Crazy Quarter-share idea - Thoughts?

Hello all,

Long time lurker, first time poster.

I reside in Colorado (THE Mecca of bad timeshare deals) and despite co-owning a Marriott one for 20 yrs now with “family” in Palm Desert (when divided 8 ways, financially it kinda works for the 2.5 weeks we use it annually to all get together)

That said, I had an admittedly very wild thought one night when I couldn’t sleep as I’m in “transition mode” right now having just downsized homes, and trying to decide what is best to do for the next 20 years?

Here we go. Buckle up.

I recently found a QUARTER time share on the market in a pretty desirable area that on the private resale market are basically pennies on the dollar. Nothing new there as we’ve all seen it. But on a quarter share? I’m not gonna reveal the area (sorry) just in case my “crazy idea” isn’t all that crazy after all, as inventory is kinda limited atm...

So- let’s run with a hypothetical number like $15K to purchase. And now, the cringy stuff. HOA/maint. fees = $349/mo. (I’m assuming - can’t imagine that’d cover a full quarter share) - Okay - Here’s where it gets crazy. There are 5 units available right now. All priced the same (roughly). 2 bedtoom 1,200 sq ft mountain units on the golf and at the base of XYZ ski resort.

So let’s do some simple (idiot=me!) math as I’m no expert on timeshares and the sole reason I’m posting all this on here.

$15K x 4 units = $60K and if I took a note on it, we’re talking approx. $350/mo. @ 5% APR... Add in the $349/mo for HOA and then yearly taxes - I’m suddenly living in a 4 star resort slopeside or on the golf course for $700/Mo. (?)

Given the nightly rate is approximately $350/nt or $1500/wk - or - to purchase a “regular” townhome in the area, that would run me between min. $650k to over $5M+ ... understanding that I have no ownership in the end (I’m single and family is now deceased or estranged) I’m thinking where else could I live in a resort year round (with the option obviously to exchange at any time should I grow tired of it and wish to up sticks and swap elsewhere for a few weeks or months somewhere else in the world) -Anyway, if my rough math holds here - is this not a bad idea? Granted I’d have to move 4x times a year - but just within the resort complex, so not really that big of a deal (for me) and actually one unit (the same unit) is up for sale by 2 different owners so would be 3 moves and 6 months in the one. Not bad right?

Taxes are dirt cheap in this town because of the ski resort revenues. So now I’m trying to punch holes in my midnight “plan”. If I bought a townhome I’m looking at a $4500+ monthly mortgage w/PITI vs. $700/mo.. This route - I always have the option to exchange whenever I wish and is a fraction of the price if I were to purchase “my own”. So outside of no equity ever being built - I’m one of those that believes you can’t take it with you when you go - so what’s the point?

What does the peanut gallery think? Is this crazy? Flawed? What else am I missing?

Cheers,

B.B.

First of all wouldn't it be $350 a month X 4 =$1400 a month. Next not all quarter shares are a straight 13 weeks in a row. Many are 2 week, then off for 6 then on for 2. So unless all would be in the same unit you would be moving a lot more often. Most do this so everyone gets a few prime winter and summer weeks and there are no owners that get nothing but mud weeks.

I have also seen some quatershares where it is basically just 2 week in the summer, 2 weeks in the winter set and then float for spring and fall with owners calling in and reserving them 60 days out with no more than 4 weeks in a row. There are probably at least half a dozen other set ups for fractionals. Some also have additional cleaning fees when you use your unit.

I'm with Tracey on this one. Perhaps some more investigating/information from what can be actually used or reserved for back to back stays. Are all 5 units taxed the same amount? Assuming your at retirement age, why anyone would want to

"take a note" for something that only holds a value for that person, with never ending HOA's is beyond me. We have several TS's and with the ability to trade, rent(if needed) we have in the past stretched it out to more than several months at a time.

It's just my opinion, but if I had the ability to do what you described, I'd buy an island and wonder what the TS people are doing.

And.... this is why we don’t do maths at 2am!! :) and also the reason I posted here to get a sanity check. Thanks.

That said let me respond 2-ways here.

1.) As to all your observations I’ll say “yes” you’re correct. And all of a sudden my “great idea” ain’t so great! :( (still cheaper than a $650k townhome though). But you’ve raised excellent points.

Then there’s my devils advocate thoughts. (Roll with me here)

2.) I omitted that “during negotiations” I’d argue that it’d be unfair to be paying for 4 occupied units when I already own 4 - and that just because I owned 4 units simultaneously - that I’d shouldn’t have to pay for all four (because in essence the other 3 are occupied and being paid for by those tenants when I’m not there) but that’s the appeal for builders and them doing time shares. Empty or full, they get their monthly dues - from “everyone”. But given the nature of this unique transaction I may have a remote shot at working in that kind of “exception” (as I’d still be paying 12 months of HOA fees) but it’s hard to argue against the norm or standard. We’ll see?

2b.) I also omitted that this are actually listed as “quarter share fractional ownership” units. And it’s divided into 4 monthly segments. I’m sure they “swap” regularly internally - but it’s not listed as a weekly time share, you own 25% of the condo and that block of time. But I do need to look into that further as obviously the red week share prices are significantly higher than the off-season shares - but once averaged it still works out to be around $15K/ea.

What else did you mention?? Cleaning fees. Yup, probably in there too along with several others I’ll need to research more (you just know they’ll hate having me there 12 months straight) allot easier to deal with a weekly guest and if disgruntled or if something breaks, 7 days later the problems gone. Whereas with a “3x4” owner - I suspect I’ll get to know the staff *very* well lol. I also currently hire in a cleaning crew now - so unless it’s some insane painting and repair and cleaning type fee that’s in the thousands - I think that’d be a wash vs what I pay biweekly now. TBD.

Thanks for the sound feedback and Q’s I’d not really thought thru entirely. It’s just a thought ya know? FYI - “New” these went for over $225K 15 years ago for 25% or $2.5M to buy outright ... Lord only knows what shape they’re in and how many times they’ve been resold, etc. Allot to look into yet, but do appreciate the advice.

Cheers,

B.B.

Your response came in whilst I was penning my other reply. Sorry.

I can’t argue any of these points (I’ve tried above a little) but to get in close slopeside you’re talking over $20M today. I’m nearing retirement but still have several years yet and am just thinking out loud as I plan my future (ironically a coastal Georgia island is on the cards too) :) but so is Italy and London (which I currently split time between now 60%/40%) and S. France and a myriad of other options I’m weighing out. My issue is I get bored and move. Allot! 22 states and 6 countries now. But as I do get older, gaining entrance into countries is getting harder and harder as 45 is the soft line cutoff for Australia and 50 for NZ (lived in both before and would love to return) but couldn’t take more than 2-3 years in NZ as it’s only 3 million ppl and gets “small” after awhile. I love Colorado too, but want the ability to travel and change it up some as I have zero ties. Maybe buying fractional block ownerships in all 4 of those places would scratch that itch? There’s an idea. We’ll see. Thanks.

I can see where you are coming from in the different scenarios. If it were I (as I also have thought of different places to end up) and there wasn't anything to hold me in the states other than a wife. As in my case grandkids puts a whole different twist on things. I would consider Georgia especially if it were water front. Georgia in the fall and spring is great. Then finances permitting I'd check out one of the countries you mentioned for a place to land at when passing thru. Food in Italy is to die for, but HOT in summer time(unless your in the Alps) The UK is nice but to expensive, if you had considered the south of France, you might consider Spain some where between Barcelona and the coast(but then it's hot there also. My wife and I will checking out Paris and the country side for our 25th next summer so I can't speak to that. Saying all that IMO I'd do a dual citizenship, buy somewhere in the Chianti region in Italy, place in Georgia (on coast for the wife and grandkids) staying mostly in Europe and riding the train anywhere and every where. When I tired of that ……….then I'd buy the island......LOL SALUTE...…..

You can negotiate on the asking price but things like mf''s and other fees, they are set by the board and standard for all owners according to the original contract. You really can't negotiate different fees. The HOA is set up as a non profit and if you are paying less then someone else has to pay more. The by laws also have a lot to say about the fee structure (but not the year to year exact amounts) and you can't negotiate around those either.

Great minds 🧠 eh?

Spent 5 years in London and still have work ties there so is still plausible... but despise Jan-Mar there. Weather and darkness at 3:30pm aren’t appealing :( Just kicking around ideas and options. We’ll see. Cheers.