|
Author
|
Topic: Pros and cons of buying every other year
|
tefuller
TUG MemberPosts: 51
From: Battle Creek, MI USA Williamsburg Plantation, Red; Spicebush Wk20
Registered: JAN 2001
|
posted 08-05-2001 17:42
 
I have considered trying to purchase 2 ski weeks in different locations, buying an "every other year" week at each so that I can alternate places each year without having to go through the trading process. What are the advantages or disadvantages to this approach compared to buying an annual week, such as future resale of an every other year week, priority in reserving a week if it is floating, etc...
|
Gussie
TUG MemberPosts: 136
From: Westborough, MA USA
Registered: APR 2001
|
posted 08-05-2001 18:39
I can't speak to the pros or cons of trading or selling an EOY unit. However, I can tell you that at our resort (Grand Timber Lodge in Breckenridge, CO) the purchase price from the developer for EOY is approximately 60% of the cost of the same unit for every year. We chose EOY because it is all we needed and the 2 bedroom lockout unit still enables us to go there or trade every year if we want to - using a studio 1 year and a 1 bedroom the next.
|
Kal
TUG MemberPosts: 2138
From: Seattle, WA
Registered: DEC 2000
|
posted 08-05-2001 20:21
FYI - A study just out reports that biennials now represent 23.4% of new timeshare purchases. This a 3-fold increase since 1996. It also indicates purchases from developers represents 75% of the total action.Ciao
|
tonyg
TUG MemberPosts: 6990
From: East Canaan, CT -- Own at:Royal Mayan, Seapointer
Registered: DEC 2000
|
posted 08-05-2001 23:15
Usually EOY units sell for somewhat less than half the price of every year(resale). That is a plus, but closing costs could be considered twice as expensive. EOY sales are offerred as a sales tool, where those who resist an every year purchase can be talked into the EOY, Hence, many owners are those that really didn't want to buy and may be more likely to sell. ------------------
"A PICTURE IS WORTH A THOUSAND WORDS, but it uses up a thousand times the memory." [This message has been edited by tonyg (edited 08-06-2001).]
|
JLB
TUG MemberPosts: 7189
From: Add another 2500 posts!!! Table Rock Lake, Branson. Registered Dec. 2000
Registered: MAR 2002
|
posted 08-06-2001 05:31
We started out that way, with an option to buy the "other half" at the same price within the first 18 months. As non-vacationers with no money we figured it would force us to take a real vacation once every two years. Of course, no timeshare should be purchased based on it's possible resale value, so that consideration is irrelevant. We've owned for 12 years and I notice that the exchange companies can't get it right. They both think we also own the "off year", but, of course, we can't trade with it because our resort would never confirm it.I fail to see anything wrong with your plan as long as the price is right. Maybe you could find resorts that make special offers to their owners to "rent" or otherwise use available weeks other than owned weeks and thus increase your use for less $. JMHO. ------------------
Jim Beasley
KC/Table Rock/Branson
|
tonyg
TUG MemberPosts: 6990
From: East Canaan, CT -- Own at:Royal Mayan, Seapointer
Registered: DEC 2000
|
posted 08-06-2001 07:03
Jim aside from South Africa, I always base purchases on possible resale values. If you don't buy at a price below which you can sell, there is a good chance that you will not make money or break even, and with the way some of us change ownership and seasons, its an important consideration. Its not that I'm out to make money selling timeshares, but rather that I don't want to lose money every time I sell one.
quote:
Originally posted by JLB:
...Of course, no timeshare should be purchased based on it's possible resale value, so that consideration is irrelevant. ...
------------------
"A PICTURE IS WORTH A THOUSAND WORDS, but it uses up a thousand times the memory."
|
JohnnyO
TUG MemberPosts: 1725
From:
Registered: APR 2001
|
posted 08-06-2001 07:10
I agree with tony. Possible resale price is a very important consideration and should help determine whether or not you buy the timeshare you are looking at. If you have time to shop on the resale market then you can usually find a good deal. There is no point in overpaying for any timeshare. Be very aware of the resale market for your potential unit in case you want to get rid of it. Look at the TUG Historial Sales database as one source of info.------------------
John We get to vote once every two years. Big money votes several times every day. Who really influences our politicians?
|
Mel
TUG MemberPosts: 1645
From: N Smithfield, RI - owner: Orange Lake Country Club, Kissimmee FL; Tropical Breeze Resort, Panama City FL
Registered: DEC 2000
|
posted 08-06-2001 07:13
While your idea wouldn't make much sense for an exchanger, it does make sense for your purposes, assuming you can find two EOY weeks to fit the bill.Since you will try to purchase these as resales, the developer price differential is irrelevant - the 20% mark-up doesn't exist, and if anything you might be able to get your two weeks for less than a single full-use week Since you're not planning to exchange these weeks, you save money on that end: assuming with a single unit you would exchange every other year, you would be spending $130+ every other year on exchange fees ($65 per year), and if you do not join an exchange company, that's another $80 per year saved. After 4 years you've more than paid for any extra closing costs. Af for floating weeks, as long as you will be diligent and request the week you want as soon as you are allowed, I don't see this as being a problem either. You'll just have to remember which resort you'll use each year, and the rules of each resort regarding reservations. The other advantage to this approach may be other membership benefits - if they offer reduced rentals, owner discounts, etc - you enjoy these at both resorts. Although EOY weeks are marketed as a way to get people involved when they can't (or won't) afford a full week, they are ideal for someone like you - they just extend the concept a little further to the point of fitting your needs more closely. ------------------
Melinda Towne
Owner - Orange Lake Country Club, Kissimmee FL
Owner - Tropical Breeze Resort, Panama City Beach FL Come visit my homepage
|
dlpearson
TUG MemberPosts: 998
From: Marriott BeachPlace Towers, Marriott Monarch, 7 Mile Beach Club, Vistana Villages
Registered: MAR 2001
|
posted 08-06-2001 07:45
tefuller--this is exactly what I did in Grand Cayman. I wanted an every year week, but couldn't find anything in the price range I was willing to pay (even for resales). So I ended up buy 2 EOY, one even, one odd so the end result is I have usage every year. The only difference is that I had two closing costs instead of one (an extra $350), but I saved at least $3k over a resale every year. I think EOY are less attractive on the resale market, so the "depreciation" is even more than normal. At least that was my experience.-David
|
ccmccaul
TUG MemberPosts: 120
From: Lewisville, TX, USA
Registered: JUN 2001
|
posted 08-06-2001 07:49
Our first (and for now, only) week is an EOY. For us it was a good compromise, we didn't want to have to finance any of the purchase, so we liked the lower cost. Also, the maintenance fee was halved, which was also nice. At the time, we weren't totally sure that we would use a timeshare every year (though now we know we will certainly try!  ). Also, since the purchase price was much lower than a full week (right at 50% in our case), I didn't feel TOO bad about how much we paid when I found TUG!!!Basically, buying and EOY week has been an excellent way for us to 'get our feet wet' and now we are starting to plan on where/when are next week purchase will be! 8) Chris
|
JLB
TUG MemberPosts: 7189
From: Add another 2500 posts!!! Table Rock Lake, Branson. Registered Dec. 2000
Registered: MAR 2002
|
posted 08-06-2001 11:30
quote:
Originally posted by tonyg:
Jim aside from South Africa, I always base purchases on possible resale values. If you don't buy at a price below which you can sell, there is a good chance that you will not make money or break even, and with the way some of us change ownership and seasons, its an important consideration. Its not that I'm out to make money selling timeshares, but rather that I don't want to lose money every time I sell one.
Yeah, I understand what you are saying. Sometimes the written word doesn't express our true meaning. In this case my comment meant "don't buy timeshares based on an idea of making money when you resell it, because just reselling it (at any price) could be a problem. Another way of explaining my meaning was that you should just consider your original investment as an "inititation fee"--you should keep it as low as possible, but not count on getting it back. I hereby amend my original statement to read, " . . . based ONLY or PRIMARILY on resale value", but, rather on the value you intend to get out of it. ------------------
Jim Beasley
KC/Table Rock/Branson [This message has been edited by JLB (edited 08-06-2001).]
|
Jim S
TUG MemberPosts: 1082
From: La Canada, CA
Registered: DEC 2000
|
posted 08-06-2001 14:17
Wow, Kal,I got in on the ground floor of the trend... we bought our biennial at Carlbad Seapointe in 1996!  quote:
Originally posted by Kal:
FYI - A study just out reports that biennials now represent 23.4% of new timeshare purchases. This a 3-fold increase since 1996. It also indicates purchases from developers represents 75% of the total action.
Ciao
|
rhonda
TUG MemberPosts: 1347
From: San Diego, CA
Registered: DEC 2000
|
posted 08-06-2001 14:37
Another "Pro" aspect of EOY ... although not related to the intentions of the original post:PRO: If you have and intend to use "Day Use" privileges ... you may get the same access for half the price! We recently purchased an EOY 1BR at Grand Pacific Palisades in order to take advantage of the day use feature. While MF on an annual 1BR would have run $479/yr ... we get the same access for only $240 each calendar year. We may enjoy the fitness center, pools and activities every day for much less than it would cost to maintain two memberships at Bally's (or other fitness club) ... and we may invite guests to join us 
|
Timeshare Users Group Bulletin Boards
