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Hotels vs. Timeshares, Which is Best

April 13th, 2010 No comments

If you are considering buying or even selling a timeshare you need to take a hard look at some facts and crunch some numbers before you make any commitments. Lets take a hard look at the actual differences between staying in a hotel or staying in a timeshare.

First, the largest expense on many holidays is the room and board. The average cost of a hotel room is above $100 and this is a national average, not taking into account highly desirable areas that people go on vacation. It is also not taking into account that on a vacation you often need more space than just one or two beds. This $100 fee will almost most certainly not get you any type of special amenities, a W/D, in room kitchen, or multiple televisions.

Many booking fees for vacation club timeshares stand at about $100 for the entire stay. When you contrast that with the $300-400 you will pay at a desirable vacation destination per night you are not even in the same ball park. Seven nights at a mid level resort will easily cost you $3000, plus taxes, flights, and activities on your vacation.

If you consider that you will take 2 weeks of vacation per year you are looking at $6000 easy in hotel bills. You would have to pay almost $40,000 for a timeshare to have a bill in the neighborhood of $6000 per year. That is considering a 10% interest rate and a 10 year payment term. Both of which you can reduce.

That said. The $6000 a year you spend on hotel bills is money that is gone. You will never see it again and you will certainly not be able to go back to the same resort for $100 the next year. Compare this to a timeshare that is paid off by your $6000 per year in ten years. At which point you can pay your booking fee and your yearly maintenance fee and take a vacation that is much cheaper than $3000 for 7 nights.

I am not going to try to tell you that a timeshare is a good investment because there are much better avenues to wealth but it is a much better alternative than throwing your money at hotels. So, if you are considering buying a timeshare, buy right and if you are considering selling a timeshare, think about the numbers before you sell.

Sell A Timeshare

February 28th, 2010 No comments

Did you know that Florida has more time shares than any other state in the United States? And Orlando is the king of the time share cities? Coming second in popularity is the great state of Colorado. Not only does Colorado have skiing in the winter, it has the Rocky Mountain summers to offer. Summers of hiking, backpacking and mountain climbing or just gazing at the breathtaking views.

And California is not far behind with it’s diverse climates and outdoor activities. Lake Tahoe is always a popular, year around time share haven. If you are looking for great shows, entertainment and gaming, there is always ever-popular Las Vegas. You can buy a time share tucked away in a quiet area or right in the middle of the activities.

Why are time shares so popular? Time shares offer elegant accommodations in popular locations at an attractive price. However, time shares are a major investment and should be carefully considered. Not everyone needs or should buy a time share. The added values time shares give to vacationers would help many, if not most, people. People that take vacations at the same time every year will enjoy the convenience of a time share in an area they love to visit. On the other side, many people get sick of going to the same place every year and decide to be one of the many to sell a timeshare after just a few short years.  Be aware you will still have to pay the maintenance cost of your unit if you fail to sell your time slot. So plan before you buy how you will get the most benefit from your time share.

Time shares are very expensive to sell considering their initial cost. The resorts include these marketing costs in the price of the time share to the new buyer. Potential buyers are plied with attention, gifts, wined and dined to entice them to invest in the time share.  When you compare this type of marketing with a direct mail promotion, you can see how much more the wining and dining way costs. Plus the wining and dining only works on one buyer at a time. And you, as a new time share owner, get to pay for it. This causes the time share to drop in value, as soon as it is purchased. According to sell my timeshare news about 50% of the value is lost as soon as the purchase is made. Therefore, time shares are not a way to increase your financial porfolio or to make money on. If you are a smart shopper, you can pick up a resale time share for a lot less than the resort’s offer.