Can someone fill me in on timeshares?

[Dannytsg]

I currently find myself in a position where I have the offer of a timeshare in a 6 berth lodge in Forrest hills, Aberfoyle.

I have done some google bashing and found some information but I'd like to be filled in by people who have currently or previously owned a time share.

Can anyone just give me general advice on the procedures of using a timeshare and also their experiences with them?

Cheers

 

[Teepee]

Like all timeshares, theres good and bad. Same with the resorts.

RCI is the most reputable and Forrest hills is RCI.

Basically, you buy that property for a specified week. You pay yearly maintainence charges on top. You can exchange your week, use it, or rent it out.

RCI hold a database of all exchanges and these can be anywhere in the world-you pay £150 I think to exchange your week. The higher the season you buy, the more exchange points you get and the better the options but its much more costly.

The first thing to do is read the reviews of the resort and go from there. If its a less well regarded resort, renting and exchanging will be harder.

All things equal, its no more costly than any other 5* accomodation.

No bad experiences yet, stayed in 30 or so over the years.

Like all things these days though, the deals are getting worse and worse value and the maintainence fees rising.

 

[plastic-ninja]

I used to sell these in a previous life.
My honest advice is Don't buy anywhere except Florida or
The English Lake District. These are the ones that are mOst
valued. Annual maintenance fees can be Hideous and fees to
swap your week can mean that you end up spending more than
a 5*hotel and remember that you are in self-catering lodge!
Do the sums very carefully and be sure that you will want
to stay at your resort at least a few times or buy somewhere
else.
Hth Simon

 

[Dannytsg]

Thanks for the advice.

The proposition I have is that the fellow who currently owns the timeshare is downsizing. They have offered to pay this years maintenance on the property which is £500 if we goth through with the transfer of deeds. The week allotted is week 17 which I believe to be from the last Saturday in April for a week which can also be rented out or exchanged.

I am just wondering if it would appear to be a wise investment as its a lovely part of the world and there would be nothing else to pay other than the yearly maintenance I assume.

What are the opinions on this?

 

[Andy BB]

From a financial point of view, you need to look at "lost income" from your capital investment, as well as the potentially open-ended commitment to maintenance fees. In this case you are sinking at least 500 pounds a year in maintenance fees, plus lost interest in whatever the capital outlay is. (And its not just the 2-3% return on the capital amount you can get from a building society that you need to consider - credit card debt can be anywhere from 15 to 40+% per annum, mortgages/loans etc are also costing you well above 2-3%).

Time-share is a hugely profitable enterprise for those with the buildings. Consider that they are clawing in - in this case - 26,000 pounds a year just on maintenance fees for one room. That's ignoring the initial capital they got for this room and the interest they earn on it after paying for the building. and its all inflation-proof to them - they just put up the maintenance fees if they need a bit more cash, or claim back the week and re-sell it if maintenance fees aren't paid.

Do you think you can get a better holiday for the week elsewhere for the realistic cost of that week? Do you want to be tied down to just one location for the next X years? (treat the "swaps" process with a certain degree of caution) Are you sure you cannot put the capital involved to better use? Are you willing to tie the capital cost up for an indefinite period, with no guarantee of getting it back?

 

[Dannytsg]

This is my dilemma. It seems reasonably affordable at present but my concern is the ease of swapping or transfer in future circumstances.

Thanks for the advice.