

I understand the problem.

I ACCEPT YOUR POINT OF VIEW.... but you do NOT accept mine. What is worse is that you wish to run me down. That is just strange.

You don't understand who to work timeshares. That is fine, most people do not.

I do. And in 15 years I have learned how to get PAID to go on vacation. Paid. Not free... PAID. I fully understand if you don't know how it works but that is no reason to run me down or discount what I have to say.

I would very much like to know if other people on this chat board would rather.... 1. Hear what I have to say and how to work timeshares. or 2. Hear what you have to say, which as I see it is very little and all negative. Certainly not helpful or constructive.

So...anyone want to post? I would be glad to shut up if no one wishes to hear how I work the system. It isn't easy. The CONCEPT is EASY... but you do have to learn a lot to make it work.

The concept is just buying the right timeshares at the right prices. Then learn how to get the best trades...and there are tricks to doing it. If you can do that, then TIMESHARES ARE A FANTASTIC INVESTMENT.

ONLY reason I posted is because it seemed to me that many people did not know how to make it work. I do... and have for 15 years...and it IS the best thing I ever did in my life.

There is NO argument with my point of view. It is fact. There also is no argument with YOUR point of view. I understand you don't know how to make it work. I was merely saying it IS possible and I know others who also make it work, and many many more who do not.

I had a heart attack and 5 bypasses 3 years ago. I have always enjoyed my life, but that really made me realize that life is short, and I have been using my timeshares to travel and see the world. I am lucky. And, I don't understand people who go on chat boards to run people down and discount their particular perspective.

I say this only to encourage anyone who reads this to make sure you enjoy life, friends and family. Make every day count, because life is short no matter how long you live. Happy Thanksgiving to you! I wish you well.

You did not comment on my response to your post on Tug.

This same person posted on Tug that he paid $10K for a S. African timeshare with only $350 maintenance fees.

First, this person seems to think that just because the maintenance fees are $350 he completely ignores the original $10K he paid and averages his nightly rates on maintenance fees alone (and he knows what he's doing ..... I don't think so ?).

Second, there's no way on God's green earth that I would pay $10K for any timeshare, much less a S. African timeshare that's trading power has dwindled immensely.

Third, I wonder how many of those $10K S. African timeshares he's bought when you can pick one up on Ebay for $1 [ignorance is evidently bliss].

This is why I have advised readers here to completely ignore such blatant timeshare uneducated dribble that he has posted here.

From the TUG BBS .... he evidently owns three S. African timeshares .... no telling what he paid for those timeshares if he admits he paid 10K for one.

http://tugbbs.com/forums/showthread.php?t=85925

I have a 1 BR, 4/4, timeshare 20 miles from the Superbowl in Miami on 2/7/2010. How much would you think I should rent for and when and where would be the best time to advertise it? Do you have any comparables from previous Superbowls?

raymondl17 wrote:

I have a 1 BR, 4/4, timeshare 20 miles from the Superbowl in Miami on 2/7/2010. How much would you think I should rent for and when and where would be the best time to advertise it? Do you have any comparables from previous Superbowls?

I have no idea, but you could research what other rentals are listing for in the same area in the same time period by checking sites such as Redweek, VRBO (Vacation Rentals by Owners) and other rental sites.

Where do you go to buy thesetimeshares?

annmariec20 wrote:

Where do you go to buy thesetimeshares?

What exactly are you planning to do or are in just on a "fact finding" mission for someone else?

Great site. Thanks a lot for your kind information.

When a timeshare conviences you how to make money and encourages you to start a business........that is not right. They lie and cheat. Period.

It called the attention of the FTC who said that Citicorp should have grown suspicious of the ethical practices in this business group because of the high number of complaints/disputes against them. The FTC actually took Citicorp to court and fined them several million dollars and made a new ruling because they felt it was greed that fueled Citicorp and not concern for the consumer

I ' m still interested in selling my timesharre. I asked where you go to buy them b ecause that will give me an idea as to where I'll list mine. I don't want to pay upfront fees like every realtor wants. I need some guidance in selling by owner.

annmariec20 wrote:

I ' m still interested in selling my timesharre. I asked where you go to buy them b ecause that will give me an idea as to where I'll list mine. I don't want to pay upfront fees like every realtor wants. I need some guidance in selling by owner.

These sites have either no or very minimal fees to post an ad. Be careful with craigslist. Be sure to use a different new email address when listing with craigslist. Scammers troll this site and it will generate a lot of spam.

There are thousands of timeshares on the market. Do the research and price it very competitively.

Good Luck

In my experience Craigslist and Bidshares will not result in securing someone to buy, Craigslist is very popular with renters though. eBay is awesome if you need to get the unit rented and you are willing to let it go for cheap (many times below maintenance for rentals and if selling it is the low price capital for timeshares).

The other three are also great ways to list for free, I don't have enough direct experience with them yet for sales but the rental side gets a lot of inquiries and some bookings.

peterp151 wrote:

In my experience Craigslist and Bidshares will not result in securing someone to buy, Craigslist is very popular with renters though. eBay is awesome if you need to get the unit rented and you are willing to let it go for cheap (many times below maintenance for rentals and if selling it is the low price capital for timeshares).

The other three are also great ways to list for free, I don't have enough direct experience with them yet for sales but the rental side gets a lot of inquiries and some bookings.

I sold one timeshare via Bidshares, but that was back when they were charging $50 for a completed auction (don't know if they still do that or if it's now completely free).

Tug is not free as you have to be a paying member to place an ad. Also MyResortNetwork is not free as you also have to pay a fee to place an ad.

Its one of the worst investments available. Its a lose / lose situation. NEVER buy from a developer either at a sales presentation.

My answer is it's a bad investment, even if you get it at a great price. The only way it's good is if you invest in a place with low maintenance fees, because they are sure to go up, and up, and up. I'm sure this is a dumb question, but is there any legal stands that can be taken regarding the hikes on these maintenance fees, particularly with Diamond Resorts? Also, has anyone heard of a company in Arizona, supposedly a real estate company, that you don't have to pay upfront, but they will list your timeframe and if they sell it, then they will give you all but the fee required to sell it (minimal fee is $1200). I'm good with that if I can get from under the maintenance fees. Also, if you do decide that you can't pay the maintenance fees and just discontinue paying the fees (mine is every other year), however, if you decide to stop paying, will foreclosure be the punishment? I've heard that is truth however I'm not sure if I've seen that in writing. I'd hate for this timeshare to ruin my credit.

Yes, they will foreclose and that will affect your credit rating bigtime ... I think the company that charges a fee IF they sell is the way to go IF you don't want to try to sell it yourself .... whatever you do, no not pay an upfront fee .... they're all scams.

i need advice on a recent time share purchase,the state and placethey chose,which im confussed,i didnted want it, though our red week is for there, im very unsure about this whole timeshare,confussed as well.salesman didnt answer right questions,gave a good sales pitch though,made sense at time, im scared in making wrong financial decision. more talk on maintenance fees, off week fees,availability of resort condos.our DEED is TIMBER CREEK, DESOTO,MISSOURI which they never asked if this is what we wanted.no.looks like a very nice resort,bought for $11,ooo time share,our week is 52 week willing to sell it,

I'm sorry to say, you have been taken to the cleaners by a boiler room sales pitch. I don't know how long ago this was done, but if within 30 days, I would suggest you ask for revocation of the contract you signed and your money back. If that doesn't work, I suggest you discuss details with a good lawyer. He may want to take the case to court if the timeshare seller will not cooperate. There's a good chance they will offer a partial settlement with the timeshare company. If not, he should suggest you take them to court on a contingency fee basis. A good lawyer would accept such because you have a good case and he will accept a percentage of the $11,000 you have invested. Good luck! Let us know how it all comes out.