Just how do Timeshares Work? How’s Their Value In comparison to a Travel Club?
October 24, 2019
My own beautiful wife, Nancy, and I love to travel… a lot!!
We’ve bought out 70 vacations & trips together in mere over 8 years being a couple, which means offering a little experience getting tourists and in getaway mode.
So over the years there were heard about timeshares often times and had been solicited to attend presentations for freebies yet we never once troubled…
… not really sure you will want to?
Maybe it was the very thought of wasting several hours individuals vacation getting pitched to spend plenty of cash, maybe it was the very thought of it being too much money or that individuals didn’t want to keep planing a trip to one property on a regular basis, etc.
Whatever it has been, we just simply never went along to a presentation… wasn’t worth a free of charge dinner or tickets to be able to us.
But over days gone by 18 weeks, as we’ve been traveling around to great places in Hawaii, Los angeles, Arizona & Florida, we’ve been staying with many great resorts via an International Travel Club in which we’re members of and we’ve talked to numerous timeshare owners (there are several them) staying on the same places…
… and we’ve been speaking it up with many of these people racking your brains on why they bought, if they liked it/disliked it, and so forth.
Basically, we figured it was time for people to see if any timeshare could benefit us with all the current traveling we do.
So having said that, in Las Vegas a couple of months ago, we took the plunge and went along to a presentation.
(Part note: The $150 in dinner vouchers we were offered to attend the presentation had nothing regarding us attending… we simply wished to learn and would have got seriously considered buying when it made sense.
Idea: Our recommendation would be to prevent attend a Timeshare display for “the gift”… in case you are truly not interested, you will end up wasting several hours of one’s vacation and you’ll be putting yourself in the high-pressure sales situation… we are there for 4 hours, although they said 90 moments max, and they said no pressure sales at the start but let’s just point out, that was not thus)
What was our own experience like?
To become honest, we’re still confused from the whole lot.
As mentioned, we’ve traveled a ton over time and I was any top-selling travel agent for decades but pretty much the complete idea went way above our heads and we’re certainly not sure why billions of dollars with this gets sold every yr.
Now don’t get myself wrong, if you’re a great owner yourself we’re not necessarily knocking you for getting… if we didn’t know of your better alternative we could have considered.
But when we logically viewed the #s, it just didn’t mount up for us.
Of training course, like many purchases, we understand a lot of people buy on emotions, not necessarily logic…
… travel is a robust motivator… look at us all, 18 weeks ago we sold all of our “stuff”, are now destitute, we travel full-time…
… and possess never been happier inside our lives!! LOL
For a lot of people, that wouldn’t be any logical thing.
So we get that numerous people buy emotionally to “lock” in a annual vacation and commit themselves to have away… and we’re huge promoters of the… our eBook we wrote is focused on that.
But logically, we couldn’t figure the complete timeshare thing out.
We were holding going on about buying points and the amount of points you need is dependent upon things like how several weeks you want, time regarding year you travel, holiday resort you stay at, area type, your “status”, and also on and on.
But they wouldn’t offer us real examples of what an amount of points would get us all, what availability was just like, how much ongoing maintenance fees could be, etc.
We had to produce a decision “there and then”, that has been it… no info to take with us to evaluate or contemplate it because “no-one comes back and buys when they leave” we were advised…
… it was actually slightly insulting as we felt we were anticipated to make an immediate selection without doing any homework on a “points” system that felt as you needed a degree to understand with all the current variables, exchange options, add-ons, upgrades, etc.
Being a couple of that spent $40, 000+/year on travel the past several years (which is before we started touring full-time) we sense we were great prospective customers but unless we were willing to produce a decision ‘on the spot” our own business wasn’t wanted…
… extremely weird business practices!?
Once we initially joined an Global Travel Club earlier in 2010, it wasn’t till 3 months after we first observed it we joined. That was AFTER we did a number of research and flew to Las Vegas to see 7 of their attributes, and they were very happy to take our business.
So we can now realize why many people who acquire timeshares regret the rash decision they made (Google timeshare and you should see owners selling them can be a huge market) while they were so confused and pressured during the time they didn’t really determine what they were buying.
In any case, enough about our knowledge on that.
What great thing came from the jawhorse though was that we all feel better then at any time about our decision to participate a Travel Club rather than buy a timeshare… let’s compare the #s to see why that option produced better sense to us all.
Regarding the timeshare we all saw, depending on the amount of points we bought according to when we wanted traveling, we would have paid out either $18, 000 or perhaps $26, 000 up front for a week per year… and when we financed that with their 15. 99% rate over a decade it would have doubled that #.
On top of which you have monthly maintenance fees you are locked into for LIVING.
They were $50-$70/month with regards to the package we bought… let’s use $60 for our example.
Over 30 decades we’d pay our original $18, 000-$26, 000 at the start and $21, 600 inside maintenance fees. (Remember maintenance fees ALWAYS rise… that’s the biggest complaint owners reveal… we talked to a single who’s fees jumped to over $2000/year because of hurricane and major fixes being done… for our own example though, we won’t even aspect in higher fees)
When you add it upwards for 30 years regarding JUST 1 week/year we might pay $39, 600-$47, 1000.
And if you want more weeks you must buy more points. (Which could double or triple or maybe more the above #s depending what you would like) And if you can not travel due to disease you still pay servicing fees, etc.
It’s a massive commitment!!
Now let’s go through the travel club option.
To get a typical, good quality Vacation club, you’ll pay, roughly, a ONE-TIME $5000 payment for life-time access which lets you book up to 10 weeks/year on the resorts for the budget range of $298-$799/week.
On average members pay around $550 per week they stay with a resort.
So in 30 years you should have paid $5000 up top and $16, 500 regarding 1 week/year… $21, 500 altogether… that’s 46%-55% less then the basic timeshare.
So you can view why being a member of a Travel Club, economically speaking, makes sense!
And below are a few things to consider:
1. It is possible to book up to 9 more weeks annually in a Travel Club and just pay the $550 typically per week…. over 25 years you’ll pay $16, 500 per extra week whereas a supplementary timeshare would be Far more… basically you’re saving above $20, 000 for each extra week in comparison to a timeshare… the more you employ your club the financial savings get ridiculous!
2. You should have no maintenance fees, at any time! If you can’t travel in different given year or ever again, no big deal, you might never pay another dime… simply no contract locking in continuous fees.