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Thread: Timeshare Investment

  1. #11
    Member Aruba_Ken's Avatar
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    That’s helpful, thanks Andrea!
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  2. #12
    Senior Member Aruba4ever's Avatar
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    With figures like that it appears as though they are "stealing" money from the owners. Using your math equation it comes out to more than 10 million dollars!!!!
    Quote Originally Posted by Andrea J. View Post
    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.

  3. #13
    Senior Member Traceyd14's Avatar
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    We have given serious consideration to buying on a few occasions, but have decided that the good never outweighs the bad for us. We did the math on a unit that appealed to us and buying vs renting would take us 8 years to break even in a purchase, and longer if there was an assessment or rate increase thrown in. In 8 years, so many things could change - work life, home life, family obligations, vacation schedules, flight prices....on and on and on. We felt like with a purchase, we would be stuck. Renting from others gives options. If you can't go that year, no worries about trying to rent it out, you just don't go. If the market is flooded with people trying to rent, you could end up getting a lower price. We have been fortunate to rent for just the maintenance fees on a few occasions, which means the owner is just breaking even for the year they can't use, and not profiting to cover the next year. It also gives us options to change resorts if we don't like something that changes at a resort over the long term. You also have to take in to consideration the day of the week - do you want to be locked in to flying on a certain day of the week?

    A timeshare is not something I would finance, but that is a personal choice. There are no benefits to paying interest for a luxury purchase.


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  4. #14
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    I never understood the concept of timeshares. They just don’t make sense to me. If you wanted an investment, i would say a condo would be smarter. I just don’t see why you would want to put out thousands to buy a week somewhere and pay yearly. Like Tracey said, by the time you broke even, a million things could happen.

  5. #15
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    Andrea J.'s Avatar
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    the person that makes the money on timeshare...........the developer/owner.

  6. #16
    Member Aruba_Ken's Avatar
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    Just some random thoughts... seems to me that the probability of timeshare ownership success depends on 1. If you can commit to going regularly (or, renting it) so that it makes financial sense, and 2. buying in a place you absolutely love so you don’t ever get tired of going. For us, we’re lucky that both of these are true, so we’ve never regretted buying at the Divi.
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  7. #17
    Member Aruba_Ken's Avatar
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    Tracey, we also did a cost-benefit calculation before we bought, and we estimated (with conservative assumptions), that it would take 10-11 years to break even. So, at this point we're almost in the bonus.
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  8. #18
    Super Moderator WaltVB's Avatar
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    Disregarding the purchase price (it's been paid for), our timeshare at Surf Club has about a $1800 maintenance fee for our 1 week two bedroom. Now we play the Interval International game and turn the 1 week into two weeks. That works out to about $130.00 a night for two weeks in Aruba at the Surf Club in a two bedroom villa, and if you've shopped around, that's a pretty good price. We never considered it an investment, it was about having someplace to go every year. I'd agree that a condo is the way to go for investment purposes, but we wanted a place that will trade well in the future. In any event do a bunch of research and cost analysis before committing to anything and remember buying a place in Aruba is not the same as buying in other places.

  9. #19
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    We rent a townhouse and the price we pay is cheaper than a timeshare.

  10. #20
    Senior Member ~Amy~®'s Avatar
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    Quote Originally Posted by Traceyd14 View Post
    We have given serious consideration to buying on a few occasions, but have decided that the good never outweighs the bad for us. We did the math on a unit that appealed to us and buying vs renting would take us 8 years to break even in a purchase, and longer if there was an assessment or rate increase thrown in. In 8 years, so many things could change - work life, home life, family obligations, vacation schedules, flight prices....on and on and on. We felt like with a purchase, we would be stuck. Renting from others gives options. If you can't go that year, no worries about trying to rent it out, you just don't go. If the market is flooded with people trying to rent, you could end up getting a lower price. We have been fortunate to rent for just the maintenance fees on a few occasions, which means the owner is just breaking even for the year they can't use, and not profiting to cover the next year. It also gives us options to change resorts if we don't like something that changes at a resort over the long term. You also have to take in to consideration the day of the week - do you want to be locked in to flying on a certain day of the week?

    A timeshare is not something I would finance, but that is a personal choice. There are no benefits to paying interest for a luxury purchase.
    I could have written this myself. LOL! We looked into buying back in 1999/2000, crunched numbers, looked at pros/cons and decided there were too many variables that we had no control over. We didn't want our money/time tied up into something we were unable to work in our favor with so many moving parts. We like to have a lot of options - financial and otherwise and not be "stuck" with someone else making decisions for us. I was glad we looked into it...and glad we didn't buy. And the only thing I would ever finance/pay interest on is a house.
    ~Amy~® -- 37th trip to Aruba: New Year's Eve 2018/2019 -- Napa: March 2019 -- 38th trip to Aruba: April/May 2019 -- Boston: July 2019 -- Paris: Sept/Oct 2019 -- 39th trip to Aruba: Nov. 2019


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