Companion Article
Let’s face it, the public’s perception of buying a timeshare hasn’t quite inspired a warm fuzzy feeling. Regardless of how anyone feels about buying vacation ownerships, it’s estimated that over 1 million people in the U.S. currently own timeshares, and even in this economy the public will buy millions of dollars of timeshares each year. Is this a total fluke? Are these ownership numbers solely the handy work of a retail sales model with lasers set to kill? Do hotels have the advantage?
While we can appreciate that timeshares aren’t for everyone, and yes, many people that buy from a presentation end up regretting it later, we have to point out that all of the vacation clubs that we broker maintain very high owner satisfaction ratings, in many cases into the 80% range. And while you can’t please them all, we can help you find out why many owners enjoy their timeshares.
1.) Cheaper Than Hotels
Let’s explore the costs of a 7,000 Point Platinum Package at Hilton’s Las Vegas on Paradise. This account offers the owner 7,000 points each year which can be used to travel to any of the HGVC resorts. 7,000 HGVC Club Points equates to a 2 bedroom unit in Platinum season at Las Vegas on Paradise. Savvy power users could get as much as 2 weeks of vacation time, but for the purposes of unbiased comparison we’ll just go week for week.
Example
$1,400 Your weekly cost for a room in hotels*
x 30 Number of years of vacationing
———-
$42,000.00 Total cost in today’s U.S. dollars**
* Assuming $200/night
** Before inflation
With a timeshare, you can purchase an HGVC account that yields 7,000 points every year for under $8,000.00 on the resale market, and annual maintenance totals $855.13. Your equation becomes:
$855.13 Your annual maintenance fee
x 30 Years of vacationing
———-
$25,653.90 Total maintenance fees (as of 2014)
+ 8,000.00 Upfront purchase price (as of 2014)
———-
$33,653.90 Total cost of timeshare ownership
–
We have come to a grand total savings of approximately $8,300.00. While you may be able to get hotel rooms for less than $200.00 per night in some select areas, you will be hard-pressed to find a 2 bedroom condo with full kitchen, and if you do happen to find that at a hotel, it might cost considerably more than $200.00.
–
2.) More Accommodations Than Hotels
Timeshare resorts offer an experience closer to the accommodations you have in your own home. Simply put, you would be hard-pressed to find a 2 bedroom, 2 bathroom hotel room complete with in-unit laundry facilities and a full kitchen. Especially at the cost of a timeshare reservation. Some timeshare resorts even feature 4 bedroom units for large families and reunions. Units come stocked with all kitchen utensils, dishes, silverware, cooking spices etc.. Also, unlike a vacation home you won’t need to bring towels or sheets.
3.) Liquidity / Transferrable
Contrary to popular belief, many timeshares are resold each day. Resale accounts sell for massively discounted prices when
compared to retail presentations. While this can be great for the first-time buyer, it can mean horror and shock that for those who bought at a presentation for full price. This sudden depreciation may explain a lot of the bad emotions the public has towards timeshares, but when you buy resale this is not an issue. You have beat the depreciation, like buying a used car just minus the “wear and tear” factor. The vast majority of the ownerships we broker offer
First Right of Refusal, which help protect liquidity and resale value.
4.) Consistency in Price of Travel
If you noticed the asterisks in #1 above, you saw that hotel prices are equated in today’s dollar value and current costs. By pre-paying for your vacations, you can beat out some of the inflation that has yet to come to hotel prices in the coming years.
5.) Flexible Points-Based Ownerships
Timeshares no longer mean vacationing on the same week of the year, to the same resort every single year. Modern points-based ownerships offer a lot of flexibility. HGVC alone offers over 50 resorts at which you can spend your credits.
6.) International Travel Through Trade
Through trading your ownership, you can travel to many international resorts. With RCI alone (a popular trading company), you have literally over 6,000 resorts you can trade with that are located all across the globe. To learn more about trading you can read our
timeshare exchange information page.
7.) Pushes You To Travel
So many Americans put off getting away. Even with being a respected super-power, our country has some of the lowest vacation time rates in the world. Timeshare owners are more likely to actually travel in the year. By pre-paying for your vacations, you are committing to a lifestyle of building memories with your friends and family. Some people are not ready for that commitment, and therefore shouldn’t own, but if you find yourself always saying “next year”, a timeshare may just be the extra little nudge you need to take that valuable vacation time.
8.) Plan Ahead
Using Hilton as an example, you can book up to 12 months in advance. You can cancel without penalty if done within 30 days of the reservation’s date. For this reason, HGVC owners almost always have a vacation booked, and an adventure to look forward to.
9.) Property Ownership
Many vacation ownerships work on a deeded system, meaning you own perpetual real property that can be gifted, sold or willed.
10.) Less Work Than A Vacation Home
When compared to the cost of buying a vacation home, a timeshare is extremely economical, infinitely more flexible, and a lot less to maintain.
Not convinced yet?
Don’t worry, timeshares aren’t for everyone. If you are still on the fence about whether or not a timeshare lifestyle is for you, you can get much more useful information on our timeshare blog. Alternatively, feel free to contact us for a free consultation with a licensed agent.
