Quote:
Originally Posted by docdvm
In an attempt to understand the costs of ownership to renting I believe it best to compare apples to apples. So let's say I rent a a 1 bedroom TS in Hilton Head for February and let's say 2 weeks. I believe the Marriott is a nice place and would sell the 2 weeks for over $20000.00 with, I believe MF over $1000.00 if you add in memberships (II) , etc. On the rental market I could likely get the TS for let's say $2500.00 which I believe is reasonable, No?
If I invest the $20000.00 for a 6 % return then I would generate $1200.00 albeit taxable income. I also avoid the management fee of $1000.00. Therefore is it worth tying myself into a contract for the rest of my life for a saving of a couple of 100 $$ at most. I also believe that I could rent the TS for less than $2500 in February so there goes the financial benefit.
From what we read on TS sales absolutely everyone suggests that the cardinal rule is to buy resale. Why? Because owners are taking a beating on resale letting their TS go so 20-50% off developer's prices. Why do you think that your resale will be worth more? Do you feel that 35 year old resorts will command higher prices? Do you think the special assessments when the resorts need refurbishing won't drive prices down? Add the fact that you will have no choice but to pay as that is your obligation.
So why should I buy instead of rent? Is it worth it?
|
NO! I honestly don't think timesharing makes a lot of sense for you. For me, with a big family and limited vacation time, yes, it does make sense. But for you, no, I'm not seeing it.
