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Thread: Timeshare Investment

  1. #1
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    Timeshare Investment

    I've been to Aruba 3 times now, most recently the last week of January. Me and my family stayed at divi golf and beach.
    It seemed like just about everyone there was retired and staying there for weeks at a time. Although I am 14 years from retirement I would like to follow suit and eventually spent the coldest weeks of the winter at my favorite place in the world. Any thoughts on buying a timeshare to use as a rental to help pay for our retirement getaway.
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  2. #2
    Aruba since 1979
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    Andrea J.'s Avatar
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    welcome to the aruba.com community forum.

    a timeshare is not a terrific or even fair financial investment. (IMO)
    very few people make any profit selling or renting.
    maintenance fees go UP AND UP AND UP.
    also too check with DIVI (where you stay)
    those timeshares are not "owned" by you those timeshares are "right to use for X number of weeks". I think that 30 may be the number.
    so, you can use the unit during a particular week for 30 years providing your fees are paid in full.
    I know people that own there and used some of their weeks as back to back weeks, and now they are done and out.

    check carefully and make sure that you get lots of facts first.

    Quote Originally Posted by Michael Scollon View Post
    I've been to Aruba 3 times now, most recently the last week of January. Me and my family stayed at divi golf and beach.
    It seemed like just about everyone there was retired and staying there for weeks at a time. Although I am 14 years from retirement I would like to follow suit and eventually spent the coldest weeks of the winter at my favorite place in the world. Any thoughts on buying a timeshare to use as a rental to help pay for our retirement getaway.

  3. #3
    Senior Member robin's Avatar
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    If you are planning on staying for an extended period of time, think about buying a condo. You can rent it when you are not in Aruba. We purchased one about 2 years ago and spent 11 weeks here last winter and 13 this winter. We love having our own place-we keep everything we need here in the owner's closet. We rent it when we are not here.

    We just sold our last timeshare unit-we had owned 4 in different places. We learned how to work the system and we use them to our advantage. Yes, we sold them for less than we paid, but still came out ahead, however; we were luckier than most people. If you have your heart set on a timeshare, do the leg work. Do not buy from the company, buy resale. We bought our first one directly from Marriott but all the rest were resales-some people are really eager to get rid of their weeks, however; every resort as the right of first refusal. When we were selling our weeks, we had buyers, but Marriott stepped in and exercised their right of first refusal and bought two of them back from us.




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  4. #4
    Senior Member schexc's Avatar
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    Agree with everything mentioned so far.




    OUR COUPLE'S RETREAT. THE PEARL CONDO HOTEL EAGLE BEACH. CONDO ACCOMMODATES TWO ADULTS. YOU MUST REQUEST UNIT #8. https://photos.app.goo.gl/lRquP1F4VtxyZhR42 RENTING DIRECTLY http://www.thepearlaruba.com/. SEND PM BEFORE BOOKING FOR REFERRAL.
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  5. #5
    Member Aruba_Ken's Avatar
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    Agree with all of the above. It’s probably the healthiest to view the timeshare as future vacations for you and your family, rather than as an investment. When we bought at Divi Village in 2008 the number was 40, so we have right to use through 2048. We always use the points, for us the math turned out to be worth it. You can use redweek to check resale values.
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  6. #6
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    Thanks for all the input. I realize it wouldn't be a solid real estate investment but as far as renting a timeshare week out every other year or so to help pay it off or help with covering maintenance fees, would it be wort it and are the difficult to rent out?
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  7. #7
    Member Aruba_Ken's Avatar
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    Oh, your last question is a good one. I am also interested to know how easy it is since we’ve never tried to rent ours.
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  8. #8
    Aruba since 1979
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    again, just my opinion.
    if one has to mortgage the timeshare, then if it were I ...would not do it.
    there is NO guarantee that the unit will rent.
    one must be diligent in marketing it and following thru to get it rented.

    aruba is a very high rentable place, but it does take work.
    the maintenance fee is not guaranteed.
    when we bought our Lacabana units the maint fee was $250 or thereabouts per unit.
    now, the same units are $725+
    AND
    then there are "special assessments"
    let's say the timeshare place needs new air-conditioning and new bathrooms and new roofs.
    each "owner" or "right to use member" could be assessed any amount, but the usual assessment seems to be $2K. (per unit per week)

    and.....imagine the timeshares.........a building with 100 units. each unit is sold for 52 weeks and then each week and each unit is assessed $2000.

    mind boggling.

    I do not like it. I am a timeshare owner.
    we sold most of our weeks, and the remaining 2 we gifted to our son.

    I much prefer to be a renter.


    Quote Originally Posted by Michael Scollon View Post
    Thanks for all the input. I realize it wouldn't be a solid real estate investment but as far as renting a timeshare week out every other year or so to help pay it off or help with covering maintenance fees, would it be wort it and are the difficult to rent out?

  9. #9
    Member Aruba_Ken's Avatar
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    Andrea, what would you say is the probability of success of renting out a week in high season, assuming the owner markets it properly? I realize this won’t be exact, but interested in your best guess Andrea, thanks.
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  10. #10
    Aruba since 1979
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    christmas thru Carnival.......... I would say 85+%.

    there are times too during the summer that rent very well
    and
    there is a time in lower season Oct and Nov that seems to rent well too.
    I have been looking for 2 weeks in early Dec and it took me a couple of months and we are not getting a great price.

    there are some properties that rent very well.........Surf Club, Costa Linda, Playa Linda are 3 that rent especially well.

    all of this is based on my experiences.

    Quote Originally Posted by Aruba_Ken View Post
    Andrea, what would you say is the probability of success of renting out a week in high season, assuming the owner markets it properly? I realize this won’t be exact, but interested in your best guess Andrea, thanks.

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