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Author
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Topic: Marriott value
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shortypots
TUG MemberPosts: 42
From: Durham, NC
Registered: May 2003
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posted 05-25-2005 07:50
   
One big question I have is, Have you seen the value of your Marriott week continue to increase over the years, or decrease? The reason I ask is that my hubby and I are looking for a timeshare as a bridge to a beach house. We cannot afford a beach house until our current house is paid off, so a timeshare will work in the meantime.------------------
Thanks!
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Dave M
Administrator
TUG MemberPosts: 6776
From: Boston, MA
Registered: Dec 2000
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posted 05-25-2005 08:10
It's usually not a good idea to purchase a timeshare as an economic investment. Timeshares generally don't appreciate like other real estate. They tend to lose value - more like a car, at least initially. Once you buy a timeshare from a developer, that timeshare (even a Marriott) is worth only 25%-60% of what you paid, if you need to resell it. There are several reasons for that. First there are many more people seeking to sell their timeshares than there are people seeking to purchase resales. Second, as a reseller, you won't have the fancy timeshare sales presentation, advertising and marketing clout and purchase incentives that developers do. Third, you can’t offer all of the benefits (specifically, the option to trade for Marriott Rewards points) with your sale that Marriott can. Thus, most knowledgeable timeshare owners would recommend buying a timeshare as a prepayment of future vacations and not as an investment with an expectation of getting the same or more money back upon sale. There are two exceptions. First, a person who knows timeshare resale values very well can purchase a timeshare today on the resale market (not from the developer) and sell it tomorrow or a year from now for as much or perhaps more than the timeshare cost. Second - and pertinent to your question - some Marriotts have eventually appreciated in value above what the developer purchase price was. But it generally takes years, perhaps 10 or more, before you might (note that I said “might”, not “will”) be able to sell and net as much as you pay today to purchase. Further, the risk is so high that I would advise you not to make the purchase if you will eventually need that money for the beach house.
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pwrshift
TUG MemberPosts: 2895
From: Toronto
Registered: Dec 2000
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posted 05-25-2005 09:34
In the 'old' days (2 years ago) when the purchase of a pre-construction lockoff for under $20,000 came with more than 500,000 Marriott Reward points, the perceived cost of the timeshare week could be reduced by the value of a 'trip of a lifetime' you might be able to take with the point windfall. A business class flight for two people to London's Chancery Court could set you back $10-13,000 if you had to pay cash. So, don't discount the point value to you, of course depending on your need to see world class cities and stay in first class hotels.Other than that, buying a timeshare week is, as Dave says, in prepayment for a vacation lifestyle that gives you family space in nice resorts for much less than you would have to pay in hotels. Price out the cost of a 2 bdrm suite in a good hotel almost anywhere and you'll see they are usually very expensive. Brian ------------------
Those who dream most, do most. IP: Logged |
heislerj
Non MemberPosts: 102
From: Wexford,PA, USA
Registered: Apr 2004
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posted 05-25-2005 12:38
I think that the use of oints has to be weigh carefully and if done appropriately can save $000's. I use points only for Marriott hotels that exceed $300 per day. These are mostly in reort areas like Aruba or in Europe. Europe is an especially good value because not only are hotel expensive in Europe but the exchange rate is terrible. I did not buy my timeshares to make money but I try to get the greatest value I can for the points and their use. Maienatnce fees that are $1,200, e.g. Playa Andaluza or Maui, can be more than offset with hotels that cost over $3,000 to $4,000 a week. The best deals are early pre-construction as you get a cheaper rate & a lot of points. I think I have recovered the price differential between Developer price & resale with the use of points. I love Marriott as they provide a quality resort and good customer service. I only wish they would change the reservation system.IP: Logged |
jerseyfinn
TUG MemberPosts: 291
From: NJ: Owner: Marriott Ocean Pointe ( 5 wks ) Playa Andaluza (2 wks)
Registered: Apr 2001
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posted 05-25-2005 14:06
. . . most knowledgeable timeshare owners would recommend buying a timeshare as a prepayment of future vacations and not as an investment with an expectation of getting the same or more money back upon sale . . . Heed Dave's words of wisdom as they are true. As he points out, one can indeed purchase a Marriott TS and realize price appreciation. But this applies more to owners who have long-term destination travel ownership goals ( 10 years and more ) and who purchase preconstruction or early in a resort's building phase. Even then, it is a roll of the dice as there are lots of factors which determine the ultimate value of any resort in the future. I'd suggest setting down your goals against a timeframe and then determining if TS ownership is for you. You could also consider resale which would involve a lesser investment. The Marriott TS product is itself solid. Barry IP: Logged |
jcopelk418
TUG MemberPosts: 110
From: knoxville,tennesseee
Registered: Dec 2000
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posted 05-25-2005 17:19
I bought Marriotts as an alternative to buying a second home.I had owned a condo in a nice beach location but found it took a lot of time and money to maintain it.Renting was a hassle and it was empty much of the time.I agree timesharing is not a real estate investment but do not see it as a car that is guaranteed to depreciate either
I bought one Barony Beach from the developer and two Ocean Pointe's back in 2001. Since then I have bought some other timeshares resale.I think my Ocean Pointes could probably be sold at at profit not even including the incentives and I would be close to break even on the others.
At this point , I would not buy from the developer. The prices new are much higher than they were and the incentives less. I do think if you buy resale, you will be able to see some moderate appreciation over time.
I think the resale price of Marriott properties will be getting closer to developer prices as more and more people get familar with how the system works. I think the price could move to 70-80% of sold out properties final price in time.I think buying Marriotts at 50% off will prove to be the exception not the rule in the next few years. IP: Logged |
dan_hoog
TUG MemberPosts: 155
From: Monroe, CT, USA
Registered: Dec 2002
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posted 05-25-2005 19:05
There is a difference between expecting "appreciation" and expecting to keep most of your principal. I'd never buy any timeshare with the first objective. If your objective is more to hold its value while you use it for a few years, Marriotts are one of the safest bets around. I'd recommend a platinum season, lock-off, at a resort with good year around demand. Either pre-construction or resale would work nice. I don't think you'll see meaningful appreciation (you could get lucky, but don't count on it), but you probably won't see drastic drops in your value over 3-5 years either. Of course, make sure its a solid deal and resort. From my searching, I think resale platinum weeks at those Marriott resorts sell fairly quickly (months, not years). Gold weeks are for sale everywhere and seem much more negotiable on resale prices in markets I checked. I'd recommend platinum at one of the Marriott Aruba resorts or one of the newer Hilton Head resorts. I don't know the pre-construction options for the East coast resorts, but they might be worth checking as well. IP: Logged | |
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