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Timeshares Can Make Cents
Assuming the resort is located in an area that has sufficient vacation lodging demand, timeshares can make cents.
Our most recent ownership (30 years @ several resorts) is at a SW Florida beachfront resort. Ignoring the usual picky-unish thoughts about resort quality, it is sufficient for what it is, a week on a beautiful beach in a beautiful area, with a decent pool, a nice hot tub, a chickee hut with gas grills, beach furniture, walking distance to a beautiful state park and restuarants/nightlife.
Right away, one's thoughts go to this probably costing $25K a week, with $1500 annual fees. But, that's not the case.
A week can be purchased for a realistic price of from $500 to $2000 dollars. The annual fee is $533.
Owners can rent extra weeks, also for $533. Owners can deposit weeks they don't use in the Owners Rental Program. Weeks rent to the public for $1000, low for the area, so very competitive. The resort takes 25% ($250), and the owner gets $750 (yes, a profit over the annual fee).
So, the resort makes $533 from an owner, and another $250 when they rent an owner's week.
As I've mentioned elsewhere, ever organization will have declining membership as a natural phenomenon, and this resort does, too, owners who no longer wish to be involved. This resort takes those weeks back through a less-expensive non-judicial foreclosure process, rents them out ($1000 to the public, $533 to owners), and replaces them with new owners at a real market price, $700-ish.
So, whether they replace week that's been taken back with a new owner, or not, there is no loss in revenue.
This is a 38-year-old resort in a 60 year-old facility, that has handled the Sunset Clause, maintained itself adequately, and has HUGE cash reserves.
No, no greedy corporation feathers it's nest, and no shady sales people pocket $100 grand a year, but the concept is viable.
NoOneYouKnow
I own a timeshare on the Las Vegas Strip right next door to Bellagio . I wouldn't sell it for all the money someone would offer me . I love it . I only use it to go to my home resort never for trading . I can usually book my week about ninety days out . They treat owners like royalty . I can also pick the day of the week to arrive and leave . I usually travel on Wednesday . There's a direct flight that I take every year .
It's not as fancy as some of the big name resorts but I only sleep and eat breakfast there .Here's the best part I pay six hundred dollars a year for maintenance fees . That's right a week in a one bedroom timeshare right next door to Bellagio for only six hundred dollars . I'm usually out for the day and evening enjoying the amenities . I ply poker during the day , my profession , and dine and see shows in the evening .
Like NoOne states there are some independent resorts out there that are good bargains . Don't be persuaded by a high pressure sales team at an expensive resort . If you are looking for a timeshare purchase one that you will use not trade .
Don P.
We were at our "beach club" yesterday with Snowbird friends from Minnysoduh, because we get year-round day-use.
But, actually, our owned week starts today, Week 1, which we bought as a resale week the resort had taken back. It's rented out, which is why we bought a Snowbird week, so our annual fee will be reimbursed, and a little more, even before it is due (January 31).
&, actually, we are eligible for an actual "beach club", which amounts to a private place to park and access the beach, a pavilion, and restrooms, but it costs actual money, and there is a waiting list.
Speaking of older, independent, legacy resorts, the second week we ever owned, which we bought as a foreclosure in 1992, was at a clunky, HUGE resort in a secondary ski area in Colorado. We wound up buying two more, Weeks 10 and 11 Spring Break ski weeks, because they were tops in a Trading Power test in 1999. We used them to trade, even-up, before RCI "improved" their trading power system. The annual fees have never been more than $400, but, since we don't do exchanges any more, I gave two of them away, and deeded the third one back (which the resort finally agree to do after years of my persistence.)
Any way, a long way of getting to this . . . on another forum not long ago, one of the veteran posters talked about his trade into a "Diamond in the Rough." Yeah, 20 years after that Trading Power Test that most people there don't know about, and with all the bragging about the hoyty-toyty corporate systems newer owners are pissing their money away on, the diamond is our clunky old resort.
It reminds me that beauty is in the eye of the beholder.
I've got those 20-year-old trading power tests saved . . . somewhere. It would be interesting to see how many of the top resorts are still considered good buys, or even are still timeshares.
NoOneYouKnow
Last edited by nooneyouknow on Jan 04, 2020 04:11 AM
To update this, for accuracy, the maintenance fee this year is $530. We put our Week 1 in the Owners Rental Pool and received a check for $642. So, the resort got our annual fee, $530, and another $220 rental commission. We got $112 more back than we paid for the year.
And, we use the resort two or three times a week, almost every week.
If an owner's account goes delinquent, the resort takes it back through non-judicial foreclosure, rents it out (for more than an annual fee), offers it to owners for $530, and offers it for sale. As strange as it sounds, delinquent accounts are profitable (if that is the right word).
So, in this day and age, of high-dollar, corporate-owned-and-controlled, timeshares, there are still some clunky old ones that make sense.
NoOneYouKnow
I love my Las Vegas timeshare . I pay $ 600 a year maintenance fees . Where are earth are you going to get a week in Las Vegas right next to Bellagio for that price . It's the best bargain in the world . The wiinner and other contestants from Americas Got Talent now have shows on the Vegas strip . Some of the best acts I have ever seen . Going to see Kodi Lee at Paris in November .
Don P.
All I do through RCI, after 200-or-so exchanges, is get Extra Vacations and Last Calls for a few of my "cousins". Three of the couples have the Five Year Guest Pass, so they don't pay the Guest Certificate fee.
One of them is a couple from British Columbia . . . I met them on a certain other forum. They had been owners at The Grandview, and wondered if there was any way to stay there without owning. I suggested that they renew their RCI subscription and use it for Extra Vacations and Last Calls.
They couldn't get that done, so they just got the Five Year Guest Pass under our RCI subscription, and get EVs and LCs that way.
They seldom pay more than $300.
It has gotten to the point where I am getting EVs and LCs for friends of our Five Year Guest Pass holders, since they can't do that.
So, just like there are timeshares that make dollars and sense, there is RCI stuff that makes dollars and sense.
Since we live in our two favorite vacation areas, I don't even get RCI stuff for ourselves any more.
NoOneYouKnow
Last edited by nooneyouknow on Feb 27, 2020 07:31 AM
donp196 wrote:I love my Las Vegas timeshare . I pay $ 600 a year maintenance fees . Where are earth are you going to get a week in Las Vegas right next to Bellagio for that price . It's the best bargain in the world . The wiinner and other contestants from Americas Got Talent now have shows on the Vegas strip . Some of the best acts I have ever seen . Going to see Kodi Lee at Paris in November .
Hi DonP,
I believe I know the identity of your timeshare. Where would be the best place to acquire/purchase a 1or 2 bedroom unit at your timeshare (online resale sites, etc)?
Carol P.
Last edited by carolp491 on Mar 28, 2020 08:50 PM
I would look for listings on Ebay, Redweek and any place someone might advertise the sale of timeshares . Make sure you purchase a " deeded week " . I have a deeded week that is a floating week so I can use it almost anytime . The thing I love about my timeshare is that I can make a reservation over the phone and in just minutes I have confirmation in my email . I can usually book my week sixty to ninety days out so I can check for airfares at the same time .
I can also book any day of the week I want to arrive . I usually travel Wednesday to Wednesday . It's a much better day to travel and I'm already there on the weekend when the best shows playing rather than traveling on a Saturday . Who wants to squeeze in a dinner and a show after traveling all day .
There are still a few good values out there if you shop around and using common sense booking your travel allows you to utilize your vacation time to maximum .
Don P.
